• Net sales of $434.5 million for the quarter, a decrease of 4%
• Net income totalled $46.9m, down from $58.3m last year
• Company raises full year targets

Columbia Sportswear Company has reported a fall in net sales and income for its third quarter, though the results were better than expected, leading it to increase its full year sales target.

The outdoor apparel group reported net sales of $434.5 million for the quarter ended 30 September, a decrease of 4% compared to the same period of 2008.

Third quarter net income totalled $46.9m, or $1.38 per diluted share, compared with net income of $58.3m, or $1.69 per diluted share, for the same period of 2008.

Tim Boyle, Columbia's president and chief executive officer, said: "Third quarter results were significantly better than our July outlook, primarily due to greater than expected demand and resulting shipments of Fall 2009 products in the US, as well as a greater benefit from stronger international currencies. The gross profit from those incremental shipments dropped to the bottom line as we held spending within our original plan for the quarter."

The decrease in third quarter 2009 net sales consisted of a 13% decline in the EMEA region to $67.7m; a 1% decline in US net sales to $267.4m; a 4% decline in the LAAP region to $44.3m; and a 3% decline in Canada to $55.1m.

The company also reported that as of 30 September, Spring 2010 wholesale backlog was $350.8m, 5% lower than Spring 2009 wholesale backlog, including a benefit of 2 percentage points from changes in currency exchange rates. The decline in Spring 2010 wholesale backlog was concentrated in the Europe, Middle-East & Africa region (EMEA) where orders declined 22%. Spring 2010 wholesale backlog in the US, Canada and Latin America & Asia Pacific (LAAP) regions were each essentially equal to Spring 2009 wholesale backlog. Global apparel and footwear wholesale backlog each declined mid-single-digits on a percentage basis.

Boyle commented: "We are encouraged by our Spring 2010 backlog, which suggests we are gaining market share in the US. Our flat Spring 2010 US wholesale backlog compares favourably to the Spring 2009 backlog that included several retail accounts that liquidated or reorganised during 2009. The EMEA backlog decline primarily reflects the very difficult economic conditions in Russia."

The company has raised its outlook for fiscal year 2009 and now expects net sales to decline 8 to 9 % compared with 2008. The company previously expected 2009 net sales to decline at a low-double-digit percentage rate.

The company's revised outlook anticipates a mid-teens percentage decline in wholesale and distributor net sales compared with 2008, partially offset by incremental sales from the company's direct-to-consumer business.

Full year 2009 gross margins are expected to decline by approximately 100 basis points compared with 2008, primarily due to a higher volume of closeout product sales and the negative effects of foreign currency hedge rates. Full year 2009 operating margin is expected to decline approximately 300 basis points from 2008, which included a $24.7m impairment charge.

Boyle concluded: "We are encouraged by our improved outlook for 2009, but global economic conditions continue to be very challenging, particularly in Europe, and we are seeing early signs of economic slowdown in Japan for the first time in several years. These conditions will likely continue to pose challenges well into 2010. We remain committed to our strategy of bringing innovative products to outdoor consumers through our portfolio of outdoor brands."