• Q2 loss of $6.5m versus $6.3m
  • Sales up 17% to $380.2m
  • 2H set-up looks “appealing”, says analyst
Columbia Sportswear has lifted its full-year outlook

Columbia Sportswear has lifted its full-year outlook

US outdoor apparel and footwear specialist Columbia Sportswear has raised its full-year guidance, despite seeing its second-quarter loss widen.

The company's net loss amounted to US$6.5m for the three months to 30 June, compared to a loss of $6.3m in the same period a year ago.

Sales increased 17% to a record $380.2m from $324.2m last year, driven by strong sell-through of spring 2015 products in North America and Europe.

In the US, sales jumped 45%, while Canada reported a 27% increase and Latin America/Asia Pacific a 1% rise. However, the Europe/Middle East/Africa (EMEA) region saw sales decline 18%.

By brand, prAna reported the largest increase (+375%), followed by Sorel (+43%), and Columbia (+12%). Mountain Hardwear, however, saw sales slip 3%.

Apparel, accessories & equipment sales increased 18%, while footwear rose by 14%.

Gross margin expanded 70 basis points to 45.1% from 44.4%.

"We enter the fall season with robust momentum in North America behind our Columbia, Sorel and prAna brands," said CEO Tim Boyle.

"In addition, we are gaining traction with the Columbia brand in Europe, despite slow economic growth in that region. As planned, with earlier receipt of fall season inventory, we are very well positioned to deliver against our strong fall advance order book.

The company now expects full-year earnings per share to range from $2.25-2.35 from its earlier guidance of $2.15-2.25. Net sales are forecast to see low double-digit growth, up from its previous expectations of a high single-digit increase.

FBR&Co analyst Susan Anderson believes Columbia's second-half set-up looks "appealing", noting: "While uncertainty regarding winter weather remains, we are buyers of Columbia as it drives EBIT margin higher via its initiatives and product execution (potentially mid-teens over the next couple of years) and is recognised for its new status as an emerging growth story."