Columbia Sportswear has reported declines in net sales and income for the first quarter, but management said the results were in line with the company’s profit improvement plan.
Net sales were down 6 per cent year on year to $770 million, mainly due to lower wholesale net sales in the US and Canada. The company cited a difficult and competitive environment and soft consumer demand.
By regions, sales in the US fell 8 per cent, while sales in EMEA and Canada were also down 4 per cent and 10 per cent respectively. Latin American and Asia Pacific saw a modest improvement of 2 per cent.
Operating income decreased 21 percent to $44.7 million, while net income dropped 8 percent to $42.3 million.
Chairman, president and CEO Tim Boyle said the results were broadly in line with expectations, adding that the company is on track to achieve its savings targets as part of the ongoing profit improvement plan.
“Our brand growth acceleration strategies across the portfolio are underway,” Boyle continued. “Our financial position remains strong, with approximately $788 million in cash and short-term investments, and no borrowings at quarter end.”
For the full year, the retailer continues to anticipate a 2-4 per cent decrease in net sales, but slightly raises its income outlook. Net income is expected to be $217 to $240 million compared to the previous $207 to $231 million.
“I’m confident in our team, our strategies, and our ability to achieve the significant long-term growth opportunities we see across the business,” Boyle concluded.
