Columbia Sportswear saw strong global sales in the third quarter, but profits were hit by impairment charges linked to its Prana and Mountain Hardwear brands.
For the period ended September 30, net sales rose 1 per cent to $943.4 million and operating income fell 40 per cent to $67.4 million, representing 7.1 per cent of net sales.
CEO Tim Boyle said the company’s international segment continued to show steady improvement, driven by double-digit growth in Europe.
“This performance highlights how the brand is connecting with younger and more active consumers, which is a key part of our Accelerate Growth Strategy,” he said.
US sales fell 2 per cent, while sales in Europe, the Middle East, and Africa surged 26 per cent, those in Latin America and the Asia Pacific rose 13 per cent, and sales in Canada edged up 2 per cent.
By brand, the core Columbia business saw an 8 per cent lift, cushioning declines from smaller labels, including Sorel (down 10 per cent), Prana (down 6 per cent), and Mountain Hardwear (down 7 per cent).
Wholesale revenue climbed 14 per cent, partly owing to timing shifts, while direct-to-consumer sales dipped 1 per cent.
Boyle said the company is focused on reviving the brand through its new campaign, Engineered for Whatever.
“The early response has been very positive, and we plan to build on that momentum with more activations and media investments during the busy holiday season,” he added.
For the full year, Columbia expects net sales to be between $3.33 billion and $3.37 billion. Operating income is projected to be between $163 million and $185 million, including the write-downs associated with Prana and Mountain Hardwear of $29 million.
