Columbia Sportswear Q2 net sales grow by 8 percent

Outdoor apparel and footwear company Columbia Sportswear announced its financial results for the second quarter ended June 30, 2012. Its net sales rose 8 percent to 290.4 million dollars compared to 268 million dollars for the same period in 2011. Changes in currency exchange rates reduced the reported sales increase by 1 percent point.

Apparel, accessories & equipment net sales increased 22.9 million dollars, or 11 percent, to 240.9 million dollars. Footwear net sales of 49.5 million dollars were down 1 percent. Columbia brand net sales increased $21.6 million, or 9 percent, to $260.7 million, accounting for nearly all of the growth in the quarter.

The company ended the second quarter with 228.5 million dollars in cash and short-term investments, compared with 298.3 million dollars at June 30, 2011. The company continues to expect sales growth of up to 1 percent in fiscal 2012 and operating margin (including restructuring charges of approximately 4 million dollars recognized in the first quarter of 2012) comparable to the 8.1 percent operating margin achieved in fiscal 2011. Full year gross margins are expected to contract approximately 30 to 50 basis points, offset by slight SG&A expense leverage.

The company expects a mid-single digit decline in third quarter net sales, primarily due to the timing shift of shipments to distributors in the second quarter and an anticipated decline in third quarter wholesale net sales, partially offset by higher direct-to-consumer sales. Third quarter gross margin is expected to decline approximately 25 basis points and anticipated flat SG&A expense is expected to result in SG&A deleverage of approximately 125 to 150 basis points, resulting in third quarter operating margin contraction of approximately 150 to 175 basis points.

During the second quarter of 2012, the company repurchased approximately 4,480 shares of common stock at an aggregate purchase price of 206,000 dollars. Approximately $59 million remains under the current repurchase authorization. The repurchase program does not obligate the company to acquire any specific number of shares or to acquire shares over any specified period of time.

The board of directors authorized a third quarter dividend of 0.22 dollars per share, payable on August 30, 2012 to shareholders of record on August 16, 2012.

Columbia Sportswear is global outdoor apparel, footwear, accessories and equipment industry. Founded in 1938 in Portland, Oregon, Columbia products are sold in approximately 100 countries.