Columbia Sportswear Company announced fourth quarter net sales increased 17.2% to $301.8 million for the quarter ended December 31, 2004, compared to net sales of $257.4 million for the same period of 2003. Net income for the fourth quarter increased 22.4% to $39.4 million, or 97 cents per diluted share, versus net income of $32.2 million, or 79 cents per diluted share, for the year-ago period.
U.S. sales increased 15.4% to $181.1 million, Other International sales increased 25.3% to $44.1 million, European sales increased 18.9% to $44.0 million, and Canadian sales increased 15.2% to $32.6 million for the fourth quarter of 2004.
Excluding changes in currency exchange rates, consolidated net sales increased 14.6%, Other International sales increased 22.2%, European sales increased 9.7%, and Canadian sales increased 6.5% for the fourth quarter of 2004, compared to the same period last year.
For the fourth quarter of 2004, sportswear sales increased 37.5% to $80.7 million, outerwear sales increased 10.5% to $154.7 million, footwear sales increased 18.9% to $52.8 million, equipment sales increased 11.1% to $1.0 million and accessories sales decreased 6.0% to $12.6 million, compared to the fourth quarter of 2003.
Tim Boyle, Columbia’s president and chief executive officer, commented, “We are very pleased with our outstanding fourth quarter financial results. Despite unseasonable weather conditions in many key markets, sales growth was exceptional in our sportswear and footwear product categories, and sales of outerwear products were strong in Europe and Other International markets. Our diversified line of outdoor products and the expanding geographic presence of our brands were key drivers of overall sales growth during the fourth quarter.”
For 2004, the Company reported net sales of $1,095.3 million, an increase of 15.1% over net sales of $951.8 million for 2003. The Company reported record net income for 2004 of $138.6 million, a 15.4% increase over net income of $120.1 million for 2003. Earnings per share for 2004 were $3.40 (diluted) on 40.8 million weighted average shares, compared to earnings per share of $2.96 (diluted) for 2003 on 40.6 million weighted average shares.
Compared to 2003, U.S. sales increased 11.7% to $666.7 million, European sales increased 26.0% to $170.3 million, Other International sales increased 25.0% to $141.4 million, and Canadian sales increased 9.6% to $116.9 million for 2004.
Excluding changes in currency exchange rates, consolidated net sales increased 12.1%, Other International sales increased 21.7%, European sales increased 14.0%, and Canadian sales increased 2.0%, compared to 2003.
For 2004, sportswear sales increased 27.3% to $396.4 million, footwear sales increased 24.2% to $184.6 million, outerwear sales increased 3.7% to $460.3 million, equipment sales increased 68.1% to $7.9 million, and accessories sales increased 6.0% to $46.1 million, compared to 2003.
Mr. Boyle commented, “During 2004, we made significant personnel and distribution related investments, which we believe were necessary to help us maintain our operational excellence and continue to develop exceptional products. We are confident that these expenditures, consistent with prior investments in our design, merchandising, sourcing and distribution infrastructure, will help us create and exploit long-term growth opportunities and diversify our revenue base as we strengthen our position as a comprehensive outdoor brand.”
Mr. Boyle continued, “Based on our current outlook and our spring order backlog, we currently believe that our strategies will enable us to generate first quarter 2005 revenue growth of approximately 15% and we expect net income to remain flat compared to the first quarter of 2004. As a reminder, spring product sales account for a relatively smallpercentage of our overall business; the bulk of our revenues and profits historically come in the second half of the year. It is difficult for us to gauge revenue and profitability levels for the full year 2005 until we have more visibility into the fall 2005 season. In keeping with our standard practice, we will announce our fall 2005 backlog in our first quarter 2005 earnings release. At that time we will give guidance for the full year. Please note that these projections are forward-looking in nature and are based on backlog and forecasts, which may change, perhaps significantly.”
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ---------------------
2004 2003 2004 2003
-------- -------- ---------- --------
Net sales $301,776 $257,429 $1,095,307 $951,786
Cost of sales 167,344 137,024 597,373 511,101
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Gross profit 134,432 120,405 497,934 440,685
44.5% 46.8% 45.5% 46.3%
Selling, general, and
administrative 74,993 70,094 290,538 252,307
Net licensing income (960) (524) (4,032) (1,811)
-------- -------- ---------- --------
Income from operations 60,399 50,835 211,428 190,189
Interest income, net (620) (256) (3,493) (480)
-------- -------- ---------- --------
Income before income tax 61,019 51,091 214,921 190,669
Income tax provision 21,662 18,904 76,297 70,548
-------- -------- ---------- --------
Net income $ 39,357 $ 32,187 $ 138,624 $120,121
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Net income per share:
Basic $ 0.98 $ 0.80 $ 3.44 $ 3.01
Diluted 0.97 0.79 3.40 2.96
