Columbia Sportswear Company reported net sales increased 18.5% to $257.4 million for the fourth quarter ended December 31, 2003, versus net sales of $217.3 million for the same period of 2002. COLM reported net income for the fourth quarter of $32.2 million, a 10.5% increase over net income of $29.1 million for the same period of 2002. Earnings per share for the fourth quarter of 2003 were $0.79 (diluted) on 40.9 million weighted average shares, compared to earnings per share of $0.72 (diluted) for the fourth quarter of 2002 on 40.3 million weighted average shares.
Compared to the fourth quarter of 2002, European sales increased 60.2 percent to $37.0 million, Other International sales increased 9.8 percent to $35.2 million, U.S. sales increased 7.6 percent to
$156.9 million, and Canadian sales increased 13.7 percent to $28.3
million for the fourth quarter of 2003.
Excluding changes in currency exchange rates, Other International
sales increased 42.6 percent, European sales increased 35.6 percent,
and Canadian sales decreased 4.0 percent for the fourth quarter of
2003. Consolidated net sales for the fourth quarter of 2003 increased
13.1 percent to $245.7 million, excluding changes in currency exchange
rates, compared to the same period of last year.
Sportswear sales increased 44.2 percent to $58.7 million, footwear
sales increased 29.8 percent to $44.4 million, outerwear sales
increased 7.0 percent to $140.0 million, and accessories sales
increased 15.5 percent to $13.4 million, compared to the fourth
quarter of 2002. Mountain Hardwear, a subsidiary we acquired on March
31, 2003, contributed $8.4 million in sales for the fourth quarter.
Equipment sales, a new category consisting of tents and sleeping bags
sold by Mountain Hardwear, were $0.9 million for the quarter.
Tim Boyle, Columbia's president and chief executive officer,
commented, “We are very pleased with our outstanding fourth quarter
financial results. Sales growth continued globally in our sportswear
and footwear product categories during the quarter. While soft in the
U.S., sales of outerwear products were very strong in Europe and Other
International markets, demonstrating the opportunity to grow this
category in less mature markets. International sales growth, favorably
affected by foreign currency valuations, was strong in diverse markets
such as Europe and Japan, as Columbia brands extend to geographic
markets worldwide.”
For 2003, the Company reported net sales of $951.8 million, an
increase of 16.6 percent over net sales of $816.3 million for 2002.
The Company reported record net income for 2003 of $120.1 million, a
17.2 percent increase over net income of $102.5 million for 2002.
Earnings per share for 2003 were $2.96 (diluted) on 40.6 million
weighted average shares, compared to earnings per share of $2.56
(diluted) for 2002 on 40.1 million weighted average shares.
Compared to 2002, U.S. sales increased 7.0 percent to $596.8
million, European sales increased 41.0 percent to $135.2 million,
Other International sales increased 48.4 percent to $113.1 million,
and Canadian sales increased 23.1 percent to $106.7 million for 2003.
Excluding changes in currency exchange rates, Other International
sales increased 43.5 percent, European sales increased 18.5 percent,
and Canadian sales increased 9.6 percent for 2003. Consolidated net
sales for 2003 increased 12.1 percent to $914.8 million excluding
changes in currency exchange rates, compared to fiscal 2002.
Sportswear sales increased 27.0 percent to $311.3 million,
footwear sales increased 35.1 percent to $148.6 million, outerwear
sales increased 5.0 percent to $443.7 million, and accessories sales
increased 12.7 percent to $43.5 million, compared to 2002. Mountain
Hardwear contributed $27.8 million in sales during 2003, including
equipment sales of $4.7 million for the year.
Mr. Boyle continued, “Our solid fiscal 2003 results, achieved in a
difficult environment for many of our retailers, demonstrate the
global strength of our brands. Our strategy of diversifying product
lines and geographic distribution was a key driver in 2003 sales
growth. For the first time in company history, the combined sales of
our sportswear and footwear products made up a majority of
consolidated sales during a fiscal year.”
“International sales growth, strengthened by currency valuations,
was vigorous in all product categories. International sales, as a
percentage of total revenues, increased more than 5 percentage points
to constitute more than 37 percent of consolidated revenues in 2003.
Moreover, our acquired Sorel and Mountain Hardwear brands provide
opportunities to further penetrate additional markets and distribution
channels. Overall, we maintain a strong balance sheet and are well
positioned to continue to execute our strategies of diversifying our
product and geographic revenue base while maintaining a keen focus on
expense control and capital investment to strengthen the company
long-term.”
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 2004 revenue growth of 19 to 21 percent and
net income growth of 14 to 16 percent compared to the first quarter of
2003. As a reminder, spring accounts for a relatively small percentage
of our overall business; the bulk of our revenues and profits
traditionally come in the second half of the year.
“It is difficult for us to gauge revenue and profitability levels
for the full year 2004 until we gain more visibility into the fall
2004 season. In keeping with our standard practice, we will announce
our fall 2004 backlog in our first quarter 2004 earnings release. That
said, based on our current estimates for the full year 2004, we
anticipate net sales growth in the low double digits, and net income
growth of up to 10 percent, compared to 2003. 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,
------------------- -------------------
2003 2002 2003 2002
---- ---- ---- ----
Net sales $257,429 $217,321 $951,786 $816,319
Cost of sales 137,024 114,816 511,101 437,782
-------- -------- -------- --------
Gross profit 120,405 102,505 440,685 378,537
46.8% 47.2% 46.3% 46.4%
Selling, general, and
administrative 69,570 56,202 250,496 214,862
-------- -------- -------- --------
Income from operations 50,835 46,303 190,189 163,675
Interest (income) expense,
net (256) (316) (480) (354)
-------- -------- -------- --------
Income before income tax 51,091 46,619 190,669 164,029
Income tax provision 18,904 17,482 70,548 61,511
-------- -------- -------- --------
Net income $ 32,187 $ 29,137 $120,121 $102,518
======== ======== ======== ========
Net income per share:
Basic $ 0.80 $ 0.74 $ 3.01 $ 2.60
Diluted 0.79 0.72 2.96 2.56
