Portland, OR—Columbia Sportswear Company reported Thursday that is narrowed its second quarter loss as sales increased.
For the quarter ended June 30, the sports apparel and accessories company posted a net loss of $6.3 million or 18 cents a share, narrower than last year’s loss of $7.1 million, or 21 cents a share.
Net sales increased 16% to $324.2 million from $280.5 million last year.
Footwear Up 37%
Analysts’ average estimate expected a loss of 34 cents a share on revenues of $321.22 million.
“Our first half performance, coupled with the confidence we have in our brands, our line-up of innovative products, and our global team, led us to increase our full year 2014 financial outlook. We believe we are beginning to make meaningful, sustainable progress toward our goal of improving our profitability,” the company said.
The second quarter is the company’s smallest revenue quarter, historically accounting for a mid-teens percentage of annual net sales. As a result, regional, category and brand net sales results often produce large percentage variances in relation to the prior year’s comparable period due to the small base of comparison and shifts in the timing of shipments.
Apparel, Accessories & Equipment net sales increased $27.3 million, or 12%, to $263 million. Footwear net sales increased $16.4 million, or 37%, to $61.2 million. Columbia brand net sales increased $38.5 million, or 15%, to $291.0 million, and the newly-acquired prAna brand contributed $5.5 million of incremental net sales.
During the second quarter, the company completed its previously announced acquisition of prAna Living LLC for $188.5 million, net of acquired cash. The company ended the second quarter with $394.4 million in cash and short-term investments, compared with $430.6 million at June 30, 2013.
Approximately 54% of cash and short-term investments was held in foreign jurisdictions where a repatriation of those funds to the United States would likely result in a significant tax cost to the company.
Looking forward, Columbia Sportswear now anticipates full year net sales growth of 19% to 21% to between $2.01 billion and $2.04 billion. Earlier, the company expected sales growth of 16% to 18%.
Analysts currently estimate sales of $2.01 billion or 19.4% growth.