Columbia Sportswear

Columbia Sportswear Q3 Profit Surges, Led by Sorel

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Columbia SportswearPortland, OR—Columbia Sportswear reported Tuesday a third quarter profit that beat analysts expectations, lead by a surge in demand for its Sorel brand.

Strong growth in international markets also helped Columbia Sportswear to report a 29% surge in third quarter profit. Net sales up 12% to $566.8 million.

Its Sorel brand, which saw a 116% revenue increase off a small base, while sales for the core Columbia brand were up 4% and Mountain Hardwear revenues rose 17%.

All geographical divisions recorded revenue growth, led by EMEA (up 51%) and LAAP (up 23%), while growth was more subdued in the United States (up 2%) and Canada (up 13%).

Footwear sales surged up 55% and accessories and equipment revenues were up 23%, but outerwear was flat and sportswear increased by 7%.

“Our third quarter sales growth reflects the previously reported increase in our fall season backlog, as well as strong performance in our global direct-to-consumer business,” said Tim Boyle, Columbia president/ceo. “Improved operational execution resulted in a significant reduction in airfreight costs and produced meaningful operating margin leverage.

“Our increased profitability outlook for the full year reflects the strength of the third quarter and our expectations for continued growth through the remainder of the year.”

Columbia expects full-year net sales to rise by 15  to 16%, following a predicted 18 to 20% revenue surge in the fourth quarter.