Columbia Sportswear Company
) fourth quarter 2012 earnings went up 8% to $1.15 from the year
ago quarter backed by disciplined cost management. The earnings
missed the Zacks Consensus Estimate by 5 cents.
Net sales slipped 5% from the year-ago quarter to $501.1 million.
The sales were within the guidance of a range of $499.0 million
and $503.0 million.
The decline in sales was due to mild cold during holiday
season, customer caution and reduced retail traffic that impacted
direct-to-consumer sales, as well as weakness at wholesale
customers in the U.S. Moreover, spring 2013 advance orders
shifted into the first quarter of 2013.
Gross profit declined 8.1% to $206.9 million due to lower sales.
Gross margin contracted 120 basis points to 41.3% during the
quarter. Operating income climbed 1.1% to $51.1 million due to
lower selling, general & administrative expenses.
Net sales in U.S. declined 7% to $273.8 million mainly due to
mild winter and ongoing economic challenges. In Europe/Middle
East/Africa (EMEA) region net sales slipped 20% from the year ago
quarter to $62.0 million due to negative effect from changes in
foreign currency exchange rates.
Net sales in Canada increased 5% from the year ago quarter to
$33.3 million, backed by positive foreign currency translation.
In Latin America & Asia Pacific net sales went up 6% to
Apparel, Accessories & Equipment net sales slipped 2% from
the year ago quarter to $392.3 million, and Footwear net sales
was $108.8 million, down 14 percent from comparable prior
Full Year 2012
Net sales decreased 1% to $1.67 billion from the year-ago
quarter mainly due to negative foreign exchange translation.
Earnings declined 3% from the year-ago quarter to $2.93 per
Other Financial Updates
The company ended the year with $335.4 million in cash as of
December 31, 2012 compared with $243.9 million at December 31,
The company expects 2013 net sales to remain flat compared to the
year-ago level. Full-year operating margin is expected to be
between 7.5% to 8.0% of sales.
For the first quarter of 2013 also, the company expects net
sales is expected to remain flat compared to year ago level.
Gross margin is expected to decrease between 120 and 170 basis
Other Stocks to Consider
Columbia Sportswear carries a Zacks Rank #5 (Strong Sell).
However, some other companies in the textile apparel sector that
warrant a look include
), all of which carry a Zacks Rank #2 (Buy).
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