Media reports confirm that
Columbia Sportswear Company
) has issued yet another recall of battery packs used in its
electrically heated jackets. Columbia Sportswear believes that
the defective batteries were sold at nine U.S. retail stores
affecting 33 jackets across several states.
The original recall was with respect to batteries sold with
220 jackets roughly a year ago. The defective batteries were
overheating, which increased the chances of a fire breaking out.
The battery fell into the Omni-Heat Electric Wader Widgeon,
Omni-Heat Electric Big Game and Omni-Heat Gale Warning
Last year, they were sold to the European countries of
Austria, France, Germany, Spain and the U.K. between June and
November 2011. No casualties were reported.
The problem this time was because of some of the defective
batteries finding their way back into inventories due to clerical
errors (both human and machine-generated). Columbia
Sportswear has said that aggrieved customers would be able to
recover free replacements upon providing the concerned part
The repeated recall of its products has a risk of affecting
the reputation and sales of the company. However, since the
number of batteries affected is very small, we feel that this
will not be detrimental to the company's fundamentals.
The company earnings fell 5.0% to $1.88 in its recently
concluded third quarter of 2012. Net sales in the Apparel,
Accessories and Equipment category fell 2% from the year ago
The batteries were manufactured in China, each costing $79
online. The complete jacket set is priced at between $900 and
Currently, Columbia Sportswear, which competes with
), has a Zacks Rank #3 (Hold).
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