Outdoor Apparel Group Columbia2019 Sales Exceeded $3 Billion In Fiscal Year

Recently, the US outdoor apparel group ColumbiaSportswearCompany (Columbia, hereinafter referred to as "Columbia") announced the key financial data in fiscal year 2019, and net sales for the first time exceeded $3 billion. This is mainly due to the strong growth of the shoe department, especially the Sorel brand in the fourth quarter.

Columbia said: "2019 was a record year for Columbia, and sales for the first time in the company's history exceeded 3 billion dollars. I would like to congratulate and thank our staff around the world for their hard work and dedication to our success.

The last quarter of 2019 is also a period of Columbia change. GertBoyle, the female head of Columbia, died in November 2019. (see "ornate ambition": the female head of the American outdoor apparel giant Columbia died at the age of 95: from a housewife to a world-class female entrepreneur) her son TimBoyle has been the chief executive of Columbia since 1988. After the death of GertBoyle, TimBoyle was appointed as the new chairman of the company. AndyBryany, long serving as director, was appointed chief independent director.

In a press release released last Thursday, TimBoyle said that the image and portrait of the mother will continue to be an integral part of the Columbia brand.

TimBoyle also outlined some strategic priorities for the 2020 fiscal year, including improving brand awareness and sales growth, enhancing customer experience and digital capabilities, improving the global DTC business, and investing in talent while optimizing the company's organizational structure.

Columbia currently expects net sales in the 2020 fiscal year to be between $3 billion 180 million and $3 billion 230 million, an increase of 4.5% to 6%. Operating profits ranged from $3.99 to $412 million, with operating margins of 12.6% to 12.8%. Net profit is expected to range from $325 million to $335 million, and earnings per diluted share are expected to be between $4.75 and $4.90.

However, the company pointed out that this performance is not expected to take into account the potential impact of the new crown virus outbreak in China. "In regard to the outbreak of new coronavirus, our primary task is to take appropriate measures to ensure the health and safety of employees and customers," Columbia said in a statement. Therefore, we closed down some of our stores in China, implemented strategies to mitigate the impact on Chinese employees, and implemented a company wide travel restriction. The potential impact of the epidemic is extensive, including the impact on our DTC and wholesale business. We have found that the number of stores that still open in China and overseas stores benefiting from China's tourism are decreasing. In addition, our supply chain also has potential operational implications.

The key financial data of Columbia group in fiscal year 2019 are as follows:

Net sales reached a record $3 billion 40 million, an increase of 9% over the previous year's US $2 billion 800 million and an increase of 10% according to the constant exchange rate.

Operating profit increased 13% to a record $395 million.

Net profit of $330 million 500 thousand, diluted earnings per share of $4.83, an increase of 23% over the previous year's $268 million 300 thousand or $3.81 per share.

By Sector

Shoe sales: net sales increased by 15% to $701 million 300 thousand.

Clothing, accessories and equipment: net sales increased by 7% to $2 billion 341 million 200 thousand.

By brand

Sorel: net sales increased 21% to $314 million 200 thousand.

Columbia: net sales increased 9% to $2 billion 487 million 700 thousand.

MountainHardwear: net sales of $89 million 100 thousand.

PrAna: net sales fell 4% to $152 million 500 thousand.

By Region

Us: net sales increased 12% to US $1 billion 943 million.

Europe, the Middle East and Africa (EMEA): net sales increased by 5% to $367 million 100 thousand.

Canada: net sales increased 5% to $203 million 100 thousand.

Latin American Asia Pacific region (LAAP): net sales of $529 million 300 thousand

The key financial data for Columbia for the fourth quarter of fiscal year 2019 as of December 31, 2019 are as follows:

Net sales increased by 4% to a record $954 million 900 thousand, compared with $917 million 600 thousand a year ago.

Operating income fell 9% to $138 million 600 thousand.

Net income increased by 1%, totalling $144 million, and diluted earnings per share grew by 2% to $1.67, compared with $113 million 300 thousand and $1.63 a year earlier.

By Sector

Shoe sales: net sales increased by 12% to $256 million 600 thousand.

Clothing, accessories and equipment: net sales increased by 1% to $698 million 300 thousand.

By brand

Sorel: outstanding performance, net sales of $143 million 500 thousand, an increase of 13% over the same period last year.

Columbia: net sales increased by 3% to $751 million 100 thousand.

MountainHardwear: net sales amounted to $27 million 200 thousand, an increase of 4%.

PrAna: poor performance, net sales fell 10% to $33 million 100 thousand.

By Region

Us: net sales increased by 8% to US $634 million.

Europe, the Middle East and Africa (EMEA): net sales increased by 7% to $99 million 800 thousand.

Canada: net sales fell 10% to $49 million 500 thousand.

Latin American Pacific region (LAAP): net sales fell 4% to $171 million 600 thousand.