For the first quarter ended March 31, 2015, operating income soared 24 per cent year on year at apparel marketer and NASDAQ listed, Columbia Sportswear Company.
According to a Columbia Sportswear press release, first quarter of 2015 operating income increased 24 per cent to $44.1 million from the first quarter of 2014, equating to 9.2 percent operating margin.
Net income in the reporting quarter totaled $26.5 million, or $0.37 per diluted share, up 19 per cent compared with first quarter of 2014 net incomef $22.3 million, or $0.32 per diluted share.
Columbia Sportswear said it reported first quarter net sales of $479.0 million, a rise of $54.9 million, or 13 percent as against the same quarter of its previous year.
“First quarter of 2015 includes a 4 percentage point negative effect from changes in currency exchange rates,” the sportswear marketer added.
The prAna brand, which the company acquired on May 30, 2014, contributed $37.1 million of incremental net sales during the quarter.
First quarter of 2015 US net sales hiked $42.6 million, or 18 per cent year over year which also includes $30.8 million of incremental Prana sales.
Net sales in Canada grew higher at 28 per cent to $7.4 million and had a 12 percentage point negative effect from changes in currency exchange rates.
The company generated $28.7 million in operating cash flow and finished the quarter with $454.5 million in cash and short-term investments, compared with $567.6 million at March 31, 2014.
Consolidated inventories of $363.7 million at March 31, 2015 were $73.5 million or 25 per cent higher compared with the $290.2 million balance at March 31, 2014.
Excluding approximately $18.3 million of incremental Prana brand inventory, consolidated inventories at March 31, 2015 increased $55.2 million, or 19 per cent.
“The vast majority of inventory growth was concentrated in North America, commensurate with stronger wholesale orders and the company’s expanding direct-to-consumer business,” it informed.
CEO Tim Boyle said, “2015 is off to a strong start, building on the momentum we created in 2014 behind the Columbia, Sorel and Prana brands.”
“We are experiencing exceptional sell-through in North America through the first half of the spring season and our European business has returned to growth,” Boyle too added.
According to Boyel, Sorel is poised for a very strong second half and full year net sales of more than $200 million, while Prana remains on pace to deliver annualised growth of more than 20 per cent.”
“Our strong balance sheet is enabling us to invest in our expanded portfolio of active brands, while we continue transforming our global operations to fuel and support sustainable, profitable growth,” he noted.
For 2015, the company continues to expect high single-digit net sales growth compared to 2014 net sales of $2.1 billion.
The company expects 2015 gross margins to improve by approximately 50 basis points and SG&A expenses to increase at a rate slightly lower than anticipated sales growth.