Columbia Sportwear declared its results for the quarter. The company has stated that sales of its popular brands such as Sorel, Mountain Hardwear and outdoor clothing have helped the company make a 40 percent increase in its profits. Columbia reported Thursday that it earned $36.7 million, or $1.08 per share, for the period that ended Dec. 31. That’s down from $26.2 million, or 77 cents per share, for the same quarter last year.
Revenue has increased by 15 percent over the previous year. The company factored in the extended winter season as the key driver for increase in sales. The results were in par with the analysts expectations. Columbia earned $103.5 million, or $3.03 per share, for the full year, compared with $77 million or $2.26 per share last year. Revenue increased 14 percent to $1.69 billion.
Commenting on the results CEO Tim boyle stated that “However, our business is not fully insulated from the effects of this year’s unusually warm winter globally, or from the macro-economic challenges that continue to cloud the European and U.S. marketplaces.” The company expects low single-digit sales growth for the full year, compared with the 19 percent and 14 percent gains it made in the past two years, respectively.’
The company has also issued a positive review on its future earnings. The company has set a target of $364 million for the next period. Columbia also said that it will pay a dividend of 22 cents per share on March 8, to its shareholders as of Feb. 23.
With strong performances from the brands we believe the company is well positioned to make significant top line growth over the future. We maintain a buy on the stocks and maintain a holding period of over three months on the scrip.