Dive Brief:
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Columbia Sportswear Co. logged a second-quarter net loss of $8.2 million, or 12 cents per share, with overseas sales struggles overshadowing a 2.2% increase in same-store sales, the company said Thursday. The outerwear manufacturer and retailer posted a loss of $6.5 million, or 9 cents per share, in the second quarter of 2015.
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While Columbia reported revenue of $388.7 million, a Q2 record, Wall Street analysts expected a loss of 17 cents per share on on revenue of $392.2 million.
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Overall sales rose rose 8% in the U.S. and 20% in Canada, Columbia said, citing mid-teen percentage growth in its direct-to-consumer channels and low single-digit percentage growth in wholesale channels. Shares fell 4.2% to $57 in late trading Thursday.
Dive Insight:
Columbia Sportswear is getting hit by the strong dollar and economic headwinds overseas, but CEO Tim Doyle said that e-commerce sales, cost cutting and careful discounting are keeping things on track.
The outerwear company downplayed its Q2 results somewhat, saying net losses often appear during the second quarter, which accounts for the lowest percentage of its annual revenue.
“Our successful first half results were highlighted by solid growth from three of our four major brands and improved gross margins in a challenging global environment,” Boyle said in a statement. “High-single-digit wholesale growth and low-20-percent direct-to-consumer growth in the U.S., combined with mid-20-percent constant-currency growth in Europe-direct markets and 20 percent constant-currency growth in Canada, demonstrate that we gained market share in each of these important geographies during the first half of 2016."
Through the first six months of 2016, Columbia net sales grew 6% to $913.9 million, compared to $859.2 million in the first half of 2015. First-half 2016 operating income declined 8%, to $32.5 million, compared to $35.2 million in the first six months of the previous year.