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Columbia Sportswear Company Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 9, 2012 03:25PM
Columbia Sportswear Company (COLM) filed Quarterly Report for the period ended 2012-03-31. Columbia Sports has a market cap of $1.68 billion; its shares were traded at around $46.7 with a P/E ratio of 17.7 and P/S ratio of 1. The dividend yield of Columbia Sports stocks is 1.8%.
Highlight of Business Operations:We believe there is potential for limited growth in our full year 2012 net sales compared to 2011 as a result of the unseasonably warm 2011/2012 winter and a challenging economic environment in Europe, both of which have subdued retailer confidence as they plan their orders for the Fall 2012 season. We expect full year 2012 SG&A expenses to increase at a comparable rate to anticipated net sales as a result of cost containment measures executed in the first quarter of 2012, which included a reduction in global headcount, curtailment of various compensation and benefit increases, and reduction in travel, event and other discretionary spending.
Columbia brand net sales increased for the first quarter of 2012 compared to the first quarter of 2011, offset by net sales decreases in the Sorel and Mountain Hardwear brands. The Columbia brand net sales increase was led by the LAAP region, followed by the United States, partially offset by net sales decreases in the EMEA region and Canada. The decrease in Sorel brand net sales was driven by the unseasonably warm winter which negatively affected consumer demand for cold weather footwear.
SG&A expense increased to 43.4% of net sales for the first quarter of 2012 from 40.3% of net sales for the comparable period in 2011. Depreciation and amortization included in SG&A expense totaled $10.8 million for the first quarter of 2012, compared to $10.3 million for the same period in 2011.
Net Income: Net income decreased $8.9 million, or 70%, to $3.9 million, including restructuring charges of approximately $2.8 million, net of tax, compared to net income of $12.8 million for the comparable period in 2011. Diluted earnings per share was $0.11 for the first quarter of 2012, including restructuring charges of $0.08 net of tax, compared to diluted earnings per share of $0.37 for the first quarter of 2011.
Our operations are affected by seasonal trends typical in the outdoor apparel industry and have historically resulted in higher sales and profits in the third and fourth calendar quarters. This pattern has resulted primarily from the timing of shipments of fall season products to wholesale customers and proportionally higher sales from our direct-to-consumer operations in the fourth quarter. We believe that our liquidity requirements for at least the next 12 months will be adequately covered by existing cash, cash provided by operations and existing short-term borrowing arrangements.
Stocks Discussed: COLM,