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Forum List » Business News and Headlines SEC Filings, Earing Reports, Press Releases  
Columbia Sportswear Company Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 7, 2009 03:48PM
Columbia Sportswear Company (COLM) filed Quarterly Report for the period ended 2009-06-30. Highlight of Business Operations:Net loss increased $8.1 million to $9.9 million for the second quarter of 2009 from $1.8 million for the comparable period in 2008. Diluted loss per share was $0.29 for the second quarter of 2009 compared to $0.05 for the second quarter of 2008. SG&A expense increased $0.9 million, or 1%, to $92.2 million for the second quarter of 2009 from $91.3 million for the comparable period in 2008. As a percentage of net sales, SG&A expense increased to 51.5% for the second quarter of 2009 from 42.8% for the comparable period in 2008. The increase in SG&A expense as a percentage of net sales was largely the result of reduced net sales in our wholesale and distributor businesses coupled with an increased fixed cost base related to our expanding direct-to-consumer initiatives. This increase was partially offset by cost reduction initiatives that began after the first quarter of 2008 and positively affected the second quarter of 2009. The cost reduction initiatives included reductions in headcount, incentive compensation, benefits, and other discretionary costs. General and administrative expenses increased $4.2 million, or 6%, to 43.0% of net sales for the second quarter of 2009 from 34.1% of net sales for the comparable period in 2008. The increase in general and administrative expenses as a percentage of net sales was primarily due to incremental operating costs in support of our direct-to-consumer initiatives, the movement of certain sales territories in-house and increased bad debt expense. Depreciation and amortization included in SG&A expense totaled $8.4 million for the second quarter of 2009, compared to $7.1 million for the same period in 2008. Net licensing income increased $0.9 million to $2.1 million for the second quarter of 2009 from $1.2 million for the same period in 2008 and was primarily attributed to increased apparel and footwear licensing in the LAAP region. Products distributed by our licensees for the second quarter of 2009 included apparel, footwear, socks, bicycles, insulated products including soft-sided coolers, leather accessories, camping gear, eyewear, watches, leather outerwear, and other accessories. Interest Income, Net: Net interest income decreased $1.7 million to $0.6 million for the second quarter of 2009 from $2.3 million for the same period in 2008. The decrease in interest income was due to lower interest rates compared to the same period in 2008. Interest expense was nominal for the second quarter of 2009 and for the comparable period in 2008. Net sales in the EMEA region decreased $45.6 million, or 35%, to $83.5 million from $129.1 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the six months ended June 30, 2008 negatively affected the EMEA net sales comparison by approximately six percentage points. The decrease in net sales in the EMEA region was driven by sportswear, followed by footwear, outerwear and accessories and equipment. The decrease in net sales in the EMEA region was driven by our EMEA direct business followed by our EMEA distributor business. The decrease in EMEA direct net sales was a result of lower initial order volumes reflecting difficult macro-economic conditions and continued product assortment and marketing challenges in that region.
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