Columbia Sportswear Company is a global leader in design sourcing marketing and distribution of active outdoor apparel and footwear with operations in North America Europe and Asia. As one of the largest outerwear companies in the world and the leading seller of skiwear in the United States the company has developed an international reputation across an expanding product line for quality performance functionality and value. Columbia Sportswear Company has a market cap of $1.32 billion; its shares were traded at around $38.91 with a P/E ratio of 18.7 and P/S ratio of 1. The dividend yield of Columbia Sportswear Company stocks is 1.7%. Columbia Sportswear Company had an annual average earning growth of 15.6% over the past 10 years. GuruFocus rated Columbia Sportswear Company the business predictability rank of 3-star. Highlight of Business Operations: Net income decreased $11.4 million to $46.9 million for the third quarter of 2009 from $58.3 million for the comparable period in 2008. Diluted earnings per share was $1.38 for the third quarter of 2009 compared to $1.69 for the third quarter of 2008.
Net sales in Canada decreased $1.7 million, or 3%, to $55.1 million for the third quarter of 2009 from $56.8 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with 2008 negatively affected the Canada net sales comparison by approximately five percentage points and turned a net sales increase in local currency into a decrease in reported net sales. The decrease in net sales in Canada was primarily concentrated in sportswear, followed by outerwear, partially offset by net sales increases in footwear and accessories and equipment. The net sales increase in local currency was primarily attributable to a shift in the timing of fall 2009 shipments since a higher proportion of fall shipments occurred in the third quarter of 2009 compared to 2008, where a higher proportion occurred in the fourth quarter. The local currency net sales increase was partially offset by lower advance order volumes from customers which include planned reductions by us in some channels of distribution.
General and administrative expenses increased $8.3 million, or 11%, to 20.1% of net sales for the third quarter of 2009 from 17.5% 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 and the expansion of our in-house sales organization, partially offset by decreased bad debt expense. Depreciation and amortization included in SG&A expense totaled $9.1 million for the third quarter of 2009, compared to $7.8 million for the same period in 2008.
Net licensing income decreased $0.6 million to $1.3 million for the third quarter of 2009 from $1.9 million for the same period in 2008. Products distributed by our licensees for the third quarter of 2009 included apparel, footwear, leather accessories, eyewear, socks, insulated products including soft-sided coolers, camping gear, bicycles, home products, luggage, watches and other accessories.
Interest Income, Net: Net interest income decreased $1.5 million to $0.3 million for the third quarter of 2009 from $1.8 million for the same period in 2008. The decrease in interest income was due to significantly lower interest rates compared to the same period in 2008. Interest expense was nominal for the third quarter of 2009 and for the comparable period in 2008.
Net Sales: Consolidated net sales decreased $77.2 million, or 8%, to $885.7 million for the nine months ended September 30, 2009 from $962.9 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the nine months ended September 30, 2008 negatively affected the consolidated net sales comparison by approximately three percentage points.
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