Columbia Sportswear Company First Quarter Net Sales Increase 22 Percent To $424 Million; Net Income Up 120 Percent; Raises 2014 Pre-Acquisition Financial Outlook; Announces Definitive Agreement To Purchase PrAna Living LLC For $190 Million
Columbia Sportswear Company (NASDAQ:COLM), a leading innovator in the global outdoor apparel, footwear, accessories and equipment industries, today announced record first quarter net sales of $424.1 million, an increase of 22 percent compared with first quarter 2013 net sales of $348.3 million. First quarter 2014 net income totaled $22.3 million, or $0.63 per diluted share, an increase of 120 percent compared with first quarter 2013 net income of $10.1 million, or $0.29 per diluted share, which included restructuring charges of approximately $2.0 million, after-tax, or $0.06 per diluted share.
In a separate press release issued earlier today, the company announced it has signed a definitive agreement to purchase prAna Living LLC in a cash transaction valued at $190 million, which is subject to customary working capital adjustments. The transaction is expected to close during the second quarter of 2014, subject to customary conditions and regulatory approvals.
Tim Boyle, Columbia’s president and chief executive officer, commented, “Our outstanding first quarter results reflect robust demand for the Columbia and Sorel brands, especially across U.S. wholesale and direct-to-consumer channels, and the successful launch of our China joint venture. Wholesale demand for our Fall 2014 products has accelerated in many key markets around the world, prompting us to increase our sales and operating income expectations for the full year. Excluding the anticipated financial effects of the prAna acquisition, we now expect 16 to 18 percent sales growth and approximately 25 percent growth in operating income in 2014, driven by renewed growth in our wholesale businesses and continued expansion of our global direct-to-consumer business, coupled with incremental contributions from our China joint venture.
Boyle continued, “Our balance sheet at March 31 included cash and investments totaling a record $568 million, and inventories that were 11 percent lower than at the same time last year. Our financial strength is enabling us to invest with confidence in our existing brands, our performance-based innovations, and our global operations in order to fuel sustainable, profitable growth.
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