Outdoor financials: Columbia 3Q profit jumps on record revenue; plus Under Armour and Puma earnings

Columbia Sportswear posted record third-quarter revenue and big boost in profit on strong international and footwear sales. Plus Under Armour continued to roll with strong earnings all around, and Puma reported revenue up, but profit unchanged as it dealt with unfavorable exchange rates in the United States.
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Columbia Sportswear Co. (Nasdaq:COLM) saw its third-quarter 2011 profit jump 29 percent on record revenue led by strong international and footwear sales.

The Portland Ore.-based parent company of Mountain Hardwear, Montrail and its namesake brands reported record third-quarter revenue of $566.8 million – up 12 percent from revenue of $504 million during the same period a year ago.

Columbia’s latest quarterly net income jumped 29 percent to $67.5 million, or 1.98 per diluted share, compared to a net income of 52.2 million, or 1.53 per diluted share a year ago.

By brand, one of the company’s footwear brands, Sorel, leaped 116 percent to $72 million, Mountain Hardwear grew 17 percent to $44.7 million, and the Columbia brand increased to 4 percent to $447.8 million.

By region, the company saw its largest sales gains abroad with a 51 percent increase to $100.3 million in its Europe/Middle East/Africa region, including a 13 percentage point benefit from favorable currency exchange rates. Latin America/Asia Pacific sales grew 23 percent to $72.8 million, including a 9 percentage point benefit from exchange rates. U.S. sales increased 2 percent to $333.6 million and sales in Canada increased 13 percent to $60.1 million, including a 9 percentage point benefit from currency exchange rates.

By category, the company’s footwear sales rose 55 percent to $128.6 million, sportswear climbed 7 percent to $179.8 million, accessories and equipment increased 23 percent to $35.9 million, and outerwear came in unchanged at $222.5 million.

Columbia President and CEO Tim Boyle said the company expects “continued growth through the remainder of the year.” To that end, Columbia officials raised the company’s guidance with higher projections of 18- to 20-percent sales growth for the upcoming fourth quarter, leading to a full-year 2011 estimated revenue increase between 15 and 16 percent. Company officials also noted that its global direct-to-consumer sales are expected to continue to grow significantly – projected to account for 25 percent of total 2011 sales by the end of the year.

Boyle added that the company is “well-positioned for another year of record sales and improved profitability in 2012."

In conjunction with the earnings report, Columbia’s board of directors approved a fourth-quarter dividend of $0.22 per share, payable on Dec. 1, 2011 to shareholders of record on November 17, 2011.

Under Armour 3Q revenue, profit jump

Under Armour (NYSE:UA) officials raised the company’s guidance after reporting strong third-quarter 2011 earnings.

The Baltimore-based sportswear company reported revenue up 42 percent to $466 million for the third quarter, compared to $329 million a year ago. Under Armour’s net income rose 32 percent to 46 million, or $0.88 per diluted share versus $35 million, or $0.68 per diluted share a year ago.

Third quarter sales by category were positive across the board with apparel revenue up 31 percent to $363 million, footwear sales up 100 percent to $52 million. Company officials also noted direct-to-consumer sales rose 73 percent to account for 22 percent of the company’s quarterly revenue.

Company officials are projecting full year 2011 revenue in the range of $1.46 billion to $1.47 billion, a 37- to 38-percent increase on the year versus previous projections of 33- to 35-percent growth.

Puma 3Q revenue up, but profit flat

German sportswear and footwear giant Puma reported third-quarter 2011 revenue up 7.3 percent to EUR 841.6 million (USD $1.17 billion), but struggled with sales in the Americas due to unfavorable exchange rates. The company’s quarterly net income remained flat at EUR 81.7 million (USD $113.6 million).

Puma’s sales in its Americas region fell 0.7 percent to EUR 235 million (USD $326.7 million) for the third quarter. Like many European-based companies, Puma is struggling against a weak dollar in exchange with the euro. In local currencies, sales in the Americas were up 6.7 percent. Meanwhile, the company’s Europe sales rose 8.4 percent to EUR 410.6 million (USD $570.9 million) and Asia sales climbed 16.2 percent to EUR 196 million (USD $272.5 million).

By product category, Puma’s footwear sales rose 3.3 percent to EUR 431.1 million (USD $599.4 million), apparel increased 11.7 percent to EUR 294.7 million (USD $409.8 million), and accessories gained 12.2 percent to EUR 115.8 million (USD $161 million).



(Conversion of Euro into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Oct. 25, 2011.)



--Compiled by David Clucas

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