Columbia Sales Hit A Record High In The First 9 Months, And Chinese Business Declined.

October 25th, outdoor apparel group Co

(hereinafter referred to as Columbia) announced the core financial data in the third quarter and the first 9 months of fiscal year 2018, benefiting from the excellent performance of direct selling channels, and the net sales in the third quarter increased to 796 million US dollars.

For the 9 months ended September 30, 2018, the core financial data of Columbia were as follows:

Net sales rose 12% to $1 billion 885 million, a record high, rising 10% at a constant exchange rate.

Net profit increased by 38% to $155 million, a record high, with a diluted earnings per share of $2.19.

As of the third quarter of September 30, 2018, the core financial data of Columbia are as follows:

Net sales rose 6% to $796 million, a record high, rising 7% at a constant exchange rate.

Net profit rose 14% to $100 million, a record high, with a diluted earnings per share of $1.42.

Operating profit increased by 5% to US $129 million over the same period, with a profit margin of 16.2%.

By Region

Us: net sales increased by 9% to US $496 million over the same period last year, benefiting mainly from direct channel sales growth of 20% and wholesale channel sales with low single digit growth.

As of September 30, 2018, the total number of Columbia retail stores in the United States was 135, compared to 127 in the same period last year.

Latin America and the Asia Pacific region (LAAP): net sales fell 4% to $118 million compared to the same period last year, and did not fall by 9% according to GAAP, mainly due to the decline in the distribution business and the performance of the Chinese market in the market.

Europe, the Middle East and Africa (EMEA): net sales increased by 15% to US $100 million over the same period last year, mainly driven by the high sales growth of direct selling channels in Europe, and the net sales of distributors in this market were flat compared with the same period last year.

Canada: sales amounted to US $80 million 900 thousand, unchanged from the same period last year, increased by 3% according to the constant exchange rate, sales performance of direct channel was strong, and wholesale channel performance was also unchanged from last year.

By brand

Columbia: net sales increased 7% to $641 million, or nearly 80% of total sales.

PrAna: net sales increased 12% to $91 million 200 thousand, up 13% at constant exchange rate.

Sorel: net sales increased 8% to $39 million 900 thousand.

Mountain Hardwear: net sales fell 22% to 23 million U.S. dollars over the same period last year.

By category

Clothing, accessories and equipment: net sales increased 6% to $618 million last year.

Shoe sales: net sales increased 6% to 178 million US dollars over the same period last year.

By channel

Wholesale channels: net sales are basically unchanged from the same period last year, at $545 million.

Direct sales channel: net sales increased by 23% to US $251 million over the same period, mainly due to the growth of physical stores and e-commerce providers.

President and CEO Tim Boyle said: "the positive performance of direct selling channels has proved the strength of our brand, and also shows that consumers are positive about the innovation product line.

For the wholesale channel, the good momentum of the 2018 spring is still continuing, and the 2018 autumn product line is also showing good performance in the early days.

Based on the latest quarterly performance and a record high in the first 9 months of the year, Columbia has raised its expectations for the 2018 fiscal year:

Net sales are expected to grow by 11%~15%

Operating profit is estimated to be 3.08~3.12 billion, with a profit margin of 11.2%~11.3%

Net profit is expected to be 2.4~2.44 billion, diluted earnings per share of 3.41~3.46 dollars.

Columbia also pointed out that, based on seasonal profit model, the proportion of sales in autumn and winter accounted for a larger proportion of total sales, so the level of revenue in the second half of this year will be greatly improved.

"Current performance and the latest full year expectations show that the strategy of pforming the company to a more important brand and consumer organizational framework has come into operation.

We have shown strong growth momentum before the important holiday sales season and expect better results in the fourth quarter, "Boyle added.

Boyle also listed four strategic investment priorities of the company's current development:

Enhance brand awareness and promote sales growth

Enhance customer experience and enhance digital capability in all channels and regions.

Expanding and improving the global direct selling system

Investing talents and optimizing brand combination

Besides,

The company also released its outlook for 2019:

Net sales in 2019 are expected to achieve high single digit growth.

Net profit is expected to achieve a low two digit growth in 2019.

Columbia has not slackened its efforts to enhance its brand awareness.

Recently, the company has just announced that its Columbia brand cooperation with the world famous cross country race Ultra-Trail Du Mont-Blanc (Blanc peak limit cross-country race) will extend for three years.

The brand will continue to serve as an official supplier of clothing and footwear for the participants of the event.

The cooperation between the two sides began in 2014.