Columbia Sportswear 3Q net income dips

Columbia Sportswear 3rd quarter net income falls on weakness abroad

Associated Press

PORTLAND, Ore. (AP) -- Outdoor clothing maker Columbia Sportswear Co. said Thursday its third-quarter net income fell 5 percent, hurt by weakness in Europe, the Middle East and Africa.

The results beat Wall Street expectations as the company reined in costs. CEO Tim Boyle predicted modest growth in the coming year.

"Looking ahead to 2013, we anticipate continued slow growth through at least the first half of the year, based in part on advance spring 2013 wholesale orders, the fragile U.S. recovery, continued uncertainty in Europe, and signs of slowing in key Asian markets," said CEO Tim Boyle.

Net income for the three months ended Sept. 30 fell to $64.4 million, or $1.88 per share, from $67.5 million, or $1.98 per share, last year. Analysts expected net income of $1.65 per share.

Revenue fell 4 percent to $545 million from $566.8 million last year. Analysts expected $538.3 million.

Growth in the U.S., Latin America and the Asia Pacific region, which collectively make up about 80 percent of Columbia's revenue, was offset by declines in Europe, the Middle East, Africa and Canada. Those regions were hurt by a timing shift in fall orders and the stronger dollar.

Columbia sells jackets, shoes, tents, backpacks and a wide variety of other outdoor gear under its eponymous brand as well as the Sorel, Mountain Hardwear and Montrail brands.

The company modified its full-year revenue outlook. It now expects revenue of $1.7 billion, from prior projection of a 1 percent or less increase, which implied revenue of $1.71 billion or less. Analysts expect $1.71 billion.

For the fourth quarter, it expects revenue to rise 1.5 percent, implying revenue of $534 million. Analysts expect $544.3 million.

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