Global active lifestyle apparel brands’ company, Columbia Sportswear, reported record first quarter results in fiscal 2016, ended March 31, with 20 per cent rise in net income to $31.8 million ($26.5 million previously) and 10 per cent rise in net sales to $525.1 million ($478.9 million previously). The company saw record net sales growth owing to an 18 per cent growth in net sales of its US operations, a 7 per cent growth in net sales of the Europe, Middle East and Africa (EMEA) region, and 4 per cent increase in Canada net sales. Net income saw a record first quarter growth in FY16 owing to adoption of a newly issued accounting standard, which led to tax savings of $4.1 million or $0.06 per diluted share. Operating income also saw a record first quarter growth of $44.3 million or 8.4 percent of net sales. Commenting on the results, Tim Boyle, CEO of Columbia Sportswear said, “Our diverse brand portfolio drove strong growth during the first quarter, including high-20 per cent growth in our US direct-to-consumer channels and low-teen percentage growth in our US wholesale channel.” “The Columbia, Sorel, Prana and Mountain Hardwear brands each generated double-digit percentage constant-currency net sales growth in North America. We’re also extremely encouraged by our continued progress in our Europe-direct markets, where the Columbia brand drove high 20 per cent constant-currency growth,” he said. “Our strong balance sheet gives us the financial flexibility to continue to make carefully-considered long-term strategic investments to position the company to drive profitability,” he added. Net income, after non-controlling interest, is expected to increase approximately 9 per cent, to between approximately $184 million and $191 million, in the full fiscal 2016.
