Unfavorable currency exchange and continuing slow consumer demand widened Columbia Sportswear Co.’s second-quarter loss.
The Portland, Ore.-based vendor said Tuesday that for the three months ended June 30, its net loss grew to $9.9 million, or 29 cents a diluted share, from a loss of $1.8 million, or 5 cents a share, in the year-ago period. Revenues contracted 15.9 percent to $179.3 million from $213.1 million in the 2008 quarter. The results handily beat analysts’ consensus estimates of a loss of 42 cents on sales of $167 million.
Sales declined across all categories, with sportswear sliding 14.8 percent to $98.4 million and outerwear sales decreasing 16 percent to $35.1 million. Footwear sales sank 21.4 percent to $33.4 million, while accessories fell 7.5 percent to $12.3 million.
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Outlet store expansion helped U.S. sales grow 2.2 percent to $97.7 million, from $95.6 million, but sales in all other regions declined.
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In the region of Europe, the Middle East and Africa, revenues shrank 46.8 percent to $33.7 million, due in part to changes in currency exchange rates and a shift into the third quarter of fall shipments to independent distributors. Sales in Canada, which declined 43.6 percent to $7.9 million, were also impacted by currency, while Latin America and Asia Pacific saw a 0.5 percent decline, to $39.9 million.
Despite a difficult retail environment that is expected “to persist through at least the remainder of 2009 and into 2010,” president and chief executive officer Tim Boyle said the firm’s “strong balance sheet makes it possible” for it to “continue building on this foundation of innovations.”
The company ended the quarter with cash and short-term investments of about $318 million and no long-term debt.
For the first half, Columbia swung to a loss of nearly $3 million, or 9 cents a diluted share, versus net income of $18.2 million, or 52 cents last year. Revenue slid 11.6 percent to $451.2 million, compared with $510.5 million.
Based on a 15 percent decrease in its global wholesale backlog as of March 31, the company expects net sales for the third quarter and full year to decline by a low-double-digit percentage.