posted by admin on May 13
Apparel giant Columbia Sportswear Co. reported last week that its net income for the first quarter of this year dropped about 65 percent due to slump in sales and stronger U.S. currency. Despite this development, the sportswear maker said that it did better than the expectations by the Wall Street.
However, a weak second quarter performance is expected thus dropping its shares to about $34 in last week’s trade. Several retail companies have reported major drops in sales for the past months and Columbia is not an exception. Especially in sportswear: swimwear, running gear, sports bras, running shoes etc. In second quarter, the company expects another 20 percent decline in net sales, part of it will be from shipment timing. Analysts predict a ten percent decline but the company estimated more.
Columbia Sportswear’s first quarter net income logged at $6.9 million which is a sharp drop from the same quarter last year which was $19.9 million. Net sales dropped to $272 million, about 9 percent lower from last year.
The noted declines came from Europe, Africa and Middle East region – a total of 24 percent slump. Sales in the United States were slightly affected. Net sales for sportswear slid 14 percent while footwear sales dropped 22 percent.
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