Sportswear giant, Columbia Sportswear Company released its 2014 fiscal year results Thursday, reporting a 25 percent net sales increase to a record $2.1 billion, compared to $1.68 billion in 2013.
Its operating income also grew 51 percent to $198.8 million, while the full year net income surged 45 percent to $137.2 million, compared to $94.3 million in 2013.
“2014 was an outstanding year for Columbia Sportswear Company, reflecting strong momentum in North America in the Columbia, Sorel and prAna brands,” said Tim Boyle, Columbia’s president and chief executive officer. “In addition, despite mild winter weather, we produced 10 percent growth in the Columbia brand in our Europe-direct markets, led by strong sales of trail footwear and outerwear.”
U.S. net sales grew 23 percent to $1.2 billion. The LAAP region, which includes Latin America and the Asia Pacific regions, net sales increased 39 percent to $491.6. Net sales in Canada rose 28 percent, while in the EMEA region, which includes Europe, the Middle East and Africa, net sales increased 8 percent.
Columbia brand net sales increased 24 percent to $1.75 billion. The company’s newly acquired brand prAna contributed $53.7 million of incremental net sales, while Sorel brand net sales grew 29 percent to $166.2 million.
Complete apparel, accessories and equipment net sales rose 22 percent to $1.68 billion. Footwear net sales increased 37 percent to $424.4 million.
Looking forward to 2015, the company reaffirms its preliminary net sales outlook from October and expects high single-digit 2015 net sales growth and low double-digit growth in operating income, resulting in an operating margin of about 9.7 percent and net income after non-controlling interest of between $150 million and $157 million with $2.10 to $2.20 per diluted share.
They also predict that the Columbia, Sorel and prAna brands will be the main drivers of sales growth in North America and Europe-direct markets.
“Although recent macro-economic trends, geo-political issues, West Coast port disruptions, and a stronger U.S. dollar pose near-term challenges, we enter 2015 with excellent momentum behind our brands, fueling our expectations that 2015 will be another year of record net sales, and also a record year for net income,” Boyle said. “With cash and investments totaling $441 million, our balance sheet provides the financial flexibility necessary to continue investing in strategic growth initiatives intended to further strengthen our brands and improve our long-term profitability.”