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Columbia Sportswear: Record Earnings Amid Strong Footwear Growth

Columbia Sportswear Company reported record sales and strong growth in several product categories, including footwear.

The company’s net sales increased 10 percent (12 percent constant-currency) to a first-quarter record $525.1 million, compared with net sales of $479.0 million for the first quarter of 2015. Operating income also hit a first-quarter record of $44.3 million, or 8.4 percent of net sales. Net income, meanwhile, increased 20 percent to a first-quarter record $31.8 million, or $0.45 per diluted share, aided by a tax benefit of $4.1 million, or $0.06 per diluted share, from the adoption of a newly issued accounting standard.

Footwear was a strong growth area for the brand, up 14 percent to $91.1 million from $79.7 million in 2015. Apparel, accessories and equipment net sales were also up, increasing 9 percent to $434.0 million compared to $399.3 million last year.

“Our diverse brand portfolio drove strong growth during the first quarter, including high-20 percent growth in our U.S. direct-to-consumer channels and low-teen percentage growth in our U.S. wholesale channel,” said Tim Boyle, CEO of Columbia, in a statement. “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 percent constant-currency growth.”