原文：Columbia Sportswear's Q2 Sales Off 3%

　　SportsOneSource Media    

Columbia Sportswear Company reported net sales of $213.1 million for the quarter ended June 30, 2008, a decrease of 3% compared to net sales of $218.6 million for the same period of 2007.

Second quarter net loss totaled $1.8 million, or 5 cents per diluted share, compared with net income of $10.0 million, or 27 cents per diluted share, for the same period of 2007. The second quarter is typically the company's lowest volume quarter, thus the lower-than-expected net sales amplified the effect of the company's planned incremental marketing and retail expansion investments on the quarter's operating results.

The 3% decrease in second quarter 2008 net sales consisted of an 18%decline in U.S. net sales to $95.6 million, partially offset by 13% growth in the Europe, Middle-East & Africa region (EMEA) to $63.4 million, 20%growth in the Latin America & ASIa Pacific region (LAAP) to $40.1 million, and 18% growth in Canada to $14.0 million. (See "Geographical Net Sales" table below.)

Changes in foREIgn currency exchange rates compared with the second quarter of 2007 contributed 3 percentage points of benefit to the consolidated net sales comparison, 7 percentage points to the EMEA region's net sales growth, 3 percentage points to LAAP region's net sales growth, and 11 percentage points to Canada net sales growth.

Compared with the second quarter of 2007, second quarter 2008 sportswear net sales declined 7% to $115.5 million, partially offset by a 5% increase in outerwear net sales to $41.8 million and a 12% increase in accessories and equipment net sales to $13.3 million. Second quarter footwear net sales of $42.5 million were equal to last year's second quarter footwear net sales. (See "CATegorical Net Sales" table below.)
Compared with the second quarter of 2007, second quarter 2008 Columbia brand net sales decreased 3% to $194.1 million, partially offset by a 20% increase in Mountain Hardwear brand net sales to $13.8 million. Combined, net sales of Montrail, Sorel and Pacific Trail brand products did not comprise a significant percentage of sales in the second quarter of either year. (See "Brand Net Sales" table below.)

The company ended the quarter with $327.4 million in cash and short-term investments, compared with $264.5 million at June 30, 2007. Compared with June 30, 2007, accounts receivable declined $11.6 million, or 6%, to $172.6 million and inventories declined $36.9 million, or 12%, to $272.9 million.
"Our second quarter results reflect, in part, the economic headwinds we are facing in the U.S. and our EMEA-direct markets, which resulted in lower net sales than we anticipated," said Tim Boyle, Columbia's president and CEO. "Because the second quarter is our smallest volume quarter each year, the lower net sales were not sufficient to fully absorb the increased investments we are choosing to make in demand creation and expansion of our retail store network.

"However, our discretionary spending during the quarter was managed as planned. Our inventory levels improved compared with last year's second quarter, contributing to approximately $136 million in operating cash flow generated during the first half of 2008. We remained on pace with our plans to expand Columbia's U.S. network of first-line branded retail stores in key metropolitan markets and outlet stores in Class-A outlet centers."

Share Repurchase Program

During the second quarter, the company repurchased approximately 107,000 shares of common stock at an aggregate purchase price of $4.4 million. Through June 30, 2008, the company has repurchased a total of approximately 7.7 million shares at an aggregate purchase price of $360.7 million since the inception of the current $400 million stock repurchase program in 2004.

Dividend

The board of directors approved a dividend of $0.16 per share, payable on August 28, 2008 to shareholders of record on August 14, 2008.

2008 Guidance

The company currently expects 2008 net sales to decline approximately 3% compared with 2007, based primarily on its expectations for continued weakness in U.S. and direct-EMEA markets, partially offset by its expanding U.S. retail operations, and the estimated effect of changes in foreign currency exchange rates compared with 2007.

The company currently expects full year 2008 consolidated gross margins to contract approximately 50 basis points from 2007 levels, primarily as a result of an increased proportion of discounted sales and higher production costs, partially offset by increased contribution from the company's retail operations, increases in some average selling prices internationally, and favorable foreign currency hedged rates.

As a result of its reduced net sales expectations, the company's previously stated plans to invest in incremental marketing activities during 2008 in support of key seasonal brand and product initiatives, together with initial investments and incremental operating costs of the company's new retail stores, are expected to increase full year 2008 operating expenses as a percentage of consolidated net sales by approximately 440 basis points compared with 2007 levels.

Based on the above projections, the company expects full year 2008 operating margins of approximately 10.0 percent and diluted earnings per share of approximately $2.60 to $2.70.
The company expects net sales in the third quarter of 2008 to decrease approximately 4% compared with last year's third quarter and expects third quarter diluted earnings per share of approximately $1.44 compared to $1.72 in last year's third quarter.

"The current weak retail environment is significantly affecting our business and reducing our visibility," said Boyle. "Most of our large retail partners have stated their intention to manage their consolidated inventories down over the course of 2008. Reduced consumer spending levels and tighter credit markets have caused retailers to request unusual and unpredictable levels of order delays and cancellations. We believe that our reduced revenue forecast for the remainder of the year appropriately factors in what we currently know and what we currently sense about the market, but we've also learned in the past ninety days how quickly things can change.

"Despite these chAllenges, we remain committed to using our strong balance sheet and cash flow during this economic cycle to invest in strategic initiatives that we believe will position our brands for global growth. Our enhanced marketing efforts, expanding retail footprint and renewed commitment to innovation across our broad line of outdoor apparel, footwear and accessories are critical ingredients to sUCCessfully elevating and differentiating the Columbia brand in the minds of consumers around the world. We believe these investments will begin to produce an increasingly positive impact on consumer demand and sell-through when the current macroeconomic uncertainties begin to ease," Boyle concluded.