Columbia Sportswear (COLM) Beats Earnings Estimates In Q4
Zacks Investment Research | Feb 06, 2020 10:02PM ET
Columbia Sportswear Company (NASDAQ:COLM) reported fourth-quarter 2019 results, with the top and bottom lines surpassing their respective Zacks Consensus Estimate. Also, the top line improved year over year.
Q4 in Detail
Earnings of this designer, marketer and distributor of outdoor and active lifestyle apparel, footwear and accessories came in at $1.67 per share, which beat the Zacks Consensus Estimate by a penny. Further, adjusted earnings were $1.68 in the year-ago quarter.
Net sales advanced 4% to $954.9 million. The top line surpassed the consensus markof $951.5 million. This can be attributed to strength in the Columbia, Sorel and Mountain Hardwear brands.
In the reported quarter, DTC channels displayedsales growth of 4% (up 4% at cc) and wholesale net sales advanced 4% (up 5% at cc).
Gross profit inched up0.9% to $478.7 million, whereas gross margin declined160basis points (bps) to 50.1%. Margin felldue toincreased sales of closeout products in wholesale that generate lower gross margin. Also, unfavorable DTC product margins that reflect improved promotional activity and shifts in product mix acted as deterrent. Nevertheless, these downsides were partially offset by Project CONNECT benefits. Operating income amounted to $138.6 million, down 9% year over year. Operating margin also declined210 bps to 14.5%.
Columbia Sportswear Company Price, Consensus and EPS Surprise
industry ’s growth of 9.2%.
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