Columbia Sportswear Profit Tops Street, Outlook Strong

(RTTNews) - Columbia Sportswear Co. (COLM) Tuesday reported a decline in fourth-quarter profit, hurt mostly on impairment and tax expenses while sales moved up 6 percent. Nonetheless, both earnings and revenue for the quarter easily topped Wall Street estimates.

The outdoor apparel and footwear maker provided strong sales guidance for 2014 and raised quarterly dividend by 12 percent to $0.28 per share.

Investors cheered the announcement, sending the company's stock up 5 percent in the initial after-hours trade on the Nasdaq. The stock later pulled back to end at the day's close of $78.67.

"Our wholesale customers are exhibiting a greater appetite for broader and deeper assortments of our new Fall 2014 line," said CEO Tim Boyle.

Portland, Oregon-based Columbia Sportswear posted fourth-quarter net income of $36.7 million or $1.05 per share compared with $39.5 million or $1.15 per share last year.

On average, 15 analysts polled by Thomson Reuters estimated earnings of $0.92 per share for the quarter. Analysts' estimates typically exclude special items.

Results for the quarter include non-cash asset impairment charge of $0.16 per share.

Sales for the fourth quarter climbed to $533 million from $501 million in the prior year, topping analysts' expectations of $498.8 million.

Sales in the U.S. grew 12 percent from last year, Europe/Middle East/Africa gained 11 percent, Canada climbed 16 percent while Latin America/Asia Pacific declined 11 percent.

Results were somewhat offset by income tax expense that climbed to $15.8 million from $11.6 million last year.

For fiscal 2014, Columbia Sportswear expects sales to grow 15 percent to 17 percent from the prior year's $1.68 billion - implying a range of $1.93 billion to $1.97 billion. Analysts expect sales of $1.81 billion for the year.

The guidance partly reflects strength in the new China joint venture, the company said.

Columbia Sportswear announced a 12 percent increase in quarterly dividend to $0.28 per share.

Shares of the company closed Tuesday at $78.67, up $1.70 or 2.21%, on the Nasdaq.