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Columbia Sportswear posts loss, 2008 outlook cut

by : Reuters

Date : Thu, 24 Jul 2008 21:02:09 GMT





SAN FRANCISCO (Reuters) - Outerwear maker Columbia Sportswear Co lt;COLM.Oreported a surprising quarterly net loss after a year-ago profit, hurt by a drop in sales and costs for new marketing, advertising and retail expansion plans.Columbia shares fell 10 percent to $35.80 following the earnings report on Thursday.The company also gave a forecast for full-year profit well below Wall Street 's projections.Columbia 's second-quarter net loss was $1.8 million, or 5 cents per share, down from a year-ago net profit of $10 million, or 27 cents per share.That was 9 cents below analysts ' average forecast of earnings of 4 cents per share, according to Reuters Estimates.Revenue fell 3 percent in the quarter to $213.1 million, driven by an 18 percent decline in U.S. sales. That was also below analysts ' average forecast, $230.5 million. "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, " Chief Executive Tim Boyle said in a statement. "Reduced consumer spending levels and tighter credit markets have caused retailers to request unusual and unpredictable levels of order delays and cancellations, " Boyle said.For the third quarter, Columbia expects sales to fall 4 percent, with earnings per share of approximately $1.44, compared with $1.72 a year earlier.Wall Street has been expecting earnings of $1.58 with revenue to remain relatively flat.For 2008, earnings per share are expected to range between $2.60 and $2.70, compared with the $3.16 expected by analysts, on average, according to Reuters Estimates.Columbia 's 2008 revenue is expected to decline approximately 3 percent, with lower gross margins due to discounts and higher production costs.Operating expenses as a percentage of total net sales in 2008 will rise approximately 440 basis points over the prior year, the company said.Columbia shares closed at $39.81, down 4 percent, on the Nasdaq during the regular session.(Additional reporting by Martinne Geller)(Reporting by Alexandria Sage) lt;br gt;(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.



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