Columbia Sportswear profits from athleisure trend

Athleisure apparel continues to be a driver of growth for Columbia Sportswear Co., which posted record sales in its first quarter.

The Portland-based company reported $479 million in quarterly sales, a 13% increase from the same period last year. The company reported a $26.5 million profit, or $0.37 per share, a 19 percent increase from last year. Analysts forecast a profit of $0.36 per share. Operating income increased 24 percent to $44.1 million, a first-quarter record. The prAna athleisure brand, which the company acquired on May 30, 2014, contributed $37.1 million of incremental net sales during the quarter.

"2015 is off to a strong start, building on the momentum we created in 2014 behind the Columbia, Sorel and prAna brands," said CEO Tim Boyle, in a news release. "We are experiencing exceptional sell-through in North America through the first half of the spring season and our European business has returned to growth."

Columbia updated its 2015 outlook to reflect the strong performance. It now expects sales to grow in the high single-digits. It expects operating income to grow in the mid-teens. Like other companies with robust international sales, the strong dollar ate into Columbia's top line. Currency exchange rates reduced sales by 4 percent.

Boyle concluded, "Our strong balance sheet is enabling us to invest in our expanded portfolio of active brands, while we continue transforming our global operations to fuel and support sustainable, profitable growth. Based on our solid first quarter results, the strengthening of Fall advance orders in North America and Europe, and the momentum behind our direct-to-consumer platform, we are raising our full year outlook and now expect to return to double-digit operating margin for the full year."

The company continues to expect high single-digit 2015 net sales growth (low teen growth on a constant-dollar basis) compared to 2014 net sales of $2.1 billion. The company expects fiscal year 2015 gross margins to improve by approximately 50 basis points, and selling, general and administrative expenses to increase at a rate slightly lower than anticipated sales growth, generating approximately 25 basis points of operating expense leverage. Columbia Sportswear Company has assembled a portfolio of brands for active lives, making it a leader in the global active lifestyle apparel, footwear, accessories and equipment industry.

Founded in 1938 in Portland, Oregon, the company's brands are today sold in approximately 100 countries.