Columbia Sportswear has announced the acquisition of outdoor lifestyle apparel brand Prana for $190 million in cash. The group said that Prana enjoyed a compound annual growth of 30 percent between 2010 and 2013 and is expected to reach a turnover beyond $100 million in 2014. Prana’s operating margin is said to be in the low double-digits.
Bigger Range of Products
The management around Scott Kerslake, chief executive, will remain in place and will continue to operate as usual from Prana’s headquarters in Carlsbad, California. Kerslake will report directly to Columbia’s chief executive, Tim Boyle. The latter explained that Prana will help to reduce Columbia’s dependence on cold weather. He sees the newly acquired brand as complementary to the existing portfolio comprising the brands Columbia, Mountain Hardwear, Sorel and Montrail. Columbia believes in the potential that Prana has in the international markets since it currently less than 5 percent of its turnover outside North America.
Sucessfull first Quarter
The traditional dependence on cold weather which marked the later winter season in North America was apparently helpful during Columbia’s first quarter. The group is also satisfied with the new joint venture in China which has been in place since the beginning of this year. Total sales were up by 22 percent to $424.1 million compared with the first quarter of 2013 with an increase of 20 percent in the U.S., of 13 percent in Canada and of 41 percent in Latin America/Asia Pacific. Europe, XXX the Middle East possibly suffered from mild weather: sales went down in EMEA by 4 percent to $39.2 million. The group’s net income improved to $22.3 million, up from $10.1 million in the previous first quarter. Columbia Sportswear raises its guidance for the full year to a sales increase of 16-18 percent compared to 2013 net sales of $1.68 billion.
|COLUMBIA SPORTSWEAR COMPANY
(In millions, except percentage changes)
|Three Months Ended March 31,|
|Geographical Net Sales:|
|Latin America & Asia Pacific||116.8||83.1||41||%|
|Europe, Middle East, & Africa||39.2||40.9||(4||)%|
|Categorical Net Sales:|
|Apparel, Accessories and Equipment||$||353.7||$||294.3||20||%|
|Brand Net Sales:|