Columbia revises expectations after mild winter
17/01/2013
For the current quarter, the company lowered its estimates from $44 million to between $37 million and $40 million, after sales fell 5% from $503 million last year to $499 million. Net income was $36.7 million in the fourth quarter of 2011.
It said wholesalers, particularly in the US, cancelled orders, and it also suffered from a more promotional environment.
However, it attributed about one-third of the sales shortfall to a timing shift into the first quarter of 2013 of factory-direct shipments of international distributors’ spring 2013 advance orders.
This month, the company had to twice recall faulty battery packs used in its electrically heated jackets. It was said to affect 33 jackets in nine US states. The defective batteries were overheating, increasing the risk of fire.
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