Columbia Sportswear reports second-quarter loss

By Alexandria Sage

SAN FRANCISCO (Reuters) - Outerwear maker Columbia Sportswear Co (COLM.O: Quote, Profile, Research, Stock Buzz) reported a surprising quarterly net loss after a year-ago profit, as U.S. and European retailers canceled orders of the company's namesake brand in the weakening economy, and its shares fell 12 percent.

Chief Executive Tim Boyle also said he foresaw no near-term improvement in consumer buying trends.

"We currently have no evidence to suggest that the U.S. or European retail or consumer environment will improve noticeably before 2009," Boyle told analysts during a conference call.

Moreover, Columbia said it will have to liquidate excess inventory that retailers no longer want, causing the company to slash its full-year profit expectations well below Wall Street's projections.

The company reported a second-quarter net loss of $1.8 million, or 5 cents per share, compared with a year-ago net profit of $10 million, or 27 cents per share.

Analysts had expected a profit 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.

The sales decline meant that recent investments the company has been making in marketing and retail expansion cut directly into profit in what is Columbia's lowest volume quarter.