Companies

Columbia Sportswear reports strong performance

Nov 3, 2022 United States

The US-based company posted a net sales increase of 19% in the third quarter of 2022, driven by the performance of the Sorel and Columbia brands, and confirmed its full year outlook

"Third quarter net sales and earnings growth reflect broad momentum across our business and the power of our collective brand portfolio. Net sales growth was led by the Sorel and Columbia brands, which increased 28% and 19%, respectively. Based on strong third quarter performance, we are reiterating our full year net sales and diluted earnings per share financial outlook", commented Chairman, President and Chief Executive Officer Tim Boyle.

Third Quarter Results

In the third quarter of fiscal 2022, Columbia Sportswear's net sales grew by 19% (by 22% in constan currency), totalling 955.0 million US dollars, as compared to 804.7 million US dollars in the same period of last year.

On a comparable basis to the third quarter of fiscal 2021, Columbia brand net sales rose by 19%, amounting to 773.5 million US dollars, Sorel net sales were up by 28%, reaching 112.4 million US dollars, Mountain Hardwear net sales added 31.9 million US dollars, reflecting an increase of 11%, and prAna reported a net sales growth of 3% to 37.4 million US dollars.

The company's gross margin reduced by 270 basis points to 48.0% in the third quarter of the current fiscal year, from 50.7% in the comparable quarter of 2021.

In the three months to the 30^th of September, Columbia's net income totalled 111.8 million US dollars, or 1.80 US dollars per diluted share, as compared to net income of 100.6 million US dollars, or 1.52 US dollars per diluted share, in the same period of the last year.

Year-to-Date Results

In the first nine months of 2022, the company's net sales amounted to 2.29 billion US dollars, up by 15% (by 18% in constant-currency), on a comparable basis to 1.97 billion US dollars in the same months of last year.

Columbia Sportswear's gross margin declined 230 basis points to 48.9% in this period, from 51.2% in a similar period of fiscal 2021.

The company reported a net income of 185.8 million US dollars, or 2.94 US dollars per diluted share, as compared to a net income of 197.1 million US dollars, or 2.96 US dollars per diluted share in the first nine months of the prior year.

Full Year Outlook

For fiscal 2022, Columbia Sportswear is still expecting net sales to increase by 10% to 12%, reaching between 3.44 billion US dollars and 3.50 billion US dollars, from 3.13 billion US dollars in 2021. Net income is estimated in the range of 313 million US dollars to 340 million US dollars, resulting in diluted earnings per share of 5.00 to 5.40 US dollars.

Image Credits: hypebeast.com

United States Columbia Sportswear Companies Footwear Quarter Results Results Sportswear