Columbia Sportswear Company’s Third Quarter Net Income Grows 60%
Columbia Sportswear Company’s net sales increased 15% to $ 804.7 million for the third quarter, reflecting growth in direct-to-consumer (DTC) sales and increased wholesale orders in fall 2021 .
The company said net sales growth was constrained by supply chain disruptions that resulted in later inventory receipts and reduced wholesale shipments in the quarter.
Gross margin increased 180 basis points to 50.7% of net sales from 48.9% of net sales for the comparable period of 2020. Operating profit increased 56% to 133.5 million million or 16.6% of net sales, while net profit increased 60% to 100.6 million. dollars or $ 1.52 per diluted share.
Commenting on the results, Company President and CEO Tim Boyle said in a statement, “Our third quarter results reflect strong consumer demand for our products and strong operational performance against a backdrop of market chain challenges. unprecedented supply. Despite delays in receiving inventory that impacted wholesale shipments to the United States, favorable gross margin performance and expense management delivered above plan profits. “
Nine months of net sales up 26% at Columbia Sportswear Company
Net sales increased 26% to $ 1,996.7 million for the first nine months, from $ 1,585.9 million for the same period in 2020.
Gross margin increased 320 basis points to 51.2% of net sales, from 48% of net sales for the comparable period of 2020, the same period in 2020.
Net income stands at $ 197.1 million or $ 2.96 per diluted share compared to $ 12.3 million or 18 cents per diluted share, for the same period in 2020.
Columbia Sportswear Company lowers revenue outlook
The company said that for the coming year, net sales are expected to grow 21.5% to 23% from the previous outlook of 25-26.5% to $ 3.04-3.08 billion (3 , 13 to 3.16 billion dollars previously) against 2.50 billion dollars in 2020..
Gross margin is expected to improve 190 to 210 basis points (before 95 to 115 basis points) to reach 50.8 to 51% of net sales (before about 49.9 to 50.1%), from 48, 9% of net sales in 2020.
Operating profit is expected to be $ 384-405 million (before $ 365-386 million), which will translate into an operating margin of 12.6-13.2% (before 11.7-12 , 2%) compared to an operating margin of 5.5% in 2020.
Net income is expected to be $ 302 to $ 319 million (before $ 287 to $ 304 million), resulting in diluted earnings per share of $ 4.55 to $ 4.80 (before $ 4.30 to 4.55 dollars).
The company’s board of directors has approved a regular quarterly cash dividend of 26 cents per share, payable on December 2, 2021 to shareholders of record on November 18, 2021.