Columbia Sportswear Company returns to sales growth, raises outlook
30 Apr 2021
First quarter net sales at Columbia Sportswear Company increased 10 percent to 625.6 million dollars from the comparable period in 2020. The company said, business momentum was led by direct-to-consumer (DTC) e-commerce net sales growth as well as better than planned sequential improvement in DTC brick & mortar trends.
Commenting on the results, chairman, president and chief executive officer Tim Boyle said in a statement: “Our direct-to-consumer e-commerce business grew 35 percent year-over-year, reaching 20 percent of our total net sales mix. In our wholesale business, we experienced a strong finish to the fall 2020 sales season as well as excellent early season sell-through of our spring 2021 assortment. Based on first quarter results and visibility provided by early spring 2021 sell-through, our fall 2021 order book and business fundamentals, we are increasing our full year financial outlook.”
Columbia Sportswear Q1 earnings increase
The company added that gross margin for the quarter expanded 360 basis points to 51.4 percent from 47.8 percent for the comparable period in 2020. Operating income was 70.5 million dollars or 11.3 percent of net sales, compared to an operating loss of 2 million dollars or 0.3 percent of net sales, for the comparable period in 2020.
Net income was 55.9 million dollars or 84 cents per diluted share, compared to 0.2 million dollars or break even diluted earnings per share, for the comparable period in 2020.
Columbia Sportswear raises full year outlook
For the full year, the company further said, net sales are expected to increase 21.5 to 23 percent to 3.04 to 3.08 billion dollars from 2.50 billion dollars in 2020. Gross margin is expected to improve 110 to 130 basis points to 50 to 50.2 percent of net sales from 48.9 percent of net sales in 2020.
Operating income is expected to be 347 to 369 million dollars, resulting in operating margin of 11.4 to 12 percent compared to operating margin of 5.5 percent in 2020. Net income is expected to be 271 to 288 million dollars, resulting in diluted earnings per share of 4.05 dollars to 4.30 dollars.
The company’s board of directors has approved a regular quarterly cash dividend of 26 cents per share, payable on May 27, 2021 to shareholders of record on May 13, 2021.