Columbia Sportswear: Record Q4 sales, but profits fall amid supply chain issues
Columbia Sportswear made record sales of 1.17 billion dollars in the final quarter of the year, but its earnings were impacted by supply chain disruptions.
Sales in the fourth quarter were up 4 percent from a year earlier, or up 8 percent on a constant-currency basis, driven by Columbia brand growth, which was partially offset by a drop in sales in the emerging brands business.
Despite record quarterly sales, net profit fell to 125.7 million dollars, or 2.02 dollars per diluted share, down from 157 million dollars, or 2.39 dollars per diluted share, as supply issues hit the business.
For the full-year, sales increased 11 percent to a record 3.46 billion dollars, while diluted EPS fell to 4.95 dollars from 5.33 dollars the prior year.
Chair and CEO Tim Boyle hailed the results, which he said “could have been even higher, absent supply chain constraints which severely delayed inventory availability throughout the year”.
Looking ahead, the business expects FY23 net sales of between 3.57 billion dollars and 3.67 billion dollars, which would represent year-on-year growth of between 3 percent and 6 percent.
It expects to make diluted EPS of between 5.15 dollars and 5.55 dollars.
Boyle continued: “We are entering 2023 in a position of strength, with strong consumer demand for our innovative products.
“With the early receipt of Spring merchandise, we are well positioned for timely deliveries, and have strategies in place to profitably and efficiently reduce inventory levels.
“Our financial strength, with over 400 million dollars in cash and no debt, and our operating discipline will enable us to navigate near-term headwinds and position us to emerge in a stronger position.”