Columbia Sportswear reports rise in sales and profit

Fourth quarter net sales at Columbia Sportswear increased 23 percent to 1,129.7 million dollars from the comparable period in 2020.

The company said that the increase in net sales primarily reflects strong consumer demand, which fuelled direct-to-consumer (DTC) growth and higher fall 2021 wholesale shipments, as it anniversary prior year pandemic disruptions.

Gross margin expanded 160 basis points to 52.2 percent of net sales from 50.6 percent of net sales for the comparable period in 2020. Operating income increased 71 percent to 211.6 million dollars or 18.7 percent of net sales. Net income increased 64 percent to 157 million dollars or 2.39 dollars per diluted share.

Commenting on the trading update, the company’s chairman, president and chief executive officer Tim Boyle said: "In the quarter, robust consumer demand led to results that far exceeded our financial outlook driven by DTC outperformance and a highly favourable full price selling environment, which benefited gross margin. Throughout the season, our fall 2021 sell-through rates have been outstanding, including the successful global launch of Omni-Heat Infinity. Our 2022 outlook calls for 16 to 18 percent net sales growth, on top of 25 percent growth in 2021.”

Review of Columbia Sportswear’s full year results

Net sales increased 25 percent to 3,126.4 million dollars from the comparable period in 2020.

Gross margin expanded 270 basis points to 51.6 percent of net sales from 48.9 percent of net sales for the comparable period in 2020. Operating income increased 229 percent to 450.5 million dollars or 14.4 percent of net sales, while net income increased 228 percent to 354.1 million dollars or 5.33 dollars per diluted share.

Columbia Sportswear expects 16 to 18 percent increase in sales in FY22

For the fiscal year FY22, net sales are expected to increase 16 to 18 percent to 3.63 dollars to 3.69 billion dollars from 3.13 billion dollars in 2021.

Gross margin is expected to contract approximately 160 basis points to approximately 50 percent of net sales from 51.6 percent of net sales in 2021.

Operating income is expected to be 472 dollars to 498 million dollars, resulting in operating margin of 13 to 13.5 percent. Net income is expected to be 359 dollars to 379 million dollars, resulting in diluted earnings per share of 5.50 dollars to 5.80 dollars.

For the first half of 2022 net sales growth of high-teens to low-20 percent, compared to first half 2021, gross margin is anticipated to contract over 300 basis points and diluted earnings per share of 90 cents to 1.10 dollars.

At its board meeting on January 28, 2022, the board of directors approved a 15 percent increase to the quarterly cash dividend to 30 cents per share, payable on March 21, 2022 to shareholders of record on March 11, 2022.