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Mar 31, 2021
Columbia Q1 2021 Earnings Report
Columbia's Q1 2021 financial performance exceeded expectations, marked by net sales growth and strong direct-to-consumer e-commerce performance.
Key Takeaways
Columbia Sportswear Company reported a 10% increase in net sales to $625.6 million for Q1 2021, with operating income reaching $70.5 million. Diluted earnings per share were $0.84, and the company exited the quarter with $874.6 million in cash and short-term investments and no borrowings. The company also raised its full-year financial outlook.
Net sales increased by 10% to $625.6 million compared to Q1 2020.
Operating income was $70.5 million, a significant improvement from the $2.0 million operating loss in Q1 2020.
Diluted earnings per share reached $0.84, compared to break-even earnings per share in Q1 2020.
The company's cash and short-term investments totaled $874.6 million with no borrowings.
Revenue by Geographic Location
Forward Guidance
Columbia Sportswear Company expects net sales of $3.04 to $3.08 billion, operating income of $347 to $369 million, and diluted earnings per share of $4.05 to $4.30 for the full year 2021.
Positive Outlook
- Net sales are expected to increase 21.5 to 23.0 percent to $3.04 to $3.08 billion.
- Gross margin is expected to improve 110 to 130 basis points to 50.0 to 50.2 percent of net sales.
- Operating income is expected to be $347 to $369 million, resulting in operating margin of 11.4 to 12.0 percent.
- Effective income tax rate is expected to be approximately 22 percent.
- Diluted earnings per share of $4.05 to $4.30.
Challenges Ahead
- Operating cash flow is expected to be $250 to $270 million.
- Capital expenditures are planned to be $60 to $80 million.
- The outlook reflects estimates regarding the impact on operations of the COVID-19 pandemic, economic conditions, supply chain and logistics capacity constraints, and changes in consumer behavior and confidence, as well as geopolitical tensions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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