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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.
Columbia
Columbia
Columbia Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comLatin America and Asia Pacific Revenue
CapyFin.comEurope, Middle East and Africa Revenue
CapyFin.comCanada Revenue
CapyFin.com 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.
- Projections are predicated on normal seasonal weather globally.
- Annual net sales are weighted more heavily toward the Fall/Winter season, while operating expenses are more equally distributed throughout the year, resulting in a highly seasonal net sales and profitability pattern weighted toward the second half of the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income