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Mar 31, 2023
Columbia Q1 2023 Earnings Report
Columbia's Q1 2023 financial results were released, showing an increase in net sales but a decrease in operating income and diluted earnings per share.
Key Takeaways
Columbia Sportswear Company reported an 8% increase in net sales to $820.6 million for Q1 2023. However, operating income decreased by 33% to $56.4 million, and diluted earnings per share decreased by 28% to $0.74. The company reiterated its full-year net sales outlook while narrowing its diluted EPS range.
Net sales increased by 8% to $820.6 million compared to Q1 2022.
Operating income decreased by 33% to $56.4 million, representing 6.9% of net sales.
Diluted earnings per share decreased by 28% to $0.74.
The company exited the quarter with $461.0 million in cash and short-term investments and 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
The company expects net sales of $3.57 to $3.67 billion, operating income of $413 to $432 million, and diluted earnings per share of $5.15 to $5.40 for the full year 2023. For the first half of 2023, net sales growth is expected to be in the mid-single-digit percent, and diluted earnings per share are expected to be at the low end of the prior range of $0.75 to $0.90.
Positive Outlook
- Net sales are expected to increase 3 to 6 percent to $3.57 to $3.67 billion.
- Gross margin is expected to expand approximately 60 basis points to approximately 50 percent of net sales.
- Operating cash flow is expected to be over $600 million.
- Capital expenditures are planned to be in the range of $70 to $80 million.
- Net sales growth of mid-single-digit percent compared to the first half of 2022 is expected.
Challenges Ahead
- Operating income is expected to be $413 to $432 million, resulting in operating margin of 11.6 to 11.8 percent (prior $413 to $448 million).
- Diluted earnings per share are expected to be $5.15 to $5.40 (prior $5.15 to $5.55).
- SG&A expenses, as a percent of net sales, are expected to be 39.0 to 39.2 percent (prior 38.3 to 39.0 percent).
- Foreign currency translation is anticipated to reduce 2023 net sales growth by approximately 20 basis points.
- Diluted earnings per share are expected to be at the low end of our prior range of $0.75 to $0.90 for the first half of 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income