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Jun 30, 2021
Columbia Q2 2021 Earnings Report
Columbia reported record second quarter financial results, exceeding pre-pandemic levels.
Key Takeaways
Columbia Sportswear Company reported record second quarter net sales, gross margin, operating income and diluted earnings per share, exceeding pre-pandemic levels. Net sales increased 79 percent to $566.4 million, and diluted earnings per share was $0.61, compared to a net loss per share of $(0.77) in second quarter 2020.
Generated record second quarter and first half 2021 net sales, gross margin, operating income and diluted earnings per share, exceeding pre-pandemic levels.
Second quarter 2021 net sales increased 79 percent to $566.4 million, compared to second quarter 2020.
Second quarter 2021 operating income of $35.0 million, or 6.2 percent of net sales, compared to a second quarter 2020 operating loss of $70.3 million.
Exited the quarter with $820.9 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
Net sales are expected to increase 25.0 to 26.5 percent to $3.13 to $3.16 billion. Operating income is expected to be $365 to $386 million, resulting in operating margin of 11.7 to 12.2 percent. Diluted earnings per share of $4.30 to $4.55.
Positive Outlook
- Net sales are expected to increase 25.0 to 26.5 percent to $3.13 to $3.16 billion from $2.50 billion in 2020.
- Gross margin is expected to improve 95 to 115 basis points to 49.9 to 50.1 percent of net sales from 48.9 percent of net sales in 2020.
- SG&A expenses as a percent of net sales is expected to be 38.4 to 38.7 percent, compared to SG&A expenses as a percent of net sales of 43.9 percent in 2020.
- Operating income is expected to be $365 to $386 million, resulting in operating margin of 11.7 to 12.2 percent compared to operating margin of 5.5 percent in 2020.
- Net income is expected to be $287 to $304 million, resulting in diluted earnings per share of $4.30 to $4.55.
Challenges Ahead
- The updated financial outlook includes approximately $40 million of incremental ocean freight costs that were not contemplated in the previous outlook.
- Ocean freight rates have increased dramatically over the past 60 days, exceeding estimates included in the prior financial outlook.
- Rising COVID-19 cases in sourcing countries across southeast Asia could further disrupt product availability and deliveries.
- Port congestion and logistics constraints continue to impact the timing of inventory receipts and deliveries.
- The Company expects low-20 percent year-over-year net sales growth in second half 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income