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Jun 30, 2023
Columbia Q2 2023 Earnings Report
Columbia's Q2 2023 financial results reflected a dynamic environment with growth in international markets offset by challenges in the U.S., while inventory reduction plans progressed and innovation continued.
Key Takeaways
Columbia Sportswear Company reported a 7% increase in net sales, reaching $620.9 million. Diluted earnings per share increased by 27% to $0.14. The company is taking a more conservative approach to planning the balance of the year.
Net sales increased 7 percent (9 percent constant-currency) to $620.9 million.
Operating income decreased 29 percent to $6.2 million.
Diluted earnings per share increased 27 percent to $0.14.
Exited the quarter with $302.8 million of cash, cash equivalents 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's third quarter and full year 2023 Financial Outlook is forward-looking in nature and reflects expectations as of August 1, 2023. Net sales are expected to increase 2.0 to 3.5 percent to $3.53 to $3.59 billion. Diluted earnings per share of $4.40 to $4.65.
Positive Outlook
- Net sales are expected to increase 2.0 to 3.5 percent to $3.53 to $3.59 billion from $3.46 billion in 2022.
- Gross margin is expected to expand approximately 40 basis points to approximately 49.8 percent of net sales from 49.4 percent of net sales in 2022.
- Interest income, net is expected to be approximately $13 million.
- Operating cash flow is expected to be approximately $550 to $600 million.
- Net sales are expected to be $995 to $1,010 million, representing growth of 4 to 6 percent from $955.1 million for the comparable period in 2022.
Challenges Ahead
- Operating income is expected to be $348 to $368 million, resulting in operating margin of 9.8 to 10.3 percent, compared to operating margin of 11.3 percent in 2022.
- Diluted earnings per share of $4.40 to $4.65 (prior $5.15 to $5.40).
- Foreign currency translation is anticipated to reduce 2023 net sales growth by approximately 30 basis points.
- SG&A expenses, as a percent of net sales, are expected to be 40.1 to 40.5 percent.
- Diluted earnings per share is expected to be $1.60 to $1.70 compared to $1.80 for the comparable period in 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income