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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.
Revenue by Geographic Location
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).
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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