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Sep 30, 2021
Columbia Q3 2021 Earnings Report
Reported a net sales increase driven by direct-to-consumer growth and higher Fall 2021 wholesale orders, despite supply chain disruptions.
Key Takeaways
Columbia Sportswear Company reported a 15% increase in net sales to $804.7 million for the third quarter of 2021, with operating income increasing by 56% to $133.5 million and diluted earnings per share increasing by 62% to $1.52. The company exited the quarter with $600.6 million in cash and short-term investments and no borrowings.
Net sales increased 15 percent to $804.7 million, compared to third quarter 2020.
Operating income increased 56 percent to $133.5 million, or 16.6 percent of net sales.
Diluted earnings per share increased 62 percent to $1.52, compared to $0.94 in third quarter 2020.
Exited the quarter with $600.6 million in cash and short-term investments and no borrowings.
Revenue by Geographic Location
Forward Guidance
The company provided full year 2021 financial outlook. Net sales are expected to increase 21.5 to 23.0 percent to $3.04 to $3.08 billion. Diluted earnings per share is expected to be $4.55 to $4.80.
Positive Outlook
- Net sales of $3.04 to $3.08 billion, representing net sales growth of 21.5 to 23.0 percent compared to 2020.
- Operating income of $384 to $405 million, representing operating margin of 12.6 to 13.2 percent.
- Diluted earnings per share of $4.55 to $4.80.
- Gross margin is expected to improve 190 to 210 basis points to 50.8 to 51.0 percent of net sales from 48.9 percent of net sales in 2020.
- Demand creation as a percent of net sales is anticipated to be 6.0 percent in 2021, compared to 5.7 percent in 2020.
Challenges Ahead
- Net sales growth was constrained by supply chain disruptions that resulted in later inventory receipts and reduced wholesale shipments during the quarter.
- Supply chain constraints continue to impact operations, resulting in delayed receipt and delivery of products for our Fall 2021 and Spring 2022 seasons.
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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