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Sep 30, 2023
Columbia Q3 2023 Earnings Report
Columbia's Q3 2023 earnings were released, revealing a mix of growth and challenges.
Key Takeaways
Columbia Sportswear Company reported a 3% increase in net sales to $985.7 million, with growth led by international-direct markets. However, operating income decreased by 7% to $134.6 million, and diluted earnings per share also decreased by 6% to $1.70. The company is navigating a challenging U.S. marketplace and economic uncertainty while focusing on inventory reduction and expense management.
Net sales increased by 3% to $985.7 million, driven by growth in direct-to-consumer and wholesale businesses.
Operating income decreased by 7% to $134.6 million, representing 13.7% of net sales.
Diluted earnings per share decreased by 6% to $1.70.
Inventory levels decreased by 16% year-over-year, reflecting progress in inventory reduction efforts.
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
Columbia Sportswear Company provided its financial outlook for the full year 2023, anticipating net sales growth of 0.5 to 2.0 percent, resulting in net sales of $3.48 to $3.53 billion. Operating income is expected to be $343 to $363 million, with an operating margin of 9.8 to 10.3 percent. Diluted earnings per share are projected to be $4.45 to $4.70.
Positive Outlook
- Net sales are expected to increase 0.5 to 2.0 percent.
- Gross margin is expected to expand approximately 40 basis points to approximately 49.8 percent of net sales.
- Interest income, net is expected to be approximately $14 million.
- Effective income tax rate is expected to be approximately 23.0 percent.
- Diluted earnings per share of $4.45 to $4.70
Challenges Ahead
- Foreign currency translation is anticipated to reduce 2023 net sales growth by approximately 60 basis points.
- Foreign currency is expected to have an approximately $0.07 negative impact on diluted earnings per share.
- Operating cash flow is expected to be approximately $500 million (prior $550 to $600 million).
- Spring 2024 will be a challenging season for our business.
- Forecasting a low-double-digit percent decline in wholesale net sales in first half 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income