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Dec 31, 2022
Columbia Q4 2022 Earnings Report
Reported fourth quarter and full year 2022 financial results and provided full year 2023 financial outlook.
Key Takeaways
Columbia Sportswear Company reported a 4% increase in net sales to a record $1,169.6 million for the fourth quarter of 2022. Operating income decreased by 27% to $155.4 million, and diluted earnings per share decreased by 15% to $2.02. The company exited the quarter with $431.0 million in cash and short-term investments and no borrowings.
Net sales increased 4 percent (8 percent constant-currency) to a record $1,169.6 million.
Operating income decreased 27 percent to $155.4 million, or 13.4 percent of net sales.
Diluted earnings per share decreased 15 percent to $2.02.
Exited the quarter with $431.0 million of 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
The Company's first half and full year 2023 Financial Outlook is forward-looking in nature, and the following forward-looking statements reflect our expectations as of February 2, 2023 and are subject to significant risks and business uncertainties.
Positive Outlook
- Net sales are expected to increase 3 to 6 percent to $3.57 to $3.67 billion from $3.46 billion in 2022.
- Gross margin is expected to expand approximately 60 basis points to approximately 50 percent of net sales from 49.4 percent of net sales in 2022.
- Operating income is expected to be $413 to $448 million, resulting in operating margin of 11.6 to 12.2 percent, compared to operating margin of 11.3 percent in 2022.
- Effective income tax rate is expected to be approximately 24.5 percent.
- Net income is expected to be $322 to $347 million, resulting in diluted earnings per share of $5.15 to $5.55.
Challenges Ahead
- SG&A expenses are expected to increase faster than net sales growth.
- SG&A expense, as a percent of net sales, is expected to be 38.3 to 39.0 percent, compared to SG&A expense as a percent of net sales of 37.7 percent in 2022.
- Foreign currency translation is anticipated to reduce 2023 net sales growth by approximately 30 basis points.
- Foreign currency is expected to have an approximately $0.05 negative impact on diluted earnings per share due primarily to unfavorable foreign currency transactional effects from hedging of production.
- First quarter 2023 gross margin expected to be down compared to first quarter 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income