Net sales at Columbia Sportswear Company increased 22 percent to 761.5 million dollars from the comparable period in 2021.
The company said, increase in net sales primarily reflects strong consumer demand and shipments of higher spring 2022 orders, with growth across all brands, channels and geographies.
Commenting on the first quarter results, the company’s chairman, president and chief executive officer Tim Boyle said:
"Based on an encouraging start to 2022 and lower share count, we are increasing our full year earnings and diluted earnings per share outlook and reiterating our net sales outlook despite removing future sales to our Russian-based distributor for the balance of the year,” Boyle added.
Highlights of Columbia Sportswear’s Q1 results
The company added that gross margin contracted 170 basis points to 49.7 percent of net sales from 51.4 percent of net sales for the comparable period in 2021.
Operating income increased 19 percent to 83.7 million dollars or 11 percent of net sales, compared to operating income of 70.5 million dollars or 11.3 percent of net sales, for the comparable period in 2021.
Net income increased 20 percent to 66.8 million dollars or 1.03 dollars per diluted share, compared to 55.9 million dollars or 84 cents per diluted share, for the comparable period in 2021.
Columbia Sportswear raises FY22 outlook
The company further said that net sales are expected to increase 16 to 18 percent to 3.63 to 3.69 billion dollars from 3.13 billion dollars in 2021.
Gross margin is expected to contract approximately 130 basis points (prior approximately 160 bps contraction) to approximately 50.3 percent (prior approximately 50 percent) of net sales from 51.6 percent of net sales in 2021.
Operating income is expected to be 477 to 502 million dollars (prior 472 to 498 million dollars), resulting in operating margin of 13.2 to 13.6 percent (prior 13 to 13.5 percent), compared to operating margin of 14.4 percent in 2021.
Net income is expected to be 363 to 382 million dollars (prior 359 to 379 million dollars), resulting in diluted earnings per share of 5.70 dollars to 6 dollars (prior 5.50 dollars to 5.80 dollars).
For the first half of 2022, the company expects net sales growth of low-teens percent (prior high-teens to low-20 percent), compared to first half 2021 due to the removal of future sales to Russia-based distributor and the financial impact of recent mandatory quarantines in China, related to the continued Covid-19 outbreak in that region.
Gross margin is anticipated to contract approximately 200 basis points (prior over 300 basis points) compared to first half 2021 and diluted earnings per share of 93 cents to 1.13 dollars (prior 90 cents to 1.10 dollars).
The company’s board of directors has approved a regular quarterly cash dividend of 30 cents per share, payable on June 2, 2022 to shareholders of record on May 19, 2022.