Columbia Sportswear maintains sales and earnings outlook

Columbia Sportswear Company net sales increased 19 percent or 22 percent constant-currency to 955 million dollars in the third quarter.

Gross margin contracted 270 basis points to 48 percent of net sales from 50.7 percent of net sales, while net income increased 11 percent to 111.8 million dollars or 1.80 dollars per diluted share.

Commenting on the trading results, the company’s chairman, president and CEO Tim Boyle said: "Net sales growth was led by the Sorel and Columbia brands, which increased 28 percent and 19 percent, respectively. Based on strong third quarter performance, we are reiterating our full year net sales and diluted earnings per share financial outlook.

Columbia Sportswear maintains outlook

For the first nine months net sales increased 15 percent or 18 percent constant-currency to 2,294.6 million dollars. Gross margin contracted 230 basis points to 48.9 percent of net sales and net income decreased 6 percent to 185.8 million dollars or 2.94 dollars per diluted share.

For the full year, the company said, net sales are expected to increase 10 to 12 percent to 3.44 dollars to 3.50 billion dollars, gross margin is expected to contract 250 to 220 basis points compared to prior outlook of approximately 210 to 180 basis points of contraction to 49.1 to 49.4 percent.

Net income is expected to be 315 dollars to 340 million dollars, resulting in diluted earnings per share of 5 dollars to 5.40 dollars.

Fourth quarter net sales are expected to reach 1.14 dollars to 1.21 billion dollars, representing net sales growth of 1 percent to 7 percent and diluted earnings per share are expected to be 2.07 dollars to 2.47 dollars.

The company’s board of directors has approved a regular quarterly cash dividend of 30 cents per share, payable on December 1, 2022 to shareholders of record on November 17, 2022.