Columbia Sportswear Company’s net sales are expected to grow at a three-year CAGR of 9 to 11 percent, compared to the midpoint of its 2022 financial outlook, reaching 4.5 to 4.7 billion dollars in 2025.
The company said in a release that operating margin is expected to expand to approximately 14 percent of net sales in 2025 and diluted earnings per share are expected to grow at a three-year CAGR of 12 to 15 percent compared to the midpoint of 2022, reaching 7.35 dollars to 7.95 dollars in 2025.
Commenting on the growth targets, the company’s chairman, president and chief executive officer Tim Boyle said: “From our IPO in 1998 to 2021, Columbia Sportswear Company delivered a 9 percent net sales CAGR, 11 percent diluted earnings per share CAGR and a 13 percent annual total shareholder return.”
“Columbia will add over 700 million dollars in net sales by 2025. Sorel is expected to be our fastest growing brand, generating a 20 to 22 percent 3-year CAGR, fueled by its year-round product offering and brand momentum. We anticipate delivering operating margin improvement over this time period,” Boyle added.
The company is also targeting an annual total shareholder return (TSR) of 13 to 17 percent, inclusive of net sales growth, margin expansion, dividends and share repurchases.
The company is reaffirming its full year 2022 net sales outlook of 3.44 to 3.50 billion dollars, representing net sales growth of 10 to 12 percent compared to 2021, and diluted earnings per share outlook of 5 dollars to 5.40 dollars.