Columbia Sportswear reports 16 percent drop in Q4 profit

Fourth quarter net sales at Columbia Sportswear Company decreased 4 percent to 915.7 million dollars from 954.9 million dollars for the comparable period in 2019. The company said, gross margin expanded 50 basis points to 50.6 percent of net sales from 50.1 percent of net sales for the comparable period in 2019. Operating income decreased 11 percent to 123.7 million dollars or 13.5 percent of net sales, from operating income of 138.6 million dollars or 14.5 percent of net sales, for the comparable period in 2019. Net income decreased 16 percent to 95.8 million dollars or 1.44 dollars per diluted share.

Commenting on the results, the company’s Chairman, President and Chief Executive Officer Tim Boyle said: “I’m encouraged to see better than expected fourth quarter results and broad-based momentum across our powerful brand portfolio as we begin 2021. E-commerce net sales grew an impressive 41 percent year-over-year in the quarter, representing nearly a quarter of our total sales mix. With strong fall 2020 sell-through rates, our wholesale partners are well positioned to exit the season with clean inventory positions.”

For the full year, net sales decreased 18 percent to 2,501.6 million dollars, while gross margin contracted 90 basis points to 48.9 percent of net sales from 49.8 percent of net sales in 2019. The company added that operating income decreased 65 percent to 137 million dollars or 5.5 percent of net sales, from operating income of 395 million dollars or 13 percent of net sales, in 2019. Net income decreased 67 percent to 108 million dollars or 1.62 dollars per diluted share.

The board of directors approved a regular quarterly cash dividend of 26 cents per share, payable on March 22, 2021 to shareholders of record on March 9, 2021.

Photo credit: Columbia Sportswear