Columbia Sportswear Q1 sales fall 13 percent

Columbia Sportswear Company’s net sales decreased 13 percent to 568.2 million dollars for the first quarter of 2020. The company said in a statement that gross margin contracted 360 basis points to 47.8 percent of net sales from 51.4 percent of net sales for the comparable period in 2019. Loss from operations was 2 million dollars or 0.3 percent of net sales, compared to operating income of 88 million dollars or 13.4 percent of net sales, for the comparable period in 2019. Net income decreased 100 percent to 0.2 million dollars from 74.2 million dollars or 1.07 dollars per diluted share, for the comparable period in 2019.

Commenting on the first quarter trading, Chairman, President and Chief Executive Officer, Tim Boyle said: “First quarter results largely reflect the impact of the Covid-19 pandemic, which escalated throughout the quarter as the global effort to contain the pandemic unfolded. It is impossible to predict when this crisis will pass, but we have weathered many storms during Columbia’s long history, which spans more than 80 years, and I am confident that we will get through this one as well.”

The company added that lower consumer demand related to the pandemic began to impact financial performance in China in late January, Korea and Japan in early February and North America and Europe in March. Retail traffic trends declined across North America and Europe in early March, prior to store closures, which began in mid-March. In light of the current and anticipated environment, the company has taken several actions to mitigate the financial impacts including suspension of future quarterly cash dividends.

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