Columbia Sportswear posts record first quarter on 22% sales uptick
Columbia Sportswear announced on Thursday a record-breaking first quarter after net sales gained more than 20%, prompting the U.S. sportswear company to lift its full-year earnings guidance.
The Portland, Oregon-based company said net sales totalled $761.5 million, up 22%, compared to the first quarter in 2021. The increase in sales reflected strong consumer demand for the quarter ending March 31, as well as shipments of higher spring 2022 orders, with growth across all brands, channels and geographies.
The owner of its namesake Columbia Sportswear brand, as well as Sorel and PrAna, said net income increased 20 percent to $66.8 million, or $1.03 per diluted share, compared to net income of $55.9 million, or $0.84 per diluted share, for the comparable period in 2021.
"Our strong financial performance in the first quarter, including 22 percent net sales and 23 percent diluted earnings per share growth, validates our strategies and demonstrates that our brands are resonating with consumers," said Tim Boyle, chairman and CEO, Columbia Sportswear.
"Business momentum was broad based, with growth across all brands, channels and geographies. Sorel led the charge with 37 percent year-over-year growth, despite supply challenges, highlighting phenomenal demand for the brand’s year-round styles."
As a result of the stellar sales quarter, Columbia lifted its full-year earnings forecast.
"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," added Boyle.
Net income for the year is expected to be $363 to $382 million (prior $359 to $379 million), resulting in diluted earnings per share of $5.70 to $6.00 (prior $5.50 to $5.80).
Net sales are expected to increase 16 to 18 percent to $3.63 to $3.69 billion from $3.13 billion in 2021.
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