admin Net sales increased 3 percent on current and constant-currency to 985.7 million dollars at Columbia Sportswear Company versus the comparable period in 2022.
Gross margin expanded 70 basis points to 48.7 percent of net sales, operating income decreased 7 percent to 134.6 million dollars or 13.7 percent of net sales, while net income decreased 7 percent to 103.5 million dollars or 1.70 dollars per diluted share.
Net sales for the nine month period increased 6 percent or 7 percent constant-currency to 2,427.2 million dollars. Gross margin expanded 30 basis points to 49.2 percent of sales, operating income decreased 17 percent to 197.2 million dollars, and net income decreased 15 percent to 158.1 million dollars or 2.56 dollars per diluted share.
Commenting on the trading update, the company’s chairman, president and CEO Tim Boyle said: “Third quarter performance was led by international-direct markets, with Canada, Europe-direct and China all delivering over 20 percent year-over-year growth in constant currency. In the U.S., the marketplace remains challenging, but we are making meaningful progress on our inventory reduction plan, with inventory exiting the quarter down 16 percent year-over-year.”
Columbia Sportswear lowers sales and earnings outlook
For fiscal year 2023, the company said, net sales are expected to increase 0.5 to 2 percent against prior forecast of 2 to 3.5 percent increase, resulting in net sales of 3.48 dollars to 3.53 billion dollars versus prior expectation of 3.53 dollars to 3.59 billion dollars.
Gross margin is expected to expand approximately 40 basis points to approximately 49.8 percent of net sales and net income is expected to be 275 to 290 million dollars versus prior outlook of 272 to 288 million dollars, resulting in diluted earnings per share of 4.45 dollars to 4.70 dollars against prior expectation of 4.40 to 4.65 dollars.
“As we finish the year and look forward to 2024, economic and geopolitical uncertainty is high. We know there will be challenges, particularly in the first half of next year. In this environment, we are focused on what we can control, delivering exceptional value and innovation to consumers, while diligently managing expenses,” Boyle added.
The company’s board of directors has approved a regular quarterly cash dividend of 30 cents per share, payable on November 30, 2023 to shareholders of record on November 16, 2023.
