Columbia Sportswear H1 sales up 12%, Q2 sales volumes hit hard by China, Russia
Columbia Sportswear announced on Wednesday revenues for the first half of the year 2022 increased 12%, despite the company's second quarter recording lower sales in volume terms for the three months.
The Portland, Oregon-based company said quarterly net sales inched forward 2% to $578.1 million, on the back of growth across the U.S., Canada, Europe-direct, Japan and Korea. The gains were partially offset by substantially lower Russia-based distributor and China net sales.
As a result, net income decreased 82% to $7.2 million, or $0.11 per diluted share, compared to net income of $40.7 million, or $0.61 per diluted share, for the comparable period in 2021.
For the six months ending June 30, net sales increased 12 percent to $1.34 billion from $1.19 billion million for the comparable period in 2021. Net income decreased 23% to $74.0 million, or $1.16 per diluted share, compared to net income of $96.6 million, or $1.44 per diluted share, last year.
"First half net sales increased 12 percent, reflecting the strength of our brand portfolio amidst a rapidly changing and increasingly challenging economic environment. All of our brands contributed to this growth, with Sorel leading the charge, surging 33 percent, fueled by the brand’s bold new summer and year-round styles," said Tim Boyle, chairman, president and chief executive officer of Columbia Sportswear.
"During the second quarter, which is our lowest volume sales quarter, performance trends varied greatly by region. Many markets continued to experience meaningful sales growth, while others were impacted by external headwinds and shipment delays. As we head into the important fall sales season, we are eager to get our innovative product into the marketplace."
Looking ahead, Columbia lowered its full-year expectations. The company said it expects full-year sales to increase by 10% to 12% to $3.44 to $3.50 billion, down from a prior forecast of 16% to 18% growth and $3.63 to $3.69 billion, from $3.13 billion in 2021.
"Our confidence in our strategies and ability to unlock tremendous long-term growth opportunities remains intact," added Boyle.
"However, as 2022 has progressed, it is increasingly clear that the operating environment has become more challenging. Based on growing economic uncertainty we believe it is prudent to take a more conservative approach to our financial outlook for the balance of the year."
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