Columbia posts record Q4, annual sales on strong namesake brand growth
Columbia Sportswear announced on Thursday record-breaking fourth-quarter and annual sales for 2022, on the back of strong gains in its Columbia brand, partially offset by declines in its emerging brands.
The Portland, Oregon-based company said quarterly net sales increased 4% (8% constant-currency) to $1.7 billion from $1.1billion for the comparable period in 2021. Net income, however, decreased 20% to $125.7 million, or $2.02 per diluted share.
For the full-year ending December 31, Columbia said net sales increased 11% (14% constant-currency) to $3.5 billion from $3.1 billion in 2021. Net income decreased 12% to $311.4 million, said the owner of Columbia, PrAna, Sorel, and Mountain Hardwear.
European annuals gained 17%, Canada sales grew 13%, and domestic sales inched forward 2%, offsetting declines in the company's Latin America and Asia-Pacific market, down 5% for the year.
By brand, Columbia sales lifted 8%, offsetting a collective 31% decline in its other brands' sales (PrAna, Sorel, and Mountain Hardwear).
“For the year, net sales grew 11% to a record $3.5 billion, and were up 14% on a constant-currency basis. I believe this financial performance could have been even higher, absent supply chain constraints which severely delayed inventory availability throughout the year," said chairman, president and chief executive officer, Tim Boyle.
“We are entering 2023 in a position of strength, with strong consumer demand for our innovative products. With the early receipt of spring merchandise, we are well positioned for timely deliveries, and have strategies in place to profitably and efficiently reduce inventory levels. Our financial strength, with over $400 million in cash and no debt, and our operating discipline will enable us to navigate near-term headwinds and position us to emerge in a stronger position," added Boyle.
Looking ahead, Columbia said it expects net sales growth of mid-single-digit percent for the first half of 2023, compared to first half 2022.
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