The increase in net sales primarily reflects growth in the United States, Canada, direct Europe, Japan and Korea, partially offset by substantially lower net sales from distributors based in Russia and China, the company said. company in a press release.
The company’s operating profit fell 75% to $8.8 million, or 1.5% of net sales, from operating profit of $35 million in Q2 2021, i.e. 6.2% of net sales. Its diluted earnings per share fell 82% to $0.11 from $0.61 in Q2 2021.
Columbia Sportswear Company, a leading global innovator in outdoor, active and lifestyle products, including apparel, footwear, accessories and equipment, announced that its second quarter (Q2) net sales ) of 2022, ended June 30, 2022, increased 2 percent (4 percent in constant currency) to a record $578.1 million, compared to the second quarter of 2021.
Its gross margin contracted by 240 basis points to 49.2% of net sales, compared to 51.6% of net sales for the comparable period in 2021. The gross margin contraction was mainly due higher inbound freight costs and lower wholesale margins, partially offset by favorable channels and channels. composition of regional sales.
SG&A expenses increased 7% to $281.3 million, or 48.7% of net sales, from $261.8 million, or 46.2% of net sales, in the comparable period of 2021. The growth in SG&A spending primarily reflects broad-based increases across the business in personnel spending, which was driven by increased headcount as well as salary increases.
An income tax expense of $0.7 million resulted in an effective tax rate of 8.6%, compared to an income tax benefit of $5.4 million, or at a negative effective tax rate of 15.3%, for the comparable period of 2021.
Net income decreased 82% to $7.2 million, or $0.11 per diluted share, from net income of $40.7 million, or $0.61 per diluted share, for the comparable period in 2021.
For the first half (H1) of 2022, Columbia Sportswear Company net sales increased 12% (14% at constant currency) to $1,339.6 million, from $1,192.0 million for the comparable period of 2021. Gross margin contracted by 200 basis points to 49.5%. net sales compared to 51.5% of net sales for the comparable period in 2021.
The company’s SG&A expenses increased 12% to $580.3 million, or 43.3% of net sales, in the first six months of 2022 from $516.2 million, or 43.3 % of net sales, for the same period in 2021. decreased 12% to $92.4 million, or 6.9% of net sales, from operating profit of $105.5 million, i.e. 8.8% of net sales in the first half of 2021.
The company’s net income fell 23% to $74 million, or $1.16 per diluted share in the first half of 2022, from net income of $96.6 million, or $1.44 per diluted share in the first half of 2021.
Chairman, President and CEO Tim Boyle said, “First half net sales increased 12%, reflecting the strength of our brand portfolio in a rapidly changing and increasingly challenging economic environment. All of our brands contributed to this growth, led by SOREL, up 33%, fueled by the brand’s bold new summer and year-round styles. During the second quarter, which is our weakest quarter in terms of sales volume, performance trends varied significantly by region. Many markets continued to experience significant sales growth, while others were impacted by external headwinds and shipments As we head into the important fall sales season, we look forward to putting our innovative product in the market.
For the full year 2022, the company forecasts net sales of $3.44-3.50 billion (previously $3.63-3.69 billion), representing net sales growth of 10-12% (previously 16-18%) from 2021. It expects operating income to be $415-449 million (previously $477-502 million), representing an operating margin of 12.1 to 12.8% (previously 13.2 to 13.6%).
Fibre2Fashion (KD) News Desk