Columbia Sportswear Revises 2021 Forecast, Sets Preliminary Outlook for 2022

By Robert Barba

Columbia Sportswear Co. lowered its sales outlook for the year, but raised its earnings outlook while continuing to manage its expenses.

The outerwear company said it expects sales to be between $ 3.04 billion and $ 3.08 billion for the year. He previously set a range of $ 3.13 billion at $ 3.16 billion.

Net earnings per share are expected to be in the range of $ 4.55 to $ 4.80, compared to earlier forecasts of $ 4.30 to $ 4.55.

It forecasts its gross margin of 50.8% to 51% of net sales. He had previously set a range of 49.9% to 50.1%.

Selling, general and administrative expenses are expected to represent 38.5% to 38.8% of sales, compared to 38.4% to 38.7% previously.

Lower spending to offset slowing sales is in line with what the company experienced in the third quarter as supply chain issues affected its ability to meet demand.

“Our third quarter results reflect strong consumer demand for our products and strong operational performance amid unprecedented supply chain challenges,” President and CEO Tim Boyle said in prepared remarks. “Despite delays in receiving inventory that impacted wholesale shipments to the United States, favorable gross margin performance and expense management exceeded expected earnings. “

For the fourth quarter, he expects sales to be between $ 1.04 billion and $ 1.08 billion, below analysts’ expectations of $ 1.11 billion, according to FactSet. Earnings per share of $ 1.60 to $ 1.85 compares to expectations of $ 1.83.

The company also said it believes net sales growth of one percent in mid-teens or more is achievable in 2022.

He expects gross margin pressure given his current view of product and freight costs and the likelihood of a more standardized promotional environment and higher prices should not be able to offset these factors.

Write to Robert Barba at [email protected]

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