COLM - Columbia Sportswear stumbles as outlook worsens
2023-08-02 10:39:13 ET
The U.S. consumer may be resilient, but not all retailers are benefiting.
Columbia Sportswear Company ( NASDAQ: COLM ) fell 4.6% after lowering its full year forecast.
Net sales this year are expected to increase 2% to 3.5% from 2022 to $3.53B to $3.59B from a prior expectation of 3% to 6%, or $3.57B to $3.67B billion.
SG&A expenses are expected to increase and 40.1% to 40.5% of net sales from a prior 39%0to 39.2%. Operating income is also set to come in under prior estimates to between $348M and $368M from $413M to $432M.
For the second quarter, Columbia Sportswear ( COLM ) reported GAAP EPS of $0.14 which beat the average analyst estimate by $0.13 and revenue of $620.9M, which beat by $34.1M.
Management said it would take a “a more conservative approach to planning the balance of the year” in an earnings call on Tuesday, noting that their brands are not immune to macroeconomic pressures and headwinds.
“In the U.S., sell-through trends softened, reflecting cautious consumer behavior,” Chief Executive Officer Tim Boyle said on an earnings call. “Additionally, elevated inventory levels, particularly in footwear, have contributed to heavier clearance and promotional activity.”
Reducing inventory remains the company’s top priority, he said.
COLM is down 17% in 2023.
More on COLM:
- Columbia Sportswear GAAP EPS of $0.14 beats by $0.13, revenue of $620.9M beats by $34.1M
- Columbia Sportswear announces resignation of president of its footwear brand SOREL
- Columbia Sportswear goes ex dividend tomorrow
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Columbia Sportswear stumbles as outlook worsens