Net income for FY23 declined by 19 per cent to $251.4 million, or $4.09 per diluted share, compared to $311.4 million, or $4.95 per diluted share, in FY22, the company said in a press release.

However, selling, general, and administrative expenses rose significantly by 9 per cent to $1,416.3 million, accounting for 40.6 per cent of net sales, up from 37.7 per cent in the previous year. This increase in expenses contributed to a 21 per cent decrease in operating income, which fell to $310.3 million, or 8.9 per cent of net sales.

In the fourth quarter (Q4) of FY23, Columbia Sportswear faced tougher conditions with a 9 per cent decrease in net sales to $1,060 million from $1,169.6 million in the corresponding period of FY22. Despite this decline, the gross margin slightly improved by 20 basis points to 50.6 per cent. Selling, general, and administrative expenses remained nearly flat at $404.8 million but represented a higher per centage of net sales (38.2 per cent) compared to 34.6 per cent in the same quarter of the previous year.

Operating income for Q4 FY23 decreased by 27 per cent to $113.1 million, representing 10.7 per cent of net sales. Net income also saw a decrease, falling by 26 per cent to $93.3 million, or $1.55 per diluted share, from $125.7 million, or $2.02 per diluted share, in the fourth quarter of FY22.

“We successfully executed our inventory reduction plan, which contributed to operating cash flow generation of over $600 million for the year. The Columbia brand generated healthy growth outside of the US, led by China and Europe-direct markets. In the US, we navigated a difficult US marketplace and a warm winter, both of which impacted our fourth quarter performance,” said chairman, president, and chief executive officer Tim Boyle.

Fibre2Fashion News Desk (DP)