Gross margin contracted 270 basis points to 48.0 per cent of net sales from 50.7 per cent of net sales for the comparable period in 2021. Gross margin contraction was primarily driven by higher inbound freight costs, unfavorable channel and regional sales mix, increased inventory provisions, and lower DTC product margins, partially offset by higher wholesale product margins.

"Third quarter net sales and earnings growth reflect broad momentum across our business and the power of our collective brand portfolio. Net sales growth was led by the SOREL and Columbia brands, which increased 28 per cent and 19 per cent, respectively. Based on strong third quarter performance, we are reiterating our full year net sales and diluted earnings per share financial outlook. I'm excited about the iconic and innovative products we are delivering to consumers this Fall, including Columbia's expanded Omni-Heat Infinity collection and our new disruptive polyfleece innovation, Omni-Heat Helix,” chairman, president and chief executive officer Tim Boyle, said.

SG&A expenses increased 14 per cent to $319.0 million, or 33.4 per cent of net sales, from $280.1 million, or 34.8 per cent of net sales, for the comparable period in 2021. SG&A expense growth primarily reflects expenses to support the growth of the business and investments to drive brand-led consumer-focused strategies. The increase in SG&A expenses includes higher personnel, demand creation and global retail expenses, partially offset by lower accrued incentive compensation.

“Our strong balance sheet, balanced global distribution, and operating discipline position us to successfully navigate this dynamic environment. I'm confident we have the right strategies in place to unlock the significant growth opportunities we see across the business. We are investing in our strategic priorities to accelerate profitable growth; create iconic products that are differentiated, functional and innovative; drive brand engagement through increased, focused demand creation investments; enhance consumer experiences by investing in capabilities to delight and retain consumers; amplify marketplace excellence, with digitally-led, omni-channel, global distribution; and empower talent that is driven by our core values, through a diverse and inclusive workforce,” added Boyle.

Fibre2Fashion News Desk (RR)