Net sales of American firm Columbia Sportswear surge 8% in H1 FY23

Selling, general, and administrative expenses saw a rise of 14 per cent to $659.9 million, constituting 45.8 per cent of net sales, a considerable increase from the previous year's $580.3 million or 43.3 per cent. Subsequently, operating income took a hit, falling 32 per cent to $62.7 million. Net income also dropped by 26 per cent, coming in at $54.6 million or $0.88 per diluted share, down from the previous year's $74 million or $1.16 per diluted share, Columbia Sportwear said in a press release.

In the second quarter (Q2) of FY23, Columbia reported a 7 per cent (9 per cent constant-currency) rise in net sales to $620.9 million, up from $578.1 million in Q2 FY22. This growth was driven by the Europe, Middle East and Africa (EMEA) and Latin America Asia Pacific (LAAP) regions. However, a decrease in the share of spring 2023 orders shipped in Q2, particularly in Canada and the US, partially offset these gains.

In a positive turn, the company's gross margin expanded by 140 basis points to 50.6 per cent, primarily due to lower inbound freight costs and changes in inventory provisions. These gains were partly offset by increased clearance and promotional activity.

However, selling, general, and administrative expenses swelled by 11 per cent to $312.5 million or 50.3 per cent of net sales, while operating income declined by 29 per cent to $6.2 million. On a brighter note, net income climbed by 17 per cent to $8.4 million or $0.14 per diluted share, up from the previous year's $7.2 million or $0.11 per diluted share.

“Second quarter financial results reflect a dynamic environment, with varying trends across our global omni-channel business. During the quarter, we experienced continued strength across many international markets, including China, while the US environment proved more challenging. Our inventory reduction plan is on track, and we are positioned to reduce year-end inventory by over $200 million, compared to last year,” said chairman, president and chief executive officer Tim Boyle.

Fibre2Fashion News Desk (DP)