US' Columbia Sportswear's net sales rise 8% to $820.6 mn in Q1 FY23

However, the company's gross margin in Q1 FY23 contracted by 100 basis points to 48.7 per cent of net sales from 49.7 per cent in Q1 FY22. Similarly, the selling, general, and administrative expenses increased by 16 per cent to $347.4 million, or 42.3 per cent of net sales, from $299.1 million, or 39.3 per cent of net sales in the same period of the previous year, Columbia Sportswear said in a press release.

The company's operating income decreased by 33 per cent to $56.4 million, or 6.9 per cent of net sales, compared to $83.7 million, or 11 per cent of net sales in Q1 FY22. Similarly, the net income decreased by 31 per cent to $46.2 million, or $0.74 per diluted share, compared to $66.8 million, or $1.03 per diluted share in the same period of the previous year.

For FY23, Columbia Sportswear Company expects net sales to increase by 3 to 6 per cent to $3.57 to $3.67 billion from $3.46 billion in FY22. The company also expects the gross margin to expand approximately 60 basis points to approximately 50 per cent of net sales from 49.4 per cent of net sales in FY22. However, selling, general, and administrative expenses as a per cent of net sales are expected to be 39.0 to 39.2 per cent, compared to 37.7 per cent in FY22. The operating income is expected to be $413 to $432 million, resulting in operating margin of 11.6 to 11.8 per cent, compared to 11.3 per cent in FY22. Net income is expected to be $322 to $336 million, resulting in diluted earnings per share of $5.15 to $5.40.

Chairman, president, and chief executive officer, Tim Boyle, said: “2023 is off to a solid start and we are reiterating our full year net sales outlook, while narrowing our diluted EPS range. We are executing on our plan to reduce inventory levels, while focusing on profitability.

“In periods of economic uncertainty, our strong financial position is a strategic advantage. We exited the first quarter with over $460 million in cash and short-term investments, and no bank borrowings. I am confident we have the right strategies in place to drive profitable growth."

Fibre2Fashion News Desk (DP)