The US outdoor outfitter Columbia Sportswear Company felt the effects of the increasingly adverse market conditions in the second quarter of the 2022 financial year: sales grew much more slowly than in the first quarter, and profits were well below the previous year’s level. In view of the persistently difficult business environment, management downgraded its annual forecasts on Wednesday evening.
In the months of April to June, group sales amounted to 578.1 million US dollars (569.2 million euros). Compared to the same quarter of the previous year, this meant an increase of only two percent (currency-adjusted +4 percent), after growth of 22 percent had been achieved in the first quarter.
Earnings were impacted by higher freight costs and increased operating expenses. Operating profit fell by 75 percent to 8.8 million US dollars compared to the same period last year. Net profit even shrank by 82 percent to 7.2 million US dollars (7.1 million euros), but was still above market expectations.
In the entire first half of the year, the group was able to increase its sales by twelve percent (currency-adjusted +14 percent) to 1.34 billion US dollars. Net income fell 23 percent to $74.0 million.
Given the setback in the second quarter, the company lowered its guidance. “As the year progressed, it became increasingly clear that the business environment had become more difficult,” admitted CEO Tim Boyle. “With economic uncertainties mounting, we feel it is wise to take a more conservative approach to our financial outlook for the remainder of the year.”
Specifically, for 2022, management now only expects sales to grow by ten to twelve percent to between US$ 3.44 and 3.50 billion, after an increase of 16 to 18 percent to between US$ 3.63 and 3.69 billion -dollar was expected. Operating profit guidance has been lowered to $415-449 million from $477-502 million. The net profit should now reach 315 to 340 million US dollars. So far, the group had promised 363 to 382 million US dollars.