The US outdoor outfitter Columbia Sportswear Company missed its own sales expectations in the third quarter of the current 2023 financial year and then scaled down its targets for the full year again.
According to an interim statement published on Thursday evening, the parent company of the Columbia, Sorel, Prana and Mountain Hardwear brands achieved sales of 985.7 million US dollars (934.5 million euros) in the period from July to September, an increase of three percent compared to the same quarter of the previous year. However, at the beginning of August, the company had forecast growth of four to six percent.
The result, however, was in line with expectations despite losses. The operating profit fell by seven percent to 134.6 million US dollars compared to the same period last year, and the quarterly profit also shrank by seven percent to 103.5 million US dollars (98.1 million euros).
The sales forecast for 2023 is lowered again
In view of the latest developments, management lowered its annual forecasts for 2023. It now only expects sales growth of 0.5 to 2.0 percent to between 3.48 and 3.53 billion US dollars. An increase of 2.0 to 3.5 percent to 3.53 to 3.59 billion US dollars had previously been targeted.
The operating profit target range, which had previously been $348 million to $368 million, was lowered to $343 million to $363 million. Because the company now expects a lower tax burden, the net profit forecast has been raised slightly. 275 to 290 million US dollars are now expected, compared to 272 to 288 million US dollars previously expected.
The outdoor outfitter is expecting a “difficult” spring
The group also admitted that it expected a “difficult” spring season in 2024 due to persistently weak demand and planned changes in production. A decline in sales in the mid-single-digit percentage range is therefore forecast for the first half of the coming financial year.
However, sales growth and a slight improvement in the operating margin can be achieved in 2024 as a whole, according to a statement. However, this depends on “several factors”, such as the mood of retailers and customers as well as economic and geopolitical developments, the company explained.