Due to high price reductions in the final quarter, the US outdoor outfitter Columbia Sportswear Company did not meet its own profit forecast for the 2022 financial year. However, sales increased sharply and were in line with expectations. This emerges from the current annual report, which the parent company of the brands Columbia, Sorel, Mountain Hardwear and Prana published on Thursday evening.
In the past year, the group was able to achieve a new record turnover of 3.46 billion US dollars (3.17 billion euros). Compared to 2021, revenues increased by eleven percent (currency-adjusted +14 percent). The main growth engine was the Columbia brand with a sales increase of twelve percent (currency-adjusted +16 percent) to 2.86 billion US dollars. The smaller group labels were also able to increase, but recorded lower growth rates.
Earnings were impacted by higher costs and price reductions as well as value adjustments for the Prana brand. Operating profit fell 13 percent year-on-year to $393.1 million. Net income was $311.4 million, down 12 percent from 2021 levels.
In the current year, the result should now increase again: The group forecast a net profit of between 322 and 347 million US dollars for 2023. Sales growth of three to six percent to 3.57 to 3.67 billion US dollars is expected.