Despite the difficult framework conditions, the US outdoor outfitter Columbia Sportswear Company unexpectedly increased its profits sharply in the first quarter of 2022. The company then raised its earnings forecast for the full year on Thursday evening.
For the months of January through March, consolidated sales were $761.5 million (€722.0 million), an increase of 22 percent over the same quarter last year. The company justified the significant improvement with “strong demand” from customers and “growth in all brands as well as in all sales channels and regions”.
Despite higher freight costs and increased expenses for marketing, personnel and own retail, the result exceeded market expectations. Operating income increased 19 percent over the same period last year to $83.7 million, and net income grew 20 percent to $66.8 million (EUR 63.4 million).
In view of the figures available, management has revised its earnings forecasts slightly upwards for the full financial year. Operating income is now expected to be in the range of $477 million to $502 million, up from a previous estimate of $472 million to $498 million. The target range for net income has been raised from $359-$379 million to $363-$382 million.
In terms of sales, however, expectations remained unchanged: Growth of 16 to 18 percent to USD 3.63 to 3.69 billion is forecast for 2022. However, this now includes the suspension of all deliveries to the sales partner in Russia in the current year. The group estimated the negative effect of this measure on sales growth at around two percentage points.
