The US outdoor outfitter Columbia Sportswear Company did not meet the analysts’ profit expectations in the first quarter of the 2023 financial year and subsequently cut its earnings forecasts for the full year. At the same time, the parent company of the Columbia, Sorel, Mountain Hardwear and Prana brands said on Thursday evening that it was sticking to its sales target.
In the months from January to March, group sales were 820.6 million US dollars (745.7 million euros) and thus eight percent (currency-adjusted +10 percent) above the level of the same quarter of the previous year. The company justified the increase with growth in its own retail business and earlier delivery dates in the wholesale business.
Extensive price discounts and higher operating costs, however, ensured that operating profit shrank by 33 percent to 56.4 million US dollars. Net income fell 31 percent to $46.2 million, falling short of market expectations.
In view of the most recent development, the company formulated its profit expectations for the full financial year somewhat more cautiously. The guidance for operating profit, which had previously been between 322 and 347 million US dollars, has been revised to between 322 and 336 million US dollars. The target range for diluted earnings per share is now between $5.15 and $5.40. Previously, $5.15 to $5.55 was expected. The sales forecast remained unchanged. The group is thus still aiming for an increase of three to six percent to 3.57 to 3.67 billion US dollars in the current year.