NASDAQ$COLM

Columbia Sportswear Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Columbia reported record second quarter financial results, exceeding pre-pandemic levels.

Columbia Sportswear Company reported record second quarter net sales, gross margin, operating income and diluted earnings per share, exceeding pre-pandemic levels. Net sales increased 79 percent to $566.4 million, and diluted earnings per share was $0.61, compared to a net loss per share of $(0.77) in second quarter 2020.

  • Generated record second quarter and first half 2021 net sales, gross margin, operating income and diluted earnings per share, exceeding pre-pandemic levels.
  • Second quarter 2021 net sales increased 79 percent to $566.4 million, compared to second quarter 2020.
  • Second quarter 2021 operating income of $35.0 million, or 6.2 percent of net sales, compared to a second quarter 2020 operating loss of $70.3 million.
  • Exited the quarter with $820.9 million in cash and short-term investments and no borrowings.

Headline financials

Total Revenue

$566M

Previous: $317M+78.9%
EPS (adj)

$0.61

Previous: -$0.77+179.2%
Capital Expenditures

-$12.4M

Previous: -$21M+40.9%
Free Cash Flow

$28.3M

Previous: -$71.7M+139.5%
Net Income

$40.7M

Previous: -$50.7M+180.2%
Operating Income

$35M

Previous: -$70.3M+149.8%
Gross Profit

$293M

Previous: $146M+100.0%
Cash & Equivalents

$820M

Previous: $475M+72.7%
Total Assets

$2.86B

Previous: $2.62B+9.2%
Stock-Based Comp

$4.32M

Previous: $4.04M+7.0%

Revenue & EPS history

Columbia · Revenue · Quarterly

$566M

Q2 2021+78.9%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Net sales are expected to increase 25.0 to 26.5 percent to $3.13 to $3.16 billion. Operating income is expected to be $365 to $386 million, resulting in operating margin of 11.7 to 12.2 percent. Diluted earnings per share of $4.30 to $4.55.

Tailwinds

  • Net sales are expected to increase 25.0 to 26.5 percent to $3.13 to $3.16 billion from $2.50 billion in 2020.
  • Gross margin is expected to improve 95 to 115 basis points to 49.9 to 50.1 percent of net sales from 48.9 percent of net sales in 2020.
  • SG&A expenses as a percent of net sales is expected to be 38.4 to 38.7 percent, compared to SG&A expenses as a percent of net sales of 43.9 percent in 2020.
  • Operating income is expected to be $365 to $386 million, resulting in operating margin of 11.7 to 12.2 percent compared to operating margin of 5.5 percent in 2020.
  • Net income is expected to be $287 to $304 million, resulting in diluted earnings per share of $4.30 to $4.55.

Headwinds

  • The updated financial outlook includes approximately $40 million of incremental ocean freight costs that were not contemplated in the previous outlook.
  • Ocean freight rates have increased dramatically over the past 60 days, exceeding estimates included in the prior financial outlook.
  • Rising COVID-19 cases in sourcing countries across southeast Asia could further disrupt product availability and deliveries.
  • Port congestion and logistics constraints continue to impact the timing of inventory receipts and deliveries.
  • The Company expects low-20 percent year-over-year net sales growth in second half 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.1%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+0.6%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+22.8%

Q4 2014

Best reaction

-20.4%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.4%+4.2%+8.7%
Q4 2025+14.4%+9.5%+1.6%
Q3 2025-2.1%+1.7%+4.3%
Q1 2025-4.3%+3.8%+2.4%
Q4 2024-5.7%-9.2%-1.9%
Q3 2024+5.7%+7.4%+14.6%
Q2 2024-2.4%+3.8%+7.0%
Q1 2024+0.3%-0.2%+5.3%
Q4 2023+2.6%-2.1%+2.4%
Q3 2023+1.6%+5.1%+7.4%
Q2 2023-5.5%-4.1%-6.7%
Q1 2023-3.0%-5.7%-13.3%
Q4 2022-4.0%-6.2%-7.6%
Q3 2022+2.0%-1.1%+17.9%
Q2 2022+1.7%+1.7%+1.2%
Q1 2022-5.1%-5.2%-10.7%
Q4 2021+1.1%+5.4%-3.2%
Q3 2021+4.2%+1.7%+0.5%
Q2 2021+2.4%+3.5%+4.4%
Q1 2021-3.3%-3.9%-8.8%
Q4 2020+19.9%+14.2%+13.5%
Q3 2020-20.4%-15.5%-9.7%
Q2 2020-8.1%-10.7%+6.2%
Q1 2020-10.1%-12.3%-1.9%
Q4 2019-4.7%-4.7%-17.0%
Q3 2019-4.0%-3.6%-1.8%
Q2 2019-1.2%+2.1%-11.5%
Q1 2019-3.6%-4.8%-7.5%
Q4 2018+14.4%+12.6%+8.1%
Q3 2018-0.7%+6.8%+4.2%
Q2 2018-8.1%-6.4%-2.6%
Q1 2018+4.7%+2.6%+8.5%
Q4 2017+1.8%-0.9%+5.1%
Q3 2017+3.4%-1.0%+8.5%
Q2 2017+7.3%+3.6%-1.1%
Q1 2017-4.7%-4.2%-9.2%
Q4 2016+11.2%+8.5%+3.2%
Q3 2016+0.7%-2.8%+5.0%
Q2 2016-3.5%-7.8%-3.9%
Q1 2016-4.9%
Q4 2015+16.7%
Q3 2015+3.9%
Q2 2015+16.5%
Q1 2015-8.7%
Q4 2014+22.8%
Q3 2014+3.3%
Q2 2014-7.9%
Q1 2014+7.9%
Q4 2013+9.3%
Q3 2013+10.4%
Q2 2013+3.3%
Q1 2013+0.0%
Q4 2012+4.1%
Q3 2012+4.4%
Q2 2012+2.2%
Q1 2011+1.3%
Q1 2012+5.3%
Q4 2009-0.2%
Q4 2011-0.2%
Q3 2011-1.5%
Q3 2010-1.5%
Q2 2010-3.8%
Q4 2010-3.8%
Q2 2011-3.8%
Q1 2010+1.5%

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