NASDAQ$COLM

Columbia Sportswear Company · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Columbia's Q2 2022 financial results were reported, showing mixed performance amid a challenging economic environment.

Columbia Sportswear reported a 2% increase in net sales to $578.1 million in Q2 2022, but experienced a 75% decrease in operating income to $8.8 million and an 82% decrease in diluted earnings per share to $0.11. The company updated its full year 2022 financial outlook, reflecting a more conservative approach due to growing economic uncertainty.

  • Net sales increased 2% to a record $578.1 million, driven by growth in the U.S., Canada, Europe-direct, Japan, and Korea, but offset by lower sales in Russia and China.
  • Operating income decreased 75% to $8.8 million, or 1.5% of net sales, due to gross margin contraction and increased SG&A expenses.
  • Diluted earnings per share decreased 82% to $0.11, compared to $0.61 in the same quarter last year.
  • The company repurchased $69.6 million of common stock during the second quarter.

Headline financials

Total Revenue

$578M

Previous: $566M+2.1%
EPS (adj)

$0.11

Previous: $0.61-82.0%
Free Cash Flow

$7.16M

Previous: $28.3M-74.7%
Net Income

$7.16M

Previous: $40.7M-82.4%
Operating Income

$8.77M

Previous: $35M-74.9%
Gross Profit

$284M

Previous: $293M-2.9%
Cash & Equivalents

$413M

Previous: $820M-49.6%
Total Assets

$2.73B

Previous: $2.86B-4.8%
Stock-Based Comp

$5.13M

Previous: $4.32M+18.8%

Revenue & EPS history

Columbia · Revenue · Quarterly

$578M

Q2 2022+2.1%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Columbia Sportswear Company updated its full year 2022 financial outlook to reflect growing economic uncertainty.

Tailwinds

  • Net sales are expected to increase 10 to 12 percent to $3.44 to $3.50 billion compared to 2021.
  • SG&A expenses are expected to increase roughly in line with net sales growth.
  • Demand creation as a percent of net sales is anticipated to be 6.0 percent in 2022, compared to 5.9 percent in 2021.
  • Effective income tax rate is expected to be approximately 24.0 to 24.5 percent.
  • Capital expenditures are planned to be between $80 to $100 million.

Headwinds

  • Foreign currency translation is anticipated to reduce 2022 net sales growth by approximately 300 basis points.
  • Foreign currency is expected to have a $0.15 to $0.20 negative impact on earnings due to unfavorable foreign currency translation impacts.
  • Gross margin is expected to contract 210 to 180 basis points to 49.5 to 49.8 percent of net sales from 51.6 percent of net sales in 2021.
  • Operating income is expected to be $415 to $449 million, resulting in operating margin of 12.1 to 12.8 percent, compared to operating margin of 14.4 percent in 2021.
  • Net income is expected to be $315 to $340 million, resulting in diluted earnings per share of $5.00 to $5.40.

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 2022

Historical avgQ2 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro