NASDAQ$COLM

Columbia Sportswear Company · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a net sales increase driven by direct-to-consumer growth and higher Fall 2021 wholesale orders, despite supply chain disruptions.

Columbia Sportswear Company reported a 15% increase in net sales to $804.7 million for the third quarter of 2021, with operating income increasing by 56% to $133.5 million and diluted earnings per share increasing by 62% to $1.52. The company exited the quarter with $600.6 million in cash and short-term investments and no borrowings.

  • Net sales increased 15 percent to $804.7 million, compared to third quarter 2020.
  • Operating income increased 56 percent to $133.5 million, or 16.6 percent of net sales.
  • Diluted earnings per share increased 62 percent to $1.52, compared to $0.94 in third quarter 2020.
  • Exited the quarter with $600.6 million in cash and short-term investments and no borrowings.

Headline financials

Total Revenue

$805M

Previous: $701M+14.8%
EPS (adj)

$1.52

Previous: $0.94+61.7%
Capital Expenditures

-$20.4M

Previous: -$25.2M+18.9%
Free Cash Flow

$80.2M

Previous: $37.6M+113.2%
Net Income

$101M

Previous: $62.8M+60.3%
Operating Income

$133M

Previous: $85.6M+55.8%
Gross Profit

$408M

Previous: $343M+19.1%
Cash & Equivalents

$599M

Previous: $313M+91.3%
Total Assets

$2.89B

Previous: $2.65B+8.9%
Stock-Based Comp

$4.66M

Previous: $5.09M-8.4%

Revenue & EPS history

Columbia · Revenue · Quarterly

$805M

Q3 2021+14.8%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The company provided full year 2021 financial outlook. Net sales are expected to increase 21.5 to 23.0 percent to $3.04 to $3.08 billion. Diluted earnings per share is expected to be $4.55 to $4.80.

Tailwinds

  • Net sales of $3.04 to $3.08 billion, representing net sales growth of 21.5 to 23.0 percent compared to 2020.
  • Operating income of $384 to $405 million, representing operating margin of 12.6 to 13.2 percent.
  • Diluted earnings per share of $4.55 to $4.80.
  • Gross margin is expected to improve 190 to 210 basis points to 50.8 to 51.0 percent of net sales from 48.9 percent of net sales in 2020.
  • Demand creation as a percent of net sales is anticipated to be 6.0 percent in 2021, compared to 5.7 percent in 2020.

Headwinds

  • Net sales growth was constrained by supply chain disruptions that resulted in later inventory receipts and reduced wholesale shipments during the quarter.
  • Supply chain constraints continue to impact operations, resulting in delayed receipt and delivery of products for our Fall 2021 and Spring 2022 seasons.
  • Demand for ocean vessels and containers continues to far outstrip available capacity, resulting in significant year-over-year increases in ocean freight costs.
  • We anticipate ongoing supply chain disruptions will continue to impact the timing of receipts and shipments of Spring 2022 inventory and may result in higher than planned cancellations that would impact net sales performance.
  • Given our current view of product and freight costs as well as the likelihood of a more normalized promotional environment, we anticipate gross margin pressure in 2022.

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 Q3 2021

Historical avgQ3 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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