NASDAQ$COLM

Columbia Sportswear Company · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fourth quarter and full year 2022 financial results and provided full year 2023 financial outlook.

Columbia Sportswear Company reported a 4% increase in net sales to a record $1,169.6 million for the fourth quarter of 2022. Operating income decreased by 27% to $155.4 million, and diluted earnings per share decreased by 15% to $2.02. The company exited the quarter with $431.0 million in cash and short-term investments and no borrowings.

  • Net sales increased 4 percent (8 percent constant-currency) to a record $1,169.6 million.
  • Operating income decreased 27 percent to $155.4 million, or 13.4 percent of net sales.
  • Diluted earnings per share decreased 15 percent to $2.02.
  • Exited the quarter with $431.0 million of cash and short-term investments and no borrowings.

Headline financials

Total Revenue

$1.17B

Previous: $1.13B+3.5%
EPS (adj)

$2.45

Previous: $2.39+2.5%
Gross Margin

50.4%

Previous: 52.2%-3.4%
Effective Income Tax Rate

21.3%

No prior period
Net Income

$126M

Previous: $157M-19.9%
Operating Income

$155M

Previous: $212M-26.6%
Gross Profit

$590M

Previous: $590M-0.0%
Cash & Equivalents

$430M

Previous: $763M-43.6%
Total Assets

$3.05B

Previous: $3.07B-0.5%
Stock-Based Comp

$4.95M

Previous: $4.64M+6.7%

Revenue & EPS history

Columbia · Revenue · Quarterly

$1.17B

Q4 2022+3.5%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The Company's first half and full year 2023 Financial Outlook is forward-looking in nature, and the following forward-looking statements reflect our expectations as of February 2, 2023 and are subject to significant risks and business uncertainties.

Tailwinds

  • Net sales are expected to increase 3 to 6 percent to $3.57 to $3.67 billion from $3.46 billion in 2022.
  • Gross margin is expected to expand approximately 60 basis points to approximately 50 percent of net sales from 49.4 percent of net sales in 2022.
  • Operating income is expected to be $413 to $448 million, resulting in operating margin of 11.6 to 12.2 percent, compared to operating margin of 11.3 percent in 2022.
  • Effective income tax rate is expected to be approximately 24.5 percent.
  • Net income is expected to be $322 to $347 million, resulting in diluted earnings per share of $5.15 to $5.55.

Headwinds

  • SG&A expenses are expected to increase faster than net sales growth.
  • SG&A expense, as a percent of net sales, is expected to be 38.3 to 39.0 percent, compared to SG&A expense as a percent of net sales of 37.7 percent in 2022.
  • Foreign currency translation is anticipated to reduce 2023 net sales growth by approximately 30 basis points.
  • Foreign currency is expected to have an approximately $0.05 negative impact on diluted earnings per share due primarily to unfavorable foreign currency transactional effects from hedging of production.
  • First quarter 2023 gross margin expected to be down compared to first quarter 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 Q4 2022

Historical avgQ4 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%

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