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COLM Nasdaq· Columbia Sportswear Co.
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COLM Nasdaq· Columbia Sportswear Co.
Earnings report Q3 2023

Columbia Sportswear Reports Strong Revenue Growth in Q3 2023

Segments of revenue

In the third quarter of 2023, Columbia Sportswear Company experienced growth in its different segments of revenue. Net sales for the Latin America and Asia Pacific (LAAP) segment increased by $2.7 million to $14.5 million. The Europe, Middle East, and Africa (EMEA) segment saw a slight decrease in net sales by $1.4 million to $34.2 million. However, the Canada segment showed significant growth, with net sales increasing by $10.0 million to $30.2 million. Overall, the total segment operating income decreased slightly by $2.4 million to $210.5 million.

Strengths

Columbia Sportswear Company demonstrated strength in its revenue growth, particularly in the Canada segment. The increase in net sales for Canada contributed to an improvement in operating income, which reached $41.1 million, or 21.4% of net sales. The company's Columbia and SOREL brands also benefited from earlier shipment of Fall 2023 wholesale orders, resulting in increased net sales. Additionally, the company's gross margin expanded by 70 basis points, reaching 48.7%, indicating improved profitability.

Challenges

Despite the overall positive performance, there were some challenges for Columbia Sportswear Company in the third quarter of 2023. The United States (U.S.) segment experienced a decrease in operating income by $13.7 million to $131.6 million, primarily due to increased selling, general, and administrative (SG&A) expenses. Although U.S. net sales increased by 5%, the growth was driven mainly by the wholesale business for the Columbia and SOREL brands. The company also faced a 3% decrease in e-commerce business, impacting its overall DTC net sales.

Noteworthy

One noteworthy aspect of Columbia Sportswear Company's performance in the third quarter of 2023 was the earlier shipment of Fall 2023 wholesale orders, which positively impacted net sales for the Columbia and SOREL brands. Additionally, the company's brick-and-mortar business showed a 7% increase, partially offsetting the decline in e-commerce sales.

Summary

Columbia Sportswear Company delivered strong revenue growth in the third quarter of 2023, driven by increased net sales in the Canada segment and earlier shipment of Fall 2023 wholesale orders. The company's gross margin also expanded, indicating improved profitability. However, challenges were observed in the U.S. segment, with increased SG&A expenses and a decrease in e-commerce sales. Overall, Columbia Sportswear Company's performance in the latest quarter showcased its ability to capitalize on market opportunities while addressing certain business challenges.

Source documents

Form 10-Q  filed on Nov 02, 2023
79 pages scanned

Reference data

Company financials Q3 revenue 1.06B
Analyst estimates Q3 EPS missed by -4.87%
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