Columbia Sportswear Company (NASDAQ: COLM, the “Company”), a leading global innovator with multiple brands in outdoor, active and lifestyle products, including apparel, footwear, accessories and equipment, is hosting an investor meeting at its headquarters and analysts outline the company’s strategic priorities and growth strategies, and present three-year financial targets.
Chairman, President and Chief Executive Officer Tim Boyle commented, “From our IPO in 1998 through 2021, Columbia Sportswear Company delivered a compounded net sales growth rate (CAGR) of 9 percent, diluted earnings per share of 11 percent CAGR and annualized totals of 13 percent shareholder return. Today we are unveiling multi-year financial targets that reflect our confidence in our ability to accelerate growth opportunities over the next three years and beyond.
“Our 3-year roadmap outlines our balanced, broad-based growth, bolstered by three key accelerators: footwear, international expansion and digital revenue growth. Columbia will generate over $700 million in net sales by 2025 with its differentiated innovation and value proposition. SOREL is expected to be our fastest growing brand, generating a 3-year CAGR of 20-22 percent, driven by its year-round product offering and brand momentum. We expect to achieve operating margin improvement over this period while investing in multiple areas including demand generation and digital and supply chain capabilities.
“We are focused on our strategic priorities:
- Accelerate profitable growth by unlocking the full potential of our brand portfolio;
- Create iconic products that are differentiated, functional and innovative;
- Increase brand engagement through increased, targeted investment to create demand to increase brand awareness and build brand affinity;
- Improve the consumer experience by investing in skills to delight and retain consumers and better serve our wholesale partners;
- Amplify Marketplace Excellence, with a digitally-led global omnichannel distribution strategy that clearly reflects the quality and value of our products wherever consumers shop; and
- strengthen talents driven by our core values, through a diverse and inclusive workforce.”
3-year financial targets 2022-2025
(For more details on the financial outlook, see the Investor Day presentation).
“Given our confidence in the collective strength of our brands and our ability to execute on our strategic priorities, we are targeting an annual total return of 13-17 percent over the three-year period from 2023 to 2025,” said Chief Financial Officer Jim Swanson. “We are poised to accelerate profitable growth with broad-based momentum across our portfolio and across geographies, further amplifying revenue growth with a focus on footwear, international and digital.”
The execution of the Company’s plan is expected to achieve the following financial objectives for the period from January 1, 2023 to December 31, 2025:
- net sales are expected to grow at a three-year CAGR of 9 to 11 percent compared to the midpoint of our 2022 financial outlook, and reach $4.5 to $4.7 billion in 2025.
- operating margin is expected to increase to approximately 14 percent of net sales in 2025.
- Diluted earnings per share is expected to grow at a three-year CAGR of 12-15 percent compared to mid-2022 and reach $7.35-$7.95 in 2025.
- The company is aiming for one Annual Total Return to Shareholders (TSR) from 13 to 17 percent, including net sales growth, margin expansion, dividends and share buybacks.
Full Year 2022 Financial Outlook Update
The company reiterates its full-year 2022 net sales guidance of $3.44 billion to $3.50 billion, representing net sales growth of 10 to 12 percent compared to 2021, and full-year 2022 diluted earnings per share guidance of $5.00 to $5.40.
Investor Day speakers
Speaking to investors at the company’s Investor Day: Tim BoyleChairman, President and Chief Executive Officer; Joe BoyleExecutive Vice President, Columbia Brand President; Pri Shumatesenior vice president, chief marketing officer of Columbia; Dean RurakColumbia Brand Senior Vice President, Chief Product Officer; Haskel BeckhamSenior Director for Innovation; Tim ScherinSenior Vice President, Global Wholesale; Monica MirroPresident, prAna; Troy SicottePresident, Mountain Hardwear; Markus Nenow, President, SOREL; and Jim SwansonExecutive Vice President, Chief Financial Officer.
The meeting with investors and analysts will also be streamed live on the Investor Relations section of the company’s website at https://investor.columbia.com/ from approximately 8:00 a.m. PT to 11:30 a.m. PT.
About Columbia Sportswear Company
Connecting active people with their passions, Columbia Sportswear Company is a leading global innovator in outdoor, active and lifestyle products including apparel, footwear, accessories and gear. Founded in 1938 in Portland, Oregon, the company sells its brands in approximately 90 countries. In addition to the Columbia® brand, Columbia Sportswear Company also owns the Mountain Hard Ware®, SOREL® and prAna® brands. To learn more, please visit the company’s websites at www.columbia.com, www.mountainhardwear.com, www.sorel.comand www.prana.com.