Columbia Sportswear Company Outlines Strategic Priorities and Plan to Accelerate Profitable Growth
Introduces 2022-2025 3-year growth framework including:
2025 net sales of
$4.5to 4.7 billion reflecting 9 to 11 percent organic net sales growth on a compound annual growth rate (CAGR) basis;
- Operating margin expansion to approximately 14 percent of net sales in 2025; and
Diluted earnings per share of
$7.35to $7.95in 2025 reflecting a 12 to 15 percent CAGR.
- 2025 net sales of
- Reaffirms full year 2022 net sales and diluted earnings per share financial outlook
Chairman, President and Chief Executive Officer
“Our 3-year plan outlines our balanced, broad-based growth that will be amplified by three key accelerators: footwear, international expansion and digital sales growth. Columbia, with its differentiated innovation and value proposition, will add over
“We are focused on our strategic priorities to:
- Accelerate Profitable Growth by unlocking the full potential of our brand portfolio;
- Create Iconic Products that are differentiated, functional and innovative;
- Drive Brand Engagement through increased, focused demand creation investments to grow brand awareness and build brand affinity;
- Enhance Consumer Experiences by investing in capabilities to delight and retain consumers and better serve our wholesale partners;
- Amplify Marketplace Excellence, with a digitally-led, omni-channel global distribution strategy that clearly reflects the quality and value of our products, wherever consumers choose to shop; and
- Empower Talent that is driven by our core values, through a diverse and inclusive workforce.”
2022-2025 3-Year Financial Targets
(Additional financial outlook details can be found in the Investor Day presentation).
“Given the confidence we have in the collective strength of our brands and our ability to execute our strategic priorities, we are setting a 13 to 17 percent total annual shareholder return target over the three-year time period spanning 2023-2025,” said Chief Financial Officer
Execution of the Company’s plan is expected to achieve the following financial objectives for the period beginning
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, reaching
$4.5to $4.7 billionin 2025.
- Operating margin is expected to expand to approximately 14 percent of net sales in 2025.
Diluted Earnings per Share is expected to grow at a three-year CAGR of 12 to 15 percent compared to the midpoint of 2022, reaching
$7.35to $7.95in 2025.
- The Company is targeting an Annual Total Shareholder Return (TSR) of 13 to 17 percent, inclusive of net sales growth, margin expansion, dividends and share repurchases.
Full Year 2022 Financial Outlook Update
The Company is reaffirming its full year 2022 net sales outlook of
Investor Day Presenters
Speaking to investors at the Company’s Investor Day are:
The meeting with investors and analysts will also be webcast live on the Investor Relations section of the Company’s website at https://investor.columbia.com/ from approximately
This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company’s expectations, anticipations or beliefs about the Company's ability to realize net sales, operating margin, diluted earnings per share, and total shareholder return. Forward looking statements often use words such as "will," "anticipate," "estimate," "expect," "should," "may" and other words and terms of similar meaning or reference future dates. The Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties include those relating to the impact of the COVID-19 pandemic on our operations; economic conditions, including inflationary pressures; supply chain disruptions, constraints and expenses; labor shortages; changes in consumer behavior and confidence; as well as geopolitical tensions. The Company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time, and it is not possible for the Company to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.
Vice President of Investor Relations and Strategic Planning