Business
Columbia Sportswear Company Provides COVID-19 Business and Financial Liquidity Update; Withdraws First Half and Full Year 2020 Financial Outlook; Temporarily Suspends Quarterly Dividend
PORTLAND, Ore.--(BUSINESS WIRE)-- Columbia Sportswear Company (Nasdaq: COLM, “Columbia”), a global leader in designing, sourcing, marketing and distributing
About this update from Columbia Sportswear Company
[{"type":"text","content":" PORTLAND, Ore.--(BUSINESS WIRE)--\nColumbia Sportswear Company (Nasdaq: COLM, “Columbia”), a global leader in designing, sourcing, marketing and distributing outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products, today provided an update related to the COVID-19 crisis.\n\n\n“As the human and economic impacts of the pandemic continue to mount, we remain focused on the health and safety of our customers, employees and their families,” commented Chairman, President and Chief Executive Officer Tim Boyle. “We are also taking the necessary steps to improve financial liquidity and reduce operating expenses and capital outflows. While it is impossible to predict how long this crisis will last, we entered into it in a position of strength and our objective is to carefully navigate this environment to ensure the Company’s long-term success. We have weathered many storms during Columbia’s 81-year history, and I am confident that we will get through this one as well.”\n\n\nStore Closure Update\n\n\nAs of the date of this release, the vast majority of Columbia’s stores in China and Korea have reopened, although many still operate with reduced store hours. In these markets, retail traffic trends have been improving but remain well below pre-pandemic levels. Japan had experienced a similar recovery trend to the rest of Asia until recent weeks, when a spike of new cases in and around Tokyo prompted an increase in store closures. Across North America and Europe, the Company’s stores remain closed. A timeline for reopening will be based on guidance from federal, state and local governments and relevant public health authorities. In addition to the Company’s owned stores, most of our retailer partners’ stores across North America and Europe also remain closed. Our e-commerce businesses have largely remained operational during this period, with the exception of temporary distribution closures in France and China that have since resumed operations.\n\n\nCapital Preservation and Cost Containment Measures\n\n\nIn light of the pandemic, Columbia has taken steps to reduce capital outflows. After paying the regular quarterly cash dividend in March, the Company’s Board of Directors temporarily suspended the quarterly dividend. In addition, the Company has suspended share repurchases and meaningfully reduced planned...