Business
Columbia Sportswear Company Reports First Quarter 2020 Financial Results and Provides Updates on Response to COVID-19
First Quarter 2020 Financial Results and COVID-19 Response Summary Lower net sales and profitability in first quarter 2020 compared to first quarter 2019
About this update from Columbia Sportswear Company
[{"type":"text","content":"\nFirst Quarter 2020 Financial Results and COVID-19 Response Summary\nLower net sales and profitability in first quarter 2020 compared to first quarter 2019 primarily reflects the impact of lower consumer demand resulting from the ongoing COVID-19 pandemic.\n\n\n\nNet sales decreased 13 percent to $568.2 million, compared to first quarter 2019.\n\n\nLoss from operations of $(2.0) million, or (0.3) percent of net sales, compared to first quarter 2019 operating income of $88.0 million, or 13.4 percent of net sales. First quarter 2020 loss from operations include a $21.5 million year-over-year increase in bad debt expense and a $9.2 million year-over-year increase in inventory obsolescence provisions.\n\n\nBreak even diluted earnings per share, compared to first quarter 2019 diluted earnings per share of $1.07.\n\n\nRecent actions to mitigate the financial impact of the COVID-19 pandemic have been focused on financial liquidity enhancements, cost containment measures and capital preservation actions including suspending dividends and share repurchases.\n\n\n PORTLAND, Ore.--(BUSINESS WIRE)--\nColumbia Sportswear Company (NASDAQ: COLM) (the \"Company\"), a leading innovator in active outdoor lifestyle apparel, footwear, accessories and equipment, today announced first quarter 2020 financial results for the period ended March 31, 2020 and updates regarding the Company's response to the COVID-19 pandemic.\n\n\nChairman, President and Chief Executive Officer Tim Boyle commented, \"Our focus remains on the health and safety of our employees, their families, our customers and our communities. I'm proud of the strength and resilience of our global employees, whose dedication, focus and responsiveness are vital to successfully navigating this unprecedented global health and economic crisis. First quarter results largely reflect the impact of the COVID-19 pandemic, which escalated throughout the quarter as the global effort to contain the pandemic unfolded. It is important to note that we entered into this crisis in a position of strength, with a fortress balance sheet and top quartile operating margin performance in our industry in 2019. As consumers look to make every dollar they spend count within this challenging economic environment, we believe the Columbia brand’s differentiated innovation and exceptional value are as important as eve...