Business
Columbia Sportswear Company Reports Fourth Quarter 2020 Financial Results and Provides Full Year 2021 Financial Outlook; Announces Quarterly Dividend and $400 Million Increase in Share Repurchase Authorization
Fourth Quarter 2020 Highlights Lower net sales and profitability in fourth quarter 2020 compared to fourth quarter 2019 primarily reflect the ongoing
About this update from Columbia Sportswear Company
[{"type":"text","content":"\nFourth Quarter 2020 Highlights\n\nLower net sales and profitability in fourth quarter 2020 compared to fourth quarter 2019 primarily reflect the ongoing negative effects of the COVID-19 pandemic.\n\n\nNet sales decreased 4 percent to $915.7 million, compared to fourth quarter 2019. Net sales benefited from later shipment of Fall 2020 wholesale orders as outlined in the third quarter 2020 earnings release. \n\n\nIn the direct-to-consumer channel, e-commerce net sales increased 41 percent year-over-year while brick & mortar store traffic and sales trends improved sequentially but remained well below prior year levels. \n\n\nOperating income decreased 11 percent to $123.7 million, or 13.5 percent of net sales, compared to fourth quarter 2019 operating income of $138.6 million, or 14.5 percent of net sales. Fourth quarter 2020 operating income includes $18.1 million in retail impairments and store closure charges and a $17.5 million prAna trademark impairment.\n\n\nDiluted earnings per share decreased 14 percent to $1.44 compared to fourth quarter 2019 diluted earnings per share of $1.67. \n\n\nExited the quarter with $791.9 million in cash and short-term investments and no borrowings. The Company also refinanced its domestic credit agreement with a new agreement providing a $500 million five year unsecured revolving credit facility. \n\n\nOn January 29, 2021, the Board of Directors approved a quarterly dividend at its pre-pandemic level of $0.26 per share.\n\n\nOn January 29, 2021, the Board of Directors approved a $400 million increase in share repurchase authorization, bringing total available share repurchase authorization to $482 million.\n\n\nFull Year 2021 Financial Outlook\n(Financial outlook details can be found in the \"Supplemental Financial Information\" section below and the CFO Commentary document).\n\nThe following forward-looking statements reflect our expectations as of February 4, 2021 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. These risks and uncertainties limit our ability to accurately forecast results. This outlook reflects our estimates as of February 4, 2021 regarding the impact on our operations of the COVID-19 pandemic, economic conditions, supply chain and logistics capacity constraints, and changes in consu...