Columbia Sportswear Company · NASDAQ:COLM
Columbia Sportswear — Q2 2021 Earnings Presentation
35 slides from Columbia Sportswear's earnings presentation, Aug 2, 2021
Slide 1: Columbia Sportswear Company Presentation
Bs Columbia | Néstor, a PRESENTATION August 2021 Sportswear Company.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation contains forward-looking statements within the meaning of the federal securities laws regarding Co
Slide 3: References to Non-GAAP Financial Information
REFERENCES TO NON-GAAP FINANCIAL INFORMATION Since Columbia Sportswear Company is a global company, the comparability of its operating results reported in U.S. dollars is affected by foreign currency exchange rate fluctuations because the underlying currencies in which it transacts change in value o
Slide 4: Columbia, SOREL, Mountain Hardwear, prAna
Columbia Cs HARD prAna
Slide 5: Company Timeline
) COLUMBIA SPORTSWEAR COMPANY TIMELINE 2014 prAna. Columbia acquires 2003 prAna brand MOUNTAIN Columbia acquires 2000 Mountain Hardwear ES brand Columbia acquires SOREL brand 1938 Columbia Company founded as the Columbia Hat Company
Slide 6: Brand Portfolio
Slide 7: We Unlock the Outdoors for Everyone
WE UNLOCK THE THE #1 OUTDOOR BRAND IN OUTDOORS FOR EVERYONE THE WORLD
Slide 8: Innovative Material Technologies
WE HAVE OVER 30 INNOVATIVE MATERIAL TECHNOLOGIES THAT KEEP YOU WARM, DRY, COOL AND PROTECTED.
Slide 9: Our Apparel, Footwear, and Accessories
OUR APPAREL, FOOTWEAR, AND ACCESSORIES ARE CREATED FOR ALL SEASONS, AND ALL ACTIVITIES. 9
Slide 10: Elevated Premium Product Lines
ELEVATED PREMIUM PRODUCT LINES INCLUDE PFG, TITANIUM AND MONTRAIL. 10
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Slide 12: Then > Now
THEN > NOW
Slide 13: We Create Powerful Footwear
WE CREATE POWERFUL FOOTWEAR FOR UNSTOPPABLE INDIVIDUALS.
Slide 14: Aegan na!
Aegan na!
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Slide 16: prAna. Clothing for Positive Change
prAna. CLOTHING FOR POSITIVE CHANGE -
Slide 17: What Are You Wearing?
WHAT ARE YOU WEARING? Clothing for Positive Change (C4PC) We believe style is less about fashion or trends, and more about making a statement because celebrating our unique perspective and simplifying our wardrobe, while also protecting the planet, will never go out of fashion. How will you wear the
Slide 18: Pillars of Positive Change
3 Pillars of Positive Change ADVENTURE FOR ALL Create a safe space where everyone can thrive in their own way. RESPECT & RESPONSIBILITY ‘Outfit adventures with respect for the planet and its people. PROGRESS, NOT PERFECTION Ask how we can better inspire, educate, and outfit our atidience every seaso
Slide 19: Mountain Hardwear
Slide 20: Purpose
MOUNTAIN HARDWEAR purpose We exist to make gear that works, because out here, it matters.
Slide 21: Tactics
MOUNTAIN HARDWEAR tactics PRODUCT DIGITAL COMMUNICATION Create a relentless Make MHW.com the Tell our story through pipeline of compelling full expression of the the products we make products that are Brand and to drive awareness innovative, technical disproportionally and desire. and beautiful. inv
Slide 22: Values
MOUNTAIN HARDWEAR values 01 02 03 We go to the We choose We care about the MOUNTAINS DURABILITY; PLANET and the because its where enduring impact our actions we feel alive. performance have on it. is our definition of quality.
Slide 23: Financial Overview
FINANCIAL OVERVIEW
Slide 24: Long-Term Track Record of Profitable Growth
LONG-TERM TRACK RECORD OF PROFITABLE GROWTH From 1998 - 2019, COLM generated 10% net sales CAGR and 12% EPS CAGR Lower net sales and profitability in 2020 primarily reflects the impact of the COVID-19 pandemic REVENUE EPS $3,500 $6.00 $3,000 $5.00 2,500 $2, $4.00 $2,000 $3.00 $1,500 $1,000 $2.00 $50
Slide 25: Diversified Revenue Base
ae ia wile DIVERSIFIED REVENUE BASE 2020 NET SALES BREAKDOWN GEOGRAPHY BRAND CATEGORY CHANNEL COLUMBIA APPAREL, ACCESSORIES 80% & EQUIPMENT ues WHOLESALE 56% DTC.COM 19% FOOTWEAR 25% DTC B&M 25% United States ("U.S.") §) Latin America and Asia Pacific ("LAP") Europe, Middle East and Africa ("EMEA")
Slide 26: First Half 2021 Financial Results
FIRST HALF 2021 FINANCIAL RESULTS NET SALES AND GROWTH VS. PRIOR YEAR SIX MONTHS ENDED JUNE 30, 2021 CATEGORY PERFORMANCE APPAREL, ACCESSORIES & EQUIPMENT: $922 MILLION FP +32% FOOTWEAR: $270 MILLION | Ma. +43% REGIONAL PERFORMANCE AS REPORTED: a er +32% CANAD +40% EMEA +41% +12% LAAP U.S. CONSTANT-
Slide 27: First Half 2021 Global Results
FIRST HALF 2021 GLOBAL RESULTS Growth and Percentage Metrics are year-over-year metrics, comparing first half 2021 to first half 2020. SIX MONTHS ENDED JUNE 30, 2021 NET SALES GROSS MARGIN +35% +430bp OPERATING MARGIN DILUTED EPS Compared to (8.2)% Compared to a loss of $(0.76)
Slide 28: Full Year 2021 Financial Outlook
FULL YEAR 2021 FINANCIAL OUTLOOK Growth and percentage metrics are year-over-year metrics, comparing the full year 2021 financial outlookto full year 2020 results NET SALES $3.13-$3.16B +25.0% to 26.5% DILUTED EPS $4.30- $4.55 i +165% to 181% : The Company's 2021 Financial Outlook and the underlying
Slide 29: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Our goal is to maintain our strong balance sheet and disciplined approach to capital allocation. Dependent upon market conditions and our strategic priorities, our capital allocation approach includes: TO DRIVE LONG-TERM PROFITABLE GROWTH THROUGH DIVIDENDS AND SHARE REP
Slide 30: Strategic Focus
STRATEGIC FOCUS
Slide 31: Strategic Priorities
STRATEGIC PRIORITIES WE ARE COMMITTED TO DRIVING SUSTAINABLE AND PROFITABLE LONG-TERM GROWTH AND INVESTING IN OUR STRATEGIC PRIORITIES TO: rs Pa DRIVE GLOBAL BRAND ENHANCHOONSUMER See AWARENESS AND SALES EXPERIENCE AND DIGITAL GLOBAL DTC OPERATIONS GROWTH THROUGH CAPABILITIES IN ALL OF OUR WITH SUPP
Slide 32: X1 e-commerce initiative
During 2018, we commenced investment in our X1 initiative, which was designed to enhance our e-commerce systems to take advantage of the changes in consumer browsing and purchasing behavior towards mobile devices. It encompassed re-implementation of our e-commerce platforms to offer improved search,
Slide 33: Appendix
Slide 34: First Half 2021 Constant-Currency Reconciliation
FIRST HALF 2021 CONSTANT-CURRENCY RECONCILIATION COLUMBIA SPORTSWEAR COMPANY Reconciliation of GAAP to Non-GAAP Financial Measures Net Sales Growth - Constant-currency Basis (Unaudited) Six Months Ended June 30, Adjust for Constant Constant. Reported Foreign currency Reported Reported currency Net S
Slide 35: First Half Free Cash Flow Reconciliation
FIRST HALF FREE CASH FLOW RECONCILIATION COLUMBIA SPORTSWEAR COMPANY Reconciliation of GAAP to Non-GAAP Financial Measures Net cash provided by (used in) operating activities to free cash flow (Unaudited) Six Months Ended June 30, (la milions) 2021 2020 Net cash provided by (used in) operating activ
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