Columbia Sportswear Company · NASDAQ:COLM
Columbia Sportswear — Q1 2022 Earnings Presentation
20 slides from Columbia Sportswear's earnings presentation, Apr 28, 2022
Slide 1: CFO Commentary and Financial Review First Quarter 2022
& Columbia Ss Sportswear Company. CFO Commentary and Financial Review { R First Quarter 2022 - April 28, 2022
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: Abbreviations and definitions
DTC DTC.com DTC B&M y/y U.S. LAAP EMEA SG&A EPS bps direct-to-consumer DTC e-commerce DTC brick & mortar year-over-year United States Latin America and Asia Pacific Europe, Middle East and Africa selling, general & administrative earnings per share basis points “+” or “up” “-” or “down” LSD% MSD% HS
Slide 4: We Connect Active People With Their Passions
WE CONNECT ACTIVE PEOPLE WITH THEIR PASSIONS Columbia Fl HS 4 prAna
Slide 5: Strategic Priorities
STRATEGIC PRIORITIES We are committed to driving sustainable and profitable long-term growth and investing in our strategic priorities to: @ Pd DRIVE BRAND AWARENESS AND ENHANCE CONSUMER EXPAND AND IMPROVE SALES GROWTH THROUGH EXPERIENCE AND DIGITAL GLOBAL DTC OPERATIONS INCREASED, FOCUSED DEMAND CA
Slide 6: 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: INVEST INORGANIC GROWTH OPPORTUNITIES TO DRIVE LONG-TERM PROFITABLE
Slide 7: Q1'22 Key Highlights
Q1’22 KEY HIGHLIGHTS Q1'22 FINANCIAL RESULTS COMPARED TO Q1'21 $762M +22% Net Sales Gross Margin Operating Margin Diluted EPS Q1°22 Highlights: + Record net sales driven by strong consumer demand and shipment of higher Spring ‘22 orders. Growth was broad based across all brands, channels and geograp
Slide 8: Q1'22 Actual vs LAS
Q1’22 ACTUAL VS LAS Commentary on factors impacting Q1’22 financial results: (dollars in millions, except per share amounts) Q1'22 Q1'21 Change Net sales $761.5 $625.6 +22% Gross margin 49.7% 51.4% -170 bps SG8A percent of net sales 39.3% 40.7% -140 bps Operating income $83.7 $70.5 +19% Operating ma
Slide 9: Q1'22 Net Sales Overview
Q1'22 NETSALESOVERVIEW ~~ Q1'22 NET SALES AND GROWTH VS. Q1'21 CATEGORY BRAND CHANNEL PERFORMANCE PERFORMANCE PERFORMANCE APPAREL, ACCESSORIES C WHOLESALE: & EQUIPMENT: Columbia ia } 421% 22% cc) P +22% 24% cc.) P+37% (438% cic.) } 422% 423% cc) S566M $644M S64M $408M 2, HARDey FOOTWEAR: prAna Hae)
Slide 10: Q1'22 Regional Net Sales Performance
Q1'22 REGIONAL NET SALES PERFORMA\ Q1'22 NET SALES AND GROWTH VS. Q1'21 Percentage change details and primary drivers: us. + Wholesale: up low-20%, driven by shipment of higher Spring ‘22 orders and strong late season cold weather product sales, partially CANADA offset by supply chain disruptions +2
Slide 11: Gross Margin contraction drivers: headwinds and tailwinds
Gross Margin contraction primarily reflects: Headwinds • Other: supply chain capacity constraints resulting in higher inbound freight costs • Other: unfavorable year-over-year changes in inventory provisions • Channel & Region Mix: regional net sales shifts • Channel Profitability: lower wholesale m
Slide 12: Q1'22 SG&A Bridge
Q1'22SG&ABRIDGE = © SG&A increased 18% to $299.1M SG&A expense growth primarily reflects expenses to support the growth of the business and investments $299.1 to drive our brand-led consumer-focused strategies. ial The y/y increase in SG&A expenses includes: . ; | SG&A Expense Increases | | + Demand
Slide 13: Balance Sheet Overview
BALANCE SHEET OVERVIEW Balance Sheet as of March 31, 2022 Cash, Cash Equivalents and Short-term Investments S610M Cash, cash equivalents and short-term investments totaled $610.3M, compared to $874.6M as of March 31, 2021. The Company had no borrowings as of March 31, 2022, or 2021. Inventory Invent
Slide 14: Cash Flow Overview
CASH FLOW OVERVIEW Cash Flow for the Three Months Ended March 31, 2022 Net Cash used in Operations Net cash used in operating activities was $33.8M, compared to net cash provided by operating activities of $110.9M for the same period in 2021. The largest driver of the y/y reduction in operating cash
Slide 15: 2022 Financial Outlook
2022 FINANCIALOUTLOOK }§»=©» The Company's 2022 Financial Outlook and the underlying assumptions are forward-looking in nature, and the forward-looking statements reflect our expectations as of April 28, 2022 and are subject to significant risks and business uncertainties, including those factors de
Slide 16: 2022 Financial Outlook
2022 FINANCIAL OUTLOO Anticipated net sales growth primarily reflects: Net Sales + Inbound shipping times, port congestion and other logistics delays have elongated in-transit times resulting in delayed receipt and delivery of products, Our 2022 financial outlook incorporates our current view of the
Slide 17: Effective tax rate and share count
Effective tax rate And Share Count The full year effective tax rate in our 2022 financial outlook is 24.0%-24.5%, The 2022 effective tax rate is anticipated to be higher than the effective tax rate from 2019-2021 as the prior years included separate discrete tax items which lowered the effective tax
Slide 18: Appendix
APPENDIX
Slide 19: First Quarter 2022 Constant-Currency Reconciliation
FIRST QUARTER 2022 CONSTANT-CURRENCY RECONCILIATION COLUMBIA SPORTSWEAR COMPANY Reconciliation of GAAP to Non-GAAP Financial Measures Net Sales Growth - Constant-currency Basis (Unaudited) ‘Tee Months Ended March 3, Tagsttor Constant Constant Reported Foreign cuency «Reported ——~Reported currency Ne
Slide 20: First Three Months 2022 Free Cash Flow Reconciliation
FIRST THREE MONTHS 2022 FREE CASH FLOW RECONCILIATION COLUMBIA SPORTSWEAR COMPANY Reconciliation of GAAP to Non-GAAP Financial Measures Net cash used in operating activities to free cash flow (Unaudited) Three Months Ended March 31, (ia ition) 2022 2021 Net cash provided by (used in) operating activ