Columbia Sportswear Company · NASDAQ:COLM
Columbia Sportswear — Q4 2021 Earnings Presentation
22 slides from Columbia Sportswear's earnings presentation, Feb 3, 2022
Slide 1: CFO Commentary and Financial Review Fourth Quarter 2021
& Columbia “ Xx ‘Se Sportswear Company. CFO Commentary and Financial Review Fourth Quarter 2021 February 3, 2022 Exhibit 99.2
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
Slide 5: Strategic Priorities
STRATEGIC PRIORITIES We are committed to driving sustainable and profitable long-term growth and investing in our strategic priorities to: @ - DRIVE GLOBAL BRAND AWARENESS AND SALES. GROWTH THROUGH INCREASED, FOCUSED DEMAND ENHANCE CONSUMER EXPAND AND IMPROVE EXPERIENCE AND DIGITAL GLOBAL DTC OPERAT
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: Q4'21 Highlights
$2.39 +23% +66% Net Sales Gross Margin Operating Margin Diluted EPS Q4’21 Highlights: Robust DTC brick-and-mortar and ecommerce sales and favorable gross margin performance fueled better than planned and record financial results. Wholesale sales were constrained by supply chain disruptions. Fourth q
Slide 8: Q4'21 financial results summary
• • • (dollars in millions, except per share amounts) Q4'21 Q4'20 Change Net sales $1,129.7 $915.6 +23% Gross margin 52.2% 50.6% +160 bps SG&A percent of net sales 34.0% 37.5% -350 bps Operating income $211.6 $123.7 +71% Operating margin 18.7% 13.5% +520 bps Net income $157.0 $95.8 +64% Diluted EPS
Slide 9: Q4'21 Net Sales Overview
“Q4'21 NET SALES OVERVIEW. Q4'21 NET SALES AND GROWTH VS. Q4'20 CATEGORY BRAND CHANNEL PERFORMANCE PERFORMANCE PERFORMANCE APPAREL, ACCESSORIES Columbia ia WHOLESALE: & EQUIPMENT: P +28% 28% <0.) 428% H2e%c0) $4+9% 19% cc) +13% (413% cc) sa46m $894M $164M $505M 2. HARD ey FOOTWEAR: prana WEAR tet DT
Slide 10: Q4'21 Regional Net Sales Performance
Q4'21 REGIONAL NET SALES PERFORMANCE Q4'21 NET SALES AND GROWTH VS. Q4'20 CANADA +20% (+14% c.c.) $81M U.S. +27% (+27% c.c.) $762M EMEA +33% (+33% c.c.) $114M LAAP +6% (+8% c.c.) $173M Percentage change details and primary drivers: us. Wholesale: up low-teens%, driven by higher Fall ‘21 shipments an
Slide 11: Q4'21 Gross Margin Bridge
Q4'21 GROSS:MARGIN BRIDGE Q4’21 gross margin expanded 160bps y/y to 52.2% Gross Margin expansion primarily reflects: Tailwinds + Channel Profitability: higher DTC product margins driven by lower promotional levels Channel Profitability: higher wholesale product margin driven by strong retail sell-th
Slide 12: Q4'21 SG&A expense drivers
The y/y increase in SG&A expenses was primarily driven by: SG&A Expense Increases * Global Retail: higher expenses associated with sales growth + Demand Creation: higher spending with sales growth and incremental strategic investment + Incentive Comp: higher incentive compensation with improved fina
Slide 13: 2021 Highlights
$5.33 +25% +229% | Net Sales Gross Margin Operating Margin Diluted EPS 2021 Highlights: + Record net sales, gross margin, operating profit and diluted EPS performance. 2021 net sales increased 3% and diluted EPS increased 10%, compared to pre-pandemic 2019 levels. DTC net sales increased 33%, driven
Slide 14: Balance Sheet Overview
BALANCE SHEET OVERVIEW Balance Sheet as of December 31,2021 Cash, Cash Equivalents and Short-term Investments S895M Cash, cash equivalents and short-term investments totaled $894.5M, compared to $791.9M as of December 31, 2020. The Company had no borrowings as of December 31, 2021 or 2020 Inventory
Slide 15: Cash Flow Overview
CASH FLOW OVERVIEW Cash Flow for the Twelve Months Ended December 31, 2021 Net Cash Flow provided by Operations . ary Net cash flow provided by operating activities was $354.4M, SO IGIVI compared to $276.1M for the same period in 2020. Capital Expenditures Capital expenditures totaled $34.7M, compar
Slide 16: Pandemic and supply chain considerations
The Company's top priority throughout the pandemic remains to protect the health and safety of our employees, their families, our customers and our communities. We are continually adapting business operations to adhere to evolving local and regional guidelines and safety protocols across all areas o
Slide 17: 2022 Financial Outlook
The Company's 2021 Financial Outlook and the underlying assumptions ’are:forwerd-looking in nature, and the forward-looking slatements reflect our expectations'es of BI ebruary 3, 2022 and are subject to significant risks and business uncertainties, including those factors described under "Forward-L
Slide 18: 2022 Financial Outlook Assumptions
2022 FINANCIAL OUTLOOK-ASSUMPTIONS Net Sales Gross Margin SG&A percent of net sales Anticipated net sales growth primarily reflect All brands are anticipated to grow in 2022, with SOREL anticipated to have the fastest growth rate. All four geographic segments are anticipated to grow in 2022. Canada
Slide 19: 2022 Assumptions and First Half Commentary
“2022 ASSUMPTIONS AND FIRST HALF COMMENTARY Effective tax rate Foreign currency Operating cash flow and capital expenditures First Half Commentary 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
Slide 20: Appendix
Slide 21: Fourth Quarter 2021 Constant-Currency Reconciliation
FOURTH QUARTER 2021 CONSTANT-CURRENCY RECONCILIATION COLUMBIA SPORTSWEAR COMPANY Reconciliation of GAAP to Non-GAAP Financial Measures Net Sales Growth - Constant-currency Basis (Unaudited) ‘Three Months Ended December 31, ‘Adjsttor Constant ‘Constant Reported Foreign currency Reported Reported curr
Slide 22: Twelve Months 2021 Free Cash Flow Reconciliation
TWELVE MONTHS 2021 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) Year Ended December 31, (in mitions) 2024 2020 Net cash provided by operating activities $ 3544 § 276