Columbia Sportswear Looks to Add $700 Million in Net Sales by 2025, Fueled by Growth at Sorel
At its first investor day since going public in 1998, Columbia Sportswear Co. outlined ambitious long-term growth targets.
The Portland, Ore.-based sportswear company on Thursday laid out a goal to add over $700 million in net sales by 2025, a strategy that hinges on growth in footwear, digital sales and an international expansion. The company said it expects Sorel to be its fastest-growing brand, with a 20% to 22% expected compound annual growth rate over the next three years.
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Shares of Columbia Sportswear were down around 1.7% as of around 2 p.m. ET today.
“We anticipate delivering operating margin improvement over this time period, while investing in several areas, including demand creation and digital and supply chain capabilities,” said chairman, president and CEO Tim Boyle in a statement.
Sorel was Columbia’s fastest-growing brand in Q2, with net sales up 24%. In an earnings call in July, Boyle said the brand had the potential “to become a $1 billion footwear brand.” Most of Sorel’s product — around 70% — is designed for women, Boyle said in April. The opportunity for growth will be led by the sneakers and fashion footwear from the brand, he added.
Between the three-year period spanning 2023 to 2025, Columbia expects to see total annual shareholder returns between 13% to 17% and net sales growth of between 9% and 11%. The company expects diluted earnings per share of 12% to 15% in those three years, hitting between $7.35 and $7.95 in 2025.
When it comes to distribution, SVP of global wholesale Tim Sheerin noted that the company is emphasizing the importance of DTC and digital sales, as well as its partnerships with key retailers, such as Academy Sports and Outdoors, Dick’s Sporting Goods and specialty stores for hiking and fishing.
Columbia affirmed its full-year outlook for 2022 and expects net sales of $3.44 to $3.50 billion, which would mark between 10% and 12% growth over 2021. Diluted earnings per share are expected to fall between $5 and $5.40.
“We’re poised to accelerate profitable growth with broad-based momentum across our portfolio and geographies, and further amplified with a focus on footwear, international and digital sales growth,” said CFO Jim Swanson.
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