Columbia Sportswear’s Three-year Growth Plan
Columbia Sportswear Co. has mapped out a three-year plan that includes higher sales targets and an expected boost from the Sorel brand.
During a meeting with investors and analysts, the Columbia Sportswear’s chairman, president and chief executive officer Tim Boyle said the company had a 9 percent net sales compound annual growth rate, 11 percent diluted earnings per share CAGR and a 13 percent annual total shareholder return from its IPO in 1998 through last year.
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Looking ahead, Columbia Sportswear is banking on three areas — footwear, international expansion and digital sales growth — with a goal of generating $700 million more in net sales annually by 2025.
Boyle singled out Sorel as the projected “fastest-growing brand,” adding that it’s CAGR is expected by be 20 to 22 percent fueled by year-round products and momentum.
As it looks to accelerate profitable growth, Columbia will ramp up product innovation, invest in branding to enhance engagement, and improve consumer experiences and service with wholesale partners. Like many of its competitors, including Nike, Under Armour and Adidas, Columbia is playing up a digital-driven omnichannel distribution strategy. The Oregon-based company is also planning to empower talent.
The company’s goal is to grow net sales to between $4.5 billion and $4.7 billion in 2025, to expand operating margin to about 14 percent of net sales by 2025, and for diluted earnings per share to reach $7.35 to $7.95 by 2025. Chief financial officer Jim Swanson said he expects the company to see a 13 to 17 percent increase for total annual shareholder return target between 2023 and 2025.
Columbia Sportswear is reaffirming its full-year 2022 net sales outlook of $3.44 to $3.50 billion, representing net sales growth of 10 to 12 percent compared to 2021, and full-year 2022 diluted earnings per share outlook of $5 to $5.40.
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