Columbia Sportswear recently made waves with a robust 3% surge in net sales, totaling an impressive $985.7 million for the third quarter. This remarkable growth is attributable to outstanding performance across the brand’s wholesale and direct-to-consumer (D2C) channels.
Hailing from the heart of Portland, Oregon, Columbia Sportswear reported that the net sales increase for the three-month period ending on September 30 was evenly distributed between its direct-to-consumer and wholesale sectors, reflecting a healthy balance in their market strategies.
Wholesale growth, which achieved a 3% uptick, was largely driven by early shipments of fall 2023 orders compared to the same period last year, effectively offsetting a slight dip in distributor sales. The D2C channel experienced a robust 4% increase, underpinned by thriving markets in Canada, Europe, and China.
Breaking down the numbers by brand, Columbia enjoyed a solid 4% increase, reaching $804 million in sales. Sorel, another key brand under the Columbia umbrella, saw an impressive 9% uptick, amassing $122 million in sales. Meanwhile, smaller brands PraNa and Mountain Hardwear faced minor declines of 18% and 9%, respectively.
While net income witnessed a 7% decrease, dropping to $103.5 million or $1.70 per diluted share, compared to the same period in 2022 when it was $111.8 million or $1.80 per diluted share, Columbia Sportswear remains optimistic.
Tim Boyle, Chairman, President, and CEO of Columbia Sportswear, commented, «Our third-quarter performance was driven by international-direct markets, with Canada, Europe-direct, and China all achieving over 20% year-over-year growth in constant currency. In the challenging U.S. marketplace, we are making significant strides in our inventory reduction plan, with an impressive 16% year-over-year decrease in inventory as we enter our peak selling season. We have exciting activations planned across our brand portfolio to engage consumers and boost sales, including innovative product collaborations, pop-up shops, and the continued momentum of Columbia’s omni-heat infinity collection.