Columbia sportswear

Columbia Sportswear seeks to add $700 million in net sales by 2025 – Footwear News

On its first Investor Day since its IPO in 1998, Columbia Sportswear Co. set ambitious goals for long-term growth.

The Portland, Oregon-based sportswear company on Thursday set a goal to add more than $700 million in net sales by 2025, a strategy that relies on growing footwear, digital sales and international expansion. The company said it expects Sorel to be its fastest growing brand, with an expected compound annual growth rate of 20-22% over the next three years.

Shares of Columbia Sportswear were down about 1.7% around 2 p.m. ET today.

“We expect to improve operating margin during this period, while investing in several areas, including demand generation and digital and supply chain capabilities,” said Chief Executive Officer Tim. Boyle in a statement.

Sorel was Columbia’s fastest growing brand in the second quarter, with net sales up 24%. In an earnings call in July, Boyle said the brand had the potential “to become a billion-dollar shoe brand.” Most of Sorel’s products — about 70% — are designed for women, Boyle said in April. The growth opportunity will be led by the brand’s fashion sneakers and shoes, he added.

Between the three-year period from 2023 to 2025Columbia expects to see the total annual shareholder returns between 13% to 17% and revenue growth between 9% and 11%. The company expects diluted earnings per share of 12% to 15% over those three years, reaching between $7.35 and $7.95 in 2025.

On distribution, Senior Vice President of Global Wholesale Tim Sheerin noted that the company emphasizes 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 specialist hiking stores. and fishing.

Columbia has confirmed its outlook for 2022 and expects net sales of $3.44 billion to $3.50 billion, which would mark 10 to 12 percent growth over 2021. Diluted earnings per share are expected to be between $5 and $5.40.

“We are 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 the CFO. Jim Swanson.