Columbia Sportswear Co. late Monday swung to a quarterly profit and raised its full-year 2021 outlook, but the retailer said “escalating” ocean-freight prices and ongoing port congestions limited the good news for the year.
said it earned $40.6 million, or 61 cents a share, in the second quarter, contrasting with a loss of $51 million, or 77 cents a share, in the year-ago period.
Sales rose 79% to $566.4 million, the company said. The stock rallied more than 7% in the extended session, after ending the regular trading day up 1.8%.
Analysts polled by FactSet expected Columbia to report a GAAP loss of 9 cents a share on sales of $503 million in the quarter.
The quarterly performance “clearly reflects the powerful fundamental recovery that is underway in our business,” Chief Executive Officer Tim Boyle said in a statement.
The results exceeded the company’s expectations thanks to better-than-planned performances in the U.S. wholesale and the direct-to-consumer, brick-and-mortar businesses, he said. The company is “well positioned to benefit from current consumer and outdoor trends,” Boyle said
The company guided for net sales between $3.13 billion and $3.16 billion for the year, representing sales growth between 25% and 26.5% compared with 2020.
Headwinds include store traffic that is still below pre-pandemic levels and, in recent months, ocean-freight prices that have “significantly exceeded our expectations” and limited the upside in the full-year outlook, Columbia said.
In a slideshow accompanying results, the company said demand for ocean-going ships and containers “is far outstripping available capacity,” and starting in June “escalating” ocean-freight rates limited the upside to the company’s 2021 outlook.
Moreover, port congestions and logistics snags continue to impact inventories, and rising COVID-19 cases in sourcing countries in Southeast Asia “could further disrupt product availability and deliveries,” the company said.
Columbia had $820.9 million in cash and equivalents as of June, compared with $475.8 million in June 2020. It had no borrowings, compared to short-term borrowings of $2.8 million the previous year.
Shares of Columbia have gained 16% so far this year, compared with gains of 17% for the S&P 500 index