Columbia-CEO states before vacation shopping aided growth, Q4 profitability anticipates healthy 2022
Key takeaways:
- Columbia Sportswear's Q4 solid profitability allowed customers to begin their vacation shopping earlier than the previous year, CEO Tim Boyle told Friday.
- "That created for lack of promotional activity in our shops and also through our retail associates," he told on "Mad Money."
- Columbia's working revenue of $211.6 million in the fourth quarter was a record for the Oregon-based firm.
Q4 profits increased for Columbia company:
Columbia sportswear's robust fourth-quarter profitability supported customers beginning their vacation shopping earlier than years past; CEO Tim Boyle notified CNBC's Jim Cramer on Friday.
Shares of the outdoor-focused clothing maker leaped 5% Friday after the firm a day earlier declared a 64% year-over-year jump in net revenue in Q4 and given full-year solid guidance.
"In today's environment where there was so much effect on supply chain, needs all over the world, I think we were helped a bit because customers moved earlier to purchase whatever they required for their vacation and winter products," Boyle stated.
"That made for lack of promotional activity in our shops and also through our retail associates. Their advertisements were less, as well," Boyle continued.
Columbia's operating revenue of $211.6 million in the fourth quarter was a record for the Oregon-based firm. It meant 18.7% of net sales, compared with 13.5% of net sales in the same quarter in 2020.
Columbia projects sales between $3.63 billion and $3.69 billion in 2022, possibly growing between 16% and 18% compared with 2021 figures. Cramer described Boyle as engraved by the firm's guidance, given the complex business environment with inflationary strains and chaotic supply chains.
"Much of it is founded on the reality that we have a quite comprehensive omnichannel business," answered Boyle, who has led Columbia since 1988. "We deal with a lot of retailers globally. We've got orders from those retailers, which are moving to load our order book this year, so it provides us a tremendous amount of belief in our future."
Columbia shares are down slightly under 3% year to date after Friday's advance. Over the previous three months, the stock has been down 9.7%, based on Friday's closing cost of $94.59. The stock's all-time high of $114.98 was reached on April 29.