Columbia(US:COLM)2023-04-28 03:33Q1 2023 Performance Highlights - Global net sales increased by 8% (10% c.c.), driven by early shipments of Spring '23 wholesale orders and DTC growth[17] - Gross margin decreased by 100 bps to 48.7%, primarily due to increased promotional activity[18, 26] - Operating income decreased by 33% to $56.4 million, with operating margin declining by 410 bps to 6.9%[18] - Net income decreased by 31% to $46.2 million, and diluted EPS decreased by 28% to $0.74[18] - The company exited the quarter with $460.6 million in cash and short-term investments and no borrowings[17] Net Sales Breakdown - Apparel, Accessories & Equipment sales increased by 12% (14% c.c.) to $633 million, while Footwear sales decreased by 4% (-1% c.c.) to $188 million[20] - Wholesale sales increased by 11% (14% c.c.) to $453 million, and DTC sales increased by 4% (7% c.c.) to $368 million[20] - U S wholesale sales increased by MSD%, while DTC sales increased by LSD%[24] - Canada net sales increased 35% (+43% c.c.)[25] Balance Sheet and Capital Allocation - Inventories increased by 34% y/y to $959 million, driven by elevated carryover inventory and early receipt of current season inventory[28] - Net cash provided by operating activities was $78 million[31] - The company repurchased 179,421 shares for $15.8 million, at an average price of $87.80 per share[32] 2023 Financial Outlook - Net sales are projected to be between $3.57 billion and $3.67 billion, representing a 3% to 6% increase compared to 2022[34] - Operating income is projected to be between $413 million and $432 million, representing a 5% to 10% increase compared to 2022[34] - Diluted EPS is projected to be between $5.15 and $5.40, representing a 4% to 9% increase compared to 2022[34]