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Columbia Sportswear’s Q2 sales drop, announces leadership changes to drive omni-channel growth

By Prachi Singh

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Business

Net sales at Columbia Sportswear Company decreased 23 percent to 701.1 million dollars, gross margin contracted 40 basis points to 48.9 percent of net sales, from 49.3 percent of net sales for the comparable period in 2019, operating income decreased 44 percent to 85.6 million dollars or 12.2 percent of net sales and net income decreased 47 percent to 62.8 million dollars or 94 cents per diluted share from the comparable period in 2019. In a separate release, the company also announced a series of senior leadership changes executing on transition plans, supporting its omni-channel plans for growth and unlocking digital opportunities.

Commenting on the results, the company’s Chairman, President and Chief Executive Officer Tim Boyle said in a statement: “While results were down substantially in comparison to last year, sales and profitability trends sequentially improved compared to the second quarter and we expect continued improvement in the fourth quarter and into 2021. E-commerce was once again a bright spot, with net sales surging 55 percent year-over-year. Looking to 2021, our spring order book and expectation for a return to growth in our direct-to-consumer business would indicate high-teens percent net sales growth in the first half of 2021.”

For the nine-month period, the company’s net sales decreased 24 percent to 1,585.9 million dollars, gross margin contracted 170 basis points to 48.0 percent of net sales, operating income decreased 95 percent to 13.4 million dollars or 0.8 percent of net sales, and net income decreased 94 percent to 12.3 million dollars compared to the same period in 2019.

Columbia Sportswear announces senior leadership changes

The company also announced a series of leadership changes. The company said, Thomas B. Cusick has announced his intention to retire from the company and in February 2021, he will step down from his role as executive vice president and chief operating officer and transition to a part-time role with the company, assisting with operational matters, including information technology and supply chain initiatives to ensure optimization of these key strategic investments, until his retirement from the company in the second half of 2021.

In accordance with pre-established transition plans, the company added, Lisa A. Kulok, senior vice president, global supply chain operations and manufacturing, will become Executive Vice President, Chief Supply Chain Officer, and Jim A. Swanson, senior vice president and chief financial officer, will become Executive Vice President and Chief Financial Officer, both reporting directly to Tim Boyle. Brent Beeson, vice president, apparel manufacturing, will become Senior Vice President, Manufacturing, reporting directly to Kulok.

In addition, the company has made changes to its senior leadership organization to support the omni-channel plans for growth. Franco Fogliato, executive vice president, Americas general manager, will lead the company in focusing on the omni-channel experience by transitioning to Executive Vice President, Global Omni-Channel. As a result of this change, Vice President and General Manager for EMEA, Matthieu Schegg, will report to Fogliato, as will Senior Vice President for Asia Direct, Peter Rauch.

The company further said that in addition to leading all direct markets, Fogliato will facilitate a close partnership among channel leaders to share best practices and support global Columbia brand goals. To support Columbia brand ecommerce strategies, Patricia Higgins, vice president, ecommerce, will transition to Senior Vice President, e-commerce, reporting to Fogliato. Higgins will continue to directly manage the North America ecommerce operations, while expanding her scope globally to provide strategic guidance and best practices to enhance the company’s global Columbia brand ecommerce businesses.

“The leadership changes we are making today are intended to accelerate sustainable growth for the organization. We will continue to focus on our strategic priorities to: drive global brand awareness and sales growth through increased, focused demand creation investments; enhance consumer experience and digital capabilities in all of our channels and geographies; expand and improve global Direct-to-Consumer operations with supporting processes and systems; and invest in our people and optimize our organization across our portfolio of brands,” added Boyle.

Picture:Facebook/Prana

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