Columbia Sportswear has adjusted its outlook for the year, adopting a more cautious approach for the remainder of 2023. As a result, the company’s shares experienced a decline of 5.6% in aftermarket trading after closing down 1.7% at $77.30.
According to the updated forecast, Columbia Sportswear expects sales in 2023 to increase between 2% and 3.5%, amounting to a range of $3.53 billion to $3.59 billion. This revision is a decrease from the previously projected growth rate of 3% to 6%, which would have amounted to a range of $3.57 billion to $3.67 billion.
In terms of net income, the company now anticipates figures between $272 million and $288 million for the year, compared to the previous guidance of $322 million and $336 million.
While Columbia Sportswear’s sales outlook for the third quarter aligns with analysts’ estimates, the projected earnings per share between $1.60 and $1.70 fall short of predictions at $1.91 per share.
Chief Executive Tim Boyle stated, “Based on year-to-date performance and the observed trends across the business, we have decided to adopt a more conservative approach for the remainder of the year.”