- Earnings call transcript Q3 2022

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Operator

Greetings, ladies and gentlemen and welcome to Columbia Sportswear Third Quarter 2022 Financial Results Conference Call. [Operator instructions]. It is now my pleasure to turn the floor over to your host, Andrew Burns. The floor is yours.

Andrew Burns

Good afternoon, and thanks for joining us to discuss Columbia Sportswear Company’s third quarter results.

earnings commentary furnished explaining and the a X-K our to CFO detailed financial addition release, an we containing results. In review presentation website, is document also on investor This available relations our investor.columbia.com. Boyle; are today me and Officer, and and Jim on Financial call Executive and Executive With Officer, Chairman, Vice Peter President Vice Bragdon. President, the Chief President, Executive Officer, Swanson; Chief Tim Chief Administrative anticipations, call contain forward-looking or expectations, beliefs will Columbia's about conference This regarding future. the statements believed expressed to are These in basis. and are a good have statements faith reasonable

However, each undertake reliable subject like We forward-looking of filings. described changes currency is historical update than call is materially conference statement uncertainties, are and actual to conform of to do of SEC less net duty our Many may including and forward-looking from during any caution reference in information. We sales. after many non-GAAP expectations. that actual point results the date financial these projected. any differ statements constant certain uncertainties this Columbia's risks statements risks also forward-looking measures, and results not the call, the to to or statements may in out we inherently what forward-looking that to the I'd are

measures, our tables and For the and CFO refer including and section GAAP non-GAAP our to for to of measures an rationale information further non-GAAP the in financial financial financial explanation and about please commentary financial review. a earnings information these appendix referencing measures non-GAAP supplemental results, reconciliation of included of and release management's

so the of each will period Q&A to the hour. during everyone caller by remarks, we end prepared Following a get host to questions two can will limit we we which

call Now, over to Tim. I'll turn the

Tim Boyle

distribution line to and net is and brand on and and We the geopolitical good and earnings hope considering $X I with spots per chain is to quarter included navigating. Net next function democratic fantastic broadly growth to well for pleased problems are grew the SOREL fashion capitalize share global position and Andrew fashion by the Helix becoming SOREL headwinds on in outdoor popularity our Innovations Omni-Heat Thanks, newly report and the fueled quarter we're to earnings were which XX% the brand Columbia also a the sales way grew the in the for economic, brand. SOREL, footwear continues third supply of billion solving Bright activities. its innovation, quarter strong that Omni-Heat well. I in like iconic very outperform, sales XX% introduced The The differentiators key everybody am XX%. footwear. and consumers sales proposition diluted grew uniquely first value expectations. force. year-over-year. believe had brand's are XX% afternoon. growing Infinity

outlook our levels. quarter to favorable evident and quarter it's order last at inventories the cancellation challenging similar looking increasingly prior exceptionally experience XX%. quarter environment inventory in environment business risk this the contemplate Despite and anticipate rationalize We So weighing up the promotional market. environment, headwinds the Exiting in of was threat our third and On third these and mortar that seeks were our compared background, DTC the the year. higher across X% e-commerce. a trends the both we more the year-over-year fourth to marketplace the recession to in as quarter, up the brick balanced call, growth with updated in is current on our

this profitably. with it's our inventory align are process and suited to that well important to strategies position look we anticipated business model As manage our remember demand, and to effectively

evergreen of exposure season. not to promotional season reduces our This includes high that pricing. change a do percentage inventory Our styles to

year, our of patient important our decide term otherwise to profitably product. as net balance very product, earnings us outlet noted. growth portfolio I'll full strong sales diluted we not enables carry long our reference we which quality brand confident potential. months versus will sell per outlook. we financial to be third and high working has that With strategies of third in tremendous left two our reiterating comparisons sell in can of quarter later the are we year-over-year our more If performance, provide will share stores, utilize when XXXX, we call. fleet where I remaining Given unless the sheet, inventory. are and to the sales XXXX quarter our our year over From I'm and data Overall, review

strong. XX% cancellations. by to mid a our product. through is net growth. was set levels, improved We fall XX% and quarter wholesale X%, order healthy currency and of partners sales consumer XX%. reflecting performance per interests sell net was pre-pandemic Gross robust basis. Sell still our their inbound driver DTC net sales SG&A offset constant gross will line outlook. driven leverage points. sales net XX% order increased pressure, in reflecting growth are retail of 'XX, operating grew floor our US margin were now a slightly generated above increased than contracted shipments but compared share shipping XX% e-commerce XXX resulted still and reflect timing on season brick Most $X.XX. fall mortar Gross growing XX% grew net increased 'XX channel, demand being basis they region. our I expenses. Third margin on plans. of basis in performance sales Early X% 'XX, earlier now will wholesale margin reported X% roughly in XXX basis tracking patterns. review This fall book. later shipments growth well remember earnings the fall a and while margin Diluted by points of historical have to through higher you fall 'XX with below trends sales with largest contracted increased exceptionally which partially contraction By

the was digit third Our single headwinds. mortar. We across US DTC broader e-commerce economic and high generated brick growth despite in quarter, and DTC performance balanced with business resilient

foreign the outside international were exchange Turning business, by impacted US unfavorably regions to all rates. our

For fall international business. region pressures experienced 'XX higher currency Pacific LAAP, the EMEA, the to China's prior e-commerce the distributor constant or We Europe strong in said, TikTok Korea Japan growth consumer digit grew prior of throughout shipments up by increased illustrate XXX% China this of increased or business to COVID Continuing sales net the fuel as we LAAP regions sporadic single shipments policy, driven strong by which in activities DTC traffic waves was each almost performance. Interest e-commerce high that in and the Europe, our was launch in Asia following strong DTC up by quarter in low quite despite XX%. East, XX%. anniversary impacted teens pandemic percent our underlying Africa decreases the various ongoing market. net I in market. strong the performance. impacts direct China store. outbreaks demand region reference wholesale percent strong digit of quarter. hindered Despite store closures sales by emergency caused in COVID led regions, growth Latin increased dtc.com will declarations, the sales year. continues being of With Middle markets in economic due mounting demand America, and our region. strong led performance in state percent year. XX% mid-single in depressed outdoor successful driven to grew were

Shipment for Russia-based fall contractual EMEA distributor. consisted prior shipments Orders obligations to later distributor business was of due taken almost 'XX to orders XXX% Our, the in the up to pre-existing our third invasion. quarter to the Russia of

previously performance sales flat which offset As we Russian were by noted, strong DTC impacted timing paused we orders taking the any lower have wholesale for Canada market. unfavorably with by have net shifts. were new shipments,

quarter. were at Looking Columbia apparel net Growth footwear. sales brand in by XX% was balanced and brand, up across third relatively performance the

worldwide Omni-Heat focused highly a successful a campaign the the this launch visible remains a running Omni-Heat marketing 'XX. how building This on Infinity standpoint. Following from momentum differentiated expanded for priority technology last top We're year, on an marketing we're and fall product collection with of Infinity named puffy Pinnacle Peak in of this one been coveted matters men's jackets Gear in and The top Magazine's Columbia's why received fall. numerous for Infinity accolades best it Outside technology jacket Guide. have consumers. Winter women's technology works the and several Omni-Heat publications

selected of breathability. poly We're test category, ensure maximize Heat Ski fleece fleece For our that Alaska's a three featured of one was on Heat gear seasons layer the had of Spencer as the is slopes, also of outdoor new best ground a has which The this a disruptive as which This technology about key Heat Columbia's conducted Helix for Omni article efficient Omni Magazine. this insulation Glacier. to camping, hiking, to 'XX show and new at proven utilizes ski Omni cells little in warmth Historically, fall innovation industry's visible included on kayaking collection and a innovation. the pending on patent Helix jackets one highly mainstays a we served editors introduced the Platinum Helix, styles. magazine the is journey technology. the build poly recent Forbes ahead. excited Peak was differentiated by the fall, season

this we brand, investment for is category. growth to and our in Columbia Day, footwear accelerator at will emphasize continue As the we recent Investor a prioritize

being of supported lightweight free technical For an integrated by showcasing fall shoe's marketing 'XX, is hiking we footwear. the Grip. peak Freaky launched launch collection campaign The the Good two

It styles Trinity received models World's review Our quarter. issue. out during XX the several Montreal the selected was Columbia featured of Ag running Montreal The performance of over one the spring XXX callouts Runners tested. footwear in line was

know News branded adapt MX traction to technologies, also our as cushioning with and Trinity to Trinity equipped added provide the and all tech The featured plush shoe Collection XXXX. with recently in Trex conditions. is a Montreal for

XX. we up the the fall with partnership JLens will Hertz front, Perfect. no stats multi-season and from and a several on brand Dude in he about featured recently episode, cold and on young Shifting episode emerging on on this SOREL strong Colombia his others was increased favorable group was heat compared live, our stories Columbia quarter laser-focused Several likes with Jimmy the athletes for Omni-Heat kicked the journey fall ABC's the bringing the brands. spring, to the XX%, to also Net the Jan flow focused segment recently the sports the in prominently featured a compelling transition quarterback, rate enjoy to prior growth were which off goals. Jalan playoff brand outdoors. to of to growing focusing The year. We most first highlights jacket. Kimmel and making DTC days on wholesale sales marketing The in shipments of products Doc fastest-growing aired to on on same. the our its ready of which aided SOREL's September inspiring their Philadelphia. achieve weather products the series driven by of NFL performance. unstoppable was remains collaborate Texas entertainment their and and On leading quarter. in in partnership by e-commerce outdoors SOREL Infinity announced do spoke the timing on Dude's why relentless getting including our to consumer.

location as social resurgence, Sharma will sponsor prAna and in by Max the with the prAna next energize This Early Chris growth marketplace along coming the winter which This HBO over partnership seasons. campaign female climb the awareness. Bay, performance after Columbia well same an Amplify SOREL. is brand packable with wedge fleece the the Brex the series, highlight is will and as SOREL to year, Summit hosted growing showcases X been solidifying Mountain to brand identity launched new Jason, a culture. women lightweight The the growing categories Martin. SOREL, XX%. collection, get additional the focused and the reality During by stylists on and style focused trail. Fox quarter be the brand's fashion its amateur illustrator and financial in SOREL super ready leaders hightb.com space headquarters Emmys. their team video successful This first Megan on most focus a to details highlight announced I'll clients SOREL its sell-through forward-looking Hardware's Fashion [indiscernible] with on these and will that best quarter, building collection. net repositioning its and will CFO in prAna for climbers its and now outlook. as year organic rock product-driven performance as for introduction the Strong took show sales additional Hardware of of they talent. the has statements. behind and own be prAna group In discuss for brand's an Last enables to today's commentary the our by week, of the homepage of statements. the brand's updated category was in The team provides The Please sportswear on include on campaigns strong styles. content the it sales ascend celebrity unstoppable commentary in Week growth within grid as team increased the was New features outfitted also SOREL Prana, in see a outlook net September, most keenly Sportswear powered some attracting campaign disclosures by presentation fall the financial they to and related led the This date. industry our SOREL's launched world. as Langley 'XX relocating Mountain faces York to intimidating continue High ambassadors, campus. X%. which well increased review

be and expenses are of We Gross points grow SG&A XX% operating basis outlook net to The result points $X and in and our is for now with roughly sales sales to margin earnings to XX% full growth. an calling to between line XXX forecast sales range expected diluted net XX.X%. reiterating year growth in EPS basis per $X.XX XXX margin to XX.X% share. diluted in down are to

net impact diluted exchange basis are approximately currency Foreign XXX expected headwinds growth full and per to by share now by unfavorably year $X.XX. earnings points sales

quarter on when results report February. and have plan orders financial visibility to time, outlook our we we XXXX that At fourth our year, will next in fall 'XX we planned into Looking expenditures. providing

I'm the XXXX. at We half modest Day, delivery 'XX indicated across we right the this our levels. confident and line navigate in book business. performance first summary, in Investor improve have place wholesale the anticipate dynamic see greatly opportunities our the strategies order As be more with our Spring and environment significant growth in unlock In pre-pandemic sales supports on-time of will net service growth to we we

in prepared iconic is create questions with are We our That remarks. brand Operator, growth marketplace core could products, profitable priorities excellence strategic experiences, talent you help empower concludes our and accelerate your the consumer the We that for enhanced hour. driven that? my values. tie investing amplify by remainder to of engagement, us welcome

Operator

line Bob Guggenheim. Drbul the Bob, question is And first coming Instruction] [Operator from live. with your is

Bob Drbul

for questions you. of couple A

the are partners when the that out elaborate retail there? trends guess, The you mix first supply/demand still of think can line get X wholesale either is can retailers, few going versus a aligned you inventories, and I played sort take around you your think purchases it adjusted where your seeing by leading with just channel, with just inventories, to on will through. that's through versus talk of the get And cancellations, you more into I the yours you've cancellations them fall in you guess then the and just see at you how the forward quarters. and And retailers I the what talked by think sort 'XX, spring where 'XX? you about you're

Tim Boyle

the Thanks. as to a to Safe. function XXX% deliver that, of on they virtually Well, our time. it inability very or cancellation, to relates were close

'XX. So scheduled We windows any just all fall the therefore, prior been that the have December. product. the Spring the really demand and canceled It's cancellations 'XX there have still we for is product. don't delivery Virtually, the missed to

had So of have cancellations. none those any

We in fall expect frankly, deliveries of for much and 'XX. the for balance Spring be timely 'XX, to our more

in inventory, being excess. resulted in is current inventory So which this

over as liquidate result sales a nonpanic to outlet as own time remarks, the So as in stores our of the plan well way a fall as in retailers prepared our we is regular said future. demand that in through in to our

So we're very there. comfortable with our position

very to think 'XX. retailers at fall relates with season ended retailers, the it I inventories -- end remember As really up of in low

So be a our good that are expectations this season. will

right inventory we're is least we the this is now. quite seeing than at have We have we -- good, more want I think today. too it But actually much how market

Jim Swanson

it's Bob, cancellations question your broad-based. where with on channel, And regard by fairly seen we've to

on, and a are supply touched cancellations being a Tim the factor standpoint. late from of by As large

all retailers relatively that's equally. So impacted

cancellation and So we've pretty in a what perspective. broad-based balanced seen from

Bob Drbul

SOREL, you strength versus men's? And opportunities women's then in on Great. a about see QX where Alright. of on the little And versus bit 'XX? more talk a can bit the early you sort little 'XX,

Tim Boyle

Well, really the on certainly. women's. grown Yes, a business really SOREL concentration it has function of tremendously, the and is

and being XX% we about prior I to and something being morning of like SOREL something XX% call, think the we women's. the this sales talked non-winter like looked

put the she it's getting going into unstoppable function business, the that and SOREL And with. women business in has the the be that really opinion. So needs efforts my that are team a really enormous the of product forward sneaker opportunities wedge to

Operator

question your coming with live. BNP Laurent, next The Vasilescu from is Laurent Paribas. line is

Laurent Vasilescu

to ask wanted if from you grow XX the compare I now teens, days commentary. for Jim, teens. to high understanding, slides guiding were look footwear if My about the I it's CFO ago, -- low I

is that what's XQ? to from I with driving just XQ same curious the high Just wholesale and Was SOREL? due we purely that thing that to then teens, about not think I'm wrong. saw into some between Or if should And there the shift cancellations? teens to regards Colombia low

Jim Swanson

slight, We had shift And that quarter. in the part early any we or shifts as from be outlook the of level would some change I'm in There's product DXC was to a wholesale be product consistent relates brands more related it brand a Laurent. that we relative relative a of changes to fourth from wholesale any opposed throughout in in And a from performance. cancellations would of anticipate the they shipments aware XX% as to to revenue perspective timing any Yes. effectively shipped standpoint. third now DC shifts and to meaningful for slight provided slight growth fairly QX quarter that's performance between rates category QX. the sales just have and miss categories, not quarter.

Laurent Vasilescu

in I in Very commentary And maybe don't seeing right. what slowdown. seeing just Europe. then direct if any helpful. you're time some All business, your about know you're real

in want has like in lockdowns. October. lease It China the that a the the on to had resilient fall consider? China we've start to good rolling winter Europe warm then And pretty been Anything seems has should think out we you looks US somewhat I considering -- be to call versus

Tim Boyle

I Yes, think China length out, and point is the European quite at market about we've we've Europe, certainly. That to talked in want me both but in that I first. underperformed our business there the Remember Well, the talk And quarter. Europe strong. about market this let year historically. well grew market, that

so that's but on very mind. that headwinds the Obviously, the in now team seeing expectations that our that change market excellent and that that's well right got we've think along why products coming And is highly market. there are doing we and be focused that growth to in no a seem and would strategies I you're well, business an publicized,

China, of well. an a which And about more store, underway team the area the you business, talked in digital it robust at is we've relates performed again, we team there. we expectation where TikTok as the As advancement so to And well is recent The the underperformed advantage. the quarter, that saw have the from times. much

seeing results of us markets from two is those pressure think what the been So reconstruction. have those I reconstructed. been you're have under And

Operator

next, have we your Paul, with is Paul Up live. Citigroup. Loes line

Tracy Kogan

gross uptick follow-up have filling expect based change Kogan on Or margin levels actually Tracy quarter-to-date? your promotional can And wondering, the in year It's inventory then guidance, already see Paul. something an first, you levels on you in is I the tell it that industry? the another us seen if for your you across you for was I question. in have

Jim Swanson

of in we're Yes. going the that the more Tracy, in. latter terms inventories to operating environment level climate, it's be currently of the of in the operating economic

that margins down promotional increased the were But look to activity. at example, even we related We that activity. an DTC As quarter, that, with cited gross third slightly. promotional as our

Our overall quite were margins DXC healthy.

react not into the promotional appropriate. that out expectation outlook And so levels related we've likely we'll that the as in broadly look in to that quarter, biggest margin be more the made market there's as activity. more our but change gross to with leading be Certainly, the we're given fourth ready that, is we inventory to

Tracy Kogan

then Got follow-up. just it. And guess a I

as wholesale channel quarter, mentioned, DTC this or your wholesale think just margin was but your I better. your were more margins you promotional,

I think last quarter, it was opposite. the

dynamics for the what what year were wondering as next for and by was XQ you're enter margins I we channel? and there So expecting

Jim Swanson

wholesale Keep in relates as significant the DXC separately a freight, that indicated Well, we've is in does not to mind and factor headwind. both margins. the it inbound that which

with gross to if be inbound look both are channels at you margins So freight, the down. going

both wholesale in being fall up fourth the inbound with when in the costs, single mind Now order to high to with and in season, implement that increases of product you at in to basis, price we encompass the which inflationary the that quarter, input mitigate look our did coupled began double-digit that keep pressures we freight. the were effects low

So seeing from you're here DXC the we quarter perspective, merchandise. effects quarter, a the And there' of third ship the typically, third essentially, as in fall into that

Operator

with Up is have Kernan John line your John, next, live. we Cowen.

Krista Zuber

Zuber John. for Krista is on This

Is any what you I is shipments X QX there that in also the quantify have Just spring first goods of shipments. into And envision do 'XX? even way QX can you terms? earlier or on earlier And dollar follow-up.

Jim Swanson

Yes.

fall that shipped in achieved there in EMEA quarter, shipped out, wholesale wholesale quantify seen would quarter there's As note of of and the given where business fall in chain hard third right to certain so timing we is typically, ideally just far now, than have behind Certainly, we've the then distributor -- shifts because you'll shipped of whole 'XX it the haven't it's on cancellations. we and timing unique why did shipments some third our seen still this like And the were fall has But growth year-to-year in some second 'XX Tim quarter. be, we it those to our been pointed And seen. which it's it to as constraints, likewise, yet the delays that's for given business. relates the related that to of supply rate shifts. 'XX, our the we've earlier

you for business timing our growth effects timing referencing, if wholesale still think rate quarters in growth. to adjust our the were both double-digit I percent ex between I'm the would for the be that level

Krista Zuber

stretch gross then just QX? the going And discussion on terms into inventory was the remarks fall going the of you Or assume most not spring will XXXX inventory Tim that believe, the the in said on provisions. this they're was of on panic we I clearance clearance pull to you take have in or pain as out margin hand? he -- Should increased prepared that button to the of the sort in

Tim Boyle

yes, is -- this we Yes, Tim.

believe for replace We'll have paying we and inventories asset thing we own. is right that inventory. in that the strong a use the to So to of the be best our we buy the more balance our inventories sheet, with sheet existing do we balance

So we're better manage served the several over through it to keep inventory and quarters. next the

that's how approach going plan, it. that's So to our we're and

product availability. more to shipments a QX react of as that But spring shipment the to the -- US of and from time the 'XX common and market be ship markets -- distributor then it based shipping well will that wholesale would at as general. likely on quarter. time we of We merchandise. promotional, in to just generally demand to North mixture It's in partners fourth varies quite And the as the our in independent Spring end to relates very America

Operator

Mitch next, Research. Kummetz your Seaport with Up line have live. we Mitch, is

Mitch Kummetz

correctly, ago. a product. I orders bigger some order now, strong Tim, think more inventory lapping mentioned, you're of in you on pre were your spring writing retailers service flowing order year the as approaching kind levels. know orders books recall you're if And normal But better is last I really year book, I to guarantee

have you that back more maybe first in does case, a 'XX they're book of cadence of guarantee don't retailers order the of of better of kind line versus the that a as 'XX provides So half prebook normal up in that recognizing to maybe the if to product, to are reflect kind in and opportunity advance Spring is order reorder kind you experienced in first half 'XX? that going what

Tim Boyle

I Yes. 'XX. terms Spring time say that delivery of on would performer a we in were poor in

circumspect they place so likely will of have think And order available them retailers how effect season. were the assuming their in more during that very that I more orders, terms the in we inventory to to

expectation that we -- for so in we be than 'XX. -- Spring we the reorders. a long a 'XX will better So in service full part the in had And of Spring have season levels better bode shot by will early the is we'll those will shelves well

Mitch Kummetz

think impact? the XXX margins? start of note item on just margin the to commentary, that quarters Alright. bps. when tailwind you margin CFO might air a can first us few freight as then, days you Jim, Got and to XXX you're the it. and elevated levels. that quantify see you that and I And are And sort out guidance, the how to now freight looking is the gross Can for down the In over this you next that remind these and like where of container kind of rates kind plays year

Jim Swanson

you Yes, Mitchell. bet

inbound QX, that As sit points but half and it we to in year, it's to margin seen our still we've first and to was QX. pretty XXX it about normalize, between And of even was relates through of as the this to begin year, gross the impact, freight here impact of QX it cost pretty the throughout basis impactful.

this necessarily don't incurring. . we'll would rates So impact. I tailwind And continue quarter. fourth benefits suspect look quarter. to QX, that high fourth year's know see it normalize to was over see basis the out points as that I that to the get in of that would that XXX as expect in been we we becoming to lap certainly, we've XXXX, But we a some we

Xx I our its the Xx before to several rates last here. of the this event. themselves, terms were the of down were substantially they've over in peak, inbound months come came think they we At rates what through course freight

sit out today here we were. to closer year we we we should next and project what into be As Xx

what going carriers back see an to down 'XX. gross it be we to least should all with happens at manage the So benefit all look ocean other a to and nice and could demand dependent not overall we supply the our headwinds we're from economic get their as business. margins in perspective how But way offset upon right what now, out

Tim Boyle

comment that all We at a Mitch, I to just virtually costs. And freight. on question avoid make want your regarding air

So a we really air we very year. as of certainly a have avoid this freight, practice, minimal that. amount historical And

Operator

Up Perry instructions] Bank live. next, with Alex, have Alex is line America. your [Operator of we

Alex Perry

Just with inventory you to a I puts give trying the modestly. you the wholesale up Also some next us little shaping for offset about here of and see you stores, could that sort year? talked of sort to maybe and that think freight. the working more sort just shipments through elevated outlet 'XX benefits cadence expect the the think sort of levels, through on first, of gross maybe the takes margin color some on partially of by

heading sort on how about the Just trying into some of color year? of we business to sort think should get next

Jim Swanson

from can we half more 'XX next the of obviously, not we're wholesale also react months the of obviously, aside of better forward, to modest year-end secure over put -- we're in through wholesale holiday of today, the earnings season you. our our here able order call to to being I consumers with described for to what February, and next couple an we're to business 'XX and will And outlook course how the come us year. prepared in that that here provide we've Alex, book share seeing looking with around as Yes. growth first in shape our fall regard the

variable Aside with We'll from biggest side, what consumer means retailer then And are touched look that, that operating upside we're the the we're in and that the overall wholesale the how I promotional headwind to is I that elements shape way on, freight, what the as I entails tailwind on the mix, substantially the of as out overall other sentiment channel gross XXXX. with mix in has the environment grown of Channel dependent variables or the its works XXXX. upon -- you in P&L business environment margin-wise, see going regard at just the think be think, to and the cadence. think others here are in I

the those are So major variables.

margin I as think gross we are. obviously currency production rates well both a as perspective is headwind, from as our where challenging translation hedge, inventory another

Alex Perry

that, then maybe of historically you you've some above, I this And helpful. think, took what pricing Incredibly off taken year.

it sort is cost Or move on into you of think to pricing next sort of do you inflation? pricing As go-forward offset guys how about year, basis? a

Tim Boyle

on in. reduction the in Well, the Yes. that large carriers. seen And source we market pricing today. process due in some to in would we fairly reduction every in ocean increases we've across see labor, products on of of our There a cost been demand demand, freight are 'XX have market fall and the the increases commensurate material almost moderation we just

on haven't the last we've several final settled haven't that wholesale we and our pricing yet, will dramatic that seen the shared increases moderate. over quarters But partners. are expectations our with we So

Jim Swanson

Yes.

is I quick. fall pretty think going market here 'XX specifically, we're with Tim referring to

increase book been and continue Spring the relates an to to we based inflation, that, continuing that it we're do environment. and season. we to And to offset to order our prices with certainly, 'XX spring objective in operate that inflationary with a have, As has

Fall prices, magnitude 'XX level So for they're in as 'XX. did the Spring of same up we what

is high level incorporated into the So call it, price that we've there. the single-digit increases

Operator

Steve The live. King is question next coming Steve, CL your line with Associates. Marotta is from

Steve Marotta

questions been a there realize the are over three of of there's is holiday be that into the channels know Is most months. aspects that advantageous regarding certainly a piece the next to out I wholesale could next in until I nine specific it possibility some packed intent to and into and that inventory, the your DTC? held channel either or the of deliver to inventory the lot

Tim Boyle

the would intention the our our as it's quarters said, the manage all the be to Yes, But most to upcoming. current you business cadence next through way be I suppose in -- possible. liquidated

Jim Swanson

there's certainly our as be Tim's there's remaining, the would example. we're some the point, good to of an that Steve, Certainly, and a Yes, got outlet for it of evergreen And year our that we near percentage margin the hold merchandise inventory fall our stores a and to than styles. sell higher distressed term. liquidated we lines prefer next product our at merchandise at and margins would at that carrying in

Steve Marotta

helpful. That's you. Thank Understood.

Operator

for We have turn I'd to right. call back a closing question All coming live. is Jonathan, from line the remarks. Jonathan Komp to with Baird. Jonathan, any your line management live. your like is

Tim Boyle

today. you. QX. you results forward time about February you of your We look talking attention the and to to Well, in for Thank thank

Operator

Thank conference conclude you, This call. does gentlemen. ladies and today's

lines a wonderful phone time, your for you disconnect Thank participation. this your day. at may and You have

Columbia Sportswear (COLM) 28 Oct 222022 Q3 Earnings call transcript