Earnings call transcript Q4 2022

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Operator

Greetings. Welcome to Columbia Sportswear Fourth Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

the to turn Burns. host, now will conference your over Andrew I

may You begin.

Andrew Burns

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

In Investor explaining our an This document we CFO earnings available and investor.columbia.com. results. addition on also a our commentary presentation containing website, detailed furnished review financial is to the Relations X-K release,

Swanson; President President Chairman, Officer, Tim Executive Chief me With and Financial Peter and Chief President Bragdon. today Vice on the Chief and Officer, Officer, Administrative Jim Executive and call Vice Executive are Boyle;

This conference believed forward-looking expressed statements These expectations, reasonable Columbia's in about regarding have are to beliefs the call will statements are contain anticipations basis. or and a good faith future.

differ statement However, projected. is is subject each results uncertainties, forward-looking may from materially risks what many and to and actual

risks undertake described than results update less duty inherently conform SEC of in or statements that call to conference not in expectations. and reliable any any the caution date the Many statements are forward-looking to do our actual Columbia's any forward-looking statements We uncertainties after We filings. the forward-looking of are this of changes to historical information. these

net non-GAAP out also may certain I'd the constant financial sales. currency call, measures, point during reference including we like that to

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

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

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

Tim Boyle

good proud that financial and everyone. and delivered workforce of Andrew, accomplishments the in incredibly XXXX. afternoon, Thanks, our global performance I'm

sales these whose grew our a efforts to enabled like XX%. currency a On constant sales $X.X results. basis, tremendous year, thank dedicated the record employees billion. increased net net I'd For XX% to

while financial net navigating demand product results, We charge in record constant SOREL these brands and recent there's been achieved a chain our sales experienced. delays could delivery challenges. and currency higher the performance Columbia know even numerous generating both We our with supply had to for double-digit have and growth we strong products, absent XXXX.

broad-based have we Geographically, momentum.

market, grew largest constant XX%. US, currency year and International XX% a the Europe Our highlights basis, Direct the include On XX%. on growing Canada growth surging

By generating channel, business XXXX growth. our relatively in currency double-digit wholesale balanced growth both and with is constant our DTC

business constant believe XX% and our e-commerce DTC sales. strategies that global XX% I are proof these results currency working. are grew represented Our total net of

environment, position market. Looking borrowings. over around $XXX the the a world. recession in We're momentum of XXXX is at our the positive current million weighing and in many threat is strong times, these no financial exited We year the advantage. position entering strength of a cash strategic with a bank with in In on markets

from the The and iconic innovation, like fueling enabling are introduced separating democratic us trajectory. competition the capitalize product brand's growth innovations and the recently Omni-Heat offering Colombia Columbia on of Omni-Heat Differentiated and popularity to outdoor activities. Infinity value Helix proposition its are

is becoming and resonating believe the force. its first next billion footwear with function footwear We way in to SOREL's is fashion $X sales SOREL global on consumers.

loyal growth. base and even deeper connections earned focused to creation have products demand unlock create making investments a Our us of consumer consumers we're and

business a helping in that's amazing marketplace create have strategic the future. wholesale powerful partners direct-to-consumer us We and the

it inventory of in the ability year, begin is I'm one over As to and perform reduce to our confident course and align demand. priorities with profitably this task position we top our year. the of effectively our the

manage and position well-suited are strategies this financial to strong process. model, business Our

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

patient be to can our Given as our and sheet, where when product. sell we balance we strong

expect liquidate profitably remaining continue inventories. excess stores We utilizing to outlet our of to fleet

growth and top key provide of details is margin. year deliver XX.X% in XXXX. drivers another I the net influencing The call. sales outlook growth a Columbia the end more to outlook operating and on of positioned will this later Sportswear profitable assumptions contemplates our X% in financial

was I financial strong we our review financial a will and fourth reflects in environment. currency now Net sales X% basis. outlook execution on a XXXX constant challenging or provided quarter grew performance. October X% the This in within

basis we and year. largest low as and outlook. environment points our roughly XXX in The exceptionally was the promotional promotional Gross line -- in activity was margin with of was lapped in higher points an contracted prior XXX marketplace driver assuming contraction the

expenses X% XX% incurred We Diluted and which diluted net during XX.X% prAna non-cash year. in the per represented the compared and of $XX.X share decreased to prior quarter, XX% impacted sales $X.XX. charges SG&A share earnings increased in earnings impairment by per million to $X.XX.

brand. I and will review year now fourth net by full and growth sales region quarter

underlying reference illustrate foreign in each All I'll net US by sales currency the impacted growth outside unfavorably growth review, this rates. were For constant to regions exchange market.

XX% fourth balanced In net brick-and-mortar and our in DTC quarter sales across X% increased the for single-digit quarter, growth year. US percent we the and the generated e-commerce high businesses.

a year Wholesale wholesale XXXX orders third last in the relative impacted in decreased sales this to greater quarter year. percent. net the portion of quarter US was shipping mid-single-digit performance by unfavorably Fall

receipts from sales and We retailer we said, delays fourth wholesale resulting US performance. price high [ph] the higher delivery know early-season were maximize of third disruptions our XXXX increased full chain With sales, unable inventories. quarters cancellations reflecting experienced Fall for combined, to and demand we the late net our tempered order resulting that second supply percent, half single-digit products. at healthy Looking

levels. greatly Fall our approaching into move were we US is delivery Spring generally improved percentage and As service pre-pandemic trends on-time is retail XXXX sell-through XXXX, positive.

with is complete, was almost Fall season roughly line strong. XXXX, the With which exceptionally in sell-through tracking

up Turning mid-single-digit the net was sales America/Asia by performance. China percent and LAAP, quarter region the increased to our full the Pacific XX% quarter business. for led Latin year. international or strong dtc.com for XX% in

primarily percent, outbreaks. mid-single-digit declined COVID-XX government efforts China the of contain impact to year, reflecting the For

I'd I XXXX. market momentum see by like team challenges. numerous our we this who started and to overcame I'm COVID-related the supply in in emerging China thank chain encouraged as

believe the and us one over powerful We investments we've accelerate business recognition have our position largest China to China and growth of last made know I the we in improvements talent this reopens. represents brand operational years several opportunities. as in market that geographic the

percent single-digit high quarter for increased percent the year. Japan in and high-teens the full

recovered sales quarter, and led the as net embrace For by consumers growth DTC products. Columbia's traffic was

the percent for growth growth activities in that XXXX. products continued outdoor for are in grew single-digit percent Korea is interest and we and -- positioned low sustained single-digit quarter in and in There high year. full the market,

and year. is and store in productivity channels. for the full Our fleet Korea managing retail to high elevate optimize distributor new partners to leadership on LAAP The marketplace markets the all the the focused up XX% brand our further and were quarter low for across drive DTC XX% distribution

Growth in in well quarter distributor the our levels. business and of has returned Spring LAAP as sales Fall With pre-pandemic XXXX reflects robust to XXXX higher growth orders timing XXXX, as shipments. favorable

Europe across low the the Europe, net of Middle EMEA, the full East, year. in and all grew the and Africa year, strong for region, for sales XX% quarter demand XX% including or XX% Direct channels. quarter increased

our in they've and made I'm while progress growing improving extremely Europe, of proud the business our profitability. team

in If net annual you'll an €XXX Europe represented loss. sales in XXXX, operating and remember Direct over million generated just

margin. its and million operating €XXX surpassed we our consolidated profitability is XXXX, to accretive In

marketplace products, results. of yielding XXXX. Our is our powerful and marketing to fastest-growing expected in strategies be Direct are Europe markets one

shipments the was Our percent the low-teens to compared EMEA quarter full distributor Growth XXXX year. XX% XXXX for business driven quarter in in timing up Fall favorable the high was of year. and Spring last up and by

previously for new last we advanced paused noted, Russian year. the As early for taking we've any orders market

contemplates for growth which include in portion business will other distributor sales. does offset of Our but these EMEA outlook healthy for Russia, our help distribution lost a not sales markets

the XX% net and the was year. the by were Canada time year. shipments from growth last XXXX benefited quarter, for compared which favorable up to led sales wholesale, In full quarter in Fall XX%

for well-positioned Canada. in continued growth are We

awareness positions. high Colombia and excellent have and market SOREL brand

University sportswear row been Victoria in the number in Brand In fact, trusted Colombia seven a has one Index. for voted brand the of years

Looking net the XX% XX% at and Columbia brand. for performance brand year. increased fourth sales quarter in the by full

growth across footwear. was the relatively balanced During apparel and quarter,

of launch launching an on collection XXXX. momentum expanded for season, Fall build able to this we year's the Infinity, last Following were Omni-Heat

campaign partnership with Bowl how a campaign worldwide the featured Star Our Eagle in focused NFL luck Jalan. matters. it the on technology quarterback, Super Hertz. featured in marketing One works Jalan’s of a Jalan broadcast and was [ph] why also pods. Good number content timely

the Dream macro Omni-Heat The the Perfect Dude also visited featured Jimmy influencers the Infinity the the in the store at slopes out micro on Dude campaign. Mall, to and utilized like content was [ph] on tested Kimmel Perfect sensation show. Columbia We team the jackets American YouTube

best styles, Peak technology jackets featured during Patrol Ski Magazine, lists The the Magazine. Ballistic and [ph] accolades this Gear Omni-Heat quarter. Platinum Infinity received Several season's from and the of Ridge Outside numerous were including in

We Helix successfully new business the unique our this Fall for XXXX, disruptive to targeted poly a build fleece Helix, we're technology. technology introduced and DTC was visible seasons on our Omni-Heat launch in small in ahead. excited

animated On inspired Star Clone the Wars product The newest Wars by collaboration front, collection, launch series. successful we saw of the our

the Our are. fans wherever Infinity winter others. latest collection among collaboration overcome reflected help The harsh Skywalker references Anakin the technology in Omni-Heat and to to includes Kenobi they incorporates thermal Obi-Wan elements Galaxy

increased and brand for decreased XXXX a was X% SOREL full portion XX% delays. third the challenged Shift net Fall of year. to net shipping order higher our season as greater quarter, the unfavorably brands. as cancellations. in the sales quarter given sell-through the quarter delivery well Early emerging In in impacted by were sales orders

improved, for sorel.com, the in generated categories, performers sandals, As growth including top which Growth was in were product and consumer sneakers brand availability on evident quarter. robust December. the demand

XXXX, is is product key remains compelling bringing consumer unstoppable this retail laser-focused shop-in-shops and planned brand partners. with passionate growth on partnerships SOREL The relentless SOREL's base consumer. the team the a products In of brand. to about exciting

SOREL expect our in brand XXXX. to be We fastest-growing

the constraints chain confident that faster that SOREL in ahead. XXXX, supply even grow help While years in we growth can are

in wholesale quarter in sponsored DTC series were for business, Max the debuted sales quarter, The the in in decreased deliveries Sales by which reality was impacted offset but prAna up driven clients, partially product year. HBO net prAna late were growth. full X% the X% softness by by declines January. the the

taking for on series climbers they this challenges and by Jason Chris series prize various raise like remains believe prAna the as Martin, activities Momoa, sponsorship. in prAna as unique compete We the to growth. Hosted product we repositioning $XXX,XXX and has the for the and brand's brand marketplace roots energize a Sharma in ambassadors, features awareness team a reestablish key climbing. prAna on The opportunity to Meagan focused

higher sales order emerging impacted Similar to sales X% year. net Mountain the for by other X% but drove were cancellations. in deliveries, our late product increased net decreased Hardwear the which quarter, brands,

will discuss commentary statements. I include financial and related forward-looking This to for presentations commentary details disclosures initial statements. Please XXXX now outlook review our our see outlook. these and additional financial CFO and

We focused laid the growth September. algorithm at we out achieving our on Investor long-term Day remain in

perfectly immune As macro be we will we noted, linear are growth headwinds. to near-term never not and

X% The Our we’ve expected sales. to positive to tempered XXXX XXXX they by net their in consumer retailer is headwinds as outlook momentum caution be positions. contemplates and X% experienced manage inventory spending

outlook XXXX, sales this CAGR the IPO X% the the we've Since initial is opportunity to Day, look net in has we long-term outlined XXXX future. Investor into our While our CAGR in at a not improve our growth three-year wavered. and growth generated confidence growth below our

XX%. approximately We XX to gross points expansion anticipate margin of basis

net We expect expenses growth. SG&A than faster grow to sales

others constrained strengthen using limiting our While and financial competitive investment their to position are profitability strong position. we're our spend, cash and

to profitable support continue long-term in our the to priorities will invest We growth. strategic

fuel we're across membership data in build be to front, business consumer and consumers. broadly, digital will stronger investing our enhancements investing More ultimately more and digital adaptive. analytics capabilities the we're agile connections On and in with the that

band people, we a X.X%, in We This market support at with [ph] capabilities, creation contemplates drive percent adjust When supply level to improve growth. this and XXXX. sales spend systems inventory processes comes demand chain supply depending efficiency maintaining as of conditions. and outlook and may of it to planning, on are consistent demand investing our

operating the We to be time. range operating margin of to XX.X% over year-to-year linear be margin expect we in will improving not remain and Operating performance to firmly margin always XX.X%. committed

cash We This operating in levels of normalize. leads as XXXX inventory of diluted $X.XX. per range our million flow strong earnings to to least a at operating share $XXX $X.XX anticipate performance

the unlock In we have strategies right summary, significant to we I'm confident place the see the business. opportunities growth in across

by demand investing products engagement creation and values. customers; are investing is enhance experiences by differentiated; is investments; digitally led and create and omni-channel that strategic core and global; marketplace focused in retain accelerate priorities profitable consumer in that empower We talent our to growth; innovative; that to driven iconic increased are delight with drive capabilities functional brand our to excellence amplify

your help concludes you my Operator, please? welcome could that, questions. That remarks. prepared We us with

Operator

Absolutely. question At this Bob, question-and-answer please proceed. a is session. [Operator Drbul Bob will Instructions] from we Our conducting time, be Guggenheim. with first

Bob Drbul

Thank you. afternoon, Good guys.

Tim Boyle

Good afternoon.

Bob Drbul

request, you just how Two book questions. spring, book On had the about Tim, of for sort that of Andrew. your I'll talk up stick you the of XXXX. can to order termed cancellations is sort much visibility, the the more of in XXXX, Fall

just So then little you And more China. spend that's time second my a on question. could first question is the

guidance sort Thanks. you you how category trends Curious you in reopening terms of in are within that feel XXXX the the trends and how or us about of gave overall monthly think today. like and inventories aggregate

Tim Boyle

relates we in order it much year, in and shipping of spring process the the as our earlier Well, to you Bob. Thanks concluded as yeah. it now. we're know, book, the Certainly,

we're In our in pre-pandemic We've spring and right and shipping service brought had substantial levels book. back cancels fact, We've don't great expect like shape. the now. any, to levels, no we're nearly crazy

fall the in And order balance to cancels. today, inventory fall well, nearly we've done that's we're expect book against book our matching to to don't complete, relates sync. inventory levels purchasing buying some also book, the exist and our the they're it we -- and that we're color-by-color, and so that fall map style-by-style, As

significantly cancels they than deliveries prior is Frankly, receive were had the past Asia this from only versus reason such been our later we because periods. in year significant periods

appropriately So great the the business about expecting investment approaching we're before we're excited are that an We're us. standpoint from things. and possibilities

open we is there great team today bit. way historically. a to we business. building As our great exceptional we've there it pretty been from remember, relates China, that come underperformed a position a if We've that you lost we've have and in The

headed, that, business not and among certainly convinced really, I'm here, the sales that's And will area where geographic the And so we certainly, expect if to that -- be, once to is have going best. going fully we greatest grow. we're business opened we get that it's really the

relates expect a opportunity said XXXX our grow XXXX, high of weakness And sheet So that We're we certain We've and I'm of in general, as this a great and it us company. bullish. with the that levels of will I competitors always growth in balance gives to beyond. to think growth. our have opportunity

Bob Drbul

Tim. Thanks, Great.

Operator

comes from Laurent with question next Paribas. BNP proceed. Please Vasilescu The

Laurent Vasilescu

grow you you brand that other out faster can some grow excuse to than to apparel, much growing to high-single-digits, afternoon. the saying brand talks you Within Good year In have my Thank guidance. for commentary is going footwear Colombia, the me. you're overall? the And for apparel hear much XXXX. you the taking about being of maybe as that very is high-single-digits for commentary, then the it versus question. going Tim, parse footwear this up it's Colombia, CFO do great bullish how year part think itself

Jim Swanson

had of the markets by except which, Russia is Laurent, of would as We you and shipments our XXXX. brand in growth And single-digit apparel. SOREL to Columbia that -- category about Jim. case in we that do did both the be market, is for growth contemplated outpace we then for a lapping going Colombia. And that brand, distributor that inclusive the rate high be EMEA we'll think this the of have the large, all the the not across is course, when footwear that’s outlook that of anticipate and XXXX

Laurent Vasilescu

have mid-single-digits. Okay. expected good top-line be to Jim, Very your to first And commentary, -- it's half you is see, helpful. then that

think in we we any there should out quarter calling we like year, in with down full shifts about? second first Because, any So first think, quarter. think to gross quarter, margins is that puts should and the about takes line I the you're be

Can Just the basis of the points first curious think to basis in it's do questions in about sorry, three be now. Andrew, to XXX down how XXX being know quarter? -- But points? margins gross we it magnitude

Jim Swanson

Yes.

the way and is down being from commentary, promotional QX, fact we're expect in part a that call included to about perspective that the low last what gross margin CFO the we that in in think that's out the reflective I we've QX, I the levels would be QX, think lapping exceptionally of DXC key would year.

more that that, first inventory much Laurent, XXXX related are should our receipts expect earlier Aside Tim quarter they timely I standpoint ago. fact was second than quarter would that the from a from spring growth were outpace for a year to the what describing the

And those sooner shipments getting out we're so as well. wholesale

be the a But will timing little should the drive So top-line. of bit biggest on a those variance variables. that

included in roughly comment typically a that make that volume lowest being QX And also anticipate we low commentary, a do being volume QX then given did we our breakeven. And CFO quarter, the is quarter.

you So what imply kind in that into you the will terms if math, earnings. do -- of back of that QX would

Laurent Vasilescu

you much, It was helpful. gents. Thank so

Jim Swanson

Yes. Thanks, Laurent.

Operator

we next Mitch have Research. proceed. Kummetz Please Seaport with Up

Mitch Kummetz

my gross a for the margin taking Thanks on questions. just discussion. Maybe continuation Yes.

expect you imagine a So bps be has on that. that for XX it impact to I freight up year. would better big the

expect So year-over-year XXXX? is timing of the improvement way, us there the to kind of walk you impact you the freight that through course any Jim, see of just could over in

Jim Swanson

XXXX margin. picture, unfavorably to We've basis We XXXX, looking freight big point from at unfavorable been standpoint. back XXX -- had just point impactful an XXX inbound our was basis of tail Mitch. the -- of XXXX, also nearly Yes. XXX, Part a gross impact end

more little and weighted a the QX, QX, and in the to abate inbound freight weight of QX, start will So bit it a probably then heavily is normalize. bit QX

that. about think the that's I would So way

the only points those of offsets lap to gross in the promotional freight think was of to the inbound are continuing which XX improvement part margin that relative we last year early why what basis to benefits extremely mind are are, I low. environment the fact keep you're seeing in

so And we that anticipate normalization.

that we have wholesale some as as will our have that perspective, work well. through combination that elevated inventory channels closeout and margin outlet the the then on And of with a and from impact inventory we levels through

So those are the effectively inbound the offsets two benefit. major to freight

Mitch Kummetz

then half the to of order Is Okay. -- any that deliveries, that, impact secondly, the kind of the the cancellations or of maybe became quarter delays kind late back delivery there way quantify And either that that. fourth combined? delays on on had and

delays mean, as think, yet, maybe or you and those with cancellations order an of real you’re it. XXXX any I as there Or of lap way that as what you of comparison? quantify order expecting for book lap any delays not to have any you up doesn't better you that said you Tim, kind pick I that, kind cancellations to lap that Is easy kind Fall

Jim Swanson

think about it easiest I and terms the of that to cancellations way expected. above what we think Well, in beyond we the incurred incremental

just The be Canada you the if look think we to revenue high where and business. the we in relative October our provided at cancellations America delta entirely I in related is of guidance there across going US to to North end that landed.

perspective, quantify the more inventory XXXX from shipping the normalized the earlier Mitch, from obviously we're shape effect to knowing we're we of a in large, of get in you’re plus our to on, much spring of because detail, then cancellations Aside this Tim as touched kind year, of full increase inventory. into level into into in that by for pattern trying receipt effectively and planning a next our supply be now. to going better And as get inventory that, that of some degree, balance that that is cancellation, it'd tough seeing

Mitch Kummetz

luck. Good Thanks. Okay.

Operator

Citigroup. Okay. with please proceed. coming The Paul, next is Paul Lejuez question from

Tracy Kogan

guess for on Paul. Hey, your Kogan is two My Tracy thanks. questions. first I It's in the inventory. filling

seeing product us you Thanks. you And for categories? on I you in side costing more just If side? of AUC little guess, think expecting brands And terms this where you give the you are increases? secondly, additional detail much are could year, a have the too there price and any then what on

Tim Boyle

pressure the let I'll you maybe of expectations. about but About inbound around freight. half talk costing Yeah, tell the was inventory, begin specifics Jim with can the inflationary our I

healthy moderation. of So we've degree seen

even In fact, there. rollbacks costs

us. So for that's a tailwind

Additionally, products. a there going rates materials increased to roll appears of to have cost our those in are in substantially, increases components be were these Labor back. some moderation not the in raw but we experiencing also

guided. higher our will and the are moderate, for some a So, saw there'll talk opportunity margins the I expand expectations us increases that rate bit little inventory. of and components think to we our in current can we've the Jim that XXXX the price them about gross at be XXXX as

Jim Swanson

certainly, Yeah. we talk inventory composition more perspective. from the elevated inventory than like And where to we're ordinarily bit. of through to a be Tracy, an

the quality. the still of hood with think when and look actual at our of you we're the I inventory under get composition overall inventory, comfortable

of predominant more certainly but There's future much season-based of current the by its received and inventory, we're season. on it, side it, the earlier large, spring

over carrying as of lineup product that fair that inventory are amount season. a is a There's We to over we've our about. of season proportion carries large spoken evergreen previously product

been has Fall wholesale into And that offered sold that our we've as XXXX product mix part of our of customers. much

So we're as shape to that already. of having a it relates in lot inventory sold good in

towards and as aged And inventory is or for and liquidation the product. our our adjusted outlets excess then we've moving that degree made back for opposed more to through excess inventory shifted remaining, that's buys there to

point inventory in specifically predominantly of ability that the thing greatest more to that's an we've that where around we're a where I -- growth the we've in move America. focal is perspective got composition that North outlet to through profitably. then think in And terms seeing the be good in that's got inventory, of able from And

Tracy Kogan

Great. Thanks very much.

Operator

next Serna Please coming question The Mauricio is with UBS. proceed. from

Mauricio Serna

on you quarter, to versus just the for I of in impairment growth the What on little take first bit on prAna US what guys detail wholesale maybe more more to afternoon. business? the so maybe business the could could bit provide your on And Good DXC we of Thank very ask the the are taking get wanted rationale a Thanks cost a charge that in questions. little a detail be for more terms that trends detail little helpful. would you. far? maybe if Just DXC. Hi. of my you also seeing you expectation like

Tim Boyle

Yes, I'm the we of inventory Columbia XXXX, certainly. the about had our think customers had their mindful in several Well, when of during first months of first no stores some XXXX. I that largest half almost

Our deliveries were that impacted.

So QX. expectations and few stores we'll solid that good of the are these to to up nice they have be, have a start where should up we'll QX a

DTC should Our well. be as growth solid

you company. remember, if Although we're really focused on wholesale being a

we retailer the So as give give. detail a as of not don't focus lot a just would a It's the of around normal the portion much company for wholesale business.

it prAna it's the on reset to rationale turn of And taking going than that the bullish ourselves prepared we their time We to the know, you a believe we make around. and then about we're in give brand prAna we business, And anticipated that the relates talked longer on as sure very product. to were as lot to brand. just the wanted

Jim Swanson

factors lot go a And into the I'd there's Yes. add, just of that impairment.

took Some of factors that looking in at we what those Tim influenced have the at that impairment certain And upon minds form underperformance quarter. interest is brand's degree, a of the our relative looking to market plan in the rates, charge then it acquisition. describing the we to in set of the multiples, also is

Mauricio Serna

you Thank much. it. very Got

Operator

is Alex Perry Okay. The coming next of with from proceed. America. question Bank Please

Alex Perry

here. questions Hi. taking for my Thanks

wholesale you're talk at you the DXC? your wholesale Day, think is that in growth. maybe terms through thinking and guidance Investor the you I Is can about versus talked in about how full case embedded of sort the Thanks. of year? what modest first, Just XH

Jim Swanson

Yeah.

we to bit would degree from solid think we detail a anticipating level, perspective, DXC in little from an incredibly XXXX. after XXXX perspective higher wholesale the Alex, year a in growth but it's provided outpace channel wholesale the a I are that business

and of there. couple from digital in perspective. continued a we're making what investment e-commerce in One, So, a factors

brick-and-mortar add amount as our XXXX. then stores business, you of fair in And new of about a we think the side did

standpoint. the the of of opening we've and annualization So in we'll got a lapping from those also stores a be plus new planned growth XXXX stores handful

Alex Perry

That's wanted balance have your think to channel about how I you're helpful. inventories. ask really people of of then a lot sort -- sort inventory, I of about your asked thinking about but And sheet

of that inventory and How do feel retailers are you Fall others Thanks. you you will sort with? be into sort of think are place? Or for XXXX? a both over like channel that viewing good Do you carrying that in you inventories compete

Tim Boyle

Yeah.

monitor slightly a we generally range our gauge average inventories, there retail American we so is the periods, what can pre-pandemic periods. from than with sell-through on of So how something XX% brands. in we're seeing compare perspective doing of And North average including prior you sell-through better customers' performance our we're to when prior

we've to we on the we're been it relates past. other So as where approximately brands, good in when can't visibility see but ours, a position and that in be would

second and the plays inventories. the a portion business weather residual in half big So

you can big making our in going it's America impact on as the today, weather through great up retailers. that's North very cold see liquidation So, the for a

a winter is position is expectation the once be our So with merchandise. our good, will done, solid, clean that

Alex Perry

very going helpful. of Perfect. luck forward. That’s Best

Operator

Douglas Alex coming Cowen. Please me. Alex, is proceed. with question excuse from Next

Alex Douglas

of question XXXX just and maybe So and to go Fiscal how that's to helpful? broken more kind impacts the very wanted promotions I Is cadence down. the on maybe from the could back detail margins maybe Thank be year there and gross provide throughout specifically you. would that on any freight you

Jim Swanson

bit terms but of if the these. there, speak Yeah. I list a little provided, relative in the we a point can bullet reference CFO And of there's commentary weighting you

a into lower element So, freight be will that we've costs, significant of our very inbound benefit anticipate, built there. guidance a -- we

be escalation saw being into they should we provided. we us to about And those basis XXXX, in were freight getting us headwind point with And that's down in in was the and a that XXX of XXXX. most headwind And advance rates to basically back we've it that XXXX, I where of part of mentioned latter was the in costs, gross that in built margin. in outlook also the

our as normalized DXC offset there To here down inventory is big coming be clean. levels mix is to then the the outpace is levels going our a across rest lesser business growth and promotional around to in some And getting business. the to through anticipated expectation degree, working more channel also shift of the back favorable is

a freight a levels be it's given pretty from through offset to degree inbound So, clearing and sizable benefit the standpoint promotion to there's going good inventory. an

Alex Douglas

you. Thank That’s helpful.

Operator

have We And call of closing to turn now for question-and-answer session. the I reached end management over will the remarks. the

Tim Boyle

to go update for as very we listening much next along Thank Great. forward you in. a able We're XXXX call. during to quarterly being looking you our great and

thanks to So soon. We'll for talk listening. you

Operator

This conference, may disconnect you Thank your your lines time. concludes you at this for participation. and today's

Columbia Sportswear (COLM) 2 Feb 232022 Q4 Earnings call transcript