Benzinga | Aug 3, 2021 06:22AM EDT

Colombia Sportswear Reports Strong Q2 Earnings; Raises FY21 Sales, EPS Outlook

* Colombia Sportswear Co (NASDAQ:COLM) reported second-quarter FY21 sales growth of 79% year-on-year, to $566.4 million, beating the analyst consensus of $497.57 million.

* Gross profit rose 100% Y/Y to $292.5 million, and gross margin expanded 540 basis points to 51.6% of net sales.

* The operating margin was 6.2%, with $35 million in operating income for the quarter.

* The company held $820.9 million in cash and equivalents as of June 30, 2021.

* EPS of $0.61 improved from a loss of $(0.77) Y/Y, versus the consensus for a loss of $(0.08).

* "Our record financial performance clearly reflects the powerful fundamental recovery that is underway in our business. Second-quarter results exceeded our expectations, driven by better than planned performance in our U.S. wholesale and DTC brick & mortar businesses," said Chairman, President, and CEO Tim Boyle.

* The company's regular quarterly cash dividend of $0.26 per share, is payable on August 26, 2021 to shareholders of record on August 12, 2021.

* Outlook: Colombia raised FY21 sales guidance to $3.13 billion - $3.16 billion from $3.04 billion - $3.08 billion, with the consensus of $3.08 billion.

* The company also raised the EPS outlook to $4.30 - $4.55 from $4.05 - $4.30, with the consensus at $4.43.

* It lowered gross margin outlook to 49.9%-50.1% (prior 50.0%-50.2%).

* Price action: COLM shares closed higher by 1.80% at $101.41 on Monday.