After a disappointing third quarter, the sportswear brand has indicated that it intends to close several store locations.
Third Quarter earnings show that Columbia Sportwear’s revenues have decreased by 23 per cent to $701.1M compared with forecasts of $767.13M. The company also reported earnings of 94 cent per share which is significantly lower than last year’s earnings of $1.75 per share. The company also noted that footfall at their store locations were well below previous years.
Tim Boyle, President and Chief Executive Officer commented: “We have not seen a sustained improvement in brick-and-mortar store traffic to date… We anticipated traffic in these markets to remain depressed until tourism resumes.”
This year has seen the retailer close eight store locations in the US and one in Europe and now plans have been revealed that the brand intends to permanently shut a small number of stores. Boyle continues: “We continue to evaluate portfolio and anticipate closing additional underperforming stores. To enhance store profitability, we’re focused on improving store labour efficiency, and lease negotiations are ongoing.”