Bloated inventories and challenging market conditions in the U.S. are forcing Columbia Sportswear to take a “more conservative” stance on its H2 and full-year results despite explosive year-over-year Q2 sales growth in China and in its lower-margin international distributor businesses. Saddled with a 21% year-over-year increase in Q2 end inventories to nearly $1.2 billion despite early shipments of key Q3 orders, COLM is now forecasting FY23 net income to decline by 8% to 10% to $272 to $288 million versus prior expectations of 3% to 8% growth.

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