Columbia also puts figures for the worst quarter in the history of retail. The fashion and sports equipment group billed 40% less between April and June and went into the red, with losses of 50.5 million dollars.
Sales through its own e-commerce platform, which shot up 72% in the period, partially offset the failure of physical retail: first, because it was closed and, later, because neither traffic nor consumption has yet recovered to pre-epidemic levels. In total, the company billed $ 316.6 million in the second quarter of its fiscal year.
Actually, almost all the group's global network of stores has already reopened its doors. "We remain focused on cost containment although we continue to invest in our strategic priorities," said Tim Boyle, president and CEO of the company. The company plans to reduce its recurring operating expenses by more than one hundred million dollars compared to last year.
Columbia expects second quarter to be worst for fiscal year
"While there is still unprecedented uncertainty, we expect sales levels to remain below this year last year," Boyle added. The group believes that "if trends do not deteriorate further due to the pandemic," the second quarter will be the worst of the year.
In the accumulated of the first semester, the company invoiced 884.8 million dollars, 25% less than in the same quarter of the previous year. The gross margin fell by 280 basis points to 47.2%, and losses stood at 50.5 million, compared to a profit of 97.2 million a year ago.
As of June 30, the company had stock worth $ 806.9 million, 7% more, and a cash and equivalents (including short-term investments) of $ 475.8 million. Columbia also has a short-term debt of $ 2.8 million that corresponds to the financing obtained to face the Covid-19.