(This story was updated on 6/16/2023.)
Footwear brand Sorel, usually a top performer for parent Columbia Sportswear Company, experienced a tough Q1 due to a challenging footwear market, and wet and cold spring weather.
The brand’s revenue in the quarter totaled $61 million, down 3% in constant currency. Sorel was hurt by several factors, including:
- Late deliveries and extra inventory in Fall ’22 that led to increased promotions in the spring quarter to move through the excess goods.
- Unfavorable spring weather which caused a slow start to spring footwear sales.
- Retailer caution.
As a result, the company reduced Sorel’s outlook for the year. Previously, Sorel was projecting low double digit growth. Now, Sorel is expected to grow in the high single digits.
As weather grew warmer at the end of Q1 and the start of Q2, Sorel’s sales have improved. Columbia CEO Tim Boyle stressed during an earnings call Thursday that the company remains bullish on the long-term outlook for Sorel.
“While near-term sales trends are below our long-term growth ambitions for Sorel, we remain confident in the brand and its potential to become the next global footwear force,” Boyle said.
The company has previously said that Sorel can become a $1 billion brand. For the fiscal year ended Dec. 31, Sorel’s revenue totaled $347.3 million, an 11% increase in constant currency compared to the prior year.
Slowdown in Hike and Trail Footwear
The footwear category in the Columbia brand also posted soft results as sales of hiking and trail footwear slowed after several years of robust sales during the pandemic, Boyle said.
Tiffany Montgomery can be reached at firstname.lastname@example.org