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00:00I we're seeing Woolmark we're seeing targets some of the best management teams in the business really struggling right now. How you doing. Well you know it's interesting. Our our business is very much a wholesale business. We sell to to many many regions globally. And we also have really a futures business. So our business is basically predicated on selling our merchandise to retailers well in advance of the season and then delivering on time to them. And what we're seeing and we're able to frankly predict price increases and we've been able to raise our prices because our products and our brands have have power to be able to be able to handle additional pricing. But what we're seeing is that about half of our increase in costs are related to logistics with the by far the largest component being ocean freight charges. And so that's that's what we're seeing. Hey Tim before we get to the ocean freight for a second I want to go back on inventories at Wal-Mart and Target. Both warned of high inventories. The idea is they're going to have some markdowns to get that off their shelves. Have you heard or noticed anything from the buyers. Well there's been so much logistics disruption across the board that it wouldn't surprise me that there were more inventories around. But you know in an inflationary environment frankly all those all those inventories will be cost less than new inventories coming in. So there may be some additional inventories but I don't believe it's going to be impactful. Tim do you think the consumer's getting to the point where it's had enough and she have had enough that they are going to push back on on their purchases they're going to trade down they're going to they're going to be buying different things. What is your view of the states of consumer confidence right now. Well you know it's difficult to describe how the consumer in the very greatest macro sense globally is reacting and then trying to interpret that against your own business or our own business. So you know we believe that we're fully in control of the products that we make. And it's important that we make products that people want to buy regardless of whether or not they'll be three four five 10 10 percent more expensive. So that's what we're focusing on is making sure that we've got pricing power in our products. And because of that demands that that that the amount of demand there is for our products particularly. Well you know I guess anywhere. Yes. So to that point Tim if you can't control the demand side you can control your cost side. So let's get to that. You mentioned that ocean freight was really the most expensive for you guys right now. What is where is the biggest problem and how long is it going to last. The rhetoric was it wants to say China open up after a rolling lockdown. That was going to be better. What do you see. Well again our business is very forward looking. So we have our entire sales team is here in Portland looking at products that we're going to be selling in the next several months for delivery. Well nine months from now. So our job at our company is to make sure that the products that we're selling have a tremendous amount of value and can handle additional pricing as it relates to the global consumer and how how they are looking at various decisions that they make with their pocketbooks. You know the outdoor business has been very strong as the pandemic rolls around and impacts consumers and what they do every day. We find that people are going outside and there are products therefore in higher demand. And then we see something that 2 million neckties or a sport coat or laser. Yep I people have time to definitely avoid those things at the moment. Tim the airlines are talking about the idea that they're going to be seeing a lot of travel this summer. How does does that affect you. You talk about people going outside. People are kind of back to travelling. Does that change. That makes him what you're going to be selling. What do you see this summer. What do you see into the winter. Yeah I mean I think what we've seen in our own retail business which is a large percentage of our total business the international traveler is returning. And we've got lots of individuals coming from South America and Europe that have been growing in terms of size and groups of people coming. And that's an important part of our business. When we're selling in stores in Florida and elsewhere where Europeans and South Americans are coming to visit the United States. So that's been a real positive for us. Tim we've also noticed at the same time a rising Covid cases. New York is on high alert. For example Apple delayed returned to office and going back to three days a week because of it. And I'm wondering talking about travel are you notice anything either on your own front of how you are going to manage your company and your employees and also how people are reacting to that. Well as I said we have our our sales team from around the world are here in Portland this week and they've all traveled here. And I think we're all beginning to learn how to live with Kogan being careful wearing mass when appropriate. And I you know I do see that there is a reduction in travel business travel for our jeans over prior period as we know how to operate a business now with children using technology like we're using today. Tim I'd love to come and visit you in Portland. I'd love to go visit Alex in New York. But the dollar is pretty strong right now. It's getting pretty expensive to come to the United States. How is that strong dollar impacting what you're thinking about. Well again as our our business is global so we have to be we're thrilled that when we're buying merchandise for search consumption in the U.S. but it also makes our products more expensive when we're selling in Europe or Asia or South America. So we just have to be cognizant of that that balance. We do a certain amount of hedging and make sure that we've got whatever ability we have to to modify the impact of that currency on our products built in or in our future pricing. Hey Tim. Last question. We've heard from some tech companies. They're freezing hiring. There were a worker management issues and Wal-Mart and Target what you do with your workforce you're hiring you're freezing salaries what you're doing. Well we're growing. And so we need more people or we need technical people. So I'd be I'd be thrilled if that were the case because it makes acquiring great talent easier for us especially in the tech space. So we need we need great people and we're still hiring.

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Columbia Sportswear CEO Says the Brand Can Withstand Price Hikes

Tim Boyle, Columbia Sportswear CEO and chairman, says their brand can withstand price increases. He says rising costs are mostly due to logistics. He's on "Bloomberg Markets." (Source: Bloomberg)

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