Business Accounting – Tomasz Pietak http://www.tomaszpietak.com/ Mon, 16 Aug 2021 05:17:12 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://www.tomaszpietak.com/wp-content/uploads/2021/08/Tomasz-Pietak-icon-150x150.jpg Business Accounting – Tomasz Pietak http://www.tomaszpietak.com/ 32 32 Bad Credit Loans With High Approval Rates: New Service by https://www.tomaszpietak.com/bad-credit-loans-with-high-approval-rates-new-service-by/ https://www.tomaszpietak.com/bad-credit-loans-with-high-approval-rates-new-service-by/#respond Mon, 16 Aug 2021 05:12:06 +0000 https://www.tomaszpietak.com/?p=171 Charlotte, NC, April 25, 2021 (GLOBE NEWSWIRE) — TransformanceUSA now offers a free service to match customers with bad credit loans based on a 10 question assessment. View bad credit loans you qualify for using the tool here The quiz will ask you questions about the size of the loan you need, what you need the […]]]>

Charlotte, NC, April 25, 2021 (GLOBE NEWSWIRE) — TransformanceUSA now offers a free service to match customers with bad credit loans based on a 10 question assessment.

View bad credit loans you qualify for using the tool here

The quiz will ask you questions about the size of the loan you need, what you need the loan for, your credit score, and how quick you need your loan.

The answers are then used to calculate a list of lenders that offer the best bad credit and no credit loans for your situation.

You may be matched with any of the following types of loans: bad credit loans, no credit loans, low-interest rate loans, cash advances, sofi, rocket loans, or more. Each of these are explained in more detail below.

Click here to see the loans you qualify for

Bad Credit Loans
It’s possible to get a loan with a bad credit score. A bad credit loan is meant to cater for individuals with a credit score below 575 or short credit history. They come at a higher interest rate than traditional loans, but they can be used to meet urgent financial needs and improve your credit score. These loans can either be secured (backed by collateral such as a car or home) or unsecured.

There are many online lenders who specialize in providing bad credit loans. Various credit unions, banks, and online lenders offer bad credit loans to people with poor credit, but their threshold for what they call “creditworthy borrower” varies from one institution to another. Some lenders are stricter than others, differ when it comes to accrued interest rates, and have different fees and terms of engagement. It’s thus essential to shop around for the most favorable terms and requirements before making a decision.

How To Get A Bad-Credit Loan
Securing a personal loan with bad credit requires diligent research to find the most suitable and affordable loan possible. Bad credit means you have limited options, but that doesn’t mean you’re completely helpless. Here are tips to ease the process of getting a bad credit loan:

Check your credit score: It’ll be best if you start by learning where your credit score stands. This can be done by requesting a free report from Experian (Everyone is entitled to one free credit report every year from each of the credit reporting agencies)

Have a reasonable repayment plan: When taking a loan, it’s vital to ensure that you can manage your home budget and still support an additional loan payment each month.

Compare bad-credit loans: If you already have an existing relationship with a bank or financial institution or your account is in good standing, they might have a loan option for you. You can also take your research online and check lenders’ independent reviews to ensure you’re getting the best deal.

Look into secured loans: Secured loans are easier to get if you have a below-average credit score. These loans require you to back them with collateral but have lower APRs.

Take advantage of prequalification: Many lenders will allow you to check whether you qualify for a loan before doing a hard credit check.

This is a good way to shop around for bad credit loans without affecting your credit score any further.

Add a co-signer if necessary: Adding a co-signer with a good credit history will increase your chances of qualifying for a loan and may also net you a lower interest. However, being a co-signer means assuming the responsibility to pay the loan if a borrower falls behind on payments.

Be prepared for hard credit checks: As mentioned earlier, many lenders will allow you to get prequalified without initiating a hard credit check. However, the actual application results in a credit inquiry that temporarily damages your credit, although you’ll eventually recover these points once you start paying the loan.

Cash Advance
A cash advance is one of those loans that you would want to familiarize yourself with terms and requirements so you aren’t hit with a nasty surprise. A cash advance is a short-term loan provided by your credit card issuer. Taking cash advance means that you are borrowing against your credit card’s line of credit. You can get a cash advance in different ways, including:

At an ATM: With a PIN for your credit card, it’s possible to get a cash advance at an ATM. If you’ve forgotten your PIN, be sure to request your card issuer for one. It’ll take a few business days to receive a new PIN, and there is a limit to the amount of money you can withdraw from an ATM.

Convenience check: There are credit cards that come with convenience checks, which you can use to write a check to yourself. Then, you can cash or deposit the money.

In-person: It entails visiting your bank to request a cash advance into your credit card.

Once your cash advance is approved, the card issuer charges a fee, which is usually 3% to 5% of the total amount you request. For example, if you request a cash advance of $250 with a 5% fee, that’ll cost you $12.50 interest. This is not to mention the fee you’ll be charged when taking out the money from an ATM and the overall credit limit, which means you’ll only be able to withdrawal a few hundred dollars.

Moreover, cash advances don’t come with a grace period. You’ll be charged interest from the day you withdraw the money. That is different from when you use your card to purchase goods because your insurer gives you a grace period of 21 days, where you’ll not pay interest if you make full payment within this period.

Loans Pioneer
This is a fully web-based company that connects potential borrowers with lenders. It’s situated in Houston, Texas, but they offer loans to residents in all 50 states through the website. They do not have a physical location but can be reached through email or their mailing address; 1321 Upland Dr. Ste 6458, Houston, TX, 77043.

You can borrow money to fund nearly any need, including debt consolidation, buying a car, home improvement, and other major expenses. They offer loans of up to $5,000. To qualify for a loan, you have to be employed or self-employed, at least 18 years, and U.S. citizen or a permanent resident with a valid SSN.

Lenders within LoanPioneer’s website can offer APRs ranging from 5.99% to 35.99%. Besides, fees for origination, administrative transactions, and applications depend on the loan you will be connected with.

Leap Credit
This is a type of loan that you can apply online and receive in a matter of days to pay for an exotic vacation, medical bills, your dream wedding, funeral expenses, auto repairs, new appliances for home or office, and more. You can borrow anything from $300 t- $3,500 for a start.

To qualify for this loan, you must be at least 18 years old, a resident in the U.S., and earns a minimum of $25,000 a year. You can apply online by submitting your personal information and explaining how you intend to use the loan. After undergoing a soft credit check, you’ll receive your quote in one business day. Once you accept the terms and requirements of the loan, funds will be deposited into your account the following business day.

Leap Credit rates vary by state, so to have clear information of what you will be offered, visit their site and enter your zip code. However, the average interest rates fall between 293% and 695%, and their payment period is eight months, but that’s also state-dependent. Moreover, there is a late fee penalty of $30 or 5% and a puzzling monthly managing fee.

Click here to see which loans you qualify for

Common questions we get asked about bad credit loans

Can I get a loan even if I have bad or no credit?

Yes, but your options will be more limited and the interest rates you’ll have to pay will be higher.

Those with poor or no credit are considered riskier investments than those with good credit, and the lenders will expect to be better-compensated as a result.

The good news is that some lenders are happy to work with “riskier” clients, and if you get a loan through them and are responsible about paying it back, you can begin to rebuild your credit — which will help you qualify for better loans in the future.

What types of loans are there?

There are a wide variety of loan options, including payday loans, home equity loans, and personal loans. Payday loans should generally be avoided, as they tend to charge outrageous interest rates.

The loans listed above are almost all personal loans. They’re ideal for making a big purchase, consolidating debt, or just keeping your head above water until you can get back on your feet.

Will applying for a loan affect my credit score?

That depends. Many lenders do something called a “soft pull” when you’re first applying to get an idea of what kind of loans they can offer you. Soft pulls usually don’t affect your credit score.

However, if you accept a loan offer, the lender usually performs a “hard pull” to verify the information you put on your application. Hard pulls will slightly damage your credit, but the impact will go away after a few months.

Some payday loan lenders don’t check credit scores at all. While this may sound good in theory, those lenders usually compensate by demanding collateral or charging exorbitant interest rates.

Do I need to have a job to get a loan?

It’s definitely helpful to be employed, but it’s still possible to get some loans without a job. Employment is only one factor that lenders look at; they’ll also consider other forms of income, such as alimony, Social Security, disability, and more.

If you have absolutely no income, though, you’ll be hard-pressed to find anyone willing to lend to you, as you won’t be able to prove you can pay them back.

What’s the difference between a secured and unsecured loan?

A secured loan means you’re offering the loan company security in exchange for cash. Usually, this is some form of collateral, like the title to your car.

An unsecured loan doesn’t require any collateral. If you fail to pay, nothing you own will get repossessed, but your loan could get sold to a debt collector. Your failure to pay will also be reported to the lending agencies, and if you get sued, your wages could be garnished until the loan is repaid.

What kind of interest rates and fees can I expect with a bad credit loan?

Your interest rates will be higher than they would if you had better credit — there’s just no way around it. Typically, most of these lenders will charge rates in the 8.99% to 35.99% range, but some can go much higher than that.

Different lenders charge different fees, but most will charge an origination fee or other administration fee. These are typically a percentage of the overall loan.

You’ll also be subject to fees if you miss a payment or have a payment returned for lack of funds. These can be a percentage of the payment or a flat fee, depending on the lender.

How much money can I borrow?

That will depend on your credit score and income level, among other things.

Most lenders have maximum amounts that they’re willing to lend out, though, and these can range from a few hundred bucks to tens of thousands of dollars.

Typically, lenders will use a pre-qualification process to determine how much you can borrow. This lets you know what you’re getting into before you sign up for anything.

What do I need to apply for a loan?

You’ll need paperwork documenting your identity and financial situation. These include your driver’s license, Social Security card, or other state-issued identification, and documents like your tax return, pay stubs, and proof of any other income you may have.

You may also need documentation proving your address, such as a utility bill or proof of insurance.

How long do I have to repay my loan?

This will vary depending on the lender, but the term could range from a few months to several years. As a general rule, the longer the term, the less your monthly payments will be, but you may pay more in interest as a result.

Is there a penalty for early repayment?

Sometimes. It depends on the lender, but this is something you should figure out before you sign any paperwork.

How can I improve my credit score?

Credit scores are based on a variety of factors.

The most important things you can do are to pay your bills on time and keep your debt levels low. Taking out any kind of loan will put you in more debt, which will most likely negatively affect your score, but if you pay the loan back on time your score should recover and possibly even improve (especially if you use the loan to pay off other debt).

Beyond that, simple things like not opening a bunch of credit cards at once, not allowing errors to stand on your credit report, and using secured credit cards can help as well.

Disclaimer: The information does not constitute financial advice or an offer to buy. Any purchase made from the above press release is made at your own risk. Consult an expert advisor or professional before any such purchase. Any purchase made from this link is subject to the final terms and conditions of the website’s selling mentioned in the source. The content publisher and its downstream distribution partners do not take any responsibility directly or indirectly. If you have any complaints or copyright issues related to this article, kindly contact the company this news is about. The links contained in this product review may result in a small commission to the author if you opt to purchase the product recommended at no additional cost to you.


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Payday loans No obligation, just Request a real online loan for bad credit https://www.tomaszpietak.com/payday-loans-no-obligation-just-request-a-real-online-loan-for-bad-credit/ https://www.tomaszpietak.com/payday-loans-no-obligation-just-request-a-real-online-loan-for-bad-credit/#respond Mon, 16 Aug 2021 04:57:30 +0000 https://www.tomaszpietak.com/?p=204 No obligation. Simply request an actual online loan for poor credit. You have many options today to borrow money. You can borrow money at banks, from pawnshops, and via online platforms. But what if it’s all you need? The process is straightforward and easy, without the need for intermediaries or brokers. Here you may learn more about https://www.paydaychampion.com/ […]]]>

No obligation. Simply request an actual online loan for poor credit.

You have many options today to borrow money. You can borrow money at banks, from pawnshops, and via online platforms. But what if it’s all you need? The process is straightforward and easy, without the need for intermediaries or brokers.

Here you may learn more about https://www.paydaychampion.com/ and real online loans for bad credit. We make borrowing money easy.

Important information for lenders

The lender holds the financial resources, and makes them available. Lenders may be one or more individuals in the network. It is crucial to have written documentation before money is lent. Repayment terms should also be written. The amount and rate of the interest (monthly, annually)

Collateral is necessary to make sure the lender doesn’t take on too much risk. The collateral can be valuable items, such as jewelry or vehicles. You can also use life insurance policies as collateral. A lender should insist on a collateral. The guarantor will need to step in if the payments are not received. However, the guarantor is also insolvent and cannot offer a viable alternative to the collateral. It is important that collateral be provided without collateral. This could lead to the total loss or the forfeiture of the loan amount. The lender becomes the owner of collateral upon the signing of a contract. Collateral can be sold in default. The contract should detail the design.

What is the borrower’s responsibility?

The borrower agrees to the funds. The conditions under which the money is granted to him should be carefully reviewed to make sure he understands his risks. Is the rate of interest in line to the market? Are credit institutions more affordable? Do they allow him to afford it? Or does it limit his ability to handle the rate? What happens to any collateral he’s given? When can the lender use the collateral? Can the lender transfer its claim to a third-party? And what rights would the borrower have?

Bad Credit Loans
Bad credit scores are not a problem. For those with poor credit or a lower credit score, a bad credit loan can be arranged. They have a higher annual interest rate than traditional loans. However, they can be used to help meet your financial needs and improve credit scores. You can choose to have these loans secured (backed by collateral like a home or car) or unsecured.

There are many lenders who offer bad credit loans. Although there are many credit unions and banks that offer bad-credit loans to people with low credit scores, their criteria for a “creditworthy borrower” varies from one institution. Some lenders are stricter than other, have different accrued rates and have different fees. It is therefore important to shop around for favorable terms and requirements before you make a commitment.

How to get a loan for bad credit
You need to research carefully in order find the best personal loan. While bad credit may limit your options, this does not mean you are without options. Here are some ways to make it easier to get a bad credit loan.

Verify your credit scoreIt is best to learn about your credit score before you begin. Experian offers a free credit report. Everyone is entitled one free credit score report per year.

You should have a reasonable repayment schedule: It is crucial to plan a monthly repayment that allows you to maintain your home and pay the loan back each month.

Compare bad-credit loan options:A loan option may be available to you if your bank has an existing relationship or your account in good standing. To make sure you get the best deal, do your research online.

You should look into secured loansSecured loans are much easier to get if your credit score falls below the average. These loans have lower interest rates, however you will need to secure collateral.

Prequalification: Many lenders offer prequalification, which allows you to see if you’re eligible before you go through a hard credit review.

This is an excellent way to search for bad credit loan options without affecting any credit scores.

If necessary, include a co-signerA co-signer with excellent credit history can help increase your chances for getting a loan. This will also lower the interest. Being a cosigner does not mean that you are responsible for repaying the loan if the borrower falls in arrears.

Do not be afraid to undergo credit checksMany lenders will grant prequalification without you having to submit a hard credit report. While the actual application causes a credit inquiry which temporarily damages credit, once you begin paying the loan you will be able to rebuild it.

Conclusion

There are risks for both parties when credit is transferred from private sector to private sector. A contract should record everything and any collateral that is agreed to. These requirements are often not met by simple promissory notes. If you wish to borrow money from someone you know, you should be capable of getting out of the case with no payment problems and a clear conscience. These are the collateral borrowers should insist upon. The lender shouldn’t, however, act like a loan shark to get loans from private to public.

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Can you be denied auto insurance for bad credit? https://www.tomaszpietak.com/can-you-be-denied-auto-insurance-for-bad-credit/ https://www.tomaszpietak.com/can-you-be-denied-auto-insurance-for-bad-credit/#respond Wed, 11 Aug 2021 12:05:08 +0000 https://www.tomaszpietak.com/can-you-be-denied-auto-insurance-for-bad-credit/ The good news is that in states that allow your credit score to be used to determine auto insurance eligibility, this usually cannot be the sole reason for denial of coverage. However, your credit score can influence your insurance costs. But what does your credit score have to do with insurance? Your credit score and […]]]>

The good news is that in states that allow your credit score to be used to determine auto insurance eligibility, this usually cannot be the sole reason for denial of coverage. However, your credit score can influence your insurance costs. But what does your credit score have to do with insurance?

Your credit score and insurance coverage

An insurance company can deny your request for coverage for many different reasons. If you have too many speeding tickets, for example, you may be considered high risk for filing a claim. Your age and marital status may also have a say, because statistically, a 40-year-old married person may be a less risky driver than an 18-year-old single. Insurance companies can even use the age and condition of your vehicle to determine your rates.

However, if you are denied coverage, it is usually for several reasons. When it comes to making payments and filing a claim, some insurance companies may also be concerned about your credit history.

According to Experian, your credit-based insurance score is based on your credit reports and used to determine your likelihood of filing a claim. However, even if you live in a state that allows insurance companies to use credit scores to determine insurance costs, state insurance regulators generally do not allow providers to deny credit. coverage of a borrower solely on the basis of a bad credit rating.

During the underwriting process, when the insurance company determines your potential rates and based on your home state, an insurance company may use your credit score to determine your eligibility for coverage. For many insurance companies, a bad payment history on your credit reports could represent a higher risk for filing a claim or missing an insurance payment in the future.

Which States Are Not Using Your Credit Score?

States vary in their insurance regulations. Here are the states that don’t allow your credit score to influence your auto insurance coverage, according to Experian:

  • Michigan
  • Massachusetts
  • California
  • Oregon*
  • Utah**

* Although your credit score cannot be used as a reason to decline or renew an insurance policy, they can still use your credit score in part to determine your rates.

** May use your credit score to determine your rates, but this cannot be the only factor during the underwriting process.

If you are looking for insurance for your next vehicle, visit our resource center to compare insurance rates.

Are you looking for an auto loan with bad credit?

Insurance companies may be able to charge you more if your credit rating is bad, and auto lenders may decline a car loan if your credit rating does not meet their requirements. If you are in need of an auto loan with bad credit then we want to help!

Auto Express Credit has created a nationwide network of special finance dealers who help borrowers facing credit problems. Fill out our free auto loan application form and we’ll use our network to find a dealership in your area.


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ASEAN banks weather pandemic storm, but bad loans could rise https://www.tomaszpietak.com/asean-banks-weather-pandemic-storm-but-bad-loans-could-rise/ https://www.tomaszpietak.com/asean-banks-weather-pandemic-storm-but-bad-loans-could-rise/#respond Tue, 10 Aug 2021 18:05:16 +0000 https://www.tomaszpietak.com/asean-banks-weather-pandemic-storm-but-bad-loans-could-rise/ Coronavirus shutdowns will slow the pace of economic recovery in the 10 ASEAN countries according to Moody’s Investors Service. The world’s largest credit rating company says it could hurt borrowers’ ability to repay debts, straining the banking industry. “Banks in Thailand, the Philippines and Indonesia are particularly vulnerable as their economies grapple with a high […]]]>

Coronavirus shutdowns will slow the pace of economic recovery in the 10 ASEAN countries according to Moody’s Investors Service. The world’s largest credit rating company says it could hurt borrowers’ ability to repay debts, straining the banking industry.

“Banks in Thailand, the Philippines and Indonesia are particularly vulnerable as their economies grapple with a high number of cases of the virus, which increases the uncertainties surrounding the reopening of their economies. Yet political support for borrowers and the concentration of impact on a few economic segments will limit the deterioration in the overall asset quality of banks, ”said senior analyst Rebecca Tan.

Moody’s rates the Thai banks Baa1 Stable and those in the Philippines and Indonesia Baa2 Stable. Any rating above or included in Baa3 is considered an investment rating.

Indonesia has been hit hardest by Covid-19 among ASEAN members. Almost 3.7 million people have been infected and 109,000 deaths recorded. In the Philippines, 1.7 million people have been infected with more than 29,000 deaths. Malaysia has 1.3 million cases and Thailand more than 776,000.

Cambodia has seen infections drop for nine consecutive days, with cases falling below 500 a day for the first time in seven weeks.

Banks in the Kingdom emerged from the pandemic relatively unscathed, with loans and deposits increasing in the first half of the year compared to January-June 2020.

Outstanding loans grew 19 percent year-on-year to $ 33.9 billion in June this year, while customer deposits rose 20.8 percent to $ 32.7 billion, the bank said. central last month.

Banks continue to manage bad debts, while following requests from central banks to ease the burden on borrowers. The National Bank of Cambodia says banking and financial institutions restructured $ 5.5 billion in loans for 367,239 borrowers in the first half of this year.


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Columbia Sportswear (COLM) Q2 2021 Earnings Call Transcript https://www.tomaszpietak.com/columbia-sportswear-colm-q2-2021-earnings-call-transcript/ https://www.tomaszpietak.com/columbia-sportswear-colm-q2-2021-earnings-call-transcript/#respond Mon, 09 Aug 2021 09:53:23 +0000 https://www.tomaszpietak.com/?p=30 Image source: The Motley Fool. Columbia Sportswear (NASDAQ:COLM) Q2 2021 Earnings Call Aug 02, 2021, 5:00 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the Columbia Sportswear second-quarter 2021 financial results call. [Operator instructions] As a reminder, this conference is being recorded. It is now my pleasure to […]]]>

Image source: The Motley Fool.

Columbia Sportswear (NASDAQ:COLM)
Q2 2021 Earnings Call
Aug 02, 2021, 5:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Columbia Sportswear second-quarter 2021 financial results call. [Operator instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Andrew Burns. Thank you, Andrew.

You may begin.

Andrew BurnsDirector, Investor Relations

Good afternoon, and thanks for joining us to discuss Columbia Sportswear Company’s second-quarter results. In addition to the earnings release, we furnished an 8-K containing a detailed CFO commentary and financial review presentation explaining our results. This document is also available on our investor relations website, investor.columbia.com. With me today on the call are Chairman, President, Executive — Chief Executive Officer Tim Boyle; Executive Vice President and Chief Financial Officer Jim Swanson; and Executive Vice President and Chief Administrative Officer Peter Bragdon.

This conference call will contain forward-looking statements regarding Columbia’s expectations, anticipations, or beliefs about the future. These statements are expressed in good faith and are believed to have a reasonable basis. However, each forward-looking statement is subject to many risks and uncertainties, and actual results may differ materially from what is projected. Many of these risks and uncertainties are described in Columbia’s SEC filings.

We caution that forward-looking statements are inherently less reliable than historical information. We do not undertake any duty to update any of the forward-looking statements after the date of this conference call to conform the forward-looking statements to actual results or to changes in our expectations. I’d also like to point out that during the call, we may reference certain non-GAAP financial measures, including constant currency net sales. For further information about non-GAAP financial measures and results, including a reconciliation of GAAP to non-GAAP measures, and an explanation of management’s rationale for referencing these non-GAAP measures, please refer to the supplemental financial information section and financial tables included in our second-quarter 2021 earnings release [Operator instructions] Now I’ll turn the call over to Tim.

Tim BoyleChairman, President, and Chief Executive Officer

Thanks, Andrew, and good afternoon. Hope everyone’s well. I’m thrilled to report second-quarter financial performance that exceeded our expectations. The robust recovery in our business fueled record-setting second quarter and first-half net sales, gross margin, operating income, and diluted earnings per share.

We eclipsed pre-pandemic first-half 2019 financial results, which represented record performance at that time. This marks an important milestone in our recovery. Net sales upside in the second quarter was primarily driven by better-than-planned performance in our U.S. wholesale and DTC brick-and-mortar businesses.

It’s important to highlight that even as consumers return to in-store shopping, our e-commerce business also remained strong. Measuring second-quarter 2021 financial performance versus second-quarter 2019 results, which were not impacted by the pandemic, is a useful measure of our business recovery trend line. Globally, net sales were 8% above 2019 levels in the second quarter with all four brands surpassing pre-pandemic levels. Second-quarter net sales in our U.S.

DTC brick-and-mortar business slightly exceeded 2019 levels, and U.S. DTC e-commerce sales increased over 80%. It’s clear that our brand portfolio is resonating with consumers, and we are well-positioned to benefit from current consumer and outdoor trends. Columbia’s value proposition and differentiated innovation positions the brand to capitalize on the increasing popularity of outdoor activities.

Consumers are gravitating to SOREL’s energized spring-summer product line validating its evolution to a year-round brand. Mountain Hardwear Spring ’21 sell-through rates and fall ’21 orders demonstrate consumers are responding to the brand’s authentic and innovative mountain sports product line. As consumers’ interest and sustainability in the outdoors grows, prAna is well-positioned at the intersection of these two powerful trends. These record results were achieved despite ongoing pandemic-related disruptions.

Industrywide supply chain disruptions are causing production and delivery delays as well as shipping cost pressures. Ongoing periodic lockdowns and temporary store closures are also impacting DTC and wholesale and brick-and-mortar store performance in several international markets. Thanks to the tremendous efforts of our dedicated global workforce, we were able to overcome these disruptions to achieve record sales results. I’d add that we also achieved these results with a lower inventory position, exiting the quarter with inventory down 16% year over year.

Overall, our spring sell-through has been exceptional. Retail inventory positions are very low, and our fall ’21 and spring ’22 order books point to continued momentum in the business. Looking at the seasons ahead, I’m confident in our pipeline of innovative products and ability to execute in this dynamic marketplace. Our fortress balance sheet is intact with cash and short-term investments totaling 821 million with no bank borrowings.

Based on second-quarter results, we’re raising our financial outlook for 2021. Our updated outlook now calls for 25 to 26.5% net sales growth and a diluted earnings per share of $4.30 to $4.55. This outlook includes our current view of the impact from supply chain disruptions, which are impacting fall ’21 production and deliveries. Furthermore, in our revised outlook, we’re assuming approximately $40 million of incremental ocean freight costs not contemplated in our prior outlook, as we emphasize supply chain continuity and market share gains over costs.

Now I will quickly review our second-quarter 2021 financial performance and reference year-over-year comparisons versus second-quarter 2020. When reviewing second-quarter year-over-year growth rates and margin performance, it’s important to remember that the second quarter is our lowest volume sales quarter and small changes can result in large percentage changes. Additionally, second-quarter 2020 was significantly disrupted by the pandemic. Many of our DTC and retail partner stores were closed for the majority of the quarter last year.

Second-quarter net sales increased 79% driven by 89% growth in our wholesale business and 69% growth in our DTC business. Wholesale growth was led by the U.S. and was primarily driven by later timing of spring ’21 shipments, compared to spring ’20, and higher spring ’21 sales. While shipments were delayed several weeks on average, order cancellations were minimal.

In this inventory constrained environment, retailers remain eager to get product as it arrives. Globally, DTC brick-and-mortar net sales grew 149% and as we lapped prior year temporary store closures. Sales in this channel significantly exceeded our expectations as store traffic levels and sales improved faster than anticipated. Overall, we made great progress in the quarter.

Store traffic still remains below pre-pandemic levels. DTC e-commerce net sales grew 5% and represented 16% of the total sales mix. These results were in line with our expectation as we lapped the prior year surge in e-commerce sales. Gross margin expanded 540 basis points to 51.6% of net sales.

In addition to decreased inventory reserve provisions relative to elevated levels last year, we benefited from lower DTC promotional activity and favorable wholesale product margins. This was partially offset by unfavorable channel sales mix. Our SG&A expense increased 20%, primarily reflecting the variable component of our expense structure with increased sales volume. This performance resulted in operating income of 35 million or 6.2% of net sales, compared to an operating loss of 70 million in the prior year.

Diluted earnings per share improved to $0.61, compared to a loss per share of $0.77 in the prior year. Looking at first-half financial performance. Net sales increased 35% year over year and diluted earnings per share increased to $1.44, compared to a loss per share of $0.76 in the first half of 2020. I’ll now review second-quarter year-over-year net sales growth performance by region and brand.

For this review, I’ll reference constant currency year-over-year net sales growth rates unless otherwise noted. U.S. net sales increased 107% reflecting low 140% growth in our wholesale business and mid-80% growth in our DTC business. The robust economic recovery, improving vaccination rates, and strong consumer demand for outdoor products, create an excellent retail backdrop during the quarter.

In our U.S. wholesale business, spring ’21 season-to-date sell-through rates have been exceptional, driving double-digit sell-through growth compared to spring ’19 on lower retail inventory stock levels. In our U.S. brick-and-mortar business — DTC brick-and-mortar business, it was apparent that consumers are increasingly willing to shop in-store.

Net sales increased mid-250% year over year as we anniversary-ed prior store — temporary store closures. During the quarter, same-store sales and traffic trends recovered much faster than expected. Even though international tourism remains quite low, we experienced a meaningful improvement in stores that historically relied on this business. U.S.

DTC e-commerce net sales increased a low single-digit percent in line with our plan with significantly less promotional activity compared to the prior year. Turning to international sales performance. During the second quarter, many regions continued to struggle with the vaccination rollout. We experienced sporadic lockdowns and temporary store closures at various points throughout the quarter in several markets, including Japan, China, Europe, Canada, and distributor markets.

Latin America, Asia Pacific, or LAAP region, second-quarter net sales increased 11%. Across Asia, performance was mixed. In China, net sales were down low-single-digit percent, primarily reflecting lower wholesale sales resulting from earlier timing of spring ’21 shipments, which shifted to the first quarter. China DTC net sales were up year over year, led by e-commerce growth.

China represents one of our largest geographic growth opportunities, and we know that e-commerce will be an integral part of unlocking Columbia’s full potential in this important market. Our management team is hyper focused on enhancing our digital capabilities, strengthening strategic partnerships, and developing talent to drive growth, and enhance the consumer experience. Overall, first-half net sales in China increased low 30%, and we anticipate full-year net sales to approach 2019 levels. Korea net sales decreased mid-teens percent as we anniversary-ed growth in the prior year that was aided by government stimulus which boosted retail consumption.

In Japan, net sales increased mid-50% as we anniversary-ed prior-year pandemic-related disruptions, which were more impactful than the state of emergency declarations in various regions throughout the second quarter of 2021. LAAP distributor markets were up high 30% as we anniversary prior-year pandemic-related order cancellations. Europe, Middle East, Africa, or EMEA region, second-quarter net sales increased 46%. Europe direct net sales increased mid-30% driven by higher spring ’21 sales and later shipments of spring ’21 orders.

EMEA distributor net sales increased mid-50% as we anniversary-ed prior-year pandemic-related order cancellations and earlier delivery of fall ’21 product compared to fall 2020. Canada net sales increased 140% in the second quarter primarily driven by later shipments of spring ’21 orders and higher spring ’21 sales. Looking at performance by brand. Columbia brand net sales increased 79% in the second quarter.

Despite the delays in shipments, sell-through of our spring ’21 product line has been fantastic. Top-performing categories included headwear, footwear, and fleece with particular strength in PFG products. It’s important to note that these high sell-through rates were achieved with strong full-price selling, resulting in favorable product margins. Columbia’s innovations received several media call-outs and awards during the quarter.

Outside Magazine featured the PFG ZERO Rules Ice Shirt and the roundup of best fishing gear, highlighting its unique Omni-Freeze cooling technology, and UPM protection. Outside also featured the Escape Summit OutDry shoe in its list of best hiking shoes. Gear Patrol featured the OutDry Extreme rain jacket as the most innovative rain jacket in its list of best rain jackets of 2021. The feature noted the jacket’s differentiated look and unique proprietary waterproof construction.

On the product and partnership front, this June, we continued with our successful collaboration with Disney Lucas Films with Columbia’s first Spring/Summer Star Wars collection. This new outer rim collection combines iconic elements of the Star Wars legacy with the comfort and performance that our Columbia PFG apparel is known for. Media the coverage of this launch generated over 20 million impressions, and the product quickly sold through in our branded stores and online. During the quarter, Columbia broadened our partnership with the Greening Youth Foundation to promote equitable outdoor industry career paths for diverse youths and — young adults.

As part of this ongoing relationship, Columbia has made a donation of product and funds to support its historical black colleges and universities internship program. This program connects young people from underrepresented communities with outdoor industry job opportunities. In addition to releasing a special pride month collection in June, Columbia was excited to celebrate our partnership with the Venture Out Project during the quarter. This nonprofit organization helps individuals gain skills and confidence through shared outdoor experience.

We will be working closely with this organization in among the column. On the marketing front, we’re eager to launch our global Omni-Heat Infinity campaign later this month. Omni-Heat Infinity is the newest and largest innovation launch in our company’s history. This new highly differentiated in addition to the Omni-Heat family is the next evolution of thermal reflective warrant.

We will be supporting the launch with a comprehensive global marketing campaign that will create awareness throughout the season. Our full-funnel campaign will be visible to consumers in-store and across traditional, digital, and social outlets. On October 1st, we’ll celebrate gold medal day which will feature content from a group of partners and outfluencers promoting the initiative across social media platforms. They’ll be inviting consumers to join with them in taking Columbia’s challenge to spend 24 hours outdoors in total warmth and comfort wearing Omni-Heat Infinity.

Given the challenging retail landscape, I believe it’s worthwhile to reiterate our distribution channel strategy. Throughout our long history, we have value the strong relationships we’ve built with our top global retail partners. For the Columbia brand, we believe broad democratic omnichannel distribution is an integral part of the brand’s success. We will continue to partner with retailers to serve our loyal consumers wherever they choose to shop.

We will also continue investing in our profitable and growing DTC businesses. With our broad omnichannel strategy in mind, we see sales opportunities as some brands exit wholesale accounts. We are actively engaged with these retailers to help serve their customers. We believe the Columbia brand’s exceptional value and differentiated innovation is a winning proposition for retailers and consumers alike.

Turning to our emerging brand portfolio. SOREL net sales increased 71% in the quarter, with strong wholesale growth led by exceptional sneaker and sandals performance. Strong sell-through velocity and full-price selling reflect consumer excitement around SOREL’s gold spring-summer styles. On sorel.com, the Kinetic sandal was the top-selling style.

This sports-style sandal expands the kinetic collection and builds on the success of the popular sneaker product line. The brand also noted strong growth in the newly introduced sandal collection, Cameron led by the Cameron platform. During pride month, SOREL partnered with Paper Magazine to spotlight three individuals as they use style to express their everyday pride. Featuring the Kinetic Rush Pride sneaker created in their honor, the program captured these bold and confident individuals in their unique element.

As part of this collection, SOREL made a donation on behalf of each of the individuals to the charity of their choice. prAna net sales increased 43% in the quarter, led by wholesale growth as spring ’21 product reached our retail partners, we were encouraged by sell-through rates and full-price selling. During the quarter, prAna demonstrated its belief in adventure for all with a pride collection and partnership with the venture out farm. Interest in prAna recently introduced ReZion fabric continues to build with strong orders noted across key retailers for spring ’22.

In June, prAna Brand President Russ Hopcus, announced his pending retirement this fall. Over Russ’ eight years with Columbia and prAna, he’s been a valued member of our senior management team, and want to thank him for his contributions. A search is underway for his successor. Mountain Hardwear net sales increased 95% in the quarter with strong wholesale and DTC performance.

Spring product sell-through was excellent, driven by especially strong sportswear and equipment demand. For fall ’21, the order book reflects continued strength in the business. The Mountain Hardwear team has done an amazing job bringing new innovation to the marketplace and elevating the brand’s online and in-store presence with important wholesale accounts. We’re excited to see Mountain Hardwear athlete, Kyra Condie, take the global stage in the debut of sport climbing in the Olympics.

She is one of only four U.S.A. sport climbers to represent the country in this inaugural event. We look forward to sharing her journey through Mountain Hardwear’s social media platforms. Good luck, Kyra.

After four years leading Mountain Hardwear business, Brand President Joe Vernachio made the decision to pursue another opportunity. Joe has made a tremendous impact at Mount Hardwear and is leaving the brand in a strong position with a very talented team. We thank him for his contributions. A search for his successor is underway.

I’ll now discuss our 2021 financial outlook. This commentary includes forward-looking statements. Please see our CFO commentary and financial review presentation for additional details and disclosures related to these statements. As we begin the important fall sales season, we’re focused on navigating pandemic-related disruptions and delivering products that inspire active consumers.

We’re also investing in demand creation and capabilities to leverage our compelling brand portfolio to connect with consumers and enable long-term profitable growth. Based on second-quarter results, we’re increasing our full-year financial outlook. Our updated 2021 outlook contemplates 25 to 26.5% year-over-year net sales growth with growth across all four brands. This compares to our prior outlook of 21.5 to 23% growth.

This outlook assumes no meaningful deterioration of current supply chain or market conditions related to the ongoing pandemic. Gross margins are expected to expand 95 to 115 basis points. Our revised gross margin outlook includes approximately $40 million of incremental ocean freight costs not contemplated in our prior outlook. Currently, global demand for ocean vessels and containers is far outstripping available capacity.

In general, we’ve been successful in securing allocation of containers and vessel bookings to transport our products. We have worked to incorporate what we know about ocean freight rates into the financial outlook we are providing today. But these markets are highly volatile, and rates are difficult to estimate. In this environment, we have prioritized supply continuity and market share gains over costs.

We are diligently working with our logistics partners, industry representatives, and government officials to address these challenges. We expect SG&A to grow slower than net sales. Demand creation is anticipated to increase as a percent of sales to 6% in 2021, compared to 5.7% in 2020. Combined, we expect operating margin to be in the range of 11.7 to 12.2%.

Diluted per shares — diluted earnings per share is anticipated to be in the range of $4.30 and to $4.55, compared to our prior range of 4.05 to 4.30. While it’s too early to provide specific details around our first-half 2022 planning process, I’d like to share some initial thoughts on our spring ’22 order book. As I referenced earlier, strong consumer demand for our spring ’21 products has driven exceptional sell-through rates. This has resulted in very low channel inventories and high retail restocking demand for our spring-summer product line.

As a result, our spring ’22 order-taking process has been substantially completed far earlier than the season is normal. Our bookings point to high teens to low 20% growth in our spring ’22 order book over spring ’21 sales levels. With inflationary pressures building across our business, we have implemented price increases to help mitigate these higher costs. We’re confident that our brands’ portfolio’s pricing power.

As a reminder, our order book only covers our wholesale business and is not an indicator of DTC performance expectations. Before my closing remarks, I’d like to highlight that we recently released our 2020 corporate responsibility report, which is available on our website. I’d encourage you to review the report which outlines the progress and accomplishments that we have made empowering people, sustaining places, and promoting responsible practices. 2020 was an incredibly challenging year for everyone.

But our commitment to our core values do not waver. 2020 highlights include setting a climate target goal for a 30% reduction in manufacturing emissions by 2030. We establishing a senior-level diversity, equity, and inclusion leadership team. The report also features spotlights on Columbia Sportswear’s response to issues, including COVID-19 voting social and racial injustice and climate.

In summary, the momentum in our business is incredibly strong. I believe we have the right strategy in place to navigate pandemic-related disruptions and drive sustainable and profitable long-term growth. We’re committed to investing in our strategic priorities to drive global brand awareness and sales growth through increased focused demand creation investments; enhance consumer experience and digital capabilities in all of our channels and geographies; expand and improve global direct-to-consumer operations with supporting processes and systems, and investing in our people, and optimize our organization across our portfolio of brands. That concludes my remarks.

We’d welcome your questions for the remainder of the hour. Operator, could you help us with that?

Questions & Answers:

Operator

Thank you [Operator instructions] Thank you. Our first question comes from Bob Drbul with Guggenheim Securities. Please proceed with your question.

Bob DrbulGuggenheim Securities — Analyst

Thank you. Good afternoon, guys. Congratulations.

Tim BoyleChairman, President, and Chief Executive Officer

Thanks, Bob.

Jim SwansonExecutive Vice President and Chief Financial Officer

Thanks, Bob.

Bob DrbulGuggenheim Securities — Analyst

Great quarter. I guess the first question that I have is, Tim, when you look at the competitive landscape, and I guess the comments you made about market share opportunities, can you just talk a little bit more in terms of like where you see the opportunities that you’re pursuing either by category or by region? Just what you see happening on the competitive front that you’re going to be a little bit more aggressive and go after it from that perspective. And I think the second question that I have, maybe for Jim, is the price increases, can you give us a little bit of flavor sort of how much you’re taking price up or the inflationary pressures that you’re seeing in the business. If you could just help us quantify that, that would be helpful.

Thanks.

Tim BoyleChairman, President, and Chief Executive Officer

Sure. Well, I think, Bob, probably the number one area we’re taking share would be in smaller brands that may not have the capital, the balance sheet to be able to provide them the solace to pay these exorbitant prices that we’re all facing in terms of our freight rates coming in. So that would be an area where we would be able to point to where we can take share. Additionally, we’ve got a number of businesses where we have a unique position that would include specifically PFG in North America, where the business is incredibly strong.

And geographically, that would be focused on the south and southeast. But across the business and across the globe, frankly, the business has been very strong, very low inventories. And I think we’ve all been surprised at the brick-and-mortar traffic levels and just the extraordinary consumer demand for outdoor products and — those are the first things that come to mind when I think about where we’re growing so rapidly.

Jim SwansonExecutive Vice President and Chief Financial Officer

And then, Bob, as it relates to your question on price increases and specific to spring ’22, the price increases we’re contemplating are a low-single-digit percent. So when you look at the order book that Tim commented on with low 20 to high-teen growth, most of that’s unit volume. We do expect to continue to see costing pressure out to the fall ’22 season. And of course, we’ll be looking further into price increases to help mitigate and offset those — that inflationary pressure.

Bob DrbulGuggenheim Securities — Analyst

Great. Thank you very much.

Operator

Thank you. Our next question comes from Jonathan Komp with Robert W. Baird. Please proceed with your question.

Jonathan KompRobert W. Baird & Co. — Analyst

Yes. Thank you. Maybe a broader question on the earnings outlook. It looks like the first half of the year, your earnings were above 2019.

For the full year, that’s not what you’re assuming. So maybe just wondering, as you look to the back half, how we should think about the earnings potential especially in light of the 2019 numbers that you delivered.

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes. Good question, John. If it hadn’t been for — Tim commented on it. If it hasn’t been for the ocean freight costs and the vast majority of the 4 million of incremental ocean freight cost that we anticipate incurring this year will be in the latter part of the year.

So absent that, the $0.70 beat that we delivered for the quarter, we would have delivered to the full year. And if you do the math on that, the earnings recovery, I think we’d be looking at overall earnings at or better than where we were in 2019. So we’re awfully encouraged with the momentum in the business. Obviously, the supply chain challenges we’ll deal with those.

And manage what we can. And I think that pretty well covers it.

Jonathan KompRobert W. Baird & Co. — Analyst

And maybe as a follow-up, how do you think about the recoverability of some of those margin pressures, especially since you’re taking some pricing next year. Theoretically, the freight issue should be temporary at some stage once you get past them. So any thoughts on the margin recoverability. And then even as you look to fall ’22 orders, any high-level thoughts on some of the swing factors as you look out to fall ’22?

Tim BoyleChairman, President, and Chief Executive Officer

Yes. I think the brand — what we’re realizing is the brand really has the power to price appropriately. We’re also very mindful of our business — this industry has been incredibly deflationary over the last 20 years, merchandise becoming less and less expensive. So this is an area where we’ve been very focused on managing our ability to raise prices and to be mindful of what the cost portions of the business are going to be as well as continuing to invest in innovations, which will separate us and allow us to differentiate ourselves.

And lastly, our investment in brand building and brand awareness I think will really — has big dividends in the future.

Jim SwansonExecutive Vice President and Chief Financial Officer

And, John, absent the ocean freight costs that we’re incurring and based on everything that we’re learning from the logistics partners that we work with and various other advisors, we anticipate continuing to see these elevated freight charges through the first half of next year. Absent those charges, and we’re not providing specific gross margin guidance today. But absent those charges, we would have expected our spring ’22 product margins to be better than spring ’21 based on where we’ve priced and how the order books come in.

Jonathan KompRobert W. Baird & Co. — Analyst

That’s helpful. And just lastly, if I could, could you comment on any direct shipping delays you’re baking into third quarter. And is that impacting the Omni-Heat Infinity launch plans at all? Thank you.

Tim BoyleChairman, President, and Chief Executive Officer

No, we’ve really prioritized Omni-Heat Infinity because it’s so important for the company in total and for the investments that we’ve made. And we want to make sure we have the product in the stores. So we prioritize shipping of that merchandise. We expect that there will be delays on other categories and other items, but all of those delays have been built into the guidance we’ve given you today.

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes. We’re continuing to experience that three to four-week delay, generally speaking, as it relates to the timing of our inventory receipts in our wholesale shipments. And so we will see some pushout out of the third quarter and into the fourth quarter. And as Tim touched on, there is some commentary related to our second-half growth rates, including Q3 and Q4, and that’s all baked into that outlook.

Jonathan KompRobert W. Baird & Co. — Analyst

OK. Thanks again.

Operator

Thank you. Our next question comes from John Kernan with Cowen. Please proceed with your question.

John KernanCowen and Company — Analyst

Yes. Excellent. Thanks for taking my question. Nice job on the quarter.

Just wanted to talk to the SG&A rate as well. At the low end of the guidance on a rate basis, it’s still above 2019. And you are guiding at the high end of sales to be above that fiscal ’19 basis. Just curious, the tick up in the SG&A relative to 2019 if there’s any cost related to supply chain in that or how we should think about the SG&A rate.

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes. A couple of comments in there, John. I guess, first and foremost would be demand creation. We did plan to make incremental investments in demand creation.

This year, you’ll recall, 2019, our demand creation spend was at 5.5% of sales. In our outlook, we’re currently contemplating 6%, so that’s a pretty meaningful component of that. As it relates specifically to the supply chain, the one item — or two items that would be in here, specific to the supply chain is there’s a fair amount of labor pressure in the market right now. And so we have made wage rate adjustments for our distribution centers.

We’ve also done likewise with regard to our retail store associates in order to attract talent as we go into the full steam of the season that lies ahead. So those are the predominant drivers when you think about the SG&A deleverage over ’19. There’s some incentive comp I believe, as well as it relates to just the strong year that we’ve had thus far. But that would be really the recap.

John KernanCowen and Company — Analyst

Got it. That makes sense. Just to go back to supply chain, it sounds like there’s going to be some headwinds into fall 2022. What — when you take a look at all the inflation here, whether it’s shipping, ocean, air, some of the headwinds regarding production in Vietnam, and other places.

When you — looking into a crystal ball, how do you think this unwinds? I mean, at what point do we start to see what seems like cyclical inflation come down in a sense, particularly with some of the freight rates. It doesn’t sound like you’re assuming that they’re going to get much better into 2022. I’m just curious if there’s anything you see that could alleviate some of these cost pressures and when we might see that?

Tim BoyleChairman, President, and Chief Executive Officer

Yes. I think actually the only thing that will significantly impact the ocean freight rates will be government intervention, whether that’s European government or the U.S. government acting to break up some of these monopolistic organizations that are really causing the bulk of the problems. I mean it’s one to deal with delays, which we all understand that that’s possible due to the container dislocation, but the freight rates are clearly monopolistic in my opinion.

So when will that happen? That’s anyone’s guess. But I think, in general, as I said earlier, we are entering a period of inflation when in fact, the industry as a whole has been in a deflationary spiral for many, many years. So it’s going to be incumbent upon companies that are well organized like ourselves to be able to have brands with pricing power that can continue to grow — and grow sales and have strong margins.

John KernanCowen and Company — Analyst

Got you. And then just a follow-up on the comment — earlier comment on product margin in 2022 for the fall versus 2021. I know we’re a ways out, but did you confirm that fall — or spring 2022 product margin would be up versus 2021 even with the inflation?

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes.

Tim BoyleChairman, President, and Chief Executive Officer

We had strong margins in spring ’21 — correct me if I misstate this, Jim. But we had strong increase in gross margins for spring ’21. They did not offset the freight costs which have been higher. And we have not yet set prices for fall ’22 although we expect that we’ll be able to cover known cost increases in a better way, certainly for fall ’22.

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes. I think, John, the comment I made is, if you set aside the ocean freight costs that we’re currently seeing in the business. We’re just looking at the product margin before that. Our spring ’22 margins are more healthy than they would have been for spring ’21.

Now obviously, we’re looking at these ocean freight costs, and there’s a lot of estimation in terms of what lies ahead as we think about the first half of next year, but that will put some pressure in there. And as Tim touched on, we’re a bit early as it relates to fall ’22 as we’re finalizing the line in our pricing before we go to market.

John KernanCowen and Company — Analyst

Understood. Thanks for your information.

Jim SwansonExecutive Vice President and Chief Financial Officer

Thank you.

Operator

Thank you. Our next question comes from Jim Duffy with Stifel. Please proceed with your question.

Jim DuffyStifel Financial Corp. — Analyst

Thank you. Good afternoon. A few questions for me guys around the trends you’re seeing and how that’s translated to the guidance change. Did I hear you correctly that U.S.

direct-to-consumer brick-and-mortar was up in the 2Q versus 2019? And if so, I’m curious, has that — was that consistent across the quarter and into the third quarter?

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes. That’s correct, Jim. So our brick-and-mortar business was up a low single-digit percent through Q2. We saw a nice tick up in that D2C business dated back to March, around the time that we saw some of the U.S.

stimulus. And we’ve really been able to sustain that level. Having said that, consumer traffic levels still remain down quite significantly relative to pre-pandemic. But we’ve been making up for with improvement in all other operating metrics in the stores, including conversion.

So it held — and as we look at the quarter month by month, it held steady through the month of June. And we’ve continued to see nice trends as we sit here in the month of July. And as it relates to how we factor that into our outlook, we’ve taken a prudent approach in terms of not expecting that traffic would get back up to pre-pandemic levels exiting this year and that revenue would be at or slightly down. So I give you a little backdrop on that.

Jim DuffyStifel Financial Corp. — Analyst

OK. Helpful. Thanks. And you mentioned inventories tight, retailers anxious to get product.

Were you able to make any adjustments to fall orders to upsize those to capture some of that demand in the second half of the year?

Tim BoyleChairman, President, and Chief Executive Officer

Well, we have — as we’ve said, we have logistics issues we’re dealing with for the merchandise that we’ve already sold for fall ’21. And we have inventory available, and we believe that we’ll — we’re obviously in a much lower inventory position than we were exiting the quarter last year. So to the extent, we can fulfill orders, we’ll be there and provide that merchandise.

Jim DuffyStifel Financial Corp. — Analyst

OK. Thanks, guys. I’ll leave you with that.

Tim BoyleChairman, President, and Chief Executive Officer

Thank you.

Jim SwansonExecutive Vice President and Chief Financial Officer

Thank you.

Operator

Thank you. Our next question comes from Alex Perry with Bank of America. Please proceed with your question.

Alex PerryBank of America Merrill Lynch — Analyst

Thanks for taking my questing and congrats on a great quarter. Just wanted to circle back. I think you talked about rising cases in sourcing countries across Southeast Asia impacting the product availability and deliveries. I guess just given the shutdowns you have seen in the last few weeks, are you still on track to hit shipping windows for peak selling periods? I guess another way of asking is, is the upside potential here capped given sort of what you’re seeing in the supply chain?

Jim SwansonExecutive Vice President and Chief Financial Officer

Well, we’ve taken — we’ve approached our forecast in the way we have historically. As it relates specifically to some of the closures in Asia, which would include Vietnam. As we sit here today, about 70% of our inventory has either been produced or is in transit or we’ve received it. So we’re in a pretty good position as it relates to having inventory available for the season.

Now we still have some, obviously, to produce. And certain of that inventory is in factories in Vietnam that are experiencing closures. So there’ll be some risk associated with that. But by and large, those impacts to our business, including the supply chain disruptions, are reflected in the revenue outlook that we’ve provided today.

Alex PerryBank of America Merrill Lynch — Analyst

Perfect. That’s really helpful. And then I just wanted to touch on it a bit more, Tim, some of the comments you made about the approach that your competitors are taking to the wholesale marketplace in North America. Can you just comment on sort of the white space opportunity you sort of see there from what you — the position your competitors are taking and what you’re sort of doing to capitalize on that.

Tim BoyleChairman, President, and Chief Executive Officer

Certainly. Well, it’s been well publicized at the reduction in major brands, distribution partners is in the billions of dollars. And that’s just in North America. So there’s lots of opportunity for our brand, which is high demand, to fill portions of that.

So I mean it’s a significant amount. It eclipses our current footwear business, just the footwear portion eclipses our current footwear volume. So it could be very significant if we’re able to capture a good portion of that business.

Alex PerryBank of America Merrill Lynch — Analyst

Perfect. That’s really helpful. Best of luck.

Jim SwansonExecutive Vice President and Chief Financial Officer

Good luck.

Operator

Thank you. Our next question comes from Laurent Vasilescu with Exane Paribas. Please proceed with your question.

Laurent VasilescuExane BNP Paribas — Analyst

Good afternoon. Thanks for taking my question. Jim, I think in the CFO commentary, it says that there has been a shift in Canadian and European direct sales from 1Q to 2Q. Can you possibly quantify those shifts? And then if I look at the third quarter, fourth quarter implied guidance with regards to on a two-year stack basis, it looks like 3Q would be down mid-single digits, but then 4Q would be up mid-teens.

Is it the right way to think about it, if you didn’t have the delays in third quarter and fourth quarter be more normalized on a two-year stack basis across both quarters?

Jim SwansonExecutive Vice President and Chief Financial Officer

Well, as it relates to your first question on Europe and Canada, from a wholesale perspective, yes, and I might approach that just kind of looking at it from more of a global standpoint because certainly, we’ve had a fairly significant shift in our inventory receipts for spring ’21 that have shifted out of Q1 to Q2, and hence had an impact on our ability to deliver and ship those in Q1. The impact of that, our spring ’21 order book ex timing, we’re up low 20% from a global standpoint. There’ll be some — both Canada and Europe, I can’t recall specifics, but they’re going to be in or around that level of growth. So certainly, the outsized growth you’re seeing in the quarter is largely related to the later inventory receipts and shipments.

And then as it relates to Q3, Q4, Laurent, I think the only detail I can share with you is about what you’re seeing in the CFO commentary, and that’s the fact that we see relatively balanced growth in Q3 and Q4, it’s a low 20%. There is a fairly significant shift out of the third quarter into the fourth quarter just in light of the fall ’21 later inventory receipts and just the impact that’s having on the wholesale business.

Laurent VasilescuExane BNP Paribas — Analyst

OK. Very helpful. And then drilling down footwear I think your full-year revenue guide at the company level implies low single-digit growth on a two-year stack. I think in the CFO commentary, it says that apparel will grow faster than footwear.

So far, your footwear has grown 20% year to date on a two-year stack. So if footwear is supposed to grow slower than apparel, does that mean we should think that footwear actually declines in the second half on a two-year stack basis? Maybe if you can help us kind of put the puzzle to that, that would be really helpful.

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes. I don’t think it’s declining in the second half. It will certainly decelerate from a growth standpoint in light of some of the manufacturing capacity constraints that we anticipate on the year. But we’re still seeing footwear growth in the low 20% level.

So not quite to the level that we are from an apparel standpoint.

Laurent VasilescuExane BNP Paribas — Analyst

OK. And maybe if I could squeeze one more in. On the gross margins, the reversal provisions, you’ve had two quarters in a row. Do we expect any more reversals? Or maybe asked another way, how much is your gross margin guide of about 100 bps, how much is that embedding reversals for the full year?

Jim SwansonExecutive Vice President and Chief Financial Officer

What we’ve realized to date is essentially it, Laurent. I wouldn’t anticipate — given how clean our inventories are at this point in time relative to where they were at the same point in time last year. Last year, the economy was shut down. We had booked fairly significant reserves in light of our unsold positions.

And as we sit here today, the aging and the unsold positions that we have in our inventory is quite healthy. And so we brought our reserves down on a more normalized basis. So I wouldn’t assume that there’s any further benefit as we look at the balance of the year.

Laurent VasilescuExane BNP Paribas — Analyst

OK. Very helpful. Thank you very much and best of luck.

Jim SwansonExecutive Vice President and Chief Financial Officer

Thank you.

Operator

Thank you. Our next question comes from Camilo Lyon with BTIG. Please proceed with your question.

Camilo LyonBTIG — Analyst

Thank you so much. Good afternoon, everyone. I just wanted to clarify, on the $40 million of incremental supply chain expense for the back half, can you help us think about the weighting of when that $40 million is going to hit more Q3 versus Q4? Or is it — should we think about it as evenly split?

Jim SwansonExecutive Vice President and Chief Financial Officer

I would look at it just in terms of — if you look at the relative revenue volume that we do in each of the two quarters, I’d weigh against that because we’re essentially realizing those costs in line with the rate of sale.

Camilo LyonBTIG — Analyst

OK. That’s great, and — perfect. And is that the right amount of cost — incremental cost that we could think about for spring ’21 as well?

Jim SwansonExecutive Vice President and Chief Financial Officer

For spring ’22?

Camilo LyonBTIG — Analyst

I’m sorry, spring ’22. Spring ’22, pardon me.

Jim SwansonExecutive Vice President and Chief Financial Officer

Tough to call right now. We’re certainly going to see that pressure out to next year, I mean, all indications as Tim touched on, absent government intervention here, we would expect that we’ll continue to see elevated freight charges through the Chinese New Year. And so by then, we’ll effectively receive all of our spring ’22 inventory. So the first half of the year would be impacted by what we’re currently seeing based on everything that we know today.

And obviously, there’s a ton of volatility. The rates have skyrocketed in the last 60 days. And if we had this conversation 60 days ago, we wouldn’t be having this. We saw a fourfold increase in ocean freight from June 1 through, call it, the middle part of July.

Camilo LyonBTIG — Analyst

Yes. No, it’s pretty pervasive everywhere. OK. Perfect.

And then if we could just step back for a second and maybe if you could detail and peel back the layers on what you’re seeing in Europe. It seems like they’re a little bit behind us in terms of — behind the U.S. in terms of vaccination rates. And I’m just curious to see how that region has been pursuing your brands and driving that growth, relative to what you’ve seen that’s been a much faster kind of recovery here in the U.S.? And maybe if there is a time line that we can put around — time differential that we can put around Europe versus the U.S.? Are they a quarter behind us in terms of that recovery curve really starting to ramp up and look more like the U.S.? Or is there a further out period before they start to really embrace the recovery the way that we have here.

Tim BoyleChairman, President, and Chief Executive Officer

Our European business is still recovering, and it is behind the U.S. in terms of vaccination update. And so we have less visibility on that because it’s a country by country, obviously, vaccination mandates. But our inventories in Europe are less than the U.S.

So there’s less of an opportunity to capture any particular option that we might have. But it’s more difficult and more challenging there for us versus the U.S.

Camilo LyonBTIG — Analyst

Got it. And if I could squeeze one more in. For the back half of this year, would you be able to parse out how we should think about wholesale versus your DTC assumptions within the context of that 20% back-half revenue growth projection?

Jim SwansonExecutive Vice President and Chief Financial Officer

I don’t think we’ve broken that detail out. But our — I would just comment. Our fall ’21 wholesale order book was quite robust coming off of retailers being exceptionally clean coming out of the fall ’20 season. So we’ll see outsized growth in the wholesale business.

Keep in mind, e-commerce is going to be going up against some fairly significant comps that we delivered last year. We did provide commentary that we anticipate the e-commerce business from an overall penetration perspective. And we were 19% of sales in 2020, that we would see that come down ever so slightly. And then you’ll have the recovery pick up of the brick-and-mortar business.

Camilo LyonBTIG — Analyst

Very helpful. Thanks very much, guys, and good luck.

Operator

Thank you. Our next question comes from Jay Sole with UBS. Please proceed with your question.

Jay SoleUBS — Analyst

Great. Thank you so much. Tim, I just want to ask about your thoughts about the underlying growth rate in your categories. Because you mentioned spring-summer ’22 order book of high teens, low 20s.

You mentioned the sell-through in this quarter was up strong double digits versus 2019. And just between the different moving pieces of restocking versus price increases and some of the things that are changing, what do you see the category growing as we get into 2022, just because of the increased consumer trend toward outdoor activities that’s been in play now for the last few quarters.

Tim BoyleChairman, President, and Chief Executive Officer

All right. I think the smallest impact is going to be price increases, frankly. The underlying business is incredibly strong. Sell-through rates have been among the best that the company has ever seen.

And the brands are really riding an incredible wave of demand being the strength of the brands as well as the strength of the industry in general. And then again, as I mentioned earlier, the smaller brands that would be delivering a portion of products that a store might get are just going to be under incredible pressure. And so I think it’s really sort of a great opportunity for the company at a time when the brands are strong and we were investing heavily in demand creation.

Jay SoleUBS — Analyst

Understood. So maybe one more for me. Just in terms of the guidance that you’ve given for the full year, if we think about the supply chain and all the impacts that it’s having on the ability to chase into possible upside to orders or just demand in your direct consumer channel, is the ability of the company to sort of beat the guidance different this year just because of all the complications that have happened through the supply chain? How should we think about that?

Tim BoyleChairman, President, and Chief Executive Officer

Well, we’ve really given you the best view we have of a highly complicated business which is global in nature and spread across multiple brands. So we’ve really given you our best shot at what we think the year will turn out.

Jay SoleUBS — Analyst

Got it. OK. Thank you so much.

Operator

Thank you. Our next question comes from Paul Lejuez with Citigroup. Please proceed with your question.

Paul LejuezCiti — Analyst

Yes. Thanks, guys. Can you just talk about the second-quarter DTC business? I’m kind of curious about the drivers of the sales improvement versus 2019 in terms of units versus price. And related to that, can you talk about merch margin by channel.

Sorry if you did and I missed it, but curious how retail works compared to your retail business in 2019. And same question for wholesale. Thanks.

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes. Paul, I’m sorry, the sound quality is pretty poor. We didn’t catch that. I heard something with regard to DTC revenue and ASPs and gross margin.

But maybe we can have you repeat if it’s any clearer.

Tracy KoganCiti — Analyst

Hey. It’s Tracy filling in for Paul. I think he was asking what the drivers were in the U.S. DTC channel — the drivers of the improvement this quarter versus last quarter in terms of price and traffic.

Jim SwansonExecutive Vice President and Chief Financial Officer

Yes. We saw a significant uptick in our traffic relative to where we had been the last few quarters. We’re still quite a ways under where we were from a pre-pandemic standpoint, but there’s been a nice flow of traffic. I think consumers are generally with vaccination rates in the U.S., in particular, gotten to levels they are.

I mean consumers are showing signs of getting back out physical retail, which is great to see. And then our in-store operating metric, as I touched on earlier, our in-store operating metrics between conversion and just the other metrics, we monitor with the consumer were all quite good. As it relates to price itself, you can see in our gross margin. Our gross margin was up several points on the quarter.

Most of that’s due to the fact that we’re less promotional. And so to the degree we’re less promotional, there’s some price benefit we’re picking up from that vantage point.

Tracy KoganCiti — Analyst

Great. And then the second part of his question, I believe, was merchandise margin performance within channels. So wholesale merchandise margin versus 2019 and then DTC merchandise margin.

Tim BoyleChairman, President, and Chief Executive Officer

I think we had strong margins across all of our channels. And the way we analyze the business, we — because of this shortfall in the amount of inventory available to retailers, we had strong margins across the business. Yes.

Tracy KoganCiti — Analyst

Great. Thank you, guys.

Tim BoyleChairman, President, and Chief Executive Officer

Thank you.

Jim SwansonExecutive Vice President and Chief Financial Officer

Thank you.

Operator

Thank you. There are no further questions at this time. I would like to turn the floor back over to management for any closing comments.

Tim BoyleChairman, President, and Chief Executive Officer

Well, thank you very much for listening in. We’re looking forward to great results when we talk to you at the end of Q3. And please stay healthy.

Operator

[Operator signoff]

Duration: 60 minutes

Call participants:

Andrew BurnsDirector, Investor Relations

Tim BoyleChairman, President, and Chief Executive Officer

Bob DrbulGuggenheim Securities — Analyst

Jim SwansonExecutive Vice President and Chief Financial Officer

Jonathan KompRobert W. Baird & Co. — Analyst

John KernanCowen and Company — Analyst

Jim DuffyStifel Financial Corp. — Analyst

Alex PerryBank of America Merrill Lynch — Analyst

Laurent VasilescuExane BNP Paribas — Analyst

Camilo LyonBTIG — Analyst

Jay SoleUBS — Analyst

Paul LejuezCiti — Analyst

Tracy KoganCiti — Analyst

More COLM analysis

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.


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Here is an overview of the business news from the Mahoning Valley https://www.tomaszpietak.com/here-is-an-overview-of-the-business-news-from-the-mahoning-valley/ https://www.tomaszpietak.com/here-is-an-overview-of-the-business-news-from-the-mahoning-valley/#respond Mon, 09 Aug 2021 08:30:00 +0000 https://www.tomaszpietak.com/here-is-an-overview-of-the-business-news-from-the-mahoning-valley/ Also among today’s business updates: ONE Health Ohio; Napa grocery store; CSL Plasma; Truth fashion boutique; Akron Children’s Hospital; and Ohio Small Business Development Center at YSU. NILES – The Cafaro Co. invites accounting students to its Night at the Scrappers event, an evening of “fun, food, baseball and good conversation” at Eastwood Field on […]]]>

Also among today’s business updates: ONE Health Ohio; Napa grocery store; CSL Plasma; Truth fashion boutique; Akron Children’s Hospital; and Ohio Small Business Development Center at YSU.

NILES – The Cafaro Co. invites accounting students to its Night at the Scrappers event, an evening of “fun, food, baseball and good conversation” at Eastwood Field on Tuesday.

There will be a picnic and a meet and greet at 5:30 p.m. The game starts at 7:05 p.m.

To learn more about upcoming internships and full-time accounting and tax opportunities, RSVP to Cafaro’s Human Resources department at 330-747-2661, ext. 142.

ONE Health Ohio will host a recruiting event

YOUNG TOWN – A Health Ohio will host an in-person hiring event from 8:30 a.m. to noon Tuesday at the Lloyd McCoy Community Health Center, 1977 Niles Road SE, Warren.

ONE Health Ohio will be interviewing licensed practical nurses, medical assistants and front desk staff. A login bonus is available for LPN and reception positions for RISE Recovery.

Recruiters will be on hand to answer questions. Applicants should bring a resume and be prepared for an interview that day.

For more information, click here.

3 companies in the Valley organize inauguration ceremonies

Three local businesses will celebrate their openings this week with groundbreaking ceremonies.

  • Napa Grocery, 4350 Boardman-Canfield Road., 9:30 a.m. Tuesday;
  • CSL Plasma, 3377 Mahoning Ave., Youngstown, 10:30 a.m. Tuesday;
  • Truth Fashion Boutique, Eastwood Mall, 5555 Youngstown-Warren Road., Niles, 2 p.m. Wednesday.

Napa Grocery is a California-inspired convenience food and grocery market owned by chefs Nunzio Scordo and Aaron Hynek. It offers dishes prepared by chefs displayed in display cases, as well as prepackaged food to take away for a quick purchase. “We pride ourselves on using only fresh, seasonal produce, which drives the ever-changing menu offerings,” Scordo said in a press release. For more information call Stacey Willis at 330-286-3136 or email sales.napagrocery@gmail.com.

CSL Plasma celebrates the opening of its new plasma donation center in Youngstown. It is operated by CSL Behring, which uses human plasma to produce therapies used worldwide to treat bleeding disorders including hemophilia and von Willebrand disease, primary immune deficiencies, angioedema hereditary, inherited respiratory diseases and neurological disorders in some markets. CSL Behring’s products are also used in heart surgery, organ transplantation, treatment of burns and to prevent hemolytic disease in newborns. For more information, call 234-287-2758.

Truth Fashion Boutique is co-owned by Auntashae Tates and Terrance Warren. It offers women’s clothing and footwear with a wide range of inclusive sizes. “We’ve also just taken a big step forward and will now be bringing more to our store with the addition of wigs, bundles, lashes and more,” Tates said in a press release. For more information call 330-918-0796 or email truefashion298@gmail.com.

Akron Children’s named one of the top 25 companies in the Cleveland-Akron-Canton area

AKRON – LinkedIn recognised Akron Children’s Hospital as one of 25 best companies in the greater Cleveland-Akron-Canton area.

Rankings are based on LinkedIn’s analysis of company data focusing on seven pillars that have been shown to lead to career progression: Advancement Ability, Skills Development, Company Stability, External Opportunity , affinity with the company (supportive culture), gender diversity and training.

“Receiving this recognition from an organization that specializes in connecting people with jobs that allow them to fulfill their potential is extremely rewarding,” said Rhonda Larimore, director of human resources, in a statement. “We strive every day to provide the support and flexibility our employees need not only to be successful in their current roles, but also to pursue career paths at Children that allow them to grow professionally.

“Our employees understand that working here is more than a job,” said Larimore. “Even in these difficult times, they continue to carry out their roles with the same grace and compassion that Akron Children employees have always shown to our patients, their families and to each other. We remain committed to supporting their dedication in ensuring that Children’s provides a diverse and inclusive work environment where we treat each other with dignity and respect.

Webinar to discuss the value of LinkedIn strategies

YOUNGSTOWN – The Ohio Small Business Development Center at Youngstown State University is in partnership with Curt Anderson, e-commerce consultant, to discuss the value of LinkedIn strategies and how to build a successful online community.

They will be presenting a webinar at 11 a.m. on Tuesday. To register, click here.

Topics will include:

  • Discover and win ideal buyers with LinkedIn;
  • The value of posting videos on LinkedIn;
  • Maximize LinkedIn Live as a powerful tool;
  • Build a dynamic community with LinkedIn;
  • Establish strategic links to grow your business.

Anderson is the author of “Stop Being the Best Kept Secret” and the founder of B2Btail.com, an e-commerce resource guide for manufacturers.

– Do you have a commercial ad that you would like to share? Send an email to news@mahoningmatters.com.


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Rising MSME bad debts are not alarming: RBI https://www.tomaszpietak.com/rising-msme-bad-debts-are-not-alarming-rbi/ https://www.tomaszpietak.com/rising-msme-bad-debts-are-not-alarming-rbi/#respond Fri, 06 Aug 2021 15:57:00 +0000 https://www.tomaszpietak.com/rising-msme-bad-debts-are-not-alarming-rbi/ MUMBAI: Reserve Bank on Friday allayed lender fears over rising delinquency levels among small business loan borrowers, who are hit hard by second wave of Covid-19, saying numbers are not yet alarming. The government and the central bank are working to support MSMEs during the pandemic through credit measures such as the Emergency Credit Lines […]]]>

MUMBAI: Reserve Bank on Friday allayed lender fears over rising delinquency levels among small business loan borrowers, who are hit hard by second wave of Covid-19, saying numbers are not yet alarming.
The government and the central bank are working to support MSMEs during the pandemic through credit measures such as the Emergency Credit Lines Guarantee Program (ESLGS) which allowed them to increase to Rs 9.5 lakh crore in fiscal year 21, affected by the pandemic, from Rs 6.8 lakh crore in FY20, while the quality of assets deteriorated to 12.6% in March 2021 from 12% in December 2020.
Speaking virtually to reporters at the usual post-policy press conference on Friday, when the central bank left the policy rate unchanged at 4%, RBI deputy governor Mukesh Jain said there was no crisis on this front, as stress levels among small business borrowers are not very high, although slippages and loan restructurings are increasing in recent times.
The situation is not very bad because many accounts are being restructured as part of the Covid version 2 package announced in May, which allowed borrowers in crisis to opt for up to two years of moratorium, he said. he declares.
Yes, there is a visible increase in slippages among MSME borrowers, but the amount of slippages has not reached an alarming level, Jain said.
We continuously monitor all regulated entities, especially banks and large NBFCs to verify the quality of their assets. Our stress tests also prove that there is nothing to be alarmed about at the moment, he added.
A July 28, 2021 report from Sidbi-Cibil said NPA levels among MSME borrowers jumped to 12.6% in the March 2021 quarter, from 12% in December 2020, while loans to them granted increased to Rs 9.5 lakh crore in FY21 from Rs 6.8 lakh crore in FY20.
After the first wave, the RBI had asked all consistently important banks and NBFCs to pass stress tests, and their pre-Covid and March 2021 figures show that there is an overall improvement across all parameters, that whether it’s the capital adequacy ratio, NPAs / slips or the provision coverage ratio – all have improved and are better than pre-pandemic levels, Jain said, adding that there are also had an improvement in their profitability figures.
It can be noted that since the pandemic hit the country in March last year, the government and the central bank have encouraged lenders to offer easy credit to small businesses, numbering over 6.3 crore, because they are the backbone of the economy in terms of employment and contribution to GDP. But most of the support is in the form of credit, part of which has been guaranteed by the government in the event of default.
Last week, Union MSME Minister Narayan Rane told Lok Sabha that around 1.09 crore of MSME borrowers had received the pledged guarantee support of Rs 1.65 lakh crore under the emergency line of credit guarantee program until July 2, 2022, which was announced as part of the first Covid package in May 2020 to help them meet their operational liabilities and resume operations.
But, the number shows that only less than a sixth of eligible MSME borrowers could benefit from the facility, as there were over 6.3 million MSMEs in the country as of May 2021. Numerous reports indicate that many of them they closed the shutters because of the pandemic. .
The overall ceiling of the eligible ECLGS guarantee was raised from Rs 3 lakh crore to Rs 4.5 lakh crore at the end of June 2021. The government, for its part, had paid contributions of Rs 55,863.30 crore to MSMEs. between May 2020 and July 2021.
The Cibil-Sidbi report said that the demand for credit from the MSME segment has increased, thanks to interventions such as the Emergency Line of Credit Guarantee Program, specifying that loans worth 9.5 lakh crore were paid to MSMEs in FY21, hit by the pandemic, compared to Rs 6.8 lakh crore in FY20. The credit jump led to the overall level of NPAs being stable from 12.5% ​​in FY20.
The exposure to commercial loans stood at Rs 74.36 lakh crore in March 2021, with a growth rate of 0.6%, while the credit exposure of the MSME segment increased by 6.6% to Rs 20.21 lakh crore.
Credit disbursements to new MSME banking clients had fallen 90% in April 2020 from pre-pandemic levels and gradually recovered to be 5% higher than pre-pandemic levels in March 2021 .


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Sebi’s repayment to Sahara investors amounts to Rs 129 crore; the balance of reimbursement accounts is Rs 23,000 crore https://www.tomaszpietak.com/sebis-repayment-to-sahara-investors-amounts-to-rs-129-crore-the-balance-of-reimbursement-accounts-is-rs-23000-crore/ https://www.tomaszpietak.com/sebis-repayment-to-sahara-investors-amounts-to-rs-129-crore-the-balance-of-reimbursement-accounts-is-rs-23000-crore/#respond Thu, 05 Aug 2021 11:41:00 +0000 https://www.tomaszpietak.com/sebis-repayment-to-sahara-investors-amounts-to-rs-129-crore-the-balance-of-reimbursement-accounts-is-rs-23000-crore/ NEW DELHI: Capital markets regulator Sebi managed to repay Rs 129 crore to investors in two Saharan companies in nearly nine years after being given the task by the Supreme Court, while the amount deposited in accounts Specially opened banks for repayment purposes have risen to over Rs 23,000 crore, according to the latest disclosure […]]]>

NEW DELHI: Capital markets regulator Sebi managed to repay Rs 129 crore to investors in two Saharan companies in nearly nine years after being given the task by the Supreme Court, while the amount deposited in accounts Specially opened banks for repayment purposes have risen to over Rs 23,000 crore, according to the latest disclosure made by the regulator.
In the absence of claims from a large majority of bondholders of the two Sahara companies, who were asked to return the money to nearly 3 million investors with interest in August 2012 through a Supreme Court order, the total amount reimbursed by Sebi has increased by roughly Rs 14 crore in the last fiscal year 2020-21, while the balance of Sebi-Sahara reimbursement accounts has increased by over 1,400 Rs crores during the year.
In its latest annual report, the Securities and Exchange Board of India (Sebi) said it had received 19,616 requests as of March 31, 2021, involving a total of reimbursement requests of nearly Rs 81.6 crore. Of this total, he issued repayments in 16,909 cases (Rs 129 crore, including Rs 66.35 crore in capital and Rs 62.34 crore in interest), while 483 requests (involving more than Rs 2.3 crore ) have been returned to investors to correct the discrepancies.
While seven requests were classified in the contentious category, 332 requests are pending with Sahara, 122 are pending with Sebi and 2,487 cases have been closed for reasons such as the lack of response from investors and the lack of records), the regulator said.
In her previous update, Sebi estimated the total amount reimbursed by her as of March 31, 2020 at Rs 115.2 crore (regarding 15,140 claims). The number of contested cases at that time was much higher at 229, while the number of closed cases was less than 1,688.
Sebi further stated that, in accordance with various orders issued by the Supreme Court and garnishment orders issued by the regulator, a total amount of Rs 15,473 crore has been recovered by her as of March 31, 2021.
“These sums as well as the interest resulting therefrom after having provided for the redemptions to the bondholders were deposited in various Nationalized Banks under the terms of the judgment of August 31, 2012 of the Supreme Court. As of March 31, 2021, the total amount deposited in these banks is Rs 23,191 crore, ”Sebi said.
This amount stood at Rs 21,770.70 crore as of March 31, 2020.
Reacting to Sebi’s latest update, the Sahara Group said by its own estimate that the money deposited into the Sahara-Sebi account, including interest, should be around Rs 25,000 crore and has alleged that Sebi “unreasonably holds 25,000 crore rupees of silver from the Sahara and its investors”.
Referring to various rounds of newspaper advertisements given by Sebi over the years to invite reimbursement requests, Sahara said the regulator made it clear in the latest announcement that it would not accept any further requests received after July. 2018.
“This means that for Sebi there are no more claimants to pay and that the entire 25,000 Sahara crores deposited by her is unreasonably held by Sebi and must be returned to the Sahara. Sahara has handed over all documents originals concerning its 3 crore of investors in Sebi nine years ago for verification and in accordance with the directives of the Supreme Court, this amount of Rs 25,000 crore will finally return to the Sahara ”, he declared in a press release.
The group further said it was “unfortunate and unacceptable” that Sebi kept the funds deposited by Sahara.
“This huge amount of money is unused, unused in the banks, which not only harms the interests of the Sahara as a commercial organization, but also hinders the economic growth of our country, especially in these difficult times of economic downturn. “, he added.
Sebi had ordered Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) in 2011 to repay the money collected from investors through certain bonds known as optionally fully convertible bonds ( OFCD) after the regulator ruled that the funds were being raised by the two firms in violation of its rules and regulations.
After a long process of appeals and cross-appeals, the Supreme Court confirmed on August 31, 2012 Sebi’s instructions asking the two companies to repay the money collected from investors with 15% interest.
Sahara was eventually asked to deposit around Rs 24,000 crore with Sebi for an additional reimbursement to investors, although the group has always argued that this amounts to a “double payment” as it had already reimbursed more than 95% of the money directly. investors.
In his annual report for 2020-2021, Sebi said his actions in the case are overseen by (retired) Judge BN Agarwal, appointed by the Supreme Court in this case and that details are provided in the report of situation filed in the Supreme Court from time to time. time.
As of March 31, 2021, Sebi had filed 22 progress reports in the Supreme Court in this case.
The Sahara Group, in its statement, said it has always built its businesses by productively channeling the human capital spread across India and bringing jobs and work to people’s doorsteps.
“In this way, Sahara provides bread and butter to over 14 lakhs in their own villages and towns. It is the second largest human capital in the country after Indian Railways. This amount could have been used by the organization to generate more jobs. and work and helped the country and therefore its economy, ”he added.


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Ideal for bad credit installment loans for borrowers with poor credit history

6.95 – 35.99%

The full range of rates available vary by state. The average 3 year loan offered by all lenders using the Upstart platform will have an APR of 24.4% and 36 monthly payments of $ 36 per $ 1,000 borrowed. There is no deposit or early repayment penalty. The average APR is calculated based on the 3-year rates offered in the last month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

$ 1,000 – $ 50,000

580

Point Ready

Point Ready

on the LendingPoint website

Best For Bad Credit Installment Loans With Quick Funding

15.49 – 35.49%

The approval of the loan is not guaranteed. Loan offers and actual loan amounts, terms and Annual Percentage Rates (“APRs”) may vary depending on how LendingPoint’s proprietary underwriting and scoring system examines your credit, situation. financial, other factors and supporting documents or information you provide. Original or other charges of 0% to 6% may apply depending on your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH on the next non-holiday business day. LendingPoint offers loan offers from $ 2,000 to $ 25,000, at rates ranging from a minimum APR of 15.49% to a maximum APR of 34.99%, with terms of 24 to 48 months.

$ 2,000 – $ 25,000

600

Main

OneMain Financial

on the OneMain Financial website

Ideal for secured or co-signed bad credit installment loans

18.00 – 35.99%

Not all applicants will be eligible for larger loan amounts or better loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and the availability of collateral). Larger loan amounts require a first lien on a motor vehicle less than ten years old, which meets our value requirements, titled in your name with valid insurance. The maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on unsecured vehicle loans. Depending on the state in which you open your loan, the origination fee can be either a fixed amount or a percentage of your loan amount. Lump sums vary by state, ranging from $ 25 to $ 300. Percentage-based fees vary by state, ranging from 1% to 10% of your loan amount, subject to certain state limits on the amount of fees. Active duty military personnel, their spouses or dependents covered by the Military Loans Act cannot pledge a vehicle as security for a loan. OneMain loan proceeds cannot be used for post-secondary education expenses as defined by CFPB Regulation Z, such as college, university or professional expenses; for commercial or commercial purposes; buy securities; or for gambling or illegal purposes. Borrowers from these states are subject to these minimum loan amounts: Alabama: $ 2,100. California: $ 3,000. Georgia: Unless you are a current customer, a minimum loan amount of $ 3,100. Ohio: $ 2,000. Virginia: $ 2,600. Borrowers (other than current customers) in these states are subject to these maximum unsecured loan amounts: North Carolina: $ 7,500. New York: $ 20,000. An unsecured loan is a loan that does not require you to provide collateral (like a motor vehicle) to the lender.

$ 1,500 – $ 20,000

Nothing

The average score is 600 – 650

Opportune

Opportune

Best for Bad Credit Installment Loans No Credit Score Required

27.74 – 35.95%

Loans subject to credit approval and may include set-up costs. Monthly payment options may not be available; Bi-weekly and bi-weekly payment options are standard. For example, a $ 5,000 loan in California would have 66 bi-monthly payments of $ 119 over 30 months at an APR of 37.6%. Conditions may vary by applicant and state and are subject to change. To apply you must be at least 18 years old, reside in our service area (AZ, CA, FL, ID, IL, MO, NJ, NM, NV, TX, UT and WI) and not have applied for a loan with us in the past 90 days. Although a credit history is not required to qualify, Oportun will request and consider credit checks for all applicants. California Loans made under California Financing Law License. For loans made in other states and for other information, visit oportun.com, which includes our state licenses. This is an ad for a consumer loan. © 2020 Oportun, Inc. All rights reserved.

$ 300 – $ 10,000

Nothing


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PNB expects a recovery of Rs 14,000 crore of bad debts in the three quarters https://www.tomaszpietak.com/pnb-expects-a-recovery-of-rs-14000-crore-of-bad-debts-in-the-three-quarters/ https://www.tomaszpietak.com/pnb-expects-a-recovery-of-rs-14000-crore-of-bad-debts-in-the-three-quarters/#respond Tue, 03 Aug 2021 07:00:00 +0000 https://www.tomaszpietak.com/pnb-expects-a-recovery-of-rs-14000-crore-of-bad-debts-in-the-three-quarters/ The state-owned National Bank of Punjab (PNB) said on Tuesday it expects a recovery of Rs 14,000 crore on bad debts over the three quarters and a profit of 4,000 to Rs 6,000 crore in 2021-2022, driven by spending rationalization and a robust recovery. . Expenditure control has multiple dimensions, one of which is the […]]]>

The state-owned National Bank of Punjab (PNB) said on Tuesday it expects a recovery of Rs 14,000 crore on bad debts over the three quarters and a profit of 4,000 to Rs 6,000 crore in 2021-2022, driven by spending rationalization and a robust recovery. .

Expenditure control has multiple dimensions, one of which is the rationalization of branches, PNB Managing Director SS Mallikarjuna Rao told reporters.

“We have successfully rationalized over 500 branches. We plan to rationalize 1,000 branches by March 2022, which will result in a significant reduction in operating expenses,” he said.

Currently, the bank has around 10,641 branches across the country.

On the recovery side, he said, the bank expects Rs 5,000-5,200 crore to come from NCLT cases by March 2022. This will help reduce bad debts or unpaid assets. producing around 12,000 crore of Rs.

“In normal recovery we usually get around Rs 3,000 crore per quarter. So we expect another Rs 9,000-10,000 crore in normal recovery,” he said.

Rao exuded confidence that the bank is expected to make an annual profit between Rs 4,000 crore and Rs 6,000 crore thanks to a strong recovery and cost rationalization during the current fiscal year.

“The direction for 2021-2022 would be Rs 4,000-6,000 crore … on the balance sheet, the cost of deposits has been drastically reduced, the cost / income ratio has been reduced, the yield on advances has declined “, did he declare.

In addition, recoveries from APMs for which the provision coverage rate is 80% will be resumed, he said.

“So 50 percent of the profits will be contributed by the recovery during the year. The profit would therefore come from a mixture of cost rationalization and recovery,” he said.

Regarding new fundraising, he said, if you look at the capital adequacy ratio, it’s 15.19, which is enough for credit growth of 8 to 10. %.

“However, PNB, being a big bank, in order to insulate itself from the capital requirement for the future and not depend on the government, we will definitely discuss it in a month or so and take a call about it.” , did he declare. noted.

This exercise would aim to generate non-buffers to meet business needs, he said. Currently, the government owns 73.1 percent of the bank.

Regarding the perceived threat to the telecommunications sector due to the Supreme Court’s AGR order, he said all telecommunications players are asking the government to consider it. “The developments of the last few days are therefore matters of concern for the banking sector,” he said.

The exposure to GNP is not very high which will impact the balance sheet, he said, adding “However, we will definitely discuss with other bankers to see what kind of action we need to take. in the future in view of KM Birla’s statement yesterday. “

Last month, the Supreme Court said it would issue orders on claims filed by telecommunications majors Vodafone Idea, Bharti Airtel and Tata Tele Services Ltd, raising the issue of alleged miscalculations in the related dues figure. adjusted gross income (AGR).

In September last year, the Supreme Court gave 10 years to telecommunications service providers who struggled to pay Rs 93,520 crore in AGR-related dues to settle their debt to the government.

Rao also said that PNB will sell its stake in Canara HSBC OBC Life Insurance Company within the next 12 months.

The state-owned bank headquartered in the city had acquired a stake in the life insurer after the former Oriental Bank of Commerce (OBC) merged into itself during the previous fiscal year. The former OBC held 23 per cent of the capital of the life insurer which, due to the merger, became PNB.

Canara Bank holds 51% of the capital, while HSBC Insurance (Asia Pacific) Holdings Ltd as a foreign partner holds 26%.

It is also a sponsor of another insurer PNB Metlife Insurance, holding the highest 30 percent stake. The company was formed in 2001, other shareholders of which include US company Metlife with 26 percent, Elpro (21 percent) and M Pallonji & Company (18 percent).

In accordance with the current insurance guidelines of the Insurance Regulatory and Development Authority of India (Irdai), a promoter cannot own more than 10% of the capital of two insurance companies.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)


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