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Mar 31, 2024
Columbia Q1 2024 Earnings Report
Columbia's Q1 2024 performance reflected a decrease in net sales and operating income, while maintaining a strong cash position and reducing inventory.
Key Takeaways
Columbia Sportswear Company reported a 6% decrease in net sales to $770.0 million and a 21% decrease in operating income to $44.7 million for the first quarter of 2024. Diluted earnings per share decreased by 4% to $0.71. The company's inventory decreased by 37% compared to the previous year, and it repurchased $50.2 million of common stock. The company reiterated its net sales outlook for the year and modestly increased its diluted EPS range.
Net sales decreased by 6% to $770.0 million.
Operating income decreased by 21% to $44.7 million.
Diluted earnings per share decreased by 4% to $0.71.
Inventory decreased by 37% year-over-year.
Revenue by Geographic Location
Forward Guidance
The company expects net sales to decrease by 4.0 to 2.0 percent, resulting in net sales of $3.35 to $3.42 billion. Operating income is expected to be $259 to $291 million, resulting in operating margin of 7.7 to 8.5 percent. Diluted earnings per share are expected to be $3.65 to $4.05.
Positive Outlook
- Operating cash flow is expected to be at least $350 million.
- Gross margin is expected to expand 80 to 120 basis points to 50.4 to 50.8 percent of net sales.
- Interest income, net is expected to be approximately $28 million.
- Effective income tax rate is expected to be 24.0 to 25.0 percent.
- Capital expenditures are planned to be in the range of $60 to $80 million.
Challenges Ahead
- Net sales are expected to decrease 4.0 to 2.0 percent.
- SG&A expenses, as a percent of net sales, are expected to be 43.0 to 43.4 percent.
- Foreign currency translation is anticipated to decrease 2024 net sales growth by approximately 20 basis points.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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