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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.
Columbia
Columbia
Columbia Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comLatin America and Asia Pacific Revenue
CapyFin.comEurope, Middle East and Africa Revenue
CapyFin.comCanada Revenue
CapyFin.com 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.
- Foreign currency is expected to have an approximately $0.04 negative impact on diluted earnings per share.
- Second quarter 2024 net sales are expected to decline of 10 to 7 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income