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Jun 30, 2024
Columbia Q2 2024 Earnings Report
Reported a decrease in net sales and a loss from operations, but maintained a strong cash position and reiterated full-year outlook.
Key Takeaways
Columbia Sportswear Company reported a decrease in net sales by 8% to $570.2 million and a loss from operations of $23.8 million for the second quarter of 2024. Despite these challenges, the company maintains a solid cash balance of $711.1 million and reiterates its full-year net sales and diluted earnings per share outlook.
Net sales decreased by 8% to $570.2 million.
Loss from operations was $23.8 million, or (4.2)% of net sales.
Net loss per share was $(0.20).
Exited the quarter with $711.1 million in cash and no borrowings.
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 of $3.35 to $3.42 billion and diluted earnings per share of $3.65 to $4.05 for the full year 2024.
Positive Outlook
- Net sales of $3.35 to $3.42 billion (unchanged), representing a net sales decline of 4.0 to 2.0 percent (unchanged) compared to 2023.
- Operating income of $256 to $288 million (prior $259 to $291 million), representing operating margin of 7.7 to 8.4 percent (prior 7.7 to 8.5 percent).
- Diluted earnings per share of $3.65 to $4.05 (unchanged).
- Operating cash flow is expected to be at least $350 million (unchanged).
- Capital expenditures are planned to be in the range of $60 to $80 million (unchanged).
Challenges Ahead
- Net sales are expected to decrease 4.0 to 2.0 percent (unchanged), resulting in net sales of $3.35 to $3.42 billion (unchanged), compared to $3.49 billion in 2023.
- Gross margin is expected to expand 40 to 60 basis points (prior 80 to 120 basis points) to 50.0 to 50.2 percent of net sales (prior 50.4 to 50.8 percent) from 49.6 percent of net sales in 2023.
- SG&A expenses, as a percent of net sales, are expected to be 42.4 to 43.0 percent (prior 43.0 to 43.4 percent), compared to SG&A expense as a percent of net sales of 40.6 percent in 2023.
- Operating income is expected to be $256 to $288 million (prior $259 to $291 million), resulting in operating margin of 7.7 to 8.4 percent (prior 7.7 to 8.5 percent), compared to operating margin of 8.9 percent in 2023.
- Effective income tax rate is expected to be 24.0 to 25.0 percent (unchanged).
Revenue & Expenses
Visualization of income flow from segment revenue to net income