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Sep 30, 2024
Columbia Q3 2024 Earnings Report
Columbia's financial performance reflected strength in international markets, offset by North America's softness, with strategic investments in brand elevation and consumer engagement.
Key Takeaways
Columbia Sportswear Company reported a 5% decrease in net sales to $931.8 million for the third quarter of 2024. Operating income decreased to $112.5 million, and diluted earnings per share were $1.56. The company is focused on the ACCELERATE Growth Strategy to elevate the Columbia brand and attract younger consumers.
Net sales decreased by 5% to $931.8 million compared to Q3 2023.
Operating income was $112.5 million, a decrease from $134.6 million in Q3 2023.
Diluted earnings per share were $1.56, down from $1.70 in Q3 2023.
The company exited the quarter with $373.9 million in cash, cash equivalents, and short-term investments, with no borrowings.
Columbia
Columbia
Columbia Revenue by Segment
Columbia Revenue by Geographic Location
Revenue by Segment
Columbia Revenue
CapyFin.comSOREL Revenue
CapyFin.comprAna Revenue
CapyFin.comMountain Hardwear Revenue
CapyFin.comRevenue 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 full-year net sales to be between $3.31 and $3.38 billion, with diluted earnings per share between $3.70 and $4.05. For the fourth quarter, net sales are expected to be $1.04 to $1.11 billion, and diluted earnings per share are projected to be $1.68 to $2.03.
Positive Outlook
- Net sales are expected to be $1,040 to $1,110 million, representing a decline of 2 percent to growth of 5 percent from $1,060 million for the comparable period in 2023.
- Operating income is expected to be $123 to $151 million, resulting in operating margin of 11.8 to 13.6 percent, compared to operating margin of 10.7 percent in the comparable period in 2023.
- Diluted earnings per share is expected to be $1.68 to $2.03, compared to $1.55 for the comparable period in 2023.
- Based on our Spring ‘25 orderbook, we are forecasting mid-single-digit percent growth in global wholesale net sales in first half 2025.
- This reflects growth across all regions, and in the Columbia, prAna and Mountain Hardwear brands.
Challenges Ahead
- Net sales are expected to decrease 5.0 to 3.0 percent (prior decrease of 4.0 to 2.0 percent), resulting in net sales of $3.31 to $3.38 billion (prior $3.35 to $3.42 billion), compared to $3.49 billion in 2023.
- SG&A expenses, as a percent of net sales, are expected to be 42.8 to 43.0 percent (prior 42.4 to 43.0 percent), compared to SG&A expense as a percent of net sales of 40.6 percent in 2023.
- Operating income is expected to be $257 to $284 million (prior $256 to $288 million), resulting in operating margin of 7.7 to 8.4 percent (unchanged), compared to operating margin of 8.9 percent in 2023.
- Foreign currency translation is expected to have a modestly unfavorable impact on full year net sales.
- Foreign currency is expected to have an approximately $0.01 negative impact on diluted earnings per share (prior $0.07) due to negative foreign currency transactional effects from hedging of inventory production, partially offset by favorable foreign currency translation impacts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income