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Dec 31, 2023
Columbia Q4 2023 Earnings Report
Reported a decrease in net sales and operating income compared to Q4 2022, while successfully executing inventory reduction plan.
Key Takeaways
Columbia Sportswear Company reported a decrease in net sales by 9% to $1,060.0 million and a decrease in operating income by 27% to $113.1 million for the fourth quarter of 2023. Diluted earnings per share decreased by 23% to $1.55. The company exited the quarter with $764.5 million in cash and equivalents and a 27% decrease in inventories.
Net sales decreased 9 percent to $1,060.0 million.
Operating income decreased 27 percent to $113.1 million.
Diluted earnings per share decreased 23 percent to $1.55.
Exited the quarter with $764.5 million of cash, cash equivalents and short-term investments 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's Full Year 2024 Net sales are expected to decrease 4.0 to 2.0 percent, resulting in net sales of $3.35 to $3.42 billion.
Positive Outlook
- Gross margin is expected to expand 100 to 150 basis points to 50.6 to 51.1 percent of net sales from 49.6 percent of net sales in 2023.
- Interest income, net is expected to be approximately $19 million.
- Operating cash flow is expected to be at least $300 million.
- Foreign currency translation is anticipated to increase 2024 net sales growth by approximately 60 basis points.
- Effective income tax rate is expected to be 24.0 to 25.0 percent.
Challenges Ahead
- Net sales are expected to decrease 4.0 to 2.0 percent, resulting in net sales of $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 43.2 to 43.5 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, resulting in operating margin of 7.6 to 8.4 percent, compared to operating margin of 8.9 percent in 2023.
- Net income is expected to be $207 to $231 million, resulting in diluted earnings per share of $3.45 to $3.85.
- Capital expenditures are planned to be in the range of $60 to $80 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income