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Columbia Sportswear Company Reports Second Quarter 2024 Financial Results; Updates Full Year 2024 Financial Outlook

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Columbia Sportswear Company (COLM) reported a challenging second quarter for 2024, with net sales decreasing 8% to $570.2 million compared to Q2 2023. The company experienced a loss from operations of $23.8 million, or -4.2% of net sales, contrasting with an operating income of $6.2 million in the same period last year. Net loss per share was $(0.20), down from earnings per share of $0.14 in Q2 2023.

Despite the downturn, Columbia Sportswear maintains a strong financial position with $711.1 million in cash and no borrowings. The company has also significantly reduced its inventory levels, reporting $823.6 million in inventories, a 29% decrease from June 30, 2023. Columbia Sportswear has updated its full year 2024 financial outlook in light of these results.

Columbia Sportswear Company (COLM) ha registrato un secondo trimestre difficile per il 2024, con un calo delle vendite nette dell'8% a 570,2 milioni di dollari rispetto al Q2 2023. L'azienda ha subito una perdita operativa di 23,8 milioni di dollari, pari al -4,2% delle vendite nette, contrariamente a un utile operativo di 6,2 milioni di dollari nello stesso periodo dell'anno scorso. La perdita netta per azione è stata di $(0,20), in diminuzione rispetto all'utile per azione di $0,14 nel Q2 2023.

Nonostante il calo, Columbia Sportswear mantiene una solida posizione finanziaria con 711,1 milioni di dollari in contante e senza indebitamenti. L'azienda ha anche significativamente ridotto i livelli dell'inventario, registrando 823,6 milioni di dollari in inventari, con una diminuzione del 29% rispetto al 30 giugno 2023. Columbia Sportswear ha aggiornato le sue previsioni finanziarie per l'intero anno 2024 alla luce di questi risultati.

Columbia Sportswear Company (COLM) reportó un segundo trimestre desafiante para 2024, con una disminución del 8% en las ventas netas a 570,2 millones de dólares en comparación con el Q2 2023. La empresa experimentó una pérdida de operaciones de 23,8 millones de dólares, o -4,2% de las ventas netas, en contraste con un ingreso operativo de 6,2 millones de dólares en el mismo periodo del año pasado. La pérdida neta por acción fue de $(0,20), una disminución de las ganancias por acción de $0,14 en el Q2 2023.

A pesar de la caída, Columbia Sportswear mantiene una sólida posición financiera con 711,1 millones de dólares en efectivo y sin préstamos. La empresa también ha reducido significativamente sus niveles de inventario, reportando 823,6 millones de dólares en inventarios, una disminución del 29% desde el 30 de junio de 2023. Columbia Sportswear ha actualizado su perspectiva financiera para todo el año 2024 a la luz de estos resultados.

컬럼비아 스포츠웨어 컴퍼니(COLM)는 2024년 2분기에 어려운 실적을 기록했으며, 순매출이 8% 감소하여 5억 7천 2백만 달러에 달했습니다 (2023년 2분기 대비). 회사는 2380만 달러의 운영 손실을 기록했으며, 이는 순매출의 -4.2%에 해당하며, 작년 같은 기간에는 620만 달러의 운영 수익이 있었습니다. 주당 순손실은 $(0.20)이었고, 이는 2023년 2분기 주당 순익 $0.14에서 감소한 수치입니다.

하락세에도 불구하고 컬럼비아 스포츠웨어는 7억 1천 11만 달러의 현금과 무차입금을 유지하며 탄탄한 재무 상태를 유지하고 있습니다. 이 회사는 재고 수준을 상당히 줄였으며, 재고는 8억 2천 36백만 달러로, 2023년 6월 30일 대비 29% 감소했습니다. 컬럼비아 스포츠웨어는 이러한 결과에 비추어 2024년 전체 연도 재무 전망을 업데이트했습니다.

Columbia Sportswear Company (COLM) a annoncé un deuxième trimestre difficile pour 2024, avec une baisse des ventes nettes de 8% à 570,2 millions de dollars par rapport au Q2 2023. L'entreprise a subi une perte d'exploitation de 23,8 millions de dollars, soit -4,2% des ventes nettes, contrairement à un produit d'exploitation de 6,2 millions de dollars au cours de la même période l'année précédente. La perte nette par action s'est élevée à $(0,20), en baisse par rapport au bénéfice par action de $0,14 au Q2 2023.

Malgré cette baisse, Columbia Sportswear maintient une solide position financière avec 711,1 millions de dollars en liquidités et sans emprunts. La société a également considérablement réduit ses niveaux de stocks, avec 823,6 millions de dollars de stocks, soit une diminution de 29% par rapport au 30 juin 2023. Columbia Sportswear a mis à jour ses prévisions financières pour l'ensemble de l'année 2024 à la lumière de ces résultats.

Die Columbia Sportswear Company (COLM) berichtete für das zweite Quartal 2024 von herausfordernden Ergebnissen, mit einem Rückgang der Nettoumsätze um 8% auf 570,2 Millionen US-Dollar im Vergleich zum Q2 2023. Das Unternehmen verzeichnete einen Betriebsverlust von 23,8 Millionen US-Dollar, was -4,2% des Nettoumsatzes ausmacht, im Gegensatz zu einem Betriebsergebnis von 6,2 Millionen US-Dollar im gleichen Zeitraum des Vorjahres. Der Nettoverlust pro Aktie betrug $(0,20), im Vergleich zu einem Gewinn pro Aktie von $0,14 im Q2 2023.

Trotz des Rückgangs hat Columbia Sportswear eine starke Finanzlage mit 711,1 Millionen US-Dollar in bar und ohne Verbindlichkeiten. Das Unternehmen hat auch seine Lagerbestände erheblich reduziert, mit 823,6 Millionen US-Dollar in Beständen, was einem Rückgang von 29% seit dem 30. Juni 2023 entspricht. Columbia Sportswear hat seine Finanzprognose für das gesamte Jahr 2024 angesichts dieser Ergebnisse aktualisiert.

Positive
  • Strong cash position with $711.1 million in cash, cash equivalents and short-term investments
  • Significant inventory reduction of 29% compared to previous year
  • No borrowings, indicating financial stability
Negative
  • Net sales decreased 8% to $570.2 million
  • Loss from operations of $23.8 million, compared to operating income in Q2 2023
  • Net loss per share of $(0.20), down from positive earnings in Q2 2023

Insights

Columbia Sportswear's Q2 2024 results paint a challenging picture for the outdoor apparel giant. The $570.2 million in net sales represents a 8% decrease year-over-year, signaling potential market share erosion or broader industry headwinds. More concerning is the swing from a profit to a loss, with a $23.8 million operating loss compared to a $6.2 million profit in Q2 2023.

The 29% reduction in inventory levels to $823.6 million is a double-edged sword. While it demonstrates improved inventory management and reduced carrying costs, it could also indicate overly conservative production forecasts or supply chain disruptions. The robust cash position of $711.1 million with no borrowings provides a strong financial buffer, but the company needs to address the underlying causes of its profitability decline.

The shift from $0.14 EPS to a $0.20 loss per share is particularly alarming for investors. This dramatic reversal suggests that cost-cutting measures haven't kept pace with the revenue decline, potentially indicating structural issues in the company's business model or market positioning.

Investors should closely monitor the full-year outlook update for signs of a turnaround strategy or further deterioration in financial performance. The outdoor apparel market's cyclical nature and sensitivity to economic conditions make Columbia's ability to navigate these headwinds important for its long-term prospects.

Columbia Sportswear's Q2 2024 results reflect broader challenges in the outdoor apparel industry. The 8% revenue decline suggests a potential shift in consumer spending patterns, possibly due to inflationary pressures or changing lifestyle trends post-pandemic. This contraction is particularly noteworthy given the typically strong Q2 performance for outdoor brands as they prepare for the fall/winter season.

The company's inventory reduction of 29% is a strategic move to align with lower demand forecasts and minimize markdown risks. However, this could potentially limit Columbia's ability to capitalize on any sudden upticks in demand, especially if supply chain issues persist.

The shift to an operating loss margin of 4.2% from a positive 1.0% in the previous year indicates that Columbia is struggling to maintain its cost structure in the face of declining sales. This could prompt a reevaluation of the company's pricing strategy, product mix, or operational efficiency.

Looking ahead, investors should pay close attention to:

  • Consumer sentiment and spending patterns in key markets
  • The effectiveness of Columbia's marketing and brand positioning efforts
  • Potential market share shifts among major outdoor apparel competitors
  • The impact of macroeconomic factors such as inflation and interest rates on discretionary spending

These results underscore the need for Columbia to innovate and adapt to changing market dynamics to regain its footing in the competitive outdoor apparel landscape.

Second Quarter 2024 Highlights

  • Net sales decreased 8 percent (7 percent constant-currency) to $570.2 million, compared to second quarter 2023.
  • Loss from operations of $23.8 million, or (4.2) percent of net sales, compared to second quarter 2023 operating income of $6.2 million, or 1.0 percent of net sales.
  • Net loss per share of $(0.20), compared to second quarter 2023 diluted earnings per share of $0.14.
  • Exited the quarter with $711.1 million of cash, cash equivalents and short-term investments and no borrowings.
  • Exited the quarter with $823.6 million of inventories, a decrease of 29 percent compared to June 30, 2023.

Full Year 2024 Financial Outlook

The following forward-looking statements reflect our expectations as of July 25, 2024 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. Additional disclosures and financial outlook details can be found in the Full Year 2024 Financial Outlook section below and the CFO Commentary and Financial Review presentation.

  • 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).

PORTLAND, Ore.--(BUSINESS WIRE)-- Columbia Sportswear Company (NASDAQ: COLM, the "Company"), a multi-brand global leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment, today announced second quarter 2024 financial results for the period ended June 30, 2024.

Chairman, President and Chief Executive Officer Tim Boyle commented, “Second quarter results were generally in line with expectations. We are working to maximize sales in a challenging U.S. marketplace. Most international markets, including China and Europe-direct, continue to see strong demand. We have made meaningful progress on our top priorities, including inventory reduction, rationalizing expenses through our Profit Improvement Program, and developing actionable strategies to reinvigorate long-term profitable growth. We are reiterating our net sales and diluted earnings per share outlook and remain on track to generate over $350 million in operating cash flow.

“Our Fall ‘24 order book supports sequential improvement in wholesale sales, with the potential for overall sales to return to growth by the fourth quarter. I’m thrilled with our line-up of innovations for this Fall, including Omni-Heat Infinity, Omni-Max footwear and our newest innovation, Omni-Heat Arctic. As we look toward 2025, I am pleased to report that early indications from our Spring ’25 wholesale orderbook suggest a return to wholesale growth in the first half.

“Our fortress balance sheet remains a strategic advantage, with over $710 million in cash and short-term investments, and no debt, at quarter end. I’m confident our team and our strategies position us to re-accelerate growth and capture market share over time. We are committed to investing in our strategic priorities to:

  • accelerate profitable growth;
  • create iconic products that are differentiated, functional and innovative;
  • drive brand engagement through increased, focused demand creation investments;
  • enhance consumer experiences by investing in capabilities to delight and retain consumers;
  • amplify marketplace excellence, with digitally-led, omni-channel, global distribution; and
  • empower talent that is driven by our core values, through a diverse and inclusive workforce."

CFO's Commentary and Financial Review Presentation Available Online

For a detailed review of the Company's second quarter 2024 financial results, please refer to the CFO Commentary and Financial Review presentation furnished to the Securities and Exchange Commission (the "SEC") on a Current Report on Form 8-K and published on the Investor Relations section of the Company's website at http://investor.columbia.com/financial-results at approximately 4:15 p.m. ET today. Analysts and investors are encouraged to review this commentary prior to participating in our conference call.

Second Quarter 2024 Financial Results
(All comparisons are between second quarter 2024 and second quarter 2023, unless otherwise noted.)

Net sales decreased 8 percent (7 percent constant-currency) to $570.2 million from $620.9 million for the comparable period in 2023. The decline in net sales primarily reflects lower wholesale net sales in the United States ("U.S.") due to retailer cautiousness, a difficult competitive environment, and generally soft consumer demand.

Gross margin contracted 270 basis points to 47.9 percent of net sales from 50.6 percent of net sales for the comparable period in 2023. Gross margin contraction primarily reflects the impact of efforts to spur demand and reduce inventory in the U.S., as well as changes in sales provisions, partially offset by lower inbound freight costs.

SG&A expenses were $302.7 million, or 53.1 percent of net sales, compared to $312.5 million, or 50.3 percent of net sales, for the comparable period in 2023. The largest changes in SG&A expenses primarily reflect lower supply chain and variable demand creation expenses, partially offset by higher direct-to-consumer ("DTC") expenses.

Loss from operations was $23.8 million, or (4.2) percent of net sales, compared to operating income of $6.2 million, or 1.0 percent of net sales, for the comparable period in 2023.

Interest income, net of $8.3 million, compared to $3.5 million for the comparable period in 2023, reflects higher yields on increased levels of cash, cash equivalents, and investments.

Income tax benefit of $3.2 million resulted in an effective income tax rate of 21.6 percent, compared to income tax expense of $1.2 million, or an effective income tax rate of 12.6 percent, for the comparable period in 2023.

Net loss of $11.8 million, or $(0.20) per diluted share, compared to net income of $8.4 million, or $0.14 per diluted share, for the comparable period in 2023.

First Half 2024 Financial Results
(All comparisons are between the first six months 2024 and the first six months 2023, unless otherwise noted.)

Net sales decreased 7 percent (6 percent constant-currency) to $1,340.2 million from $1,441.5 million for the comparable period in 2023.

Gross margin of 49.5% percent of net sales was flat compared to the comparable period in 2023.

SG&A expenses were $652.0 million, or 48.6 percent of net sales, compared to $659.9 million, or 45.8 percent of net sales, for the comparable period in 2023.

Operating income decreased 67 percent to $20.9 million, or 1.6 percent of net sales, compared to operating income of $62.7 million, or 4.3 percent of net sales, for the comparable period in 2023.

Interest income, net was $17.5 million, compared to $6.7 million for the comparable period in 2023.

Income tax expense of $8.6 million resulted in an effective income tax rate of 22.0 percent, compared to income tax expense of $15.5 million, or an effective income tax rate of 22.2 percent, for the comparable period in 2023.

Net income decreased 44 percent to $30.6 million, or $0.51 per diluted share, compared to net income of $54.6 million, or $0.88 per diluted share, for the comparable period in 2023.

Balance Sheet as of June 30, 2024

Cash, cash equivalents, and short-term investments totaled $711.1 million, compared to $302.8 million as of June 30, 2023.

The Company had no borrowings as of either June 30, 2024 or June 30, 2023.

Inventories decreased 29 percent to $823.6 million, compared to $1,162.5 million as of June 30, 2023.

Cash Flow for the Six Months Ended June 30, 2024

Net cash provided by operating activities was $108.9 million, compared to $9.7 million for the same period in 2023.

Capital expenditures totaled $27.8 million, compared to $22.8 million for the same period in 2023.

Share Repurchases for the Six Months Ended June 30, 2024

The Company repurchased 1,414,437 shares of common stock for an aggregate of $110.7 million, or an average price per share of $78.29.

At June 30, 2024, $234.6 million remained available under our stock repurchase authorization, which does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Quarterly Cash Dividend

The Board of Directors approved a regular quarterly cash dividend of $0.30 per share, payable on August 29, 2024 to shareholders of record on August 15, 2024.

Full Year 2024 Financial Outlook
(Additional financial outlook details can be found in the CFO Commentary and Financial Review presentation.)

The Company's full year 2024 and third quarter 2024 Financial Outlook are each forward-looking in nature, and the following forward-looking statements reflect our expectations as of July 25, 2024 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. These risks and uncertainties limit our ability to accurately forecast results.

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.

Interest income, net is expected to be approximately $28 million.

Effective income tax rate is expected to be 24.0 to 25.0 percent (unchanged).

Net income is expected to be $215 to $239 million (prior $217 to $240 million), resulting in diluted earnings per share of $3.65 to $4.05 (unchanged). This diluted earnings per share range is based on estimated weighted average diluted shares outstanding of 59.3 million (unchanged).

Foreign Currency

  • Foreign currency translation is anticipated to decrease 2024 net sales growth by approximately 70 basis points (prior 20 basis points).
  • Foreign currency is expected to have an approximately $0.07 negative impact on diluted earnings per share (prior $0.04) due to negative foreign currency transactional effects from hedging of inventory production, as well as unfavorable foreign currency translation impacts.

Cash Flows

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).

Third Quarter 2024 Financial Outlook

  • Net sales are expected to be $927 to $959 million, representing a decline of 6 to 3 percent from $985.7 million for the comparable period in 2023.
  • Operating income is expected to be $94 to $107 million, resulting in operating margin of 10.1 to 11.2 percent, compared to operating margin of 13.7 percent in the comparable period in 2023.
  • Diluted earnings per share is expected to be $1.27 to $1.43, compared to $1.70 for the comparable period in 2023.

Conference Call

The Company will hold its second quarter 2024 conference call at 5:00 p.m. ET today. Dial (888) 506-0062 to participate. The call will also be webcast live on the Investor Relations section of the Company's website at http://investor.columbia.com.

Third Quarter 2024 Reporting Date

The Company plans to report third quarter 2024 financial results on Wednesday, October 30, 2024 at approximately 4:00 p.m. ET.

Supplemental Financial Information

Since Columbia Sportswear Company is a global company, the comparability of its operating results reported in United States dollars is affected by foreign currency exchange rate fluctuations because the underlying currencies in which it transacts change in value over time compared to the United States dollar. To supplement financial information reported in accordance with GAAP, the Company discloses constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in the exchange rates used to translate net sales generated in foreign currencies into United States dollars. The Company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into United States dollars at the average exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP financial measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results.

The non-GAAP financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" table included herein. The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company’s expectations, anticipations or beliefs about the Company's ability to realize growth opportunities and manage expenses, financial position, marketing strategies, inventory, full year 2024 net sales, gross margin, SG&A expenses, operating income, net interest income, effective income tax rate, net income, diluted earnings per share, weighted average diluted shares outstanding, foreign currency translation, operating cash flow, and capital expenditures, as well as third quarter 2024 net sales, operating income, and diluted earnings per share. Forward-looking statements often use words such as "will," "anticipate," "estimate," "expect," "should," "may," "plan" and other words and terms of similar meaning or reference future dates. The Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties that may affect our future revenues, earnings and performance and could cause the actual results of operations or financial condition of the Company to differ materially from the anticipated results expressed or implied by forward-looking statements in this document include: loss of key customer accounts; our ability to execute and realize cost savings related to our Profit Improvement Plan; our ability to effectively execute our business strategies, including initiatives to upgrade our business processes and information technology (“IT”) systems and investments in our DTC businesses; our ability to maintain the strength and security of our IT systems; the effects of unseasonable weather, including global climate change; the seasonality of our business and timing of orders; trends affecting consumer spending, including changes in the level of consumer spending, and retail traffic patterns; unfavorable economic conditions generally, the financial health of our customers and retailer consolidation; higher than expected rates of order cancellations; changes affecting consumer demand and preferences and fashion trends; changes in international, federal or state tax, labor and other laws and regulations that affect our business, including changes in corporate tax rates, tariffs, international trade policy and geopolitical tensions, or increasing wage rates; our ability to attract and retain key personnel; risks inherent in doing business in foreign markets, including fluctuations in currency exchange rates, global credit market conditions, changes in global regulation and economic and political conditions and disease outbreaks; volatility in global production and transportation costs and capacity and timing; our ability to effectively manage our inventory and our wholesale customer’s to manage their inventories; our dependence on third-party manufacturers and suppliers and our ability to source at competitive prices from them or at all; the effectiveness of our sales and marketing efforts; business disruptions and acts of terrorism, cyber-attacks or military activities around the globe; intense competition in the industry; our ability to establish and protect our intellectual property; and our ability to develop innovative products. The Company cautions that forward-looking statements are inherently less reliable than historical information. The Company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time and it is not possible for the Company to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

About Columbia Sportswear Company

Columbia Sportswear Company connects active people with their passions and is a global multi-brand leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment. Founded in 1938 in Portland, Oregon, the Company's brands are sold in more than 100 countries. In addition to the Columbia® brand, Columbia Sportswear Company also owns the Mountain Hard Wear®, SOREL® and prAna® brands. To learn more, please visit the Company's websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, and www.prana.com.

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands)

 

June 30,
2024

 

June 30,
2023

ASSETS

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

341,822

 

$

231,571

Short-term investments

 

 

369,276

 

 

71,225

Accounts receivable, net

 

 

222,628

 

 

343,835

Inventories

 

 

823,557

 

 

1,162,519

Prepaid expenses and other current assets

 

 

90,527

 

 

91,990

Total current assets

 

 

1,847,810

 

 

1,901,140

Property, plant and equipment, net

 

 

277,509

 

 

280,578

Operating lease right-of-use assets

 

 

360,721

 

 

313,698

Intangible assets, net

 

 

79,221

 

 

80,733

Goodwill

 

 

26,694

 

 

51,694

Deferred income taxes

 

 

97,428

 

 

94,671

Other non-current assets

 

 

71,438

 

 

67,290

Total assets

 

$

2,760,821

 

$

2,789,804

LIABILITIES AND EQUITY

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

$

267,853

 

 

247,416

Accrued liabilities

 

 

201,700

 

 

238,988

Operating lease liabilities

 

 

72,101

 

 

69,784

Income taxes payable

 

 

2,787

 

 

1,080

Total current liabilities

 

 

544,441

 

 

557,268

Non-current operating lease liabilities

 

 

339,327

 

 

298,062

Income taxes payable

 

 

13,615

 

 

23,452

Deferred income taxes

 

 

64

 

 

Other long-term liabilities

 

 

39,412

 

 

36,364

Total liabilities

 

 

936,859

 

 

915,146

Total shareholders' equity

 

 

1,823,962

 

 

1,874,658

Total liabilities and shareholders' equity

 

$

2,760,821

 

$

2,789,804

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(In thousands, except per share amounts)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net sales

 

$

570,244

 

 

$

620,933

 

 

$

1,340,226

 

 

$

1,441,526

 

Cost of sales

 

 

296,825

 

 

 

306,888

 

 

 

677,248

 

 

 

727,981

 

Gross profit

 

 

273,419

 

 

 

314,045

 

 

 

662,978

 

 

 

713,545

 

Gross margin

 

 

47.9

%

 

 

50.6

%

 

 

49.5

%

 

 

49.5

%

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

302,749

 

 

 

312,529

 

 

 

652,019

 

 

 

659,927

 

Net licensing income

 

 

5,528

 

 

 

4,713

 

 

 

9,920

 

 

 

9,038

 

Operating income

 

 

(23,802

)

 

 

6,229

 

 

 

20,879

 

 

 

62,656

 

Interest income, net

 

 

8,344

 

 

 

3,506

 

 

 

17,541

 

 

 

6,789

 

Other non-operating income, net

 

 

476

 

 

 

(185

)

 

 

747

 

 

 

665

 

Income before income tax

 

 

(14,982

)

 

 

9,550

 

 

 

39,167

 

 

 

70,110

 

Income tax expense

 

 

(3,241

)

 

 

1,200

 

 

 

8,608

 

 

 

15,558

 

Net income

 

$

(11,741

)

 

$

8,350

 

 

$

30,559

 

 

$

54,552

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.20

)

 

$

0.14

 

 

$

0.51

 

 

$

0.88

 

Diluted

 

$

(0.20

)

 

$

0.14

 

 

$

0.51

 

 

$

0.88

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

59,093

 

 

 

61,655

 

 

 

59,458

 

 

 

61,893

 

Diluted

 

 

59,093

 

 

 

61,781

 

 

 

59,603

 

 

 

62,122

 

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended June 30,

(in thousands)

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

30,559

 

 

$

54,552

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

29,142

 

 

 

27,976

 

Non-cash lease expense

 

 

37,419

 

 

 

33,564

 

Provision for uncollectible accounts receivable

 

 

1,502

 

 

 

145

 

Deferred income taxes

 

 

2,101

 

 

 

488

 

Stock-based compensation

 

 

12,008

 

 

 

11,208

 

Other, net

 

 

(9,800

)

 

 

491

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

191,737

 

 

 

203,846

 

Inventories

 

 

(88,753

)

 

 

(135,251

)

Prepaid expenses and other current assets

 

 

(2,809

)

 

 

30,396

 

Other assets

 

 

1,159

 

 

 

366

 

Accounts payable

 

 

31,105

 

 

 

(69,305

)

Accrued liabilities

 

 

(63,626

)

 

 

(90,759

)

Income taxes payable

 

 

(26,688

)

 

 

(27,303

)

Operating lease assets and liabilities

 

 

(37,275

)

 

 

(34,317

)

Other liabilities

 

 

1,112

 

 

 

3,611

 

Net cash provided by operating activities

 

 

108,893

 

 

 

9,708

 

Cash flows from investing activities:

 

 

 

 

Purchases of short-term investments

 

 

(388,348

)

 

 

(117,877

)

Sales and maturities of short-term investments

 

 

446,087

 

 

 

50,747

 

Capital expenditures

 

 

(27,788

)

 

 

(22,803

)

Net cash provided by (used in) investing activities

 

 

29,951

 

 

 

(89,933

)

Cash flows from financing activities:

 

 

 

 

Proceeds from credit facilities

837

 
Repayments on credit facilities

(837

Proceeds from issuance of common stock related to stock-based compensation

 

 

3,747

 

 

 

4,624

 

Tax payments related to stock-based compensation

 

 

(4,461

)

 

 

(4,400

)

Repurchase of common stock

 

 

(102,618

)

 

 

(78,319

)

Cash dividends paid

 

 

(35,628

)

 

 

(37,099

)

Net cash used in financing activities

 

 

(138,960

)

 

 

(115,194

)

Net effect of exchange rate changes on cash

 

 

(8,381

)

 

 

(3,251

)

Net decrease in cash and cash equivalents

 

 

(8,497

)

 

 

(198,670

)

Cash and cash equivalents, beginning of period

 

 

350,319

 

 

 

430,241

 

Cash and cash equivalents, end of period

 

$

341,822

 

 

$

231,571

 

Supplemental disclosures of cash flow information:

 

 

 

 

Cash paid during the year for income taxes

 

$

58,151

 

 

$

61,131

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

 

Property, plant and equipment acquired through increase in liabilities

 

$

6,283

 

 

$

5,982

 

Repurchases of common stock not settled

 

$

8,114

 

 

$

 

COLUMBIA SPORTSWEAR COMPANY

Reconciliation of GAAP to Non-GAAP Financial Measures

Net Sales Growth - Constant-currency Basis

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Reported

Net Sales

 

Adjust for Foreign Currency

 

Constant-currency

Net Sales

 

Reported

Net Sales

 

Reported

Net Sales

 

Constant-currency

Net Sales

(In millions, except percentage changes)

 

 

2024

 

Translation

 

 

2024(1)

 

 

2023

 

% Change

 

% Change(1)

Geographical Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

340.2

 

$

 

$

340.2

 

 

$

399.1

 

(15

)%

 

(15

)%

Latin America and Asia Pacific

 

 

99.5

 

 

5.7

 

 

105.2

 

 

 

93.3

 

7

%

 

13

%

Europe, Middle East and Africa

 

 

103.9

 

 

0.4

 

 

104.3

 

 

 

100.8

 

3

%

 

3

%

Canada

 

 

26.6

 

 

0.1

 

 

26.7

 

 

 

27.7

 

(4

)%

 

(4

)%

Total

 

$

570.2

 

$

6.2

 

$

576.4

 

 

$

620.9

 

(8

)%

 

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Columbia

 

$

508.6

 

$

5.9

 

$

514.5

 

 

$

537.0

 

(5

)%

 

(4

)%

SOREL

 

 

21.0

 

 

0.1

 

 

21.1

 

 

 

37.8

 

(44

)%

 

(44

)%

prAna

 

 

21.8

 

 

 

 

21.8

 

 

 

27.6

 

(21

)%

 

(21

)%

Mountain Hardwear

 

 

18.8

 

 

0.2

 

 

19.0

 

 

 

18.5

 

2

%

 

3

%

Total

 

$

570.2

 

$

6.2

 

$

576.4

 

 

$

620.9

 

(8

)%

 

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Category Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Apparel, Accessories and Equipment

 

$

464.0

 

$

4.3

 

$

468.3

 

 

$

488.9

 

(5

)%

 

(4

)%

Footwear

 

 

106.2

 

 

1.9

 

 

108.1

 

 

 

132.0

 

(20

)%

 

(18

)%

Total

 

$

570.2

 

$

6.2

 

$

576.4

 

 

$

620.9

 

(8

)%

 

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Channel Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

278.4

 

$

2.2

 

$

280.6

 

 

$

328.3

 

(15

)%

 

(15

)%

DTC

 

 

291.8

 

 

4.0

 

 

295.8

 

 

 

292.6

 

%

 

1

%

Total

 

$

570.2

 

$

6.2

 

$

576.4

 

 

$

620.9

 

(8

)%

 

(7

)%

(1) Constant-currency net sales is a non-GAAP financial measure. See “Supplemental Financial Information” above for further information.

COLUMBIA SPORTSWEAR COMPANY

Reconciliation of GAAP to Non-GAAP Financial Measures

Net Sales Growth - Constant-currency Basis

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

Reported

Net Sales

 

Adjust for Foreign Currency

 

Constant-currency

Net Sales

 

Reported

Net Sales

 

Reported

Net Sales

 

Constant-currency

Net Sales

(In millions, except percentage changes)

 

 

2024

 

Translation

 

 

2024(1)

 

 

2023

 

% Change

 

% Change(1)

Geographical Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

814.6

 

$

 

 

$

814.6

 

 

$

916.6

 

(11

)%

 

(11

)%

Latin America and Asia Pacific

 

 

238.2

 

 

12.3

 

 

 

250.5

 

 

 

229.7

 

4

%

 

9

%

Europe, Middle East and Africa

 

 

208.4

 

 

(1.8

)

 

 

206.6

 

 

 

209.1

 

%

 

(1

)%

Canada

 

 

79.0

 

 

(0.3

)

 

 

78.7

 

 

 

86.1

 

(8

)%

 

(9

)%

Total

 

$

1,340.2

 

$

10.2

 

 

$

1,350.4

 

 

$

1,441.5

 

(7

)%

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Columbia

 

$

1,172.5

 

$

9.9

 

 

$

1,182.4

 

 

$

1,239.8

 

(5

)%

 

(5

)%

SOREL

 

 

66.7

 

 

 

 

 

66.7

 

 

 

98.3

 

(32

)%

 

(32

)%

prAna

 

 

53.1

 

 

 

 

 

53.1

 

 

 

60.1

 

(12

)%

 

(12

)%

Mountain Hardwear

 

 

47.9

 

 

0.3

 

 

 

48.2

 

 

 

43.3

 

11

%

 

11

%

Total

 

$

1,340.2

 

$

10.2

 

 

$

1,350.4

 

 

$

1,441.5

 

(7

)%

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Category Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Apparel, Accessories and Equipment

 

$

1,083.0

 

$

7.6

 

 

$

1,090.6

 

 

$

1,121.5

 

(3

)%

 

(3

)%

Footwear

 

 

257.2

 

 

2.6

 

 

 

259.8

 

 

 

320.0

 

(20

)%

 

(19

)%

Total

 

$

1,340.2

 

$

10.2

 

 

$

1,350.4

 

 

$

1,441.5

 

(7

)%

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Channel Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

669.3

 

$

3.3

 

 

$

672.6

 

 

$

780.8

 

(14

)%

 

(14

)%

DTC

 

 

670.9

 

 

6.9

 

 

 

677.8

 

 

 

660.7

 

2

%

 

3

%

Total

 

$

1,340.2

 

$

10.2

 

 

$

1,350.4

 

 

$

1,441.5

 

(7

)%

 

(6

)%

(1) Constant-currency net sales is a non-GAAP financial measure. See “Supplemental Financial Information” above for further information.

 

Andrew Burns, CFA

Vice President of Investor Relations and Strategic Planning

Columbia Sportswear Company

(503) 985-4112

aburns@columbia.com

Source: Columbia Sportswear Company

FAQ

What were Columbia Sportswear's (COLM) key financial results for Q2 2024?

Columbia Sportswear reported net sales of $570.2 million, an 8% decrease from Q2 2023. The company experienced a loss from operations of $23.8 million and a net loss per share of $(0.20).

How did Columbia Sportswear's (COLM) inventory levels change in Q2 2024?

Columbia Sportswear significantly reduced its inventory levels, reporting $823.6 million in inventories at the end of Q2 2024, which represents a 29% decrease compared to June 30, 2023.

What is Columbia Sportswear's (COLM) cash position as of Q2 2024?

Columbia Sportswear ended Q2 2024 with a strong cash position of $711.1 million in cash, cash equivalents and short-term investments, with no borrowings.

Has Columbia Sportswear (COLM) updated its financial outlook for 2024?

Yes, Columbia Sportswear has updated its full year 2024 financial outlook in light of the Q2 2024 results, although specific details of the updated outlook were not provided in the given information.

Columbia Sportswear Co

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