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

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Columbia Sportswear reported declining performance in Q3 2024, with net sales decreasing 5% to $931.8 million. Operating income fell to $112.5 million (12.1% of net sales) from $134.6 million (13.7%) in Q3 2023. Diluted earnings per share decreased to $1.56 from $1.70 year-over-year. The company maintained strong liquidity with $373.9 million in cash and equivalents, while completing $230.9 million in share repurchases. The Board approved a $600 million increase to share repurchase authorization and announced the ACCELERATE Growth Strategy for the Columbia brand.

Columbia Sportswear ha riportato una performance in calo nel terzo trimestre del 2024, con vendite nette diminuite del 5% a 931,8 milioni di dollari. L'utile operativo è sceso a 112,5 milioni di dollari (12,1% delle vendite nette) rispetto ai 134,6 milioni di dollari (13,7%) del terzo trimestre del 2023. Gli utili per azione diluiti sono diminuiti a 1,56 dollari rispetto a 1,70 dollari rispetto all'anno precedente. L'azienda ha mantenuto una forte liquidità con 373,9 milioni di dollari in contante e equivalenti, completando riacquisti di azioni per 230,9 milioni di dollari. Il Consiglio ha approvato un aumento di 600 milioni di dollari dell'autorizzazione per il riacquisto di azioni e ha annunciato la Strategia di Crescita ACCELERATE per il marchio Columbia.

Columbia Sportswear informó sobre un rendimiento decreciente en el tercer trimestre de 2024, con ventas netas disminuyendo un 5% a 931,8 millones de dólares. El ingreso operativo cayó a 112,5 millones de dólares (12,1% de las ventas netas) desde 134,6 millones de dólares (13,7%) en el tercer trimestre de 2023. Las ganancias diluidas por acción disminuyeron a 1,56 dólares desde 1,70 dólares en comparación con el año anterior. La empresa mantuvo una sólida liquidez con 373,9 millones de dólares en efectivo y equivalentes, mientras completaba 230,9 millones de dólares en recompras de acciones. La Junta aprobó un aumento de 600 millones de dólares en la autorización de recompra de acciones y anunció la Estrategia de Crecimiento ACCELERATE para la marca Columbia.

콜롬비아 스포츠웨어는 2024년 3분기에 실적이 감소했다고 보고했으며, 순매출이 5% 감소하여 9억 3천 1백 80만 달러에 이르렀습니다. 운영 수익은 1억 1천 2백 50만 달러(순매출의 12.1%)로 감소했으며, 2023년 3분기에는 1억 3천 4백 60만 달러(13.7%)였습니다. 희석 주당 순익은 전년 대비 1.56 달러로 감소하였고, 이전에는 1.70 달러였습니다. 회사는 3억 7천 3백 90만 달러의 현금 및 현금성 자산을 보유하며 강력한 유동성을 유지하였고, 2억 3천 9백만 달러의 자사주 매입을 완료했습니다. 이사회는 자사주 매입 허가를 6억 달러 증가시키는 것을 승인하고 콜롬비아 브랜드를 위한 ACCELERATE 성장 전략을 발표했습니다.

Columbia Sportswear a signalé une performance en baisse au troisième trimestre de 2024, avec des ventes nettes diminuant de 5 % pour atteindre 931,8 millions de dollars. Le résultat opérationnel a chuté à 112,5 millions de dollars (12,1 % des ventes nettes) contre 134,6 millions de dollars (13,7 %) au troisième trimestre 2023. Le résultat net par action diluée a baissé à 1,56 dollar contre 1,70 dollar d'une année sur l'autre. L'entreprise a maintenu une forte liquidité avec 373,9 millions de dollars en espèces et équivalents, tout en complétant des rachats d'actions de 230,9 millions de dollars. Le conseil d'administration a approuvé une augmentation de 600 millions de dollars de l'autorisation de rachat d'actions et a annoncé la stratégie de croissance ACCELERATE pour la marque Columbia.

Columbia Sportswear berichtete von einem Rückgang der Leistung im dritten Quartal 2024, wobei die Nettoumsätze um 5 % auf 931,8 Millionen Dollar sanken. Das Betriebsergebnis fiel auf 112,5 Millionen Dollar (12,1 % des Nettoumsatzes) im Vergleich zu 134,6 Millionen Dollar (13,7 %) im dritten Quartal 2023. Der verwässerte Gewinn pro Aktie ging auf 1,56 Dollar von 1,70 Dollar im Vorjahresvergleich zurück. Das Unternehmen hielt eine starke Liquidität mit 373,9 Millionen Dollar in Bargeld und Äquivalenten und schloss 230,9 Millionen Dollar in Aktienrückkäufen ab. Der Vorstand genehmigte eine Erhöhung der Aktienrückkaufgenehmigung um 600 Millionen Dollar und gab die ACCELERATE-Wachstumsstrategie für die Marke Columbia bekannt.

Positive
  • Strong liquidity position with $373.9 million in cash and no borrowings
  • $600 million increase in share repurchase authorization
  • Completed $230.9 million in share repurchases year-to-date
Negative
  • Net sales declined 5% to $931.8 million
  • Operating income decreased to $112.5 million from $134.6 million
  • Operating margin dropped to 12.1% from 13.7%
  • Diluted EPS fell to $1.56 from $1.70

Insights

Columbia Sportswear's Q3 results reveal concerning trends with $931.8 million in net sales, marking a 5% decline year-over-year. The operating margin compression from 13.7% to 12.1% signals mounting pressure on profitability. The $600 million share repurchase authorization boost, while substantial, appears to be a strategic move to support shareholder value amid challenging business conditions.

Key metrics paint a mixed picture:

  • EPS declined to $1.56 from $1.70
  • Strong balance sheet with $373.9 million cash position and zero debt
  • Significant share buybacks of $230.9 million year-to-date
The newly announced ACCELERATE Growth Strategy for the Columbia brand suggests management recognizes the need for strategic repositioning to combat market headwinds.

Third Quarter 2024 Highlights

  • Net sales decreased 5 percent (5 percent constant-currency) to $931.8 million, compared to third quarter 2023.
  • Operating income was $112.5 million, or 12.1 percent of net sales, compared to third quarter 2023 operating income of $134.6 million, or 13.7 percent of net sales.
  • Diluted earnings per share of $1.56, compared to third quarter 2023 diluted earnings per share of $1.70.
  • Exited the quarter with $373.9 million of cash, cash equivalents and short-term investments and no borrowings.
  • Repurchased $230.9 million of common stock during the first nine months of 2024. On October 24, 2024, the Board of Directors approved a $600 million increase to the Company's share repurchase authorization.
  • Announces the ACCELERATE Growth Strategy, intended to elevate the Columbia brand.

Full Year 2024 Financial Outlook

The following forward-looking statements reflect our expectations as of October 30, 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 $3.31 to $3.38 billion (prior $3.35 to $3.42 billion), representing a net sales decline of 5.0 to 3.0 percent (prior 4.0 to 2.0 percent) compared to 2023.
  • Operating income of $257 to $284 million (prior $256 to $288 million), representing operating margin of 7.7 to 8.4 percent (unchanged).
  • Diluted earnings per share of $3.70 to $4.05 (prior $3.65 to $4.05).

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 third quarter 2024 financial results for the period ended September 30, 2024.

Chairman, President and Chief Executive Officer Tim Boyle commented, “Third quarter results reflect ongoing strength in most international markets, offset by continued softness in North America. While warm weather has curbed early season demand for Fall 2024 cold weather product, I’m excited about the differentiated innovations we are offering consumers, including Omni-Heat Infinity and Omni-Heat Arctic, as well as the lightweight comfort provided by our Omni-Max footwear platform.

“In recent months, the Columbia brand embarked on ACCELERATE, a growth strategy intended to elevate the brand and attract younger and more active consumers. This multi-year strategy will be centered around several consumer-centric shifts across our brand, product and marketplace strategies. I’m confident the ACCELERATE Growth Strategy will enable brand-right profitable growth and I’m eager to see it come to life in the seasons ahead.

“Our financial position remains strong, with cash and short-term investments of over $370 million and no bank borrowings exiting the quarter. We are committed to investing in our strategic priorities with renewed emphasis 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 third 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.

ACCELERATE Growth Strategy

ACCELERATE is a growth strategy intended to elevate the Columbia brand to attract younger and more active consumers. It is a multi-year effort centered around several consumer-centric shifts to our brand, product and marketplace strategies, as well as enhanced ways of working. For more information on the ACCELERATE Growth Strategy, please refer to the CFO Commentary and Financial Review presentation.

Third Quarter 2024 Financial Results

(All comparisons are between third quarter 2024 and third quarter 2023, unless otherwise noted.)

Net sales decreased 5 percent (5 percent constant-currency) to $931.8 million from $985.7 million for the comparable period in 2023. The decline in net sales reflects lower Fall '24 wholesale orders, as well as weak consumer demand in the U.S. partially attributable to warm weather and outdoor category headwinds.

Gross margin expanded 150 basis points to 50.2 percent of net sales from 48.7 percent of net sales for the comparable period in 2023. Gross margin expansion primarily reflects lower inbound freight costs and favorable channel and region net sales mix, partially offset by unfavorable FX hedging rates.

SG&A expenses were $361.2 million, or 38.8 percent of net sales, compared to $351.6 million, or 35.7 percent of net sales, for the comparable period in 2023. The largest changes in SG&A expenses were higher direct-to-consumer ("DTC") and incentive compensation expenses, partially offset by lower supply chain and demand creation expenses.

Operating income was $112.5 million, or 12.1 percent of net sales, compared to operating income of $134.6 million, or 13.7 percent of net sales, for the comparable period in 2023.

Interest income, net of $5.4 million, compared to $1.9 million for the comparable period in 2023, reflects higher yields on increased levels of cash, cash equivalents, and investments.

Income tax expense of $29.0 million resulted in an effective income tax rate of 24.4 percent, compared to income tax expense of $32.6 million, or an effective income tax rate of 24.0 percent, for the comparable period in 2023.

Net income was $90.2 million, or $1.56 per diluted share, compared to net income of $103.5 million, or $1.70 per diluted share, for the comparable period in 2023.

First Nine Months 2024 Financial Results

(All comparisons are between the first nine months 2024 and the first nine months 2023, unless otherwise noted.)

Net sales decreased 6 percent (6 percent constant-currency) to $2,272.0 million from $2,427.2 million for the comparable period in 2023.

Gross margin expanded 60 basis points to 49.8 percent of net sales from 49.2 percent of net sales for the comparable period in 2023.

SG&A expenses were $1,013.3 million, or 44.6 percent of net sales, compared to $1,011.5 million, or 41.7 percent of net sales, for the comparable period in 2023.

Operating income was $133.4 million, or 5.9 percent of net sales, compared to operating income of $197.2 million, or 8.1 percent of net sales, for the comparable period in 2023.

Interest income, net was $22.9 million, compared to $8.6 million for the comparable period in 2023.

Income tax expense of $37.6 million resulted in an effective income tax rate of 23.8 percent, compared to income tax expense of $48.1 million, or an effective income tax rate of 23.4 percent, for the comparable period in 2023.

Net income was $120.7 million, or $2.04 per diluted share, compared to net income of $158.1 million, or $2.56 per diluted share, for the comparable period in 2023.

Balance Sheet as of September 30, 2024

Cash, cash equivalents, and short-term investments totaled $373.9 million, compared to $214.8 million as of September 30, 2023.

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

Inventories decreased 10 percent to $798.2 million, compared to $885.2 million as of September 30, 2023.

Cash Flow for the Nine Months Ended September 30, 2024

Net cash used in operating activities was $76.6 million, compared to net cash provided from operating activities of $22.2 million for the same period in 2023.

Capital expenditures totaled $41.7 million, compared to $41.4 million for the same period in 2023.

Share Repurchases for the Nine Months Ended September 30, 2024

The Company repurchased 2,916,970 shares of common stock for an aggregate of $230.9 million, or an average price per share of $79.15.

At September 30, 2024, $114.5 million remained available under our stock repurchase authorization. On October 24, 2024, the Board of Directors authorized a $600 million increase to the Company's share 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 December 4, 2024 to shareholders of record on November 20, 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 and fourth quarter 2024 Financial Outlooks, as well as first half 2025 commentary, are each forward-looking in nature, and the following forward-looking statements reflect our expectations as of October 30, 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 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.

Gross margin is expected to expand 40 to 90 basis points (prior 40 to 60 basis points) to 50.0 to 50.5 percent of net sales (prior 50.0 to 50.2 percent) from 49.6 percent of net sales 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.

Interest income, net is expected to be approximately $30 million (prior $28 million).

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

Net income is expected to be $217 to $238 million (prior $215 to $239 million), resulting in diluted earnings per share of $3.70 to $4.05 (prior $3.65 to $4.05). This diluted earnings per share range is based on estimated weighted average diluted shares outstanding of approximately 58.7 million (prior 59.3 million).

Foreign Currency

  • 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.

Cash Flows

Operating cash flow is expected to be at least $300 million (prior $350 million).

Capital expenditures are planned to be in the range of $60 to $70 million (prior $60 to $80 million).

Fourth Quarter 2024 Financial 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.

Preliminary First Half 2025 Commentary

  • 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.

Conference Call

The Company will hold its third 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.

Fourth Quarter 2024 Reporting Date

The Company plans to report fourth quarter 2024 financial results on Tuesday, February 4, 2025 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, and fourth quarter 2024 net sales, operating income, and diluted earnings per share, as well as first half 2025 commentary. 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 our ACCELERATE Growth Strategy; 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)

 

September 30,
2024

 

September 30,
2023

ASSETS

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

306,680

 

$

213,282

Short-term investments

 

 

67,244

 

 

1,474

Accounts receivable, net

 

 

581,738

 

 

686,821

Inventories

 

 

798,153

 

 

885,163

Prepaid expenses and other current assets

 

 

72,443

 

 

96,016

Total current assets

 

 

1,826,258

 

 

1,882,756

Property, plant and equipment, net

 

 

284,963

 

 

283,095

Operating lease right-of-use assets

 

 

370,844

 

 

339,538

Intangible assets, net

 

 

79,221

 

 

80,321

Goodwill

 

 

26,694

 

 

51,694

Deferred income taxes

 

 

103,757

 

 

89,801

Other non-current assets

 

 

69,003

 

 

71,738

Total assets

 

$

2,760,740

 

$

2,798,943

LIABILITIES AND EQUITY

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

$

221,714

 

 

162,222

Accrued liabilities

 

 

266,161

 

 

283,799

Operating lease liabilities

 

 

72,968

 

 

72,685

Income taxes payable

 

 

6,097

 

 

7,254

Total current liabilities

 

 

566,940

 

 

525,960

Non-current operating lease liabilities

 

 

348,786

 

 

323,508

Income taxes payable

 

 

14,607

 

 

24,218

Deferred income taxes

 

 

67

 

 

Other long-term liabilities

 

 

42,868

 

 

29,946

Total liabilities

 

 

973,268

 

 

903,632

Total shareholders' equity

 

 

1,787,472

 

 

1,895,311

Total liabilities and shareholders' equity

 

$

2,760,740

 

$

2,798,943

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(In thousands, except per share amounts)

 

2024

 

2023

 

2024

 

2023

Net sales

 

$

931,768

 

 

$

985,683

 

 

$

2,271,994

 

 

$

2,427,209

 

Cost of sales

 

 

464,209

 

 

 

505,486

 

 

 

1,141,457

 

 

 

1,233,467

 

Gross profit

 

 

467,559

 

 

 

480,197

 

 

 

1,130,537

 

 

 

1,193,742

 

Gross margin

 

 

50.2

%

 

 

48.7

%

 

 

49.8

%

 

 

49.2

%

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

361,243

 

 

 

351,563

 

 

 

1,013,262

 

 

 

1,011,490

 

Net licensing income

 

 

6,225

 

 

 

5,920

 

 

 

16,145

 

 

 

14,958

 

Operating income

 

 

112,541

 

 

 

134,554

 

 

 

133,420

 

 

 

197,210

 

Interest income, net

 

 

5,364

 

 

 

1,870

 

 

 

22,905

 

 

 

8,659

 

Other non-operating income, net

 

 

1,283

 

 

 

(311

)

 

 

2,030

 

 

 

354

 

Income before income tax

 

 

119,188

 

 

 

136,113

 

 

 

158,355

 

 

 

206,223

 

Income tax expense

 

 

29,031

 

 

 

32,605

 

 

 

37,639

 

 

 

48,163

 

Net income

 

$

90,157

 

 

$

103,508

 

 

$

120,716

 

 

$

158,060

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

1.56

 

 

$

1.70

 

 

$

2.05

 

 

$

2.57

 

Diluted

 

$

1.56

 

 

$

1.70

 

 

$

2.04

 

 

$

2.56

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

57,785

 

 

 

60,844

 

 

 

58,896

 

 

 

61,575

 

Diluted

 

 

57,936

 

 

 

60,932

 

 

 

59,043

 

 

 

61,775

 

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended September 30,

(in thousands)

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

Net income

 

$

120,716

 

 

$

158,060

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation and amortization

 

 

42,187

 

 

 

42,290

 

Non-cash lease expense

 

 

56,903

 

 

 

51,075

 

Provision for uncollectible accounts receivable

 

 

3,183

 

 

 

2,010

 

Deferred income taxes

 

 

2,180

 

 

 

4,236

 

Stock-based compensation

 

 

18,478

 

 

 

17,026

 

Other, net

 

 

(11,278

)

 

 

568

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(162,252

)

 

 

(146,139

)

Inventories

 

 

(50,336

)

 

 

135,417

 

Prepaid expenses and other current assets

 

 

5,008

 

 

 

26,809

 

Other assets

 

 

(195

)

 

 

(3,106

)

Accounts payable

 

 

(17,044

)

 

 

(152,168

)

Accrued liabilities

 

 

(7,823

)

 

 

(42,251

)

Income taxes payable

 

 

(22,439

)

 

 

(20,434

)

Operating lease assets and liabilities

 

 

(56,557

)

 

 

(49,322

)

Other liabilities

 

 

2,661

 

 

 

(1,897

)

Net cash provided by (used in) operating activities

 

 

(76,608

)

 

 

22,174

 

Cash flows from investing activities:

 

 

 

 

Purchases of short-term investments

 

 

(388,348

)

 

 

(117,877

)

Sales and maturities of short-term investments

 

 

751,232

 

 

 

120,747

 

Capital expenditures

 

 

(41,736

)

 

 

(41,355

)

Net cash provided by (used in) investing activities

 

 

321,148

 

 

 

(38,485

)

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

 

 

3,955

 

 

 

7,081

 

Tax payments related to stock-based compensation

 

 

(4,806

)

 

 

(4,620

)

Repurchase of common stock

 

 

(230,864

)

 

 

(144,633

)

Cash dividends paid

 

 

(52,860

)

 

 

(55,379

)

Net cash used in financing activities

 

 

(284,575

)

 

 

(197,551

)

Net effect of exchange rate changes on cash

 

 

(3,604

)

 

 

(3,097

)

Net decrease in cash and cash equivalents

 

 

(43,639

)

 

 

(216,959

)

Cash and cash equivalents, beginning of period

 

 

350,319

 

 

 

430,241

 

Cash and cash equivalents, end of period

 

$

306,680

 

 

$

213,282

 

Supplemental disclosures of cash flow information:

 

 

 

 

Cash paid during the year for income taxes

 

$

63,650

 

 

$

66,580

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

 

Property, plant and equipment acquired through increase in liabilities

 

$

12,224

 

 

$

5,389

 

COLUMBIA SPORTSWEAR COMPANY

Reconciliation of GAAP to Non-GAAP Financial Measures

Net Sales Growth - Constant-currency Basis

(Unaudited)

 

 

 

Three Months Ended September 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

 

$

571.3

 

$

 

$

571.3

 

 

$

635.4

 

(10

)%

 

(10

)%

Latin America and Asia Pacific

 

 

135.0

 

 

1.7

 

 

136.7

 

 

 

115.4

 

17

%

 

18

%

Europe, Middle East and Africa

 

 

141.8

 

 

0.5

 

 

142.3

 

 

 

129.4

 

10

%

 

10

%

Canada

 

 

83.7

 

 

1.9

 

 

85.6

 

 

 

105.5

 

(21

)%

 

(19

)%

Total

 

$

931.8

 

$

4.1

 

$

935.9

 

 

$

985.7

 

(5

)%

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Columbia

 

$

799.7

 

$

3.7

 

$

803.4

 

 

$

804.0

 

(1

)%

 

%

SOREL

 

 

73.9

 

 

0.2

 

 

74.1

 

 

 

122.1

 

(39

)%

 

(39

)%

prAna

 

 

28.6

 

 

 

 

28.6

 

 

 

30.7

 

(7

)%

 

(7

)%

Mountain Hardwear

 

 

29.6

 

 

0.2

 

 

29.8

 

 

 

28.9

 

2

%

 

3

%

Total

 

$

931.8

 

$

4.1

 

$

935.9

 

 

$

985.7

 

(5

)%

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Category Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Apparel, Accessories and Equipment

 

$

735.4

 

$

2.9

 

$

738.3

 

 

$

731.7

 

1

%

 

1

%

Footwear

 

 

196.4

 

 

1.2

 

 

197.6

 

 

 

254.0

 

(23

)%

 

(22

)%

Total

 

$

931.8

 

$

4.1

 

$

935.9

 

 

$

985.7

 

(5

)%

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Channel Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

605.2

 

$

2.3

 

$

607.5

 

 

$

664.3

 

(9

)%

 

(9

)%

DTC

 

 

326.6

 

 

1.8

 

 

328.4

 

 

 

321.4

 

2

%

 

2

%

Total

 

$

931.8

 

$

4.1

 

$

935.9

 

 

$

985.7

 

(5

)%

 

(5

)%

(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)

 

 

 

Nine Months Ended September 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

 

$

1,385.9

 

$

 

 

$

1,385.9

 

 

$

1,552.0

 

(11

)%

 

(11

)%

Latin America and Asia Pacific

 

 

373.2

 

 

14.0

 

 

 

387.2

 

 

 

345.1

 

8

%

 

12

%

Europe, Middle East and Africa

 

 

350.2

 

 

(1.3

)

 

 

348.9

 

 

 

338.5

 

3

%

 

3

%

Canada

 

 

162.7

 

 

1.6

 

 

 

164.3

 

 

 

191.6

 

(15

)%

 

(14

)%

Total

 

$

2,272.0

 

$

14.3

 

 

$

2,286.3

 

 

$

2,427.2

 

(6

)%

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Columbia

 

$

1,972.2

 

$

13.6

 

 

$

1,985.8

 

 

$

2,043.8

 

(4

)%

 

(3

)%

SOREL

 

 

140.6

 

 

0.2

 

 

 

140.8

 

 

 

220.4

 

(36

)%

 

(36

)%

prAna

 

 

81.7

 

 

 

 

 

81.7

 

 

 

90.8

 

(10

)%

 

(10

)%

Mountain Hardwear

 

 

77.5

 

 

0.5

 

 

 

78.0

 

 

 

72.2

 

7

%

 

8

%

Total

 

$

2,272.0

 

$

14.3

 

 

$

2,286.3

 

 

$

2,427.2

 

(6

)%

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Category Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Apparel, Accessories and Equipment

 

$

1,818.4

 

$

10.5

 

 

$

1,828.9

 

 

$

1,853.2

 

(2

)%

 

(1

)%

Footwear

 

 

453.6

 

 

3.8

 

 

 

457.4

 

 

 

574.0

 

(21

)%

 

(20

)%

Total

 

$

2,272.0

 

$

14.3

 

 

$

2,286.3

 

 

$

2,427.2

 

(6

)%

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Channel Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

1,274.5

 

$

5.6

 

 

$

1,280.1

 

 

$

1,445.1

 

(12

)%

 

(11

)%

DTC

 

 

997.5

 

 

8.7

 

 

 

1,006.2

 

 

 

982.1

 

2

%

 

2

%

Total

 

$

2,272.0

 

$

14.3

 

 

$

2,286.3

 

 

$

2,427.2

 

(6

)%

 

(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 was Columbia Sportswear's (COLM) Q3 2024 revenue?

Columbia Sportswear reported Q3 2024 net sales of $931.8 million, representing a 5% decrease compared to Q3 2023.

What was COLM's earnings per share in Q3 2024?

Columbia Sportswear reported diluted earnings per share of $1.56 in Q3 2024, down from $1.70 in Q3 2023.

How much cash does Columbia Sportswear (COLM) have in Q3 2024?

Columbia Sportswear ended Q3 2024 with $373.9 million in cash, cash equivalents and short-term investments, with no borrowings.

What is the new share repurchase authorization for COLM in October 2024?

On October 24, 2024, Columbia Sportswear's Board of Directors approved a $600 million increase to the Company's share repurchase authorization.

Columbia Sportswear Co

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