In This Article:
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Net Sales: Decreased 3% to $3.4 billion for 2024.
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Fourth-Quarter Net Sales: Increased 3% year over year to $1.1 billion.
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Gross Margin: Expanded 50 basis points to 51.1% in the fourth quarter.
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SG&A Expenses: Increased 6% in the fourth quarter.
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Share Repurchases: $318 million returned to shareholders.
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Dividends Paid: Approximately $70 million.
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Cash and Equivalents: $815 million with no debt at year-end.
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Fourth-Quarter US Net Sales: Decreased 1%.
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China Net Sales: Increased mid-teens percent in the fourth quarter.
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Japan Net Sales: Increased mid-single digit percent in the fourth quarter.
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Korea Net Sales: Decreased mid-single digit percent in the fourth quarter.
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EMEA Net Sales: Increased 21% in the fourth quarter.
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Columbia Brand Net Sales: Increased 6% in the fourth quarter.
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Mountain Hard Wear Net Sales: Increased 5% in the fourth quarter.
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prAna Net Sales: Decreased 2% in the fourth quarter.
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SOREL Net Sales: Decreased 16% in the fourth quarter.
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2025 Net Sales Growth Outlook: Expected growth of 1% to 3%.
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2025 Gross Margin Outlook: Expected to expand 80 basis points to approximately 51%.
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2025 Operating Margin Outlook: Expected to be 7.7% to 8.3%.
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2025 Diluted Earnings Per Share Outlook: Expected to be in the range of $3.80 to $4.15.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Columbia Sportswear Co (NASDAQ:COLM) achieved a 3% increase in fourth-quarter net sales, reaching $1.1 billion, driven by a 7% increase in wholesale net sales.
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The company successfully reduced inventories by 7%, contributing to a healthier inventory position and supporting gross margin expansion.
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Columbia Sportswear Co (NASDAQ:COLM) returned $318 million to shareholders through share repurchases and paid approximately $70 million in dividends.
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The ACCELERATE Growth Strategy is showing positive momentum, with plans to elevate the brand and attract younger consumers through refreshed marketing and product innovation.
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International markets, particularly China and Europe, are experiencing strong growth, with China net sales increasing by mid-teens percent and Europe direct net sales growing by high-teens percent.
Negative Points
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Overall 2024 net sales decreased by 3% to $3.4 billion, reflecting challenging market conditions in North America.
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Operating margin contracted due to net sales decline and ongoing cost pressures, leading to a decline in earnings.
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The SOREL brand experienced a 16% decrease in net sales, driven by lower wholesale and direct-to-consumer sales.
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The US direct-to-consumer net sales declined by low single-digit percent, with lower e-commerce sales partially offset by modest brick-and-mortar growth.
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SG&A expenses increased by 6%, primarily due to higher incentive compensation and direct-to-consumer expenses, contributing to operating margin pressure.