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Columbia Sportswear reported a 3% increase in Q4 net sales, reaching $1.09bn, up from $1.06, in the same period of the previous year. This reflected a higher proportion of Fall ’24 orders shipping.
The growth was primarily driven by strong performance in the Europe, Middle East and Africa (EMEA) and Latin America, Asia Pacific (LAAP) regions, although gains were partially offset by a decline in the US market, with Canada's figures remaining constant.
The apparel, accessories and equipment category saw Q4 net sales grow 6% to $869m while footwear witnessed 4% drop to $228m.
Key metrics from Columbia Sportswear Q4 FY24
Columbia Sportwear recorded net income of $102.6m, an increase of 10% from $93.3m in the prior year quarter.
The company’s earnings per diluted share for the quarter was $1.80 against $1.55 per diluted share recorded during the comparable period in fiscal 2023.
Its operating income saw a significant uptick of 21% to $137.3m, representing 12.5% of net sales, compared to the operating income of $113.1m or 10.7% of net sales reported in Q4 FY23.
Gross margin improved by 50 basis points (bps) to 51.1% of net sales in Q4 FY24 from 50.6% in Q4 FY23. This expansion is attributed mainly to reduced inventory clearance activities, though it was somewhat countered by less favourable foreign exchange hedging rates.
Its selling, general and administrative (SG&A) expenses increased to $430.6m over the quarter from $404.8m year-over-year, with significant changes including heightened incentive compensation and direct-to-consumer expenses, which were partly balanced by decreased supply chain costs.
Columbia’s full-year 2024 performance
The retailer reported a decrease in net sales to $3.36bn down from $3.48bn in FY23.
Net income also declined by 11% to $223.3m or $3.82 per diluted share compared to net income of $251.4m or $4.09 per diluted share for fiscal 2023.
The company's gross margin for FY24 experienced an expansion of 60 basis points to 50.2% from 49.6% in FY23, while operating income fell by 13% to $270.7m or 8% of net sales.
SG&A expenses of Columbia Sportswear for FY24 amounted to $1.44bn, accounting for 42.9% of net sales.
Columbia Sportswear chairman president and chief executive officer Tim Boyle said: “I’m encouraged that sales returned to growth in the fourth quarter, and we expect continued growth in 2025, across most brands and regions.
“During the year we made substantial progress on our inventory reduction efforts, achieved cost savings through our Profit Improvement Program, and returned meaningful cash to shareholders through share buybacks and dividends. We also laid the foundation for Columbia’s ACCELERATE Growth Strategy, which will come to life in the seasons ahead.”