During the quarter, net profit for Columbia Sportswear fell to $93.3m from $125.7m while operating income fell to $113.1m from $155.4m year-on-year and net sales came in at $1.1bn from $1.17bn a year earlier.
For the full year, net income sank to $251.4m from $311.4m. Operating income stood at $310.3m compared to $393m. But net sales rose marginally during the period to $3.49bn from $3.46bn.
Chairman, president and CEO Tim Boyle attributed the challenges to a difficult US marketplace and a warm winter, both of which weighed on fourth-quarter performance.
Columbia Sportswear outlook for 2024
“Looking ahead, we expect 2024 to be a challenging year. Retailers are placing orders cautiously, and economic and geopolitical uncertainty remains high. We are working diligently to maximise sales in this environment, while optimising our product, brand marketing and marketplace strategies to accelerate growth in 2025 and beyond. To mitigate erosion in profitability and to improve the efficiency of our operations, we are implementing a multi-year profit improvement programme targeting $125m to $150m in annual savings by 2026."
“I’m confident in our team, our strategies, and our ability to unlock the significant long-term growth opportunities we see across the business.”
- Columbia Sportswear says it is expecting a net sales decline of 4.0% to 2.0% compared to 2023 with net sales coming in at $3.35bn to $3.42bn.
- It is expecting an operating income of $256m to $288m, representing operating margin of 7.6% to 8.4%.
- Diluted earnings per share are expected to be between $3.45 to $3.85.
Boyle said: “Columbia is committed to investing in its 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, omnichannel, global distribution; and; empower talent that is driven by our core values, through a diverse and inclusive workforce."
