US' Columbia Sportswear Company's sales rise 3% in Q4 2024

The gross profit rose to $560.5 million from $536.2 million in Q4 2023 and gross margin expanded by 50 basis points (bps) to 51.1 per cent of net sales from 50.6 per cent of net sales for the comparable period in 2023, Columbia Sportswear said in a press release.

Meanwhile, the net income increased 10 per cent to $102.6 million, or $1.80 per diluted share, compared to net income of $93.3 million, or $1.55 per diluted share, for the comparable period in 2023. The cost of sales stood at $536.0 million, compared to $523.8 million in the same period prior year.

The operating income of the company increased by 21 per cent to $137.3 million, or 12.5 per cent of net sales. Selling, general, and administrative (SG&A) expenses were $430.6 million, or 39.3 per cent of net sales, compared to $404.8 million, or 38.2 per cent of net sales, for the comparable period in 2023.

There was no impairment of goodwill in fourth quarter 2024, compared to a $25.0 million charge related to prAna for the comparable period in 2023, which negatively impacted diluted earnings per share by $0.31.

“I am 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,” said Tim Boyle, chairman, president and chief executive officer (CEO) at Columbia Sportswear. “While we have made substantial progress slowing our rate of SG&A expense growth, we are continuing to pursue cost savings and enhanced profitability.”

Full year 2024 financial

For the full-year 2024, the company recorded a decrease in net sales of 3 per cent (3 per cent constant-currency) to $3,368.6 million from $3,487.2 million in full year 2023. The gross profit for the full year declined to $1,691.1 million from $1,729.9 million, and gross margin increased to 50.2 per cent from 49.6 per cent in the previous year.

Operating income decreased 13 per cent to $270.7 million, or 8.0 per cent of net sales, compared to operating income of $310.3 million, or 8.9 per cent of net sales, for the comparable period in 2023, and the cost of sales decreased to $1,677.5 million from $1,757.3 million in 2023.

The diluted earnings per share (EPS) decreased 7 per cent to $3.82, compared to 2023 diluted earnings per share of $4.09. SG&A expenses were $1,443.9 million, or 42.9 per cent of net sales, compared to $1,416.3 million, or 40.6 per cent of net sales, for the comparable period in 2023.

The net income decreased 11 per cent to $223.3 million, or $3.82 per diluted share, compared to net income of $251.4 million, or $4.09 per diluted share, for the comparable period in 2023. The interest income, net was $27.7 million, compared to $13.7 million in 2023.

Outlook

For the full year 2025, the company expects net sales in the range of $3.40-$3.47 billion, representing net sales growth of 1.0-3.0 per cent compared to 2024, and operating margin of 7.7 to 8.3 per cent. It also expects diluted earnings per share of $3.80 to $4.15.

Fibre2Fashion News Desk (SG)