[Q1 2025 Financial Results Overview](index=1&type=section&id=Q1%202025%20Financial%20Results%20Overview) [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Columbia Sportswear reported solid Q1 2025 results with increased net sales and diluted EPS, driven by international growth, while maintaining a strong balance sheet despite tariff uncertainties | Financial Metric | Q1 2025 | Change vs Q1 2024 | | :--- | :--- | :--- | | Net Sales | $778.5 million | +1% (+3% constant-currency) | | Operating Income | $46.5 million | +4% | | Operating Margin | 6.0% | +20 bps | | Diluted EPS | $0.75 | +6% | - The company generated healthy growth in most international markets, with **double-digit growth** in the LAAP region and **high-single-digit constant currency growth** in the EMEA region[4](index=4&type=chunk) - The company ended the quarter with a strong balance sheet, holding **$658.4 million** in cash, cash equivalents, and short-term investments, with no bank borrowings[7](index=7&type=chunk) - The company is committed to its ACCELERATE Growth Strategy, focusing on investments in demand creation to support its new marketing campaign and product assortment for the Fall season[6](index=6&type=chunk)[10](index=10&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) Q1 2025 net sales growth was driven by international regions, offsetting North American declines, while gross margin improved due to lower shipping costs and SG&A expenses slightly increased - Net sales increased **1%** to **$778.5 million**, led by growth in the LAAP and EMEA regions, which was partially offset by declines in Canada and the U.S[11](index=11&type=chunk) - Gross margin expanded by **30 basis points** to **50.9%**, primarily due to lower outbound shipping expenses, higher closeout margins, and favorable Spring 2025 product input costs[12](index=12&type=chunk) - SG&A expenses rose to **$354.5 million** (**45.5% of net sales**) from **$349.3 million** (**45.4% of net sales**) in the prior year, driven by higher DTC and demand creation expenses[13](index=13&type=chunk) - Net income was relatively flat at **$42.2 million**, while diluted EPS increased to **$0.75** from **$0.71**, benefiting from a lower share count[14](index=14&type=chunk) [Balance Sheet and Cash Flow](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company maintained a strong balance sheet with **$658.4 million** in cash and no debt, though net cash used in operating activities shifted to **$32.0 million** for Q1 2025 | Balance Sheet Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, & short-term investments | $658.4 million | $787.7 million | | Inventories | $623.7 million | $607.4 million | | Borrowings | $0 | $0 | - Net cash used in operating activities was **$32.0 million** for the first three months of 2025, compared to net cash provided by operating activities of **$106.8 million** in the same period of 2024[19](index=19&type=chunk) - Capital expenditures totaled **$15.6 million**, a slight increase from **$14.8 million** in the prior year period[20](index=20&type=chunk) [Shareholder Returns](index=5&type=section&id=Shareholder%20Returns) The company returned capital to shareholders through **$101.4 million** in common stock repurchases and a **$0.30** per share quarterly cash dividend - The company repurchased **1,251,784 shares** of common stock for **$101.4 million** at an average price of **$81.03 per share**[21](index=21&type=chunk) - As of March 31, 2025, **$526.1 million** remained available under the stock repurchase authorization[21](index=21&type=chunk) - A quarterly cash dividend of **$0.30 per share** was approved, payable on June 5, 2025[22](index=22&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) [Full Year 2025 Outlook](index=1&type=section&id=Full%20Year%202025%20Outlook) The company withdrew its full-year 2025 financial outlook due to significant macroeconomic uncertainty stemming from global trade policies and potential U.S. tariff increases - The company is withdrawing its full year 2025 financial outlook, which was originally provided on February 4, 2025[2](index=2&type=chunk)[23](index=23&type=chunk) - The withdrawal is a result of macroeconomic uncertainty stemming from global trade policies and ambiguous public policy regarding U.S. tariffs[2](index=2&type=chunk)[5](index=5&type=chunk)[23](index=23&type=chunk) [Second Quarter 2025 Outlook](index=5&type=section&id=Second%20Quarter%202025%20Outlook) For Q2 2025, Columbia Sportswear anticipates net sales between **$575 million** and **$600 million**, representing **1% to 5%** growth compared to the prior year | Q2 2025 Outlook | Value | | :--- | :--- | | Expected Net Sales | $575 to $600 million | | Expected Growth Rate | 1% to 5% | - This outlook is based on U.S. tariff rates in place as of May 1, 2025, and is subject to significant risks and uncertainties[24](index=24&type=chunk) [Performance by Segment (Non-GAAP)](index=11&type=section&id=Performance%20by%20Segment%20(Non-GAAP)) [Geographical, Brand, Category, and Channel Net Sales](index=11&type=section&id=Geographical%2C%20Brand%2C%20Category%2C%20and%20Channel%20Net%20Sales) Q1 2025 constant-currency net sales grew **3%**, primarily driven by strong performance in the LAAP and EMEA regions and the Columbia brand, while other brands and categories saw declines | Geographical Net Sales | Reported % Change | Constant-Currency % Change | | :--- | :--- | :--- | | United States | (1)% | (1)% | | Latin America and Asia Pacific | 10% | 14% | | Europe, Middle East and Africa | 3% | 7% | | Canada | (9)% | (2)% | | Brand Net Sales | Reported % Change | Constant-Currency % Change | | :--- | :--- | :--- | | Columbia | 3% | 5% | | SOREL | (8)% | (6)% | | prAna | (10)% | (10)% | | Mountain Hardwear | (14)% | (13)% | | Category & Channel Net Sales | Reported % Change | Constant-Currency % Change | | :--- | :--- | :--- | | **Product Category** | | | | Apparel, Accessories & Equipment | 2% | 3% | | Footwear | (1)% | 1% | | **Channel** | | | | Wholesale | 2% | 4% | | DTC | —% | 2% | [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to **$2.71 billion**, while total liabilities increased to **$997.6 million**, leading to a decrease in total shareholders' equity | (in thousands) | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,741,336 | $1,846,218 | | **Total assets** | **$2,707,415** | **$2,762,231** | | Total current liabilities | $558,783 | $447,306 | | **Total liabilities** | **$997,648** | **$852,788** | | **Total shareholders' equity** | **$1,709,767** | **$1,909,443** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, net sales reached **$778.5 million**, with operating income of **$46.5 million** and diluted EPS increasing to **$0.75** despite a slight decrease in net income | (In thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $778,452 | $769,982 | | Gross profit | $396,057 | $389,559 | | Operating income | $46,508 | $44,681 | | **Net income** | **$42,248** | **$42,300** | | **Diluted EPS** | **$0.75** | **$0.71** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, the company reported net cash used in operating activities of **$32.0 million**, with significant cash outflows from investing and financing activities, including **$101.4 million** in stock repurchases | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(32,038) | $106,773 | | Net cash provided by (used in) investing activities | $(61,431) | $37,109 | | Net cash used in financing activities | $(118,649) | $(71,343) | | **Cash and cash equivalents, end of period** | **$323,339** | **$418,462** |

Core Viewpoint - Columbia Sportswear Company (COLM) is expected to report a decline in both revenues and earnings for the first quarter of 2025, with revenues estimated at $761.9 million, reflecting a 1.1% decrease year-over-year [1]. Revenue Expectations - The Zacks Consensus Estimate for first-quarter revenues is $761.9 million, indicating a 1.1% decrease from the previous year, aligning with the company's guidance of a 1-3% decline, projecting net sales between $749 million and $764 million [1][2]. - The decline in revenues is attributed to the absence of last year's unusually cold winter, which had temporarily boosted demand, and a return to normalized shipping patterns after accelerated shipments in the previous year [2]. Earnings Projections - The consensus estimate for first-quarter earnings per share is stable at 69 cents, representing a 2.8% decline from the year-ago period, with management guiding earnings between 62 cents and 70 cents per share [2]. - Columbia Sportswear has delivered an average earnings surprise of 36.7% over the trailing four quarters [2]. Market Conditions - The company is facing a challenging U.S. market characterized by softened consumer demand, although it has seen stronger performance internationally, particularly in China and the EMEA region [3]. Operating Margin Insights - The projected operating margin for the first quarter is between 5.4% and 6%, with a midpoint of 5.7%, which is a decrease of 10 basis points from the same quarter last year [4]. Strategic Initiatives - Columbia Sportswear's product innovation, ACCELERATE Growth Strategy, and cost-saving initiatives are expected to provide some support against the anticipated declines, with efforts to expand premium product lines and enhance marketing investments [5]. Earnings Prediction Model - The Zacks model does not predict an earnings beat for Columbia Sportswear this quarter, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [6].

Company Overview - Columbia Sportswear (COLM) shares increased by 12.1% to close at $68.35, following a period of 24.3% loss over the past four weeks, indicating a significant rebound in investor sentiment [1][2] - The stock's recent performance was supported by a broader market rally and positive developments such as President Trump's announcement of a 90-day pause on reciprocal tariffs for all countries except China [2] Financial Performance - Columbia Sportswear is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year decline of 2.8%, with revenues projected at $761.9 million, down 1.1% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] Industry Context - Columbia Sportswear operates within the Zacks Textile - Apparel industry, which includes other companies like Crocs (CROX), which saw an 11.5% increase in its stock price to $99.59, despite a -9.2% return over the past month [4] - Crocs is also expected to report unchanged EPS estimates of $2.52, representing a 16.6% decline from the previous year [5]

Group 1: Core Strategy and Market Positioning - Columbia Sportswear Company (COLM) has launched the ACCELERATE strategy aimed at attracting younger, active consumers through innovative product lines and improved retail and e-commerce experiences [1][2] - The strategy includes refining the segmentation framework to identify growth opportunities while continuing to serve the loyal customer base with outdoor essentials [2] - Management is enhancing brand perception through a refreshed creative strategy and focusing on product innovation, including the expansion of the premium Titanium product line and new collections for Fall 2025 [3][4] Group 2: Financial Performance and Challenges - In the fourth quarter of 2024, U.S. net sales declined by 1%, with the wholesale business experiencing a low-single-digit percentage decrease due to a lower Fall 2024 order book [5] - Selling, general and administration (SG&A) expenses increased by 6% to $430.6 million, with a rise in SG&A as a percentage of sales to 39.3% [6] - For 2025, SG&A expenses are anticipated to be in the range of 43.4-44.1%, attributed to higher marketing spending and DTC store expansion [6] Group 3: Cost-Saving Initiatives - Columbia Sportswear is implementing a multi-year Profit Improvement Program, achieving $90 million in cost savings in 2024 [7] - The program focuses on operational cost savings by reducing excess inventory, optimizing the supply chain, and improving distribution networks [7] - Organizational cost savings include workforce reductions and enhancing the operating model to streamline decision-making [7] Group 4: Market Outlook and Future Considerations - Despite the promising results from the ACCELERATE strategy, the company faces challenges from rising costs, U.S. market weakness, and external economic factors [9] - The success of the strategy will depend on the company's ability to expand its international presence and effectively execute cost-saving initiatives [9]

Core Viewpoint - Columbia Sportswear reported a mixed fourth-quarter performance with sales growth but earnings per share falling short of estimates, while the company anticipates continued expansion in 2025 across most brands and regions [2][3][9]. Financial Performance - The company reported earnings of $1.80 per share, missing the Zacks Consensus Estimate of $1.92, but representing a 16% increase from $1.55 in the prior year [3]. - Net sales reached $1,096.6 million, exceeding the Zacks Consensus Estimate of $1,092 million, and reflecting a 3% year-over-year growth [3]. - Gross margin increased by 50 basis points to 51.1%, driven by lower inventory clearance activity [4]. - Operating profit rose 21% to $137.3 million, with operating margin increasing by 180 basis points to 12.5% [4]. Sales Performance by Region - In the United States, net sales declined 1% to $682.3 million, while sales in Europe, the Middle East, and Africa surged 24% to $161.6 million [5]. - Latin America and Asia Pacific net sales grew 7% to $187.6 million, but fell short of estimates [5]. - Direct-to-consumer (DTC) sales increased by 1% year-over-year to $636.7 million, while wholesale channel sales rose 7% to $459.9 million [5]. Sales Performance by Product Category - Net sales in the Apparel, Accessories, and Equipment category increased by 6% to $868.8 million, surpassing estimates [6]. - Footwear sales fell 4% to $227.8 million, missing estimates, with SOREL and prAna brands experiencing declines [6]. Financial Position and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $531.9 million and no debt on its balance sheet [7]. - Columbia Sportswear repurchased 3,962,540 shares for $317.8 million and announced a quarterly cash dividend of 30 cents per share [8]. Future Outlook - For 2025, the company expects net sales to increase by 1-3% in the range of $3.40-$3.47 billion, with an anticipated gross margin expansion of 80 basis points [9]. - The company forecasts operating margin to be in the range of 7.7-8.3% and EPS to be between $3.80-$4.15 [9]. - For the first half of 2025, net sales are expected to grow 1-3% to $1,352-$1,378 million, with a projected operating margin of 1.5-2.2% [10].

Core Viewpoint - Columbia Sportswear Company (COLM) is implementing the ACCELERATE growth strategy to rejuvenate its brand and attract a younger, more active consumer base while facing challenges such as rising operational costs and pressures in the U.S. market [1][11]. Group 1: Strategic Focus on Growth and Innovation - The ACCELERATE strategy aims to refine segmentation to identify growth opportunities and target younger, active consumers while maintaining service to the loyal customer base [2]. - The strategy emphasizes product innovation, including the expansion of the premium Titanium product line and new collections like the Amaze Puff insulated jacket and Rock Pant for Fall 2025 [3]. - Columbia Sportswear is increasing targeted marketing investments to 6.5% of sales in 2025, up from 5.9% in 2024, and enhancing the online shopping experience through Columbia.com [4]. Group 2: Cost-Saving Initiatives - The company is on track to achieve operational efficiency through a multi-year Profit Improvement Program, realizing cost savings of $90 million in 2024 [6]. - Key areas of focus for cost savings include eliminating excess inventory, enhancing supply chain efficiency, and a workforce reduction plan [7][8]. Group 3: Challenges - Despite growth in international markets, U.S. net sales declined by 1% in Q4 2024, with a low-single-digit percentage decrease in the wholesale business and DTC net sales [9]. - SG&A expenses increased by 6% to $430.6 million in Q4 2024, with a projected increase in 2025 to 43.4-44.1% of net sales, attributed to higher marketing spending and DTC store expansion [10]. Group 4: Conclusion - Columbia Sportswear is pursuing growth through its ACCELERATE strategy while facing ongoing challenges, including rising operational costs, which will impact its long-term success in a competitive market [11].

Financial Performance - In 2024, net sales decreased by 3% to $3,368,582 compared to $3,487,203 in 2023[205] - Gross profit for 2024 was $1,691,085, down from $1,729,932 in 2023, reflecting a gross margin of approximately 50.2%[295] - Operating income decreased to $270,741 in 2024 from $310,284 in 2023, representing a decline of 12.7%[295] - Net income for 2024 was $223,273, a decrease of 11.2% from $251,400 in 2023[295] - Earnings per share (EPS) for 2024 were $3.83, down from $4.11 in 2023, indicating a decline of 6.8%[295] - Comprehensive income for 2024 was $205,887, a decrease from $236,201 in 2023[297] - Total current assets decreased slightly to $2,008,582 in 2024 from $2,014,685 in 2023[292] - Total liabilities increased to $1,195,226 in 2024, up from $1,000,403 in 2023, marking a rise of 19.5%[292] Cost Management - The Profit Improvement Program achieved approximately $90 million in cost savings in 2024, net of severance costs[188] - The company aims to exceed its goal of $125 to $150 million in annualized savings by 2026[189] - SG&A expenses increased by $27,593 or 2% to $1,443,906, with SG&A as a percentage of net sales rising to 42.9% from 40.6%[210] - Unallocated corporate expenses decreased by $7.5 million to $314.3 million in 2024 from $321.8 million in 2023[225] Sales and Revenue Breakdown - Direct-to-consumer net sales increased by 1% to $1,634,224 in 2024, while wholesale net sales decreased by 7%[206] - U.S. net sales decreased by $173.2 million or 8%, primarily due to lower wholesale business sales and a challenging competitive environment[220] - LAAP segment net sales increased by $41.0 million or 8% (11% constant-currency), driven by strong demand in China and Japan[222] - EMEA segment net sales increased by $42.5 million or 9% (8% constant-currency), primarily from the Europe-direct business[223] - Canada segment net sales decreased by $28.9 million or 11% (10% constant-currency), driven by lower wholesale business sales[224] Cash Flow and Investments - Net cash provided by operating activities decreased to $491.0 million in 2024 from $636.3 million in 2023, a change of $145.3 million[227] - Net cash provided by investing activities was $87.3 million in 2024, a significant recovery from $461.8 million used in 2023[228] - Net cash used in financing activities increased to $386.2 million in 2024 from $254.8 million in 2023, primarily due to stock repurchases of $317.8 million and dividend payments of $69.7 million[229] - As of December 31, 2024, cash and cash equivalents were $531.9 million, up from $350.3 million in 2023, while short-term investments decreased to $283.6 million from $414.2 million[230] Inventory Management - Inventory levels decreased by 7% in 2024, supporting an expected expansion of gross margin in 2025[196] - The inventory balance decreased to $690.5 million as of December 31, 2024, from $746.3 million in 2023, driven by lower inventory buys and effective liquidation strategies[237] - Provisions for excess, close-out, and slow-moving inventory reduced gross inventory by $20.4 million in 2024, down from $23.3 million in 2023[247] Shareholder Returns - The company aims to return at least 40% of free cash flow to shareholders through dividends and share repurchases while considering opportunistic mergers and acquisitions[241] - The total cash dividends paid were $69,732 for 2024, compared to $73,440 in 2023, indicating a decrease of about 5.5%[303] - The company repurchased common stock amounting to $317,756 in 2024, which is a significant increase from $184,022 in 2023[303] Tax and Compliance - Income tax expense slightly increased to $74,914, with an effective tax rate of 25.1%, up from 22.9% in 2023[214] - The effective income tax rate for 2024 was reported at 25.1%, an increase from 22.9% in 2023[378] - The company maintained effective internal control over financial reporting as of December 31, 2024, based on established criteria[284] Future Outlook - The company expects less than 3% of finished products imported into the U.S. in 2025 will be manufactured in China[191] - Planned capital expenditures for 2025 are estimated to be between $60 million and $80 million, focusing on direct-to-consumer operations and digital capabilities[238] - The company plans to open a small number of branded stores in high-traffic shopping malls to elevate brand positioning[194] Brand Strategy - The Columbia brand ACCELERATE Growth Strategy targets a younger consumer demographic and aims to enhance brand perception[183] - DTC net sales increased, driven by growth in brick-and-mortar business, while e-commerce sales declined due to a challenging environment and increased competition[207]

Core Viewpoint - Columbia Sportswear's CEO emphasizes the need for clarity on global tariff decisions to effectively plan for the future, highlighting the dampening effect of current tariffs on business operations [1][2]. Tariff Impact - Tariffs are intended to increase the price of imported goods, with Columbia being one of the largest duty payers in the U.S., facing duties as high as 37.5% on some products [2]. - Although Columbia does not import much from China, the country plays a crucial role in production for local and international distribution, necessitating caution regarding future tariff changes [2]. Business Performance - Columbia has experienced growth in China and other regions but is currently focused on revitalizing its North American business, which has shown mixed performance recently [3]. - Following a mixed quarterly report and soft guidance, Columbia's shares fell by 5.70%, indicating market concerns about its North American strategy [3]. Historical Context - The company has previously underperformed in regions like China and Europe but has successfully turned those areas around through diligent efforts, suggesting a similar approach is needed for North America [4].

Group 1 - Columbia Sportswear Company (NASDAQ: COLM) reported Q4 2024 results, marking the first quarter of growth in at least 18 months [1] - The company is guiding for a modest revenue increase in FY25 [1] Group 2 - The market reaction to the news was not positive, indicating a potential disconnect between operational performance and market sentiment [1]

Core Insights - Columbia Sportswear Company (COLM) reported a year-over-year increase in both sales and earnings for the fourth quarter of 2024, with sales surpassing the Zacks Consensus Estimate [1][4]. Financial Performance - Earnings per share (EPS) for the quarter were $1.80, which was below the Zacks Consensus Estimate of $1.92, but represented a 16% increase from $1.55 in the prior year [3]. - Net sales reached $1,096.6 million, exceeding the Zacks Consensus Estimate of $1,092 million, and rose 3% from the previous year, driven by higher wholesale sales and direct-to-consumer growth [4]. - Gross margin improved by 50 basis points to 51.1%, primarily due to reduced inventory clearance activities, although this was partially offset by unfavorable foreign exchange hedging rates [5]. - Selling, General and Administrative (SG&A) expenses increased by 6% to $430.6 million, with the percentage of sales rising to 39.3% [6]. Sales Performance by Region and Channel - In the United States, net sales declined by 1% to $682.3 million, while sales in Europe, the Middle East, and Africa surged by 24% to $161.6 million [7]. - Latin America and Asia Pacific saw a 7% increase in net sales to $187.6 million, while Canadian sales remained flat at $65.2 million [7]. - Direct-to-consumer (DTC) sales increased by 1% to $636.7 million, while wholesale channel sales rose by 7% to $459.9 million [8]. Product Category Performance - Net sales in the Apparel, Accessories, and Equipment category grew by 6% to $868.8 million, surpassing estimates, while Footwear sales fell by 4% to $227.8 million, missing expectations [9]. Financial Position and Shareholder Returns - As of December 31, 2024, the company had cash and cash equivalents of $531.9 million and no debt on its balance sheet [11]. - The company repurchased 3,962,540 shares for $317.8 million over the past year, with $627.6 million remaining under its share-repurchase authorization [12]. Future Outlook - For 2025, COLM expects net sales to increase by 1-3%, projecting a range of $3.40-$3.47 billion, up from $3.37 billion in 2024 [14]. - The company anticipates a gross margin expansion of 80 basis points to 51% and expects EPS to be in the range of $3.80-$4.15 [15]. - For the first quarter of 2025, net sales are expected to decline by 1-3% to a range of $749-$764 million, with EPS anticipated between 62-70 cents [17].