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Core Insights - Columbia Sportswear Company (COLM) reported a decline in both earnings and net sales for Q3 2024, with earnings per share at $1.56, down 8.2% year-over-year, but exceeding the Zacks Consensus Estimate of $1.36. Net sales fell 5% to $931.8 million, missing the consensus mark of $947 million [1][4]. Financial Performance - The gross margin improved by 150 basis points to 50.2%, attributed to lower inbound freight costs and a favorable sales mix, despite negative impacts from foreign exchange hedging [5]. - Selling, General and Administrative (SG&A) expenses rose 2.7% to $361.2 million, with a percentage of sales increasing to 38.8%. The rise was mainly due to higher direct-to-consumer (DTC) and incentive compensation costs [6]. - Operating profit decreased 16.4% to $112.5 million, with the operating margin contracting 160 basis points to 12.1% [6]. Sales Performance by Region - In the United States, net sales dropped 10% to $571.3 million. Conversely, Europe, Middle East, and Africa (EMEA) saw a 10% increase in net sales to $141.8 million, while Latin America and Asia Pacific (LAAP) net sales rose 17% to $135 million. Canadian sales fell 21% to $83.7 million [7]. Product Category Performance - Net sales in the Apparel, Accessories, and Equipment category increased by 1% to $735.4 million, while Footwear sales declined by 23% to $196.4 million [8]. - Sales for the Columbia, SOREL, and prAna brands decreased by 1%, 39%, and 7%, respectively, while Mountain Hardwear brand sales increased by 2% [9]. Cash Flow and Capital Management - As of September 30, 2024, the company had cash and cash equivalents of $306.7 million and no debt. Inventories decreased by 10% to $798.2 million [10]. - For the first nine months of 2024, operating cash flow was $76.6 million, with capital expenditures of $41.7 million. The company anticipates operating cash flow of at least $300 million for the full year [11]. Share Repurchase and Dividends - The company repurchased 2,916,970 shares for $230.9 million in the first nine months of 2024 and announced a $600 million increase in its share repurchase authorization. A quarterly cash dividend of 30 cents per share is scheduled for December 4, 2024 [12]. Future Outlook - For 2024, Columbia Sportswear expects net sales to decline by 3-5% to a range of $3.31-$3.38 billion, with gross margin anticipated to expand by 40-90 basis points [14]. - The company projects operating income between $257-$284 million and earnings per share (EPS) in the range of $3.70-$4.05 for 2024 [15]. - For Q4 2024, net sales are expected to decline by 2% to a range of $1,040-$1,110 million, with an operating income forecast of $123-$151 million [16].

Financial Data and Key Metrics Changes - Third quarter net sales declined 5% year-over-year, totaling $932 million, which was at the low end of guidance [10][26] - Gross margin expanded by 150 basis points to 50.2%, driven by favorable international performance and lower promotional activity in the U.S. [10][26] - Cash and short-term investments exceeded $370 million with no debt, and the company is on track to generate over $300 million in operating cash flow this year [11][12] Business Line Data and Key Metrics Changes - Global wholesale net sales decreased by 9%, while direct-to-consumer sales grew by 2% [26] - U.S. net sales decreased by 10%, primarily due to a mid-teens percent decline in wholesale [27] - U.S. e-commerce net sales fell by high-teens percent, reflecting challenging market conditions [28] Market Data and Key Metrics Changes - Latin America and Asia Pacific region net sales increased by 18%, with China experiencing low 20% growth [30] - Japan's net sales increased by double-digit percent, aided by international tourism [33] - EMEA net sales increased by 10%, with Europe direct net sales growing low single-digit percent [34] Company Strategy and Development Direction - The company introduced the ACCELERATE growth strategy aimed at attracting younger, more active consumers and elevating brand perception [14][15] - The strategy includes enhancing consumer segmentation, refreshing marketing, and focusing on product innovation [15][17][20] - The company plans to invest in strategic retail partnerships to improve in-store presentations and enhance e-commerce experiences [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious outlook for net sales due to ongoing uncertainties, including weather conditions and consumer demand [13][44] - The company is slightly raising the bottom end of its diluted earnings per share guidance despite top-line pressures [13][44] - Management expressed confidence in the ACCELERATE strategy to unlock growth opportunities and improve brand engagement [47][48] Other Important Information - The company has approved a new $600 million share buyback authorization, with $231 million in share repurchases completed in the first three quarters [12] - The profit improvement program is on track to deliver approximately $90 million in cost savings [44][63] Q&A Session Summary Question: On the ACCELERATE growth strategy and attracting younger consumers - Management believes younger consumers are already familiar with the brand and plans to enhance marketing efforts to engage them more effectively [50][51] Question: About the wholesale growth expectations for 1H 2025 - Management expects balanced growth across regions, with improvements in both U.S. and international markets [58][59] Question: On the promotional environment and gross margin outlook - Management anticipates stronger promotions as the holiday season approaches but expects gross margin improvement due to cleaner inventory [80][81] Question: Regarding exposure to potential China tariffs - The company has minimized its sourcing from China, with only 20% of footwear and low single-digit percent of apparel sourced from there [87][89] Question: On the outlook for the outdoor industry demand in the U.S. - Management believes the outdoor apparel market remains strong, with expectations for continued growth despite recent challenges [111]

Core Insights - Columbia Sportswear reported revenue of $931.77 million for Q3 2024, a year-over-year decline of 5.5% and a surprise of -1.56% compared to the Zacks Consensus Estimate of $946.56 million [1] - The company's EPS for the same period was $1.56, down from $1.70 a year ago, but exceeded the consensus estimate of $1.36 by 14.71% [1] Revenue Performance by Geography - Canada: Net sales of $83.70 million, a decline of 20.7% year-over-year, below the estimated $93.01 million [3] - EMEA: Net sales of $141.80 million, an increase of 9.6% year-over-year, exceeding the estimated $136 million [3] - United States: Net sales of $571.30 million, a decrease of 10.1% year-over-year, below the estimated $599.88 million [3] - LAAP: Net sales of $135 million, an increase of 17% year-over-year, above the estimated $123 million [3] Stock Performance - Columbia Sportswear shares have returned -9.7% over the past month, contrasting with the Zacks S&P 500 composite's +1.8% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Columbia Sportswear Company. CFO Commentary and Financial Review Third Quarter 2024 October 30, 2024 FORWARD-LOOKING STATEMENTS This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation contains forward-looking tatements within the meaning of the federal securities laws regarding Columbia Sportswear Company's business opportunities and anticipated results of operations. Forward-looking statem ...

Core Viewpoint - Columbia Sportswear reported quarterly earnings of $1.56 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, but down from $1.70 per share a year ago, indicating a 8.24% year-over-year decline in earnings [1] - The company posted revenues of $931.77 million for the quarter, missing the Zacks Consensus Estimate by 1.56% and down from $985.68 million year-over-year [2] Earnings Performance - Columbia Sportswear achieved an earnings surprise of 14.71% for the recent quarter and had a prior quarter surprise of 35.48% [1][2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Stock Performance - Columbia Sportswear shares have declined approximately 4.3% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [3] - The current Zacks Rank for Columbia Sportswear is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.95 on revenues of $1.09 billion, and for the current fiscal year, it is $3.80 on revenues of $3.38 billion [7] - The estimate revisions trend for Columbia Sportswear has been unfavorable leading up to the earnings release [6] Industry Context - The Textile - Apparel industry, to which Columbia Sportswear belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Under Armour, another company in the same industry, is expected to report a quarterly earnings decline of 20.8% year-over-year [9]

[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) [Third Quarter 2024 Highlights](index=1&type=section&id=Third%20Quarter%202024%20Highlights) In Q3 2024, Columbia Sportswear experienced a 5% decrease in net sales to $931.8 million and a decline in diluted EPS to $1.56 from $1.70 in the prior year Despite the sales dip, the company maintained a strong balance sheet with $373.9 million in cash and no debt, and announced a new 'ACCELERATE Growth Strategy' to elevate the Columbia brand Q3 2024 Financial Highlights | Metric | Q3 2024 (Millions USD) | Q3 2023 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $931.8 million | $985.7 million | -5% | | Operating Income | $112.5 million | $134.6 million | -16.4% | | Operating Margin | 12.1% | 13.7% | -160 bps | | Diluted EPS | $1.56 | $1.70 | -8.2% | - The company ended the quarter with a strong liquidity position, holding **$373.9 million** in cash, cash equivalents, and short-term investments, with no outstanding borrowings[1](index=1&type=chunk) - A new 'ACCELERATE Growth Strategy' was announced, aimed at elevating the Columbia brand[1](index=1&type=chunk) - The Board of Directors approved a **$600 million** increase to the company's share repurchase authorization on October 24, 2024[1](index=1&type=chunk) [Full Year 2024 Financial Outlook Summary](index=1&type=section&id=Full%20Year%202024%20Financial%20Outlook%20Summary) The company updated its full-year 2024 outlook, lowering its net sales forecast to a range of $3.31 to $3.38 billion, which represents a sales decline of 3.0% to 5.0% The diluted EPS forecast is now projected to be between $3.70 and $4.05, while the operating margin is expected to be between 7.7% and 8.4% Full Year 2024 Financial Outlook Comparison | Metric | Updated FY 2024 Outlook (Billions USD) | Prior FY 2024 Outlook (Billions USD) | | :--- | :--- | :--- | | Net Sales | $3.31 to $3.38 billion | $3.35 to $3.42 billion | | Net Sales Growth | -5.0% to -3.0% | -4.0% to -2.0% | | Operating Income | $257 to $284 million | $256 to $288 million | | Operating Margin | 7.7% to 8.4% | 7.7% to 8.4% (Unchanged) | | Diluted EPS | $3.70 to $4.05 | $3.65 to $4.05 | [Management Commentary and Strategy](index=1&type=section&id=Management%20Commentary%20and%20Strategy) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Tim Boyle noted that Q3 results were characterized by strong performance in most international markets, which was offset by continued weakness in North America Warm weather negatively impacted early-season demand for Fall 2024 products However, he expressed confidence in the company's product innovations and the newly launched ACCELERATE Growth Strategy - Third-quarter performance showed a contrast between robust international markets and persistent softness in North America[4](index=4&type=chunk) - Warm weather has dampened early demand for Fall 2024 cold-weather products[4](index=4&type=chunk) - The company is focusing on key product innovations like Omni-Heat Infinity, Omni-Heat Arctic, and the Omni-Max footwear platform[4](index=4&type=chunk) - The company maintains a strong financial position with over **$370 million** in cash and short-term investments and no bank borrowings[6](index=6&type=chunk) [ACCELERATE Growth Strategy](index=1&type=section&id=ACCELERATE%20Growth%20Strategy) The company has launched 'ACCELERATE,' a multi-year growth strategy designed to elevate the Columbia brand and attract younger, more active consumers This initiative involves consumer-centric shifts across brand, product, and marketplace strategies, supported by enhanced operational methods - The ACCELERATE strategy is a multi-year effort to elevate the Columbia brand and attract a younger, more active consumer base[5](index=5&type=chunk)[9](index=9&type=chunk) - Key strategic priorities include accelerating profitable growth, creating iconic and innovative products, driving brand engagement, enhancing consumer experiences, and amplifying marketplace excellence with a digitally-led approach[7](index=7&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) [Third Quarter 2024 Financial Results](index=2&type=section&id=Third%20Quarter%202024%20Financial%20Results) For the third quarter of 2024, net sales fell 5% to $931.8 million due to lower wholesale orders and weak U.S. demand Gross margin improved by 150 basis points to 50.2%, driven by lower freight costs However, higher SG&A expenses led to a decrease in operating income to $112.5 million, with an operating margin of 12.1% Net income was $90.2 million, or $1.56 per diluted share Q3 2024 Detailed Financial Results | Metric | Q3 2024 (Millions USD) | Q3 2023 (Millions USD) | | :--- | :--- | :--- | | Net Sales | $931.8 million | $985.7 million | | Gross Margin | 50.2% | 48.7% | | SG&A Expenses | $361.2 million (38.8% of sales) | $351.6 million (35.7% of sales) | | Operating Income | $112.5 million | $134.6 million | | Net Income | $90.2 million | $103.5 million | | Diluted EPS | $1.56 | $1.70 | - The decline in net sales was attributed to lower Fall '24 wholesale orders and weak consumer demand in the U.S., partly due to warm weather[10](index=10&type=chunk) - Gross margin expansion was primarily due to lower inbound freight costs and favorable channel/region mix, partially offset by unfavorable FX hedging[11](index=11&type=chunk) [First Nine Months 2024 Financial Results](index=2&type=section&id=First%20Nine%20Months%202024%20Financial%20Results) In the first nine months of 2024, net sales decreased by 6% to $2.27 billion Gross margin saw a slight expansion of 60 basis points to 49.8% Operating income fell significantly to $133.4 million from $197.2 million in the prior year, resulting in a lower operating margin of 5.9% Consequently, net income declined to $120.7 million, with diluted EPS at $2.04 Nine Months 2024 Financial Results | Metric | Nine Months 2024 (Millions USD) | Nine Months 2023 (Millions USD) | | :--- | :--- | :--- | | Net Sales | $2,272.0 million | $2,427.2 million | | Gross Margin | 49.8% | 49.2% | | Operating Income | $133.4 million | $197.2 million | | Operating Margin | 5.9% | 8.1% | | Net Income | $120.7 million | $158.1 million | | Diluted EPS | $2.04 | $2.56 | [Balance Sheet and Cash Flow Analysis](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Analysis) As of September 30, 2024, the company's balance sheet remained strong with cash and short-term investments increasing to $373.9 million and no borrowings Inventories were successfully reduced by 10% to $798.2 million For the first nine months, net cash used in operating activities was $76.6 million, a shift from cash provided in the same period last year Balance Sheet Summary | Balance Sheet Item | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :--- | :--- | :--- | | Cash & Short-Term Investments | $373.9 million | $214.8 million | | Inventories | $798.2 million | $885.2 million | | Borrowings | $0 | $0 | - Net cash used in operating activities for the first nine months was **$76.6 million**, compared to net cash provided of **$22.2 million** in the prior-year period[18](index=18&type=chunk) [Shareholder Returns](index=3&type=section&id=Shareholder%20Returns) [Share Repurchases](index=3&type=section&id=Share%20Repurchases) During the first nine months of 2024, the company repurchased approximately 2.9 million shares for $230.9 million To continue its capital return program, the Board of Directors authorized an additional $600 million for share repurchases in October 2024 - In the first nine months of 2024, the company repurchased 2,916,970 shares of common stock for a total of **$230.9 million**, at an average price of **$79.15 per share**[19](index=19&type=chunk) - On October 24, 2024, the Board authorized a **$600 million** increase to the share repurchase program[20](index=20&type=chunk) [Quarterly Cash Dividend](index=3&type=section&id=Quarterly%20Cash%20Dividend) The Board of Directors has approved a regular quarterly cash dividend of $0.30 per share - A quarterly cash dividend of **$0.30 per share** will be paid on December 4, 2024, to shareholders of record on November 20, 2024[21](index=21&type=chunk) [Detailed Financial Outlook](index=3&type=section&id=Detailed%20Financial%20Outlook) [Full Year 2024 Financial Outlook](index=3&type=section&id=Full%20Year%202024%20Financial%20Outlook) The company has revised its full-year 2024 guidance, now expecting net sales between $3.31 and $3.38 billion, a decrease of 3.0% to 5.0% Gross margin is anticipated to expand by 40 to 90 basis points Operating income is projected to be $257 to $284 million, with diluted EPS in the range of $3.70 to $4.05 Full Year 2024 Revised Financial Outlook | Metric | Full Year 2024 Outlook | | :--- | :--- | | Net Sales | $3.31 to $3.38 billion (-5.0% to -3.0% change) | | Gross Margin | 50.0% to 50.5% (+40 to +90 bps expansion) | | Operating Income | $257 to $284 million | | Operating Margin | 7.7% to 8.4% | | Diluted EPS | $3.70 to $4.05 | | Operating Cash Flow | At least $300 million | | Capital Expenditures | $60 to $70 million | - Foreign currency is expected to have a modestly unfavorable impact on net sales and an approximately **$0.01** negative impact on diluted EPS[26](index=26&type=chunk) [Fourth Quarter 2024 Financial Outlook](index=5&type=section&id=Fourth%20Quarter%202024%20Financial%20Outlook) For the fourth quarter of 2024, the company anticipates net sales between $1.04 and $1.11 billion, representing a change of -2% to +5% year-over-year Operating income is expected to be in the range of $123 to $151 million, with diluted EPS forecasted between $1.68 and $2.03 Q4 2024 Financial Outlook | Metric | Q4 2024 Outlook (Millions USD) | | :--- | :--- | | Net Sales | $1,040 to $1,110 million | | Sales Growth | -2% to +5% | | Operating Income | $123 to $151 million | | Operating Margin | 11.8% to 13.6% | | Diluted EPS | $1.68 to $2.03 | [Preliminary First Half 2025 Commentary](index=5&type=section&id=Preliminary%20First%20Half%202025%20Commentary) Based on its Spring 2025 orderbook, the company is providing a preliminary forecast for the first half of 2025, expecting mid-single-digit percentage growth in global wholesale net sales - The company forecasts mid-single-digit percent growth in global wholesale net sales for the first half of 2025, reflecting growth across all regions and in the Columbia, prAna, and Mountain Hardwear brands[27](index=27&type=chunk) [Supplemental Financial Information and Statements](index=7&type=section&id=Supplemental%20Financial%20Information%20and%20Statements) [Net Sales Performance by Segment](index=12&type=section&id=Net%20Sales%20Performance%20by%20Segment) The company's net sales performance varied significantly across segments In Q3, U.S. sales declined 10%, while LAAP and EMEA regions grew 17% and 10%, respectively For the first nine months, the U.S. was down 11% By brand, SOREL experienced a sharp 39% decline in Q3, while Mountain Hardwear grew 2% By channel, DTC sales grew 2% in Q3, while Wholesale declined 9% [Q3 2024 Net Sales Breakdown](index=12&type=section&id=Q3%202024%20Net%20Sales%20Breakdown) Q3 2024 Net Sales by Segment | Segment | Q3 2024 Net Sales (Millions USD) | YoY % Change (Reported) | | :--- | :--- | :--- | | **By Geography** | | | | United States | $571.3 million | -10% | | LAAP | $135.0 million | 17% | | EMEA | $141.8 million | 10% | | Canada | $83.7 million | -21% | | **By Brand** | | | | Columbia | $799.7 million | -1% | | SOREL | $73.9 million | -39% | | prAna | $28.6 million | -7% | | Mountain Hardwear | $29.6 million | 2% | | **By Product** | | | | Apparel, Acc. & Equip. | $735.4 million | 1% | | Footwear | $196.4 million | -23% | | **By Channel** | | | | Wholesale | $605.2 million | -9% | | DTC | $326.6 million | 2% | [Nine Months 2024 Net Sales Breakdown](index=13&type=section&id=Nine%20Months%202024%20Net%20Sales%20Breakdown) Nine Months 2024 Net Sales by Segment | Segment | Nine Months 2024 Net Sales (Millions USD) | YoY % Change (Reported) | | :--- | :--- | :--- | | **By Geography** | | | | United States | $1,385.9 million | -11% | | LAAP | $373.2 million | 8% | | EMEA | $350.2 million | 3% | | Canada | $162.7 million | -15% | | **By Brand** | | | | Columbia | $1,972.2 million | -4% | | SOREL | $140.6 million | -36% | | prAna | $81.7 million | -10% | | Mountain Hardwear | $77.5 million | 7% | | **By Product** | | | | Apparel, Acc. & Equip. | $1,818.4 million | -2% | | Footwear | $453.6 million | -21% | | **By Channel** | | | | Wholesale | $1,274.5 million | -12% | | DTC | $997.5 million | 2% | [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) The report includes unaudited condensed consolidated financial statements for the period ended September 30, 2024 These statements provide detailed financial data, including the Balance Sheets, Statements of Operations, and Statements of Cash Flows, which form the basis for the financial analysis presented in this report

Columbia Sportswear Company (COLM) is gearing up to unveil its third-quarter 2024 earnings on Oct. 30, after market close. Investors are closely monitoring for insights into its performance.The Zacks Consensus Estimate for third-quarter revenues is pegged at $946.6 million, which indicates nearly 4% decline from the year-ago period.The consensus mark for the bottom line has deteriorated a penny in the past seven days to $1.36. This indicates a 20% decline from the year-ago quarter’s earnings of $1.70 per sh ...

Columbia Sportswear Company (COLM) is well-positioned for growth and profitability, owing to its strategic focus on key priorities such as accelerating profits, developing iconic and innovative products, boosting brand engagement and enhancing digital capabilities. Despite facing a challenging operating environment in the United States, characterized by slow consumer demand and cautious retailers, the company is set to improve operational efficiency and safeguard profits through its multi-year Profit Improv ...

Columbia Sportswear TodayCOLMColumbia Sportswear$79.99 -0.08 (-0.10%) 52-Week Range$66.01▼$87.23Dividend Yield1.50%P/E Ratio19.51Price Target$77.00Add to WatchlistOutdoor lifestyle apparel and products manufacturer Columbia Sportswear Co. NASDAQ: COLM is trying to stage a turnaround in its business. After the pandemic-driven surge of 2021, Columbia has been tackling tailwinds comprised of inflationary pressures, economic uncertainty, and inventory glut. While its recent earnings results and Q3 guidance left ...