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 ...

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, reflecting decreased net sales and a shift to a net loss in Q2 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$2.76 billion** by June 30, 2024, driven by lower receivables and investments, while inventories significantly reduced Key Balance Sheet Items (in thousands) | Account | June 30, 2024 | Dec 31, 2023 | June 30, 2023 | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $1,847,810 | $2,014,685 | $1,901,140 | | Cash and cash equivalents | $341,822 | $350,319 | $231,571 | | Inventories | $823,557 | $746,288 | $1,162,519 | | **Total Assets** | **$2,760,821** | **$2,939,013** | **$2,789,804** | | **Total Current Liabilities** | $544,441 | $596,627 | $557,268 | | **Total Liabilities** | **$936,859** | **$1,000,403** | **$915,146** | | **Total Shareholders' Equity** | **$1,823,962** | **$1,938,610** | **$1,874,658** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $11.7 million** in Q2 2024, a significant downturn from prior year's net income, driven by an 8% sales decrease and gross margin contraction Q2 Performance Summary (in thousands, except per share amounts) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net sales | $570,244 | $620,933 | -8.2% | | Gross profit | $273,419 | $314,045 | -12.9% | | Operating income (loss) | $(23,802) | $6,229 | N/A | | Net income (loss) | $(11,741) | $8,350 | N/A | | Diluted EPS | $(0.20) | $0.14 | N/A | Six-Month Performance Summary (in thousands, except per share amounts) | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Net sales | $1,340,226 | $1,441,526 | -7.0% | | Gross profit | $662,978 | $713,545 | -7.1% | | Operating income | $20,879 | $62,656 | -66.7% | | Net income | $30,559 | $54,552 | -44.0% | | Diluted EPS | $0.51 | $0.88 | -42.0% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly improved to **$108.9 million** for H1 2024, driven by inventory and accounts payable management, while financing activities used **$139.0 million** Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $108,893 | $9,708 | | Net cash provided by (used in) investing activities | $29,951 | $(89,933) | | Net cash used in financing activities | $(138,960) | $(115,194) | | **Net decrease in cash and cash equivalents** | **$(8,497)** | **$(198,670)** | - The company repurchased **$102.6 million** of common stock and paid **$35.6 million** in cash dividends during the first six months of 2024[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies and revenue disaggregation, showing **$1.08 billion** in Apparel sales and **$814.6 million** from the U.S. segment for H1 2024 Net Sales by Product Category (Six Months Ended June 30, 2024, in thousands) | Product Category | Net Sales | | :--- | :--- | | Apparel, Accessories and Equipment | $1,082,994 | | Footwear | $257,232 | | **Total** | **$1,340,226** | Net Sales by Channel (Six Months Ended June 30, 2024, in thousands) | Channel | Net Sales | | :--- | :--- | | Wholesale | $669,281 | | Direct-to-consumer | $670,945 | | **Total** | **$1,340,226** | Net Sales by Geographic Segment (Six Months Ended June 30, 2024, in thousands) | Segment | Net Sales | | :--- | :--- | | U.S. | $814,634 | | LAAP | $238,130 | | EMEA | $208,442 | | Canada | $79,020 | | **Total** | **$1,340,226** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a challenging Q2 2024 with **8% net sales decrease**, driven by wholesale decline, and outlines a profit improvement program targeting **$125-$150 million** in annualized savings - The company is implementing a multi-year profit improvement program targeting **$125 million to $150 million** in annualized savings by 2026, with **$75 million to $90 million** expected in 2024[74](index=74&type=chunk) - Business trends include an increasingly competitive environment, cautious customer ordering, soft U.S. consumer demand, and a promotional environment, with temporary clearance stores used for inventory management[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Lower ocean freight rates benefited gross margin in 2023 and H1 2024, but recent Red Sea conflict is causing spot rates to increase[83](index=83&type=chunk) [Results of Operations — Consolidated](index=32&type=section&id=Results%20of%20Operations%20%E2%80%94%20Consolidated) Q2 2024 consolidated net sales fell **8%** to **$570.2 million**, primarily due to a **15% drop in wholesale sales** and a **270 basis point gross margin contraction** Q2 2024 Net Sales by Brand (in millions) | Brand | Q2 2024 Sales | Q2 2023 Sales | % Change | | :--- | :--- | :--- | :--- | | Columbia | $508.6 | $537.0 | -5% | | SOREL | $21.0 | $37.8 | -44% | | prAna | $21.8 | $27.6 | -21% | | Mountain Hardwear | $18.8 | $18.5 | +2% | Q2 2024 Net Sales by Channel (in millions) | Channel | Q2 2024 Sales | Q2 2023 Sales | % Change | | :--- | :--- | :--- | :--- | | Wholesale | $278.4 | $328.3 | -15% | | Direct-to-consumer | $291.8 | $292.6 | 0% | - Q2 2024 gross margin contracted by **270 basis points** to **47.9%**, primarily due to lower channel profitability from actions to spur demand and reduce excess inventory, partially offset by lower inbound freight costs[93](index=93&type=chunk) - Q2 2024 SG&A expenses decreased by **$9.8 million (3%)** but rose as a percentage of sales to **53.1%** from **50.3%**, driven by lower supply chain and demand creation expenses[94](index=94&type=chunk)[97](index=97&type=chunk) [Results of Operations — Segment](index=37&type=section&id=Results%20of%20Operations%20%E2%80%94%20Segment) The U.S. segment experienced a **15% net sales decline** and reduced operating income in Q2 2024, while LAAP and EMEA segments showed sales growth Q2 2024 Net Sales by Segment (in millions) | Segment | Q2 2024 Sales | Q2 2023 Sales | % Change | | :--- | :--- | :--- | :--- | | U.S. | $340.2 | $399.1 | -15% | | LAAP | $99.5 | $93.3 | +7% | | EMEA | $103.9 | $100.8 | +3% | | Canada | $26.6 | $27.7 | -4% | Q2 2024 Operating Income by Segment (in millions) | Segment | Q2 2024 Op. Income | Q2 2023 Op. Income | | :--- | :--- | :--- | | U.S. | $23.5 | $55.1 | | LAAP | $6.1 | $4.1 | | EMEA | $14.4 | $15.0 | | Canada | $(0.1) | $0.1 | - The U.S. sales decline was driven by decreased wholesale business due to retailer cautiousness and a difficult competitive environment, with DTC sales modestly decreasing despite growth from brick-and-mortar and temporary clearance locations[106](index=106&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity with **$341.8 million** in cash and **$369.3 million** in short-term investments, while inventory significantly decreased to **$823.6 million** - Inventory balance decreased to **$823.6 million** as of June 30, 2024, compared to **$1,162.5 million** as of June 30, 2023, reflecting efforts to curtail purchases and liquidate excess merchandise[131](index=131&type=chunk) - Planned capital expenditures for 2024 are approximately **$60 to $80 million**, targeting investments in DTC operations, new stores, and digital and supply chain capabilities[132](index=132&type=chunk) - The company's capital allocation strategy includes investing in organic growth, returning at least **40% of free cash flow** to shareholders, and considering opportunistic M&A[133](index=133&type=chunk)[134](index=134&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk disclosures from the 2023 Annual Report, with currency, interest rate, and equity market risks remaining key - There has been no material change in the market risk disclosure from the company's 2023 Annual Report on Form 10-K[142](index=142&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2024, the company's disclosure controls and procedures are effective at a reasonable assurance level[144](index=144&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2024[147](index=147&type=chunk) [PART II — OTHER INFORMATION](index=49&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal matters, which management does not expect to materially affect its financial condition or operations - The company does not expect ongoing litigation to have a material adverse effect on its financial position or results[150](index=150&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section details numerous risks, including volatile consumer demand, supply chain dependencies, global operational challenges, and significant shareholder influence - Key risks to consumer demand include volatile economic conditions, a highly competitive market, changing consumer preferences, weather conditions, and shifts in retail traffic patterns[153](index=153&type=chunk)[154](index=154&type=chunk)[159](index=159&type=chunk) - The company faces significant supply chain risks, including reliance on contract manufacturers primarily in Asia, potential for quality control issues, volatility in raw material prices, and dependence on third-party logistics providers[162](index=162&type=chunk)[166](index=166&type=chunk)[168](index=168&type=chunk) - Global operations are subject to risks from international regulations, political and economic conditions, currency exchange rate fluctuations, and trade policies like tariffs and duties[198](index=198&type=chunk)[203](index=203&type=chunk) - Three related shareholders controlled just under **50%** of the company's common stock as of June 30, 2024, allowing them to exercise significant influence over corporate matters[227](index=227&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2024, the company repurchased **782,969 shares** at an average price of **$77.33**, with **$234.6 million** remaining for future repurchases Common Stock Repurchases (Q2 2024) | Period | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2024 | 478,470 | $76.07 | | May 2024 | 37,907 | $79.83 | | June 2024 | 266,592 | $79.24 | | **Total** | **782,969** | **$77.33** | - As of June 30, 2024, **$234.6 million** remained available for repurchase under the company's stock repurchase program[230](index=230&type=chunk)[231](index=231&type=chunk) [Other Information](index=71&type=section&id=Item%205.%20Other%20Information) No directors or officers entered into or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2024 - No directors or officers entered into or terminated Rule 10b5-1 trading arrangements during Q2 2024[233](index=233&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL data files - The Exhibit Index lists documents filed with the 10-Q, including CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and a new form of Nonstatutory Stock Option Agreement (Exhibit 10.1)[235](index=235&type=chunk)

Columbia Sportswear Company (COLM) posted second-quarter 2024 results, with the top and the bottom line deteriorating year over year. The quarterly loss was narrower than the Zacks Consensus Estimate, but net sales missed the consensus mark.The company has been facing a tough U.S. market, marked by sluggish consumer demand and cautious retailers. However, internationally, the company is seeing strong product demand in most global markets, including China and its Europe-direct business. Management reaffirmed ...

Columbia Sportswear Company. CFO Commentary and Financial Review Second Quarter 2024 July 25, 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 Sportwear Company's business opportunities and anticipated results of operations. Forward-looking statement ...