Columbia Sportswear Q4 Earnings Lag Estimates, Sales Grow 3% Y/Y

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].