Columbia Sportswear (COLM) Up 4.2% Since Last Earnings Report: Can It Continue?

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].