NASDAQ$COLM

Columbia Sportswear Company · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Columbia's financial performance reflected strength in international markets, offset by North America's softness, with strategic investments in brand elevation and consumer engagement.

Columbia Sportswear Company reported a 5% decrease in net sales to $931.8 million for the third quarter of 2024. Operating income decreased to $112.5 million, and diluted earnings per share were $1.56. The company is focused on the ACCELERATE Growth Strategy to elevate the Columbia brand and attract younger consumers.

  • Net sales decreased by 5% to $931.8 million compared to Q3 2023.
  • Operating income was $112.5 million, a decrease from $134.6 million in Q3 2023.
  • Diluted earnings per share were $1.56, down from $1.70 in Q3 2023.
  • The company exited the quarter with $373.9 million in cash, cash equivalents, and short-term investments, with no borrowings.

Headline financials

Total Revenue

$932M

Previous: $986M-5.5%
EPS

$1.56

Previous: $1.70-8.2%
Gross Margin

50.2%

Previous: 48.7%+3.1%
SG&A Expenses

$361M

Previous: $35.70+1011885054.1%
Effective Income Tax Rate

24.4%

No prior period
Operating Margin

12.1%

No prior period
Net Licensing Income

$6.23M

No prior period
Wholesale Revenue

$605M

No prior period
DTC Revenue

$327M

No prior period
Capital Expenditures

-$13.9M

Previous: -$18.6M+24.8%
Free Cash Flow

$90.2M

Previous: $104M-12.9%
Net Income

$90.2M

Previous: $104M-12.9%
Operating Income

$113M

Previous: $135M-16.4%
Gross Profit

$468M

Previous: $480M-2.6%
Stock-Based Comp

$6.47M

Previous: $5.82M+11.2%

Revenue & EPS history

Columbia · Revenue · Quarterly

$932M

Q3 2024-5.5%vs Q3 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The company expects full-year net sales to be between $3.31 and $3.38 billion, with diluted earnings per share between $3.70 and $4.05. For the fourth quarter, net sales are expected to be $1.04 to $1.11 billion, and diluted earnings per share are projected to be $1.68 to $2.03.

Tailwinds

  • Net sales are expected to be $1,040 to $1,110 million, representing a decline of 2 percent to growth of 5 percent from $1,060 million for the comparable period in 2023.
  • Operating income is expected to be $123 to $151 million, resulting in operating margin of 11.8 to 13.6 percent, compared to operating margin of 10.7 percent in the comparable period in 2023.
  • Diluted earnings per share is expected to be $1.68 to $2.03, compared to $1.55 for the comparable period in 2023.
  • Based on our Spring ‘25 orderbook, we are forecasting mid-single-digit percent growth in global wholesale net sales in first half 2025.
  • This reflects growth across all regions, and in the Columbia, prAna and Mountain Hardwear brands.

Headwinds

  • Net sales are expected to decrease 5.0 to 3.0 percent (prior decrease of 4.0 to 2.0 percent), resulting in net sales of $3.31 to $3.38 billion (prior $3.35 to $3.42 billion), compared to $3.49 billion in 2023.
  • SG&A expenses, as a percent of net sales, are expected to be 42.8 to 43.0 percent (prior 42.4 to 43.0 percent), compared to SG&A expense as a percent of net sales of 40.6 percent in 2023.
  • Operating income is expected to be $257 to $284 million (prior $256 to $288 million), resulting in operating margin of 7.7 to 8.4 percent (unchanged), compared to operating margin of 8.9 percent in 2023.
  • Foreign currency translation is expected to have a modestly unfavorable impact on full year net sales.
  • Foreign currency is expected to have an approximately $0.01 negative impact on diluted earnings per share (prior $0.07) due to negative foreign currency transactional effects from hedging of inventory production, partially offset by favorable foreign currency translation impacts.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.1%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+0.6%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+22.8%

Q4 2014

Best reaction

-20.4%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.4%+4.2%+8.7%
Q4 2025+14.4%+9.5%+1.6%
Q3 2025-2.1%+1.7%+4.3%
Q1 2025-4.3%+3.8%+2.4%
Q4 2024-5.7%-9.2%-1.9%
Q3 2024+5.7%+7.4%+14.6%
Q2 2024-2.4%+3.8%+7.0%
Q1 2024+0.3%-0.2%+5.3%
Q4 2023+2.6%-2.1%+2.4%
Q3 2023+1.6%+5.1%+7.4%
Q2 2023-5.5%-4.1%-6.7%
Q1 2023-3.0%-5.7%-13.3%
Q4 2022-4.0%-6.2%-7.6%
Q3 2022+2.0%-1.1%+17.9%
Q2 2022+1.7%+1.7%+1.2%
Q1 2022-5.1%-5.2%-10.7%
Q4 2021+1.1%+5.4%-3.2%
Q3 2021+4.2%+1.7%+0.5%
Q2 2021+2.4%+3.5%+4.4%
Q1 2021-3.3%-3.9%-8.8%
Q4 2020+19.9%+14.2%+13.5%
Q3 2020-20.4%-15.5%-9.7%
Q2 2020-8.1%-10.7%+6.2%
Q1 2020-10.1%-12.3%-1.9%
Q4 2019-4.7%-4.7%-17.0%
Q3 2019-4.0%-3.6%-1.8%
Q2 2019-1.2%+2.1%-11.5%
Q1 2019-3.6%-4.8%-7.5%
Q4 2018+14.4%+12.6%+8.1%
Q3 2018-0.7%+6.8%+4.2%
Q2 2018-8.1%-6.4%-2.6%
Q1 2018+4.7%+2.6%+8.5%
Q4 2017+1.8%-0.9%+5.1%
Q3 2017+3.4%-1.0%+8.5%
Q2 2017+7.3%+3.6%-1.1%
Q1 2017-4.7%-4.2%-9.2%
Q4 2016+11.2%+8.5%+3.2%
Q3 2016+0.7%-2.8%+5.0%
Q2 2016-3.5%-7.8%-3.9%
Q1 2016-4.9%
Q4 2015+16.7%
Q3 2015+3.9%
Q2 2015+16.5%
Q1 2015-8.7%
Q4 2014+22.8%
Q3 2014+3.3%
Q2 2014-7.9%
Q1 2014+7.9%
Q4 2013+9.3%
Q3 2013+10.4%
Q2 2013+3.3%
Q1 2013+0.0%
Q4 2012+4.1%
Q3 2012+4.4%
Q2 2012+2.2%
Q1 2011+1.3%
Q1 2012+5.3%
Q4 2009-0.2%
Q4 2011-0.2%
Q3 2011-1.5%
Q3 2010-1.5%
Q2 2010-3.8%
Q4 2010-3.8%
Q2 2011-3.8%
Q1 2010+1.5%

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