Columbia Sportswear posts drop in Q3 results

Third quarter net sales at Columbia Sportswear decreased 5 percent to 931.8 million dollars, operating income decreased to 112.5 million dollars or 12.1 percent of net sales, and diluted earnings per share dropped to 1.56 dollars.

The company expects net sales for the full year to range between 3.31 to 3.38 billion dollars, representing a decline of 5 to 3 percent, operating income of 257 to 284 million dollars, representing operating margin of 7.7 to 8.4 percent and diluted earnings per share in the range of 3.70 dollars to 4.05 dollars.

Based on the spring 25 orderbook, the company is forecasting mid-single-digit percent growth in global wholesale net sales in the first half of 2025 reflecting growth across all regions, and in the Columbia, Prana and Mountain Hardwear brands.

Commenting on the trading performance, the company’s chairman, president and CEO Tim Boyle said: “Third quarter results reflect ongoing strength in most international markets, offset by continued softness in North America. While warm weather has curbed early season demand for fall 2024 cold weather products, I’m excited about the differentiated innovations we are offering consumers.”

For the nine month period, the company’s net sales decreased 6 percent to 2,272 million dollars. Gross margin expanded 60 basis points to 49.8 percent of net sales, operating income was 133.4 million dollars or 5.9 percent of net sales, and net income reduced to 120.7 million dollars or 2.04 dollars per diluted share.

The company’s board of directors has declared a regular quarterly cash dividend of 30 cents per share, payable on December 4, 2024 to shareholders of record on November 20, 2024.