Columbia Sportswear Q1 2024 Financial Results & FY Outlook Update

Columbia Sportswear Company (NASDAQ: COLM) has released its first quarter financial results for the period ending March 31, 2024. Tim Boyle, the Chairman, President, and CEO, expressed satisfaction with the company’s performance, noting progress in key areas. Notably, inventory decreased by 37 percent year-over-year, and their Profit Improvement Plan is on track to meet savings targets.

Boyle highlighted strategies driving brand growth across their product range, including innovative cooling technologies like Columbia Omni-Shade Broad Spectrum Air Flow and the Omni-MAX footwear system. The company’s financial position remains robust, with approximately $788 million in cash and short-term investments and no outstanding borrowings.

Boyle expressed confidence in the team and strategies, emphasizing long-term growth opportunities. The company is committed to investing in several strategic priorities, including accelerating profitable growth, creating iconic and innovative products, enhancing brand engagement, improving consumer experiences, and strengthening marketplace excellence.

For a detailed financial review, the CFO Commentary and Financial Review presentation is available online. Net sales for the first quarter decreased by 6 percent to $770.0 million, primarily due to lower wholesale sales in the United States and Canada. However, gross margin expanded by 190 basis points to 50.6 percent, driven by lower inbound freight costs and a favorable sales mix.

Operating income decreased by 21 percent to $44.7 million, and net income decreased by 8 percent to $42.3 million. Cash, cash equivalents, and short-term investments increased to $787.7 million, with no borrowings. Inventories decreased by 37 percent to $607.4 million compared to the same period last year.

Cash flow from operating activities increased to $106.8 million, and capital expenditures amounted to $14.8 million. Additionally, the company repurchased 631,468 shares of common stock for $50.2 million during the quarter, leaving $295.2 million available under their stock repurchase authorization.

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