Columbia Sportswear posts Q2 loss, net sales decline

Net sales at Columbia Sportswear decreased 8 percent or 7 percent constant-currency to 570.2 million dollars reflecting lower wholesale net sales in the US due to retailer cautiousness, a difficult competitive environment, and generally soft consumer demand.

The company said second quarter gross margin contracted 270 basis points to 47.9 percent, loss from operations was 23.8 million dollars or negative 4.2 percent of net sales, and net loss was 11.8 million dollars or loss of 20 cents per diluted share.

Commenting on the trading results, the company’s chairman, president and CEO Tim Boyle said in a statement: “We are working to maximise sales in a challenging US marketplace. We are reiterating our net sales and diluted earnings per share outlook and remain on track to generate over 350 million dollars in operating cash flow.”

Columbia Sportswear posts 7 percent drop in H1 sales

Net sales for the first six month period decreased 7 percent or 6 percent constant-currency to 1,340.2 million dollars.

The company added that gross margin was flat at 49.5 percent of net sales, operating income decreased 67 percent to 20.9 million dollars or 1.6 percent of net sales, and net income decreased 44 percent to 30.6 million dollars or 51 cents per diluted share.

The company’s board of directors approved a regular quarterly cash dividend of 30 cents per share, payable on August 29, 2024 to shareholders of record on August 15, 2024.

Columbia Sportswear maintains full year outlook

Commenting on the outlook, the company further said, net sales are still expected to decrease 4 to 2 percent resulting in net sales of 3.35 to 3.42 billion dollars.

Gross margin is expected to expand 40 to 60 basis points versus prior outlook of 80 to 120 basis points to 50 to 50.2 percent of net sales.

Operating income is expected to be 256 to 288 million dollars against previous guidance of 259 to 291 million dollars, resulting in an operating margin of 7.7 to 8.4 percent.

Net income is expected to be 215 to 239 million dollars versus 217 to 240 million dollars previously, resulting in diluted earnings per share of 3.65 to 4.05 dollars.

For the third quarter, net sales are expected to be 927 to 959 million dollars, representing a decline of 6 to 3 percent. Operating income is expected to be 94 to 107 million dollars, resulting in operating margin of 10.1 to 11.2 percent, and diluted earnings per share are expected to be 1.27 to 1.43 dollars.