Though every brand in the Columbia Sportswear Company portfolio except Mountain Hardwear saw a decline in revenue, total company results were in line with expectations, according to CEO Tim Boyle.
The company slightly raised its earnings guidance for the full year, while maintaining its revenue forecast.
Columbia Sportswear Company Q1 Results
- Net sales: $770 million, down 6% in constant currency.
- Wholesale sales: $390.9 million, down 13%.
- DTC sales: $379.1 million, up 4%.
- Gross margin: increased to 50.6% versus 48.7% in the same period last year.
- Net income: $42.3 million, down 8%.
Columbia Brand
Total sales: $663.9 million, down 5% in constant currency.
Sorel Brand
Total sales: $45.7 million, down 25%.
Prana Brand
Total sales: $31.3 million, down 4%.
Mountain Hardwear Brand
Total sales: $29.1 million, up 18%.
Updated Full-Year Guidance
After Q1 met expectations, the company raised its profit guidance slightly for the year.
Columbia now expects diluted earnings per share of $3.65 to $4.05 compared to the prior guidance of $3.45 to $3.85.
The net sales guidance of $3.35 billion to $3.42 billion, which equates to a 4% to 2% revenue decline for the year, remains unchanged.
Notable CEO Comments
CEO Tim Boyle discussed the following during the company’s earnings conference call:
Columbia Layoffs
“We’re on track to deliver between $125 million and $150 million in savings by 2026, including $75 million to $90 million in cost savings this year. We are eliminating expenses associated with carrying excess inventory and driving cost efficiencies throughout our supply chain.
“We’ve also begun realizing indirect spend savings. During the quarter, we completed a reduction in force. … Our teams handled this process with respect and thoughtfulness, consistent with our core values. We remain confident that our fortress balance sheet, differentiated brand portfolio and strategies position us to reaccelerate growth and capture market share over time.”
Columbia Brand
“The delivery of our spring shipments is well underway and we’re excited for consumers to gain access to our newest product innovations.
“Our industry-leading cooling and sun protection innovations like Omni-Freeze and Omni-Shade sun deflector, differentiate Columbia from the competition. This spring, we launched Omni-Shade broad spectrum airflow, offering exceptionally breathable sun protection with omni-evaporation for next-to-skin comfort. We’re also focused on reenergizing PFG with new products like the PFG unchartered collection. This new assortment features a younger, more active fit, tech pack performance, and new fabric agents.”
Mountain Hardwear
“Mountain Hardwear has strong momentum from its recent brand refresh and the team is thinking bigger as they (look to) meaningfully scale the business.”
Sorel
“With leadership now in place, the Sorel team is focused on revitalizing the brand, building a compelling product and driving long-term sustainable growth. I remain confident in the future of the Sorel brand.”
Prana
“The Prana team remains focused on building brand awareness, refining the product assortment, and unlocking the brand’s growth potential. We’re encouraged by Fall 2024 orders and the potential to return to growth in the second half of the year.”
