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Columbia Sportswear (COLM) Up 4.2% Since Last Earnings Report: Can It Continue?
COLMColumbia(COLM) ZACKS·2025-03-06 17:36

Core Viewpoint - Columbia Sportswear reported a mixed fourth-quarter performance with sales growth but earnings per share falling short of estimates, while the company anticipates continued expansion in 2025 across most brands and regions [2][3][9]. Financial Performance - The company reported earnings of 1.80pershare,missingtheZacksConsensusEstimateof1.80 per share, missing the Zacks Consensus Estimate of 1.92, but representing a 16% increase from 1.55intheprioryear[3].−Netsalesreached1.55 in the prior year [3]. - Net sales reached 1,096.6 million, exceeding the Zacks Consensus Estimate of 1,092million,andreflectinga31,092 million, and reflecting a 3% year-over-year growth [3]. - Gross margin increased by 50 basis points to 51.1%, driven by lower inventory clearance activity [4]. - Operating profit rose 21% to 137.3 million, with operating margin increasing by 180 basis points to 12.5% [4]. Sales Performance by Region - In the United States, net sales declined 1% to 682.3million,whilesalesinEurope,theMiddleEast,andAfricasurged24682.3 million, while sales in Europe, the Middle East, and Africa surged 24% to 161.6 million [5]. - Latin America and Asia Pacific net sales grew 7% to 187.6million,butfellshortofestimates[5].−Direct−to−consumer(DTC)salesincreasedby1187.6 million, but fell short of estimates [5]. - Direct-to-consumer (DTC) sales increased by 1% year-over-year to 636.7 million, while wholesale channel sales rose 7% to 459.9million[5].SalesPerformancebyProductCategory−NetsalesintheApparel,Accessories,andEquipmentcategoryincreasedby6459.9 million [5]. Sales Performance by Product Category - Net sales in the Apparel, Accessories, and Equipment category increased by 6% to 868.8 million, surpassing estimates [6]. - Footwear sales fell 4% to 227.8million,missingestimates,withSORELandprAnabrandsexperiencingdeclines[6].FinancialPositionandShareholderReturns−Thecompanyendedthequarterwithcashandcashequivalentsof227.8 million, missing estimates, with SOREL and prAna brands experiencing declines [6]. Financial Position and Shareholder Returns - The company ended the quarter with cash and cash equivalents of 531.9 million and no debt on its balance sheet [7]. - Columbia Sportswear repurchased 3,962,540 shares for 317.8millionandannouncedaquarterlycashdividendof30centspershare[8].FutureOutlook−For2025,thecompanyexpectsnetsalestoincreaseby1−3317.8 million and announced a quarterly cash dividend of 30 cents per share [8]. Future Outlook - For 2025, the company expects net sales to increase by 1-3% in the range of 3.40-3.47billion,withananticipatedgrossmarginexpansionof80basispoints[9].−Thecompanyforecastsoperatingmargintobeintherangeof7.7−8.33.47 billion, with an anticipated gross margin expansion of 80 basis points [9]. - The company forecasts operating margin to be in the range of 7.7-8.3% and EPS to be between 3.80-4.15[9].−Forthefirsthalfof2025,netsalesareexpectedtogrow1−34.15 [9]. - For the first half of 2025, net sales are expected to grow 1-3% to 1,352-$1,378 million, with a projected operating margin of 1.5-2.2% [10].