Columbia Sportswear Company reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in both net sales and profitability compared to the previous fiscal period.
For Q3 2024, net sales totaled $931.8 million, a decrease of 5% from $985.7 million in Q3 2023. The nine-month period saw net sales of $2.272 billion, down 6% from $2.427 billion in the same period last year. The decline in sales was attributed to various factors, including increased competition in the outdoor apparel market, unseasonably warm weather affecting demand for outerwear, and general economic uncertainty impacting consumer behavior.
Gross profit for Q3 2024 was $467.6 million, down 3% from $480.2 million in Q3 2023, while gross margin improved to 50.2%, up from 48.7% in the prior year. Operating income for Q3 2024 was $112.5 million, a decrease from $134.6 million in Q3 2023, reflecting a decline in operating income margin from 13.7% to 12.1%. For the nine months ended September 30, 2024, operating income was $133.4 million, down from $197.2 million in the same period in 2023.
Net income for Q3 2024 was $90.2 million, compared to $103.5 million in Q3 2023, while net income for the nine months was $120.7 million, down from $158.1 million in the prior year. Earnings per share for Q3 2024 were $1.56, down from $1.70 in Q3 2023, and for the nine months, EPS decreased from $2.56 to $2.04.
The company’s strategic initiatives include the ACCELERATE Growth Strategy, aimed at enhancing brand perception and attracting younger consumers. Additionally, Columbia is implementing a Profit Improvement Program projected to achieve annualized savings of $125 million to $150 million by 2026.
Columbia's cash and cash equivalents as of September 30, 2024, were $306.7 million, down from $350.3 million at the end of 2023 but up from $213.3 million a year earlier. The company repurchased $120.1 million of common stock in Q3 2024, with a total of $230.9 million repurchased in the nine-month period.
The company continues to face challenges, including supply chain disruptions, increased competition, and the impact of regulatory changes, particularly regarding environmental standards. Despite these challenges, Columbia remains focused on strategic investments in digital capabilities and direct-to-consumer operations.
About COLUMBIA SPORTSWEAR CO
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