Q4 2024 Columbia Sportswear Co Earnings Call Transcript
Key Points
- Columbia Sportswear Co (COLM) achieved a 3% increase in fourth-quarter net sales, reaching $1.1 billion, driven by a 7% increase in wholesale net sales.
- The company successfully reduced inventories by 7%, contributing to a healthier inventory position and supporting gross margin expansion.
- Columbia Sportswear Co (COLM) returned $318 million to shareholders through share repurchases and paid approximately $70 million in dividends.
- The ACCELERATE Growth Strategy is showing positive momentum, with plans to elevate the brand and attract younger consumers through refreshed marketing and product innovation.
- International markets, particularly China and Europe, are experiencing strong growth, with China net sales increasing by mid-teens percent and Europe direct net sales growing by high-teens percent.
- Overall 2024 net sales decreased by 3% to $3.4 billion, reflecting challenging market conditions in North America.
- Operating margin contracted due to net sales decline and ongoing cost pressures, leading to a decline in earnings.
- The SOREL brand experienced a 16% decrease in net sales, driven by lower wholesale and direct-to-consumer sales.
- The US direct-to-consumer net sales declined by low single-digit percent, with lower e-commerce sales partially offset by modest brick-and-mortar growth.
- SG&A expenses increased by 6%, primarily due to higher incentive compensation and direct-to-consumer expenses, contributing to operating margin pressure.
Greetings. Welcome to the Columbia Sportswear fourth-quarter 2024 financial results conference call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Andrew Burns. You may begin.
Good afternoon, and thanks for joining us to discuss Columbia Sportswear Company's fourth-quarter results. In addition to the earnings release, we furnished an 8K containing a detailed CFO Commentary and Financial Review presentation explaining our results. This document is also available on Investor Relations website, investor.columbia.com.
With me today on the call are Chairman, President, and Chief Executive Officer, Tim Boyle; Executive Vice President and Chief Financial Officer, Jim Swanson; and Executive Vice President, Chief Administrative Officer, and General Counsel, Peter Bragdon.
This conference call will contain forward-looking statements regarding Columbia's expectations,
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