Columbia (COLM) sees a 'challenging' year ahead; Shares slump on results, outlook

Columbia Sportswear’s (NASDAQ: COLM) shares plummeted 11% in after-hours trading after the company reported worse-than-expected earnings and revenue.

The outerwear company posted FQ4 earnings per share (EPS) of $1.55, short of the consensus projection of $1.96. Revenue came in at $1.06 billion, missing the estimated $1.08 billion.

Columbia’s operating income fell by 27% to $113.1 million, accounting for 10.7% of net sales, down from $155.4 million or 13.3% of net sales in the fourth quarter of 2022.

By the end of the quarter, the company's cash, cash equivalents, and short-term investments totaled $764.5 million, with no outstanding borrowings.

Going forward, Columbia expects EPS in the fiscal Q1 to be in the range of $0.30 to $0.45, missing the estimated $0.54. Revenue is anticipated to land between $730 million and $753 million, compared to the projected $771.4 million.

“Looking ahead, we expect 2024 to be a challenging year. Retailers are placing orders cautiously, and economic and geopolitical uncertainty remains high,” said Columbia’s CEO, Chairman, and President.

“We are working diligently to maximize sales in this environment, while optimizing our product, brand marketing and marketplace strategies to accelerate growth in 2025 and beyond.”

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