“2024 has started out broadly in line with our expectations. We are making good progress against our top priorities. Inventory exiting the quarter was down 37% year-over-year, and our Profit Improvement Plan is on track to achieve our savings targets. Based on year-to-date results, we are reiterating our net sales outlook while modestly increasing our diluted EPS range”, commented Chairman, President and Chief Executive Officer Tim Boyle.

First Quarter Results

In the first quarter of the current fiscal year, the company’s net sales totalled 770.0 million US dollars, a decrease of 6% on both a reported and constant currency basis, as compared to the same period of 2023. This result was due to “lower wholesale net sales in the United States and Canada” as a result of “retailer cautiousness, a difficult competitive environment, and generally soft consumer demand”.

By brand. Columbia experienced a 6% decline in net sales to 663.9 million US dollars, on a comparable basis to the prior year, which was also the case on a constant currency basis. Sorel net sales declined by 24%, or 25% on a constant currency basis, to 45.7 million US dollars and prAna net sales declined to 31.3 million US dollars, a decline of 4% on a reported and constant currency basis versus the first quarter of 2023. There was, however, one bright spot: Mountain Hardwear recorded a net sales increase of 17%, or 18% on a constant currency basis, to USD 29.1 million.

In the three months to the end of March, the company’s gross margin improved by 190 basis points to 50.6% from 48.7% in a similar period a year ago. This improvement is due to lower freight costs and a favourable mix of sales across regions and channels, which offset the negative impact of reducing inventory in their direct-to-consumer brick-and-mortar stores. Colombia highlighted those inventories decreased by 37% year-over-year to 607.4 million US dollars during the period.

The outdoor footwear company reported a decline of 21% in operating income in the first quarter of fiscal 2024 to 44.7 million US dollars, on a comparable basis to 56.4 million US dollars in the comparable period of the previous year.

Overall, first quarter net income for Columbia Sportswear was 42.3 million US dollars, or 0.71 US dollars per diluted share, down by 8% from 46.2 million US dollars, or 0.74 US dollars per diluted share, in the first quarter of fiscal 2003.

Full Year Outlook

For the full year, the company reiterated its net sales guidance of a 4.0% to 2.0% decline to net sales of 3.35 billion to 3.42 billion US dollars, as compared to 3.49 billion US dollars last year.

However, the company expects its full year net income to range from 217 million US dollars to 240 million US dollars (previously 207 million US dollars to 231 million US dollars) and diluted earnings per share between 3.65 US dollars to 4.05 US dollars (previously 3.45 US dollars to 3.85 US dollars).