- Wednesday, October 16, 2024
Shares Trade Lower After Hours
Shares of Columbia Sportswear were down 5% in after-hours trading on Thursday, following a warning from the company about falling sales and cautious retailers in 2024. The stock had risen 3.5% at Thursday's close and is currently up 3.2% since the beginning of the year.
Challenging Year Ahead
Columbia Sportswear, based in Portland, Ore., stated that it anticipates sales of $3.35 billion to $3.42 billion for 2024, indicating a year-on-year decline of 2% to 4%. Analysts polled by FactSet, however, forecasted sales of $3.51 billion.
Chief Executive Tim Boyle expressed his concerns about the upcoming year, stating, "Looking ahead, we expect 2024 to be a challenging year." He noted that retailers are being cautious with their orders and that economic and geopolitical uncertainties persist.
Profit Improvement Program
In response to the anticipated difficulties, the company will be implementing a "profit improvement program" aimed at achieving $125 million to $150 million in annual savings by 2026.
Lower Sales in Q4
Columbia Sportswear reported a 9% decline in sales for the fourth quarter, reaching $1.06 billion. The company attributed this decrease to earlier shipments of fall 2023 wholesale orders and lower direct-to-consumer sales. Analysts had predicted sales of $1.08 billion.
Decline in Profit
Profit for the company also decreased, with fourth-quarter earnings coming in at $93.3 million, or $1.55 per share, compared to $125.7 million, or $2.02 per share, in the previous year.
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