Columbia Sportswear Reports Q4 Earnings Miss, Stock Declines

Columbia Sportswear reported weaker than expected quarterly earnings, with an EPS of $1.80, falling short of analysts' estimates of $1.86, prompting the stock to open at $79.00 after a previous close of $85.86. In the fourth quarter, net sales increased by 3% year-over-year to $1.1 billion, surpassing some revenue expectations, though the company's full-year revenue guidance fell below analyst estimates. Despite challenges in the North American market and an overall projected decline in net sales for 2024, Columbia's international markets showed strong growth, particularly in China and EMEA. The company's profit improvement initiatives generated $90 million in cost savings, and it ended the year with a solid cash position and no debt. Columbia's new ACCELERATE Growth Strategy aims to enhance its market presence, particularly among younger consumers, signaling a focus on future growth. Analysts remain cautious, as the company's next quarter revenue guidance of $756.5 million is below expectations, raising questions about its upcoming performance.