Columbia Sportswear's Q4 Earnings: A Closer Look at the Numbers

Columbia Sportswear Company (NASDAQ: COLM) recently reported its fourth quarter and full year 2024 financial results, providing investors with valuable insights into the company's performance and growth prospects. As an experienced financial analyst, I have analyzed the earnings report and identified several key takeaways that investors should consider.

Firstly, Columbia Sportswear's net sales increased by 3% (3% constant-currency) to $1,096.6 million in the fourth quarter of 2024, compared to the same period in 2023. This growth was driven by the Columbia brand, which offset declines in net sales from the emerging brands. Gross margin improved to 51.2% from 50.4% in the prior year, reflecting the company's focus on cost management and improved product mix.

Operating income increased by 21% to $137.3 million, or 12.5% of net sales, compared to the fourth quarter of 2023. This significant improvement was primarily due to the absence of a $25.0 million impairment charge related to prAna in the prior year. Diluted earnings per share (EPS) increased by 16% to $1.80, compared to $1.55 in the fourth quarter of 2023. However, it is essential to note that the fourth quarter 2024 income tax expense included a $6.4 million discrete tax valuation allowance expense, which negatively impacted EPS by $0.11.



Full year 2024 net sales decreased by 3% to $3,368.6 million, compared to 2023. Operating income decreased by 13% to $270.7 million, or 8.0% of net sales, compared to 2023 operating income of $310.3 million, or 8.9% of net sales. Diluted EPS decreased by 7% to $3.82, compared to $4.09 in 2023. The company repurchased $317.8 million of common stock during the twelve months ended December 31, 2024.

Columbia Sportswear's full year 2025 financial outlook projects net sales of $3.40 to $3.47 billion, representing net sales growth of 1.0 to 3.0% compared to 2024. The company expects an operating margin of 7.7 to 8.3% and diluted EPS of $3.80 to $4.15.



In conclusion, Columbia Sportswear's fourth quarter and full year 2024 financial results demonstrate the company's ability to navigate challenging market conditions and maintain profitability. The company's focus on cost management, product innovation, and strategic investments has positioned it well for continued growth in 2025. Investors should closely monitor the company's progress in executing its ACCELERATE growth strategy and expanding its international presence, as these factors will be critical to its long-term success.