Columbia Sportswear Company reported third quarter 2024 financial results with net sales decreasing 5% (5% constant-currency) to $931.8 million, down from $985.7 million in the prior year. This decline was attributed to lower Fall '24 wholesale orders and weak U.S. consumer demand, partially due to warm weather. Despite the sales decline, diluted earnings per share (EPS) reached $1.56, surpassing the prior year's $1.70 per diluted share.
The company's gross margin expanded by 150 basis points to 50.2% of net sales, driven by lower inbound freight costs and a favorable channel and region net sales mix. Operating income was $112.5 million, or 12.1% of net sales, compared to $134.6 million, or 13.7% of net sales, in the comparable period of 2023. Inventories decreased 10% to $798.2 million as of September 30, 2024.
Columbia Sportswear also announced the launch of its multi-year "ACCELERATE Growth Strategy," aimed at elevating the Columbia brand and attracting younger, more active consumers. Concurrently, the Board of Directors authorized a $600 million increase to the company's share repurchase program, demonstrating a commitment to returning capital to shareholders. The full-year 2024 net sales outlook was revised to a decrease of 5.0% to 3.0%, with diluted EPS expected between $3.70 and $4.05.
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