Columbia Sportswear Reports Q4 Sales Drop, Cautious 2024 Outlook
Columbia Sportswear Company has reported a 9% decrease in its Q4 net sales to $1.06 billion, reflecting a challenging year for the outdoor apparel giant. The company has also announced a multi-year profit improvement program and a cautious outlook for 2024.
Columbia's Q4 operating income dropped by 27% to $113.1 million, including a $25 million impairment charge related to its prAna brand. Despite this, fiscal 2023 net sales increased by 1% to $3.48 billion, in line with the company's revised Q3 guidance. The Columbia brand experienced healthy growth outside the U.S., particularly in China and Europe-direct markets.
The company expects 2024 to be challenging due to cautious retailer orders and economic uncertainty. It projects net sales of between $3.35 billion and $3.42 billion for the year, representing a decline of between 2% and 4% compared to 2023. To address these challenges, Columbia has announced a multi-year profit improvement program with potential annual savings of between $125 million and $150 million by 2026.
In leadership changes, Cory Long was named president of the Sorel brand in November 2023, and later succeeded by another executive in December 2023. Tricia Shumavon was appointed president of prAna in summer 2023 to reposition the brand for future growth.
Despite a challenging quarter and year, Columbia Sportswear Company has shown resilience with increased net sales and growth in international markets. The company's outlook for 2024 is cautious, but it is taking proactive steps to improve profitability through a multi-year program. Leadership changes at Sorel and prAna signal the company's commitment to driving growth and repositioning its brands.
