Columbia Sportswear Company (COLM) Bundle
A Brief History of Columbia Sportswear Company
Columbia Sportswear Company, founded in 1938 in Portland, Oregon, has established itself as a leading innovator in outdoor and active lifestyle products, including apparel, footwear, accessories, and equipment. As of 2024, the company operates under various brands, including Columbia, Mountain Hardwear, SOREL, and prAna, and sells its products in over 100 countries.
Financial Performance Overview
As of the third quarter of 2024, Columbia Sportswear reported a net sales decrease of 5% to $931.8 million from $985.7 million in the third quarter of 2023. The decline is primarily attributed to lower wholesale orders and weak consumer demand in the U.S., influenced by unseasonably warm weather.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales | $931.8 million | $985.7 million | -5% |
| Gross Margin | 50.2% | 48.7% | +1.5% |
| Operating Income | $112.5 million | $134.6 million | -16.4% |
| Net Income | $90.2 million | $103.5 million | -13% |
| Earnings Per Share (Diluted) | $1.56 | $1.70 | -8.2% |
Year-to-Date Financial Highlights
For the first nine months of 2024, Columbia Sportswear reported net sales of $2.27 billion, a decrease of 6% from $2.43 billion in the same period of 2023. Gross margin for this period was 49.8%, compared to 49.2% in the prior year.
| Year-to-Date Financial Metrics | 2024 | 2023 | % Change |
|---|---|---|---|
| Net Sales | $2.27 billion | $2.43 billion | -6% |
| Gross Profit | $1.13 billion | $1.19 billion | -5% |
| Operating Income | $133.4 million | $197.2 million | -32.4% |
| Net Income | $120.7 million | $158.1 million | -23.6% |
Balance Sheet Highlights
As of September 30, 2024, Columbia Sportswear reported total assets of $2.76 billion, with total liabilities amounting to $973.3 million. The company maintained a strong liquidity position with cash and cash equivalents totaling $306.7 million, up from $213.3 million in 2023.
| Balance Sheet Metrics | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Total Assets | $2.76 billion | $2.80 billion |
| Total Liabilities | $973.3 million | $903.6 million |
| Total Shareholders' Equity | $1.79 billion | $1.90 billion |
Future Outlook
Columbia Sportswear's financial outlook for the full year 2024 anticipates net sales between $3.31 billion and $3.38 billion, reflecting a decline of 5% to 3% compared to 2023. The operating income is expected to range from $257 million to $284 million, with diluted earnings per share projected between $3.70 and $4.05.
| 2024 Financial Outlook | Projected Range |
|---|---|
| Net Sales | $3.31 - $3.38 billion |
| Operating Income | $257 - $284 million |
| Earnings Per Share (Diluted) | $3.70 - $4.05 |
A Who Owns Columbia Sportswear Company (COLM)
Ownership Structure
As of 2024, Columbia Sportswear Company (COLM) is publicly traded on the NASDAQ stock exchange. The ownership of the company is divided among institutional investors, individual shareholders, and company executives. The largest shareholders typically include mutual funds and investment firms.
Major Shareholders
The following table outlines the major shareholders of Columbia Sportswear Company as of the latest available data in 2024:
| Shareholder | Ownership Stake (%) | Shares Owned | Type of Investor |
|---|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 3,078,000 | Institutional Investor |
| BlackRock, Inc. | 9.8% | 2,856,000 | Institutional Investor |
| State Street Corporation | 5.2% | 1,500,000 | Institutional Investor |
| Tim Boyle (CEO) | 4.1% | 1,200,000 | Insider |
| FMR LLC (Fidelity Investments) | 3.7% | 1,080,000 | Institutional Investor |
| Other Individual and Institutional Investors | 66.7% | 19,000,000 | Various |
Executive Ownership
Company executives, including the CEO and board members, typically have a vested interest in the company's performance. Their ownership is often reflected in stock options and direct shareholdings. Tim Boyle, as the CEO, holds a significant share of the company's stock, aligning his interests with those of shareholders.
Recent Stock Performance
As of October 2024, Columbia Sportswear's stock price has shown fluctuations influenced by market conditions and company performance. The stock closed at approximately $79.15, reflecting a year-to-date performance that includes a stock repurchase program where the company repurchased about 2.9 million shares for $230.9 million.
Market Capitalization
Columbia Sportswear Company has a market capitalization estimated at around $4.5 billion as of the end of September 2024. This figure is derived from its current share price multiplied by the total number of shares outstanding.
Financial Overview
For the nine months ended September 30, 2024, Columbia Sportswear reported net sales of $2.27 billion, a decrease from $2.43 billion in the same period the previous year. The company has maintained a gross margin of approximately 49.8%.
Shareholder Returns
The Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on December 4, 2024, to shareholders of record as of November 20, 2024.
Columbia Sportswear Company (COLM) Mission Statement
Mission Overview
Columbia Sportswear Company connects active people with their passions and is a global multi-brand leading innovator in outdoor, active, and lifestyle products, including apparel, footwear, accessories, and equipment. Founded in 1938 in Portland, Oregon, the Company's brands are sold in more than 100 countries.
ACCELERATE Growth Strategy
The ACCELERATE Growth Strategy is designed to elevate the Columbia brand, targeting younger and more active consumers. This multi-year effort focuses on several consumer-centric shifts across brand, product, and marketplace strategies.
Financial Highlights (Q3 2024)
As of the third quarter of 2024, Columbia Sportswear reported a net sales decrease of 5% to $931.8 million compared to $985.7 million in Q3 2023. The operating income was $112.5 million, representing 12.1% of net sales, down from 13.7% in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $931.8 million | $985.7 million | -5% |
| Operating Income | $112.5 million | $134.6 million | -16.5% |
| Gross Margin | 50.2% | 48.7% | +1.5% |
| Diluted Earnings Per Share | $1.56 | $1.70 | -8.2% |
| Cash and Cash Equivalents | $373.9 million | $214.8 million | +74% |
Full Year 2024 Financial Outlook
Columbia Sportswear anticipates net sales to be between $3.31 billion and $3.38 billion for the full year 2024, reflecting a decline of 5% to 3% compared to 2023. The expected operating income is projected to be between $257 million and $284 million.
| Financial Metric | 2024 Outlook | 2023 Actual | Change (%) |
|---|---|---|---|
| Net Sales | $3.31 - $3.38 billion | $3.49 billion | -5% to -3% |
| Operating Income | $257 - $284 million | $310 million (approx.) | -17% to -8% |
| Diluted Earnings Per Share | $3.70 - $4.05 | $3.65 (approx.) | +1.4% to +11% |
Market Position and Strategy Implementation
The Company continues to focus on enhancing consumer experiences, investing in digital capabilities, and promoting a diverse and inclusive workforce. The ACCELERATE strategy aims to drive brand engagement through increased demand creation investments and amplify marketplace excellence through digitally-led, omni-channel global distribution.
Recent Developments
In the first nine months of 2024, Columbia Sportswear repurchased 2,916,970 shares of common stock for an aggregate of $230.9 million. The Board of Directors authorized a $600 million increase to the Company's stock repurchase authorization on October 24, 2024.
| Share Repurchase Data | Total Shares Repurchased | Total Cost | Average Price per Share |
|---|---|---|---|
| First Nine Months 2024 | 2,916,970 | $230.9 million | $79.15 |
| Remaining Authorization | - | $114.5 million | - |
| New Authorization | - | $600 million | - |
How Columbia Sportswear Company (COLM) Works
Company Overview
Columbia Sportswear Company (NASDAQ: COLM) is a global leader in the outdoor, active, and lifestyle product market, specializing in apparel, footwear, accessories, and equipment. The company operates its brands, including Columbia, Mountain Hardwear, SOREL, and prAna, across more than 100 countries.
Financial Performance
As of the third quarter of 2024, Columbia Sportswear reported a net sales decrease of 5% to $931.8 million compared to $985.7 million in the same quarter of 2023. The decline reflects lower wholesale orders and weak consumer demand in the U.S. due to warm weather conditions.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $931.8 million | $985.7 million | -5% |
| Operating Income | $112.5 million | $134.6 million | -16% |
| Net Income | $90.2 million | $103.5 million | -13% |
| Diluted EPS | $1.56 | $1.70 | -8% |
Gross Margin and SG&A Expenses
The company experienced a gross margin expansion of 150 basis points to 50.2% of net sales, up from 48.7% in Q3 2023. This improvement was primarily driven by lower inbound freight costs and a favorable sales mix across channels and regions.
In contrast, Selling, General and Administrative (SG&A) expenses rose to $361.2 million, representing 38.8% of net sales, compared to $351.6 million or 35.7% of net sales in the previous year.
Year-to-Date Financial Results
For the first nine months of 2024, net sales also decreased by 6% to $2.27 billion from $2.43 billion in the same period of 2023. The gross margin was reported at 49.8%, an increase from 49.2% year-over-year.
| Financial Metric | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|
| Net Sales | $2,271.99 million | $2,427.21 million | -6% |
| Operating Income | $133.4 million | $197.2 million | -32% |
| Net Income | $120.7 million | $158.1 million | -24% |
| Diluted EPS | $2.04 | $2.56 | -20% |
Balance Sheet Highlights
As of September 30, 2024, Columbia Sportswear's balance sheet reflected a strong liquidity position with cash, cash equivalents, and short-term investments totaling $373.9 million, compared to $214.8 million in the previous year.
| Balance Sheet Item | As of Sept 30, 2024 | As of Sept 30, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $306.68 million | $213.28 million |
| Short-term Investments | $67.24 million | $1.47 million |
| Accounts Receivable | $581.74 million | $686.82 million |
| Inventories | $798.15 million | $885.16 million |
| Total Assets | $2.76 billion | $2.80 billion |
Cash Flow Analysis
For the nine months ended September 30, 2024, Columbia Sportswear reported net cash used in operating activities of $76.6 million, contrasting with $22.2 million of cash provided from operating activities in 2023. Capital expenditures for this period were $41.7 million.
| Cash Flow Item | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash from Operating Activities | ($76.6 million) | $22.2 million |
| Capital Expenditures | $41.7 million | $41.4 million |
| Share Repurchases | $230.9 million | $144.6 million |
Future Outlook
Columbia Sportswear has provided a full-year 2024 financial outlook, projecting net sales to range between $3.31 billion and $3.38 billion, representing a decline of 5% to 3% compared to 2023. The operating income is expected to be between $257 million and $284 million.
| Outlook Item | 2024 Forecast |
|---|---|
| Net Sales | $3.31 to $3.38 billion |
| Operating Income | $257 to $284 million |
| Diluted EPS | $3.70 to $4.05 |
Strategic Initiatives
The company is implementing the ACCELERATE Growth Strategy, aimed at elevating the Columbia brand and attracting younger consumers through innovative product offerings and enhanced consumer experiences.
How Columbia Sportswear Company (COLM) Makes Money
Revenue Sources
Columbia Sportswear Company generates revenue primarily through the sale of outdoor apparel, footwear, accessories, and equipment. The company's revenue is derived from various channels, including wholesale distribution and direct-to-consumer (DTC) sales.
| Revenue Channel | Net Sales (2024 Q3) | Net Sales (2023 Q3) | Percentage Change |
|---|---|---|---|
| Wholesale | $605.2 million | $664.3 million | (9)% |
| Direct-to-Consumer | $326.6 million | $321.4 million | 2% |
| Total | $931.8 million | $985.7 million | (5)% |
Geographical Breakdown
The geographical distribution of Columbia's net sales shows significant variations across different regions, impacting overall revenue performance.
| Region | Net Sales (2024 YTD) | Net Sales (2023 YTD) | Percentage Change |
|---|---|---|---|
| United States | $1,385.9 million | $1,552.0 million | (11)% |
| Latin America and Asia Pacific | $373.2 million | $345.1 million | 8% |
| Europe, Middle East, and Africa | $350.2 million | $338.5 million | 3% |
| Canada | $162.7 million | $191.6 million | (15)% |
| Total | $2,272.0 million | $2,427.2 million | (6)% |
Product Categories
Columbia's product offerings are categorized into apparel, footwear, and accessories, each contributing differently to the overall sales figures.
| Product Category | Net Sales (2024 YTD) | Net Sales (2023 YTD) | Percentage Change |
|---|---|---|---|
| Apparel, Accessories and Equipment | $1,818.4 million | $1,853.2 million | (2)% |
| Footwear | $453.6 million | $574.0 million | (21)% |
| Total | $2,272.0 million | $2,427.2 million | (6)% |
Financial Performance Indicators
Columbia's financial performance indicators reflect its profitability and operational efficiency.
| Financial Metric | 2024 YTD | 2023 YTD |
|---|---|---|
| Gross Margin | 49.8% | 49.2% |
| SG&A Expenses | $1,013.3 million | $1,011.5 million |
| Operating Income | $133.4 million | $197.2 million |
| Net Income | $120.7 million | $158.1 million |
| Earnings per Share (Diluted) | $2.04 | $2.56 |
Cash Flow and Capital Expenditures
Columbia's cash flow from operating activities and capital expenditures are critical for sustaining growth and operational capabilities.
| Cash Flow Metrics | 2024 YTD | 2023 YTD |
|---|---|---|
| Net Cash from Operating Activities | $(76.6 million) | $22.2 million |
| Capital Expenditures | $41.7 million | $41.4 million |
Shareholder Returns and Dividends
Columbia maintains a strategy for shareholder returns through share repurchases and dividends.
| Shareholder Metrics | 2024 |
|---|---|
| Shares Repurchased | 2,916,970 shares |
| Total Amount Repurchased | $230.9 million |
| Quarterly Dividend per Share | $0.30 |
Columbia Sportswear Company (COLM) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Columbia Sportswear Company (COLM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Columbia Sportswear Company (COLM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Columbia Sportswear Company (COLM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.