Columbia Sportswear net sales decreased 6 percent to $770 million in the first quarter, on the back of lower wholesale revenues in the United States and Canada.
The Portland, Oregon-based company said the quarterly decline in sales was also driven by retailer cautiousness, a difficult competitive environment, and generally soft consumer demand in the North American markets.
By brand, Columbia and prAna brand sales fell 6% and 4%, while Sorel brand sales plummeted 24%. Mountain Hardware sales lifted 17%.
Net income decreased 8 percent to $42.3 million, or $0.71 per diluted share, compared to net income of $46.2 million, or $0.74 per diluted share, for the comparable period in 2023.
“2024 has started out broadly in line with our expectations. We are making good progress against our top priorities. Inventory exiting the quarter was down 37 percent year-over-year, and our profit improvement plan is on track to achieve our savings targets. Based on year-to-date results, we are reiterating our net sales outlook while modestly increasing our diluted EPS range,” said chairman, president and chief executive officer Tim Boyle.
“Our brand growth acceleration strategies across the portfolio are underway. As warmer weather takes hold, consumers are being introduced to our newest cooling products and technologies, including Columbia Omni-Shade Broad Spectrum Air Flow, and our newest footwear system, Omni-MAX.”
Looking ahead, Columbia said full-year 2024 net sales are expected to decrease 4 to 2 percent, resulting in net sales of $3.35 to $3.42 billion, compared to $3.49 billion in 2023.
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