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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 25, 2024
COLUMBIA SPORTSWEAR COMPANY
(Exact name of registrant as specified in its charter)
Oregon 000-23939 93-0498284
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
14375 Northwest Science Park Drive
Portland, Oregon 97229
(Address of principal executive offices) (Zip code)
(503) 985-4000
(Registrant’s telephone number, including area code)
No Change
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class   Trading Symbol(s)   Name of each
exchange on which registered
Common stock   COLM   Nasdaq Global Select Market
    Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company    ☐
    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐




ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 25, 2024, Columbia Sportswear Company (the "Company") issued a press release reporting its second quarter and first half 2024 financial results, updating its full year 2024 financial outlook, and announcing a quarterly dividend. A copy of the Company's press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.
Attached hereto as Exhibit 99.2 and incorporated by reference herein is the CFO Commentary and Financial Review presentation by Jim A. Swanson, Executive Vice President and Chief Financial Officer of the Company, on the Company's second quarter 2024 financial results and its 2024 financial outlook, as posted on the Company's investor relations website, https://investor.columbia.com, on July 25, 2024. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

ITEM 7.01 REGULATION FD DISCLOSURE
In its July 25, 2024 press release, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock to be paid on August 29, 2024 to its shareholders of record on August 15, 2024.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
 
Press Release, dated July 25, 2024 (furnished pursuant to Items 2.02 and 7.01 hereof).
CFO Commentary and Financial Review Presentation, dated July 25, 2024 (furnished pursuant to Items 2.02 and 7.01 hereof).
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
COLUMBIA SPORTSWEAR COMPANY
Dated: July 25, 2024
By: /S/ JIM A. SWANSON
Jim A. Swanson
Executive Vice President and Chief Financial Officer


EX-99.1 2 colmfy24q2exhibit991.htm EX-99.1 Document

Exhibit 99.1
logo3a91.jpg

Columbia Sportswear Company Reports Second Quarter 2024 Financial Results;
Updates Full Year 2024 Financial Outlook

Second Quarter 2024 Highlights
•Net sales decreased 8 percent (7 percent constant-currency) to $570.2 million, compared to second quarter 2023.
•Loss from operations of $23.8 million, or (4.2) percent of net sales, compared to second quarter 2023 operating income of $6.2 million, or 1.0 percent of net sales.
•Net loss per share of $(0.20), compared to second quarter 2023 diluted earnings per share of $0.14.
•Exited the quarter with $711.1 million of cash, cash equivalents and short-term investments and no borrowings.
•Exited the quarter with $823.6 million of inventories, a decrease of 29 percent compared to June 30, 2023.

Full Year 2024 Financial Outlook

The following forward-looking statements reflect our expectations as of July 25, 2024 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. Additional disclosures and financial outlook details can be found in the Full Year 2024 Financial Outlook section below and the CFO Commentary and Financial Review presentation.
•Net sales of $3.35 to $3.42 billion (unchanged), representing a net sales decline of 4.0 to 2.0 percent (unchanged) compared to 2023.
•Operating income of $256 to $288 million (prior $259 to $291 million), representing operating margin of 7.7 to 8.4 percent (prior 7.7 to 8.5 percent).
•Diluted earnings per share of $3.65 to $4.05 (unchanged).

PORTLAND, Ore. - July 25, 2024 - Columbia Sportswear Company (NASDAQ: COLM, the "Company"), a multi-brand global leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment, today announced second quarter 2024 financial results for the period ended June 30, 2024.

Chairman, President and Chief Executive Officer Tim Boyle commented, “Second quarter results were generally in line with expectations. We are working to maximize sales in a challenging U.S. marketplace. Most international markets, including China and Europe-direct, continue to see strong demand. We have made meaningful progress on our top priorities, including inventory reduction, rationalizing expenses through our Profit Improvement Program, and developing actionable strategies to reinvigorate long-term profitable growth. We are reiterating our net sales and diluted earnings per share outlook and remain on track to generate over $350 million in operating cash flow.

“Our Fall ‘24 order book supports sequential improvement in wholesale sales, with the potential for overall sales to return to growth by the fourth quarter. I’m thrilled with our line-up of innovations for this Fall, including Omni-Heat Infinity, Omni-Max footwear and our newest innovation, Omni-Heat Arctic. As we look toward 2025, I am pleased to report that early indications from our Spring ’25 wholesale orderbook suggest a return to wholesale growth in the first half.

“Our fortress balance sheet remains a strategic advantage, with over $710 million in cash and short-term investments, and no debt, at quarter end. I’m confident our team and our strategies position us to re-accelerate growth and capture market share over time. We are committed to investing in our strategic priorities to:
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•accelerate profitable growth;
•create iconic products that are differentiated, functional and innovative;
•drive brand engagement through increased, focused demand creation investments;
•enhance consumer experiences by investing in capabilities to delight and retain consumers;
•amplify marketplace excellence, with digitally-led, omni-channel, global distribution; and
•empower talent that is driven by our core values, through a diverse and inclusive workforce."

CFO's Commentary and Financial Review Presentation Available Online

For a detailed review of the Company's second quarter 2024 financial results, please refer to the CFO Commentary and Financial Review presentation furnished to the Securities and Exchange Commission (the "SEC") on a Current Report on Form 8-K and published on the Investor Relations section of the Company's website at http://investor.columbia.com/financial-results at approximately 4:15 p.m. ET today. Analysts and investors are encouraged to review this commentary prior to participating in our conference call.

Second Quarter 2024 Financial Results
(All comparisons are between second quarter 2024 and second quarter 2023, unless otherwise noted.)

Net sales decreased 8 percent (7 percent constant-currency) to $570.2 million from $620.9 million for the comparable period in 2023. The decline in net sales primarily reflects lower wholesale net sales in the United States ("U.S.") due to retailer cautiousness, a difficult competitive environment, and generally soft consumer demand.

Gross margin contracted 270 basis points to 47.9 percent of net sales from 50.6 percent of net sales for the comparable period in 2023. Gross margin contraction primarily reflects the impact of efforts to spur demand and reduce inventory in the U.S., as well as changes in sales provisions, partially offset by lower inbound freight costs.

SG&A expenses were $302.7 million, or 53.1 percent of net sales, compared to $312.5 million, or 50.3 percent of net sales, for the comparable period in 2023. The largest changes in SG&A expenses primarily reflect lower supply chain and variable demand creation expenses, partially offset by higher direct-to-consumer ("DTC") expenses.

Loss from operations was $23.8 million, or (4.2) percent of net sales, compared to operating income of $6.2 million, or 1.0 percent of net sales, for the comparable period in 2023.

Interest income, net of $8.3 million, compared to $3.5 million for the comparable period in 2023, reflects higher yields on increased levels of cash, cash equivalents, and investments.

Income tax benefit of $3.2 million resulted in an effective income tax rate of 21.6 percent, compared to income tax expense of $1.2 million, or an effective income tax rate of 12.6 percent, for the comparable period in 2023.

Net loss of $11.8 million, or $(0.20) per diluted share, compared to net income of $8.4 million, or $0.14 per diluted share, for the comparable period in 2023.

First Half 2024 Financial Results
(All comparisons are between the first six months 2024 and the first six months 2023, unless otherwise noted.)

Net sales decreased 7 percent (6 percent constant-currency) to $1,340.2 million from $1,441.5 million for the comparable period in 2023.

Gross margin of 49.5% percent of net sales was flat compared to the comparable period in 2023.

SG&A expenses were $652.0 million, or 48.6 percent of net sales, compared to $659.9 million, or 45.8 percent of net sales, for the comparable period in 2023.

Operating income decreased 67 percent to $20.9 million, or 1.6 percent of net sales, compared to operating income of $62.7 million, or 4.3 percent of net sales, for the comparable period in 2023.

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Interest income, net was $17.5 million, compared to $6.7 million for the comparable period in 2023.

Income tax expense of $8.6 million resulted in an effective income tax rate of 22.0 percent, compared to income tax expense of $15.5 million, or an effective income tax rate of 22.2 percent, for the comparable period in 2023.

Net income decreased 44 percent to $30.6 million, or $0.51 per diluted share, compared to net income of $54.6 million, or $0.88 per diluted share, for the comparable period in 2023.


Balance Sheet as of June 30, 2024

Cash, cash equivalents, and short-term investments totaled $711.1 million, compared to $302.8 million as of June 30, 2023.

The Company had no borrowings as of either June 30, 2024 or June 30, 2023.

Inventories decreased 29 percent to $823.6 million, compared to $1,162.5 million as of June 30, 2023.

Cash Flow for the Six Months Ended June 30, 2024

Net cash provided by operating activities was $108.9 million, compared to $9.7 million for the same period in 2023.

Capital expenditures totaled $27.8 million, compared to $22.8 million for the same period in 2023.

Share Repurchases for the Six Months Ended June 30, 2024

The Company repurchased 1,414,437 shares of common stock for an aggregate of $110.7 million, or an average price per share of $78.29.

At June 30, 2024, $234.6 million remained available under our stock repurchase authorization, which does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Quarterly Cash Dividend

The Board of Directors approved a regular quarterly cash dividend of $0.30 per share, payable on August 29, 2024 to shareholders of record on August 15, 2024.

Full Year 2024 Financial Outlook

(Additional financial outlook details can be found in the CFO Commentary and Financial Review presentation.)

The Company's full year 2024 and third quarter 2024 Financial Outlook are each forward-looking in nature, and the following forward-looking statements reflect our expectations as of July 25, 2024 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. These risks and uncertainties limit our ability to accurately forecast results.

Net sales are expected to decrease 4.0 to 2.0 percent (unchanged), resulting in net sales of $3.35 to $3.42 billion (unchanged), compared to $3.49 billion in 2023.

Gross margin is expected to expand 40 to 60 basis points (prior 80 to 120 basis points) to 50.0 to 50.2 percent of net sales (prior 50.4 to 50.8 percent) from 49.6 percent of net sales in 2023.

SG&A expenses, as a percent of net sales, are expected to be 42.4 to 43.0 percent (prior 43.0 to 43.4 percent), compared to SG&A expense as a percent of net sales of 40.6 percent in 2023.

Operating income is expected to be $256 to $288 million (prior $259 to $291 million), resulting in operating margin of 7.7 to 8.4 percent (prior 7.7 to 8.5 percent), compared to operating margin of 8.9 percent in 2023.

Interest income, net is expected to be approximately $28 million.
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Effective income tax rate is expected to be 24.0 to 25.0 percent (unchanged).

Net income is expected to be $215 to $239 million (prior $217 to $240 million), resulting in diluted earnings per share of $3.65 to $4.05 (unchanged). This diluted earnings per share range is based on estimated weighted average diluted shares outstanding of 59.3 million (unchanged).

Foreign Currency

•Foreign currency translation is anticipated to decrease 2024 net sales growth by approximately 70 basis points (prior 20 basis points).

•Foreign currency is expected to have an approximately $0.07 negative impact on diluted earnings per share (prior $0.04) due to negative foreign currency transactional effects from hedging of inventory production, as well as unfavorable foreign currency translation impacts. 

Cash Flows

Operating cash flow is expected to be at least $350 million (unchanged).

Capital expenditures are planned to be in the range of $60 to $80 million (unchanged).

Third Quarter 2024 Financial Outlook

•Net sales are expected to be $927 to $959 million, representing a decline of 6 to 3 percent from $985.7 million for the comparable period in 2023.
•Operating income is expected to be $94 to $107 million, resulting in operating margin of 10.1 to 11.2 percent, compared to operating margin of 13.7 percent in the comparable period in 2023.
•Diluted earnings per share is expected to be $1.27 to $1.43, compared to $1.70 for the comparable period in 2023.

Conference Call

The Company will hold its second quarter 2024 conference call at 5:00 p.m. ET today. Dial (888) 506-0062 to participate. The call will also be webcast live on the Investor Relations section of the Company's website at http://investor.columbia.com.

Third Quarter 2024 Reporting Date

The Company plans to report third quarter 2024 financial results on Wednesday, October 30, 2024 at approximately 4:00 p.m. ET.

Supplemental Financial Information

Since Columbia Sportswear Company is a global company, the comparability of its operating results reported in United States dollars is affected by foreign currency exchange rate fluctuations because the underlying currencies in which it transacts change in value over time compared to the United States dollar. To supplement financial information reported in accordance with GAAP, the Company discloses constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in the exchange rates used to translate net sales generated in foreign currencies into United States dollars. The Company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into United States dollars at the average exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP financial measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results.
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The non-GAAP financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" table included herein. The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements
This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company’s expectations, anticipations or beliefs about the Company's ability to realize growth opportunities and manage expenses, financial position, marketing strategies, inventory, full year 2024 net sales, gross margin, SG&A expenses, operating income, net interest income, effective income tax rate, net income, diluted earnings per share, weighted average diluted shares outstanding, foreign currency translation, operating cash flow, and capital expenditures, as well as third quarter 2024 net sales, operating income, and diluted earnings per share. Forward-looking statements often use words such as "will," "anticipate," "estimate," "expect," "should," "may," "plan" and other words and terms of similar meaning or reference future dates. The Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties that may affect our future revenues, earnings and performance and could cause the actual results of operations or financial condition of the Company to differ materially from the anticipated results expressed or implied by forward-looking statements in this document include: loss of key customer accounts; our ability to execute and realize cost savings related to our Profit Improvement Plan; our ability to effectively execute our business strategies, including initiatives to upgrade our business processes and information technology (“IT”) systems and investments in our DTC businesses; our ability to maintain the strength and security of our IT systems; the effects of unseasonable weather, including global climate change; the seasonality of our business and timing of orders; trends affecting consumer spending, including changes in the level of consumer spending, and retail traffic patterns; unfavorable economic conditions generally, the financial health of our customers and retailer consolidation; higher than expected rates of order cancellations; changes affecting consumer demand and preferences and fashion trends; changes in international, federal or state tax, labor and other laws and regulations that affect our business, including changes in corporate tax rates, tariffs, international trade policy and geopolitical tensions, or increasing wage rates; our ability to attract and retain key personnel; risks inherent in doing business in foreign markets, including fluctuations in currency exchange rates, global credit market conditions, changes in global regulation and economic and political conditions and disease outbreaks; volatility in global production and transportation costs and capacity and timing; our ability to effectively manage our inventory and our wholesale customer’s to manage their inventories; our dependence on third-party manufacturers and suppliers and our ability to source at competitive prices from them or at all; the effectiveness of our sales and marketing efforts; business disruptions and acts of terrorism, cyber-attacks or military activities around the globe; intense competition in the industry; our ability to establish and protect our intellectual property; and our ability to develop innovative products. The Company cautions that forward-looking statements are inherently less reliable than historical information. The Company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time and it is not possible for the Company to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

About Columbia Sportswear Company

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. In addition to the Columbia® brand, Columbia Sportswear Company also owns the Mountain Hard Wear®, SOREL® and prAna® brands. To learn more, please visit the Company's websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, and www.prana.com.

Contact:
Andrew Burns, CFA
Vice President of Investor Relations and Strategic Planning - Financial tables follow -
Columbia Sportswear Company
(503) 985-4112
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aburns@columbia.com

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COLUMBIA SPORTSWEAR COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(in thousands) June 30,
2024
June 30,
2023
ASSETS
Current Assets:
Cash and cash equivalents $ 341,822  $ 231,571 
Short-term investments 369,276  71,225 
Accounts receivable, net 222,628  343,835 
Inventories 823,557  1,162,519 
Prepaid expenses and other current assets 90,527  91,990 
Total current assets 1,847,810  1,901,140 
Property, plant and equipment, net 277,509  280,578 
Operating lease right-of-use assets 360,721  313,698 
Intangible assets, net 79,221  80,733 
Goodwill 26,694  51,694 
Deferred income taxes 97,428  94,671 
Other non-current assets 71,438  67,290 
Total assets $ 2,760,821  $ 2,789,804 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 267,853  247,416 
Accrued liabilities 201,700  238,988 
Operating lease liabilities 72,101  69,784 
Income taxes payable 2,787  1,080 
Total current liabilities 544,441  557,268 
Non-current operating lease liabilities 339,327  298,062 
Income taxes payable 13,615  23,452 
Deferred income taxes 64  — 
Other long-term liabilities 39,412  36,364 
Total liabilities 936,859  915,146 
Total shareholders' equity 1,823,962  1,874,658 
Total liabilities and shareholders' equity $ 2,760,821  $ 2,789,804 



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COLUMBIA SPORTSWEAR COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended June 30,
Six Months Ended June 30,
(In thousands, except per share amounts)
2024 2023 2024 2023
Net sales $ 570,244  $ 620,933  $ 1,340,226  $ 1,441,526 
Cost of sales 296,825  306,888  677,248  727,981 
Gross profit 273,419  314,045  662,978  713,545 
Gross margin 47.9  % 50.6  % 49.5  % 49.5  %
Selling, general and administrative expenses 302,749  312,529  652,019  659,927 
Net licensing income 5,528  4,713  9,920  9,038 
Operating income (23,802) 6,229  20,879  62,656 
Interest income, net 8,344  3,506  17,541  6,789 
Other non-operating income, net 476  (185) 747  665 
Income before income tax (14,982) 9,550  39,167  70,110 
Income tax expense (3,241) 1,200  8,608  15,558 
Net income $ (11,741) $ 8,350  $ 30,559  $ 54,552 
Earnings per share:
Basic $ (0.20) $ 0.14  $ 0.51  $ 0.88 
Diluted $ (0.20) $ 0.14  $ 0.51  $ 0.88 
Weighted average shares outstanding:
Basic 59,093 61,655 59,458  61,893
Diluted 59,093 61,781 59,603  62,122

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COLUMBIA SPORTSWEAR COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Six Months Ended June 30,
(in thousands) 2024 2023
Cash flows from operating activities:
Net income $ 30,559  $ 54,552 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 29,142  27,976 
Non-cash lease expense 37,419  33,564 
Provision for uncollectible accounts receivable 1,502  145 
Deferred income taxes 2,101  488 
Stock-based compensation 12,008  11,208 
Other, net (9,800) 491 
Changes in operating assets and liabilities:
Accounts receivable 191,737  203,846 
Inventories (88,753) (135,251)
Prepaid expenses and other current assets (2,809) 30,396 
Other assets 1,159  366 
Accounts payable 31,105  (69,305)
Accrued liabilities (63,626) (90,759)
Income taxes payable (26,688) (27,303)
Operating lease assets and liabilities (37,275) (34,317)
Other liabilities 1,112  3,611 
Net cash provided by operating activities 108,893  9,708 
Cash flows from investing activities:
Purchases of short-term investments (388,348) (117,877)
Sales and maturities of short-term investments 446,087  50,747 
Capital expenditures (27,788) (22,803)
Net cash provided by (used in) investing activities 29,951  (89,933)
Cash flows from financing activities:
Proceeds from credit facilities —  837 
Repayments on credit facilities —  (837)
Proceeds from issuance of common stock related to stock-based compensation 3,747  4,624 
Tax payments related to stock-based compensation (4,461) (4,400)
Repurchase of common stock (102,618) (78,319)
Cash dividends paid (35,628) (37,099)
Net cash used in financing activities (138,960) (115,194)
Net effect of exchange rate changes on cash (8,381) (3,251)
Net decrease in cash and cash equivalents (8,497) (198,670)
Cash and cash equivalents, beginning of period 350,319  430,241 
Cash and cash equivalents, end of period $ 341,822  $ 231,571 
Supplemental disclosures of cash flow information:
Cash paid during the year for income taxes $ 58,151  $ 61,131 
Supplemental disclosures of non-cash investing and financing activities:
Property, plant and equipment acquired through increase in liabilities $ 6,283  $ 5,982 
Repurchases of common stock not settled $ 8,114  $ — 

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COLUMBIA SPORTSWEAR COMPANY
Reconciliation of GAAP to Non-GAAP Financial Measures
Net Sales Growth - Constant-currency Basis
(Unaudited)

Three Months Ended June 30,
Reported
Net Sales
Adjust for Foreign Currency
Constant-currency
Net Sales
Reported
Net Sales
Reported
Net Sales
Constant-currency
Net Sales
(In millions, except percentage changes)
2024
Translation
2024(1)
2023
% Change
% Change(1)
Geographical Net Sales:
United States $ 340.2  $ —  $ 340.2  $ 399.1  (15)% (15)%
Latin America and Asia Pacific 99.5  5.7  105.2  93.3  7% 13%
Europe, Middle East and Africa 103.9  0.4  104.3  100.8  3% 3%
Canada 26.6  0.1  26.7  27.7  (4)% (4)%
  Total $ 570.2  $ 6.2  $ 576.4  $ 620.9  (8)% (7)%
Brand Net Sales:
Columbia $ 508.6  $ 5.9  $ 514.5  $ 537.0  (5)% (4)%
SOREL 21.0  0.1  21.1  37.8  (44)% (44)%
prAna 21.8  —  21.8  27.6  (21)% (21)%
Mountain Hardwear 18.8  0.2  19.0  18.5  2% 3%
  Total $ 570.2  $ 6.2  $ 576.4  $ 620.9  (8)% (7)%
Product Category Net Sales:
Apparel, Accessories and Equipment $ 464.0  $ 4.3  $ 468.3  $ 488.9  (5)% (4)%
Footwear 106.2  1.9  108.1  132.0  (20)% (18)%
  Total $ 570.2  $ 6.2  $ 576.4  $ 620.9  (8)% (7)%
Channel Net Sales:
Wholesale $ 278.4  $ 2.2  $ 280.6  $ 328.3  (15)% (15)%
DTC 291.8  4.0  295.8  292.6  —% 1%
  Total $ 570.2  $ 6.2  $ 576.4  $ 620.9  (8)% (7)%
(1) Constant-currency net sales is a non-GAAP financial measure. See “Supplemental Financial Information” above for further information.
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COLUMBIA SPORTSWEAR COMPANY
Reconciliation of GAAP to Non-GAAP Financial Measures
Net Sales Growth - Constant-currency Basis
(Unaudited)

Six Months Ended June 30,
Reported
Net Sales
Adjust for Foreign Currency
Constant-currency
Net Sales
Reported
Net Sales
Reported
Net Sales
Constant-currency
Net Sales
(In millions, except percentage changes)
2024 Translation
2024(1)
2023
% Change
% Change(1)
Geographical Net Sales:
United States $ 814.6  $ —  $ 814.6  $ 916.6  (11)% (11)%
Latin America and Asia Pacific 238.2  12.3  250.5  229.7  4% 9%
Europe, Middle East and Africa 208.4  (1.8) 206.6  209.1  —% (1)%
Canada 79.0  (0.3) 78.7  86.1  (8)% (9)%
  Total $ 1,340.2  $ 10.2  $ 1,350.4  $ 1,441.5  (7)% (6)%
Brand Net Sales:
Columbia $ 1,172.5  $ 9.9  $ 1,182.4  $ 1,239.8  (5)% (5)%
SOREL 66.7  —  66.7  98.3  (32)% (32)%
prAna 53.1  —  53.1  60.1  (12)% (12)%
Mountain Hardwear 47.9  0.3  48.2  43.3  11% 11%
  Total $ 1,340.2  $ 10.2  $ 1,350.4  $ 1,441.5  (7)% (6)%
Product Category Net Sales:
Apparel, Accessories and Equipment $ 1,083.0  $ 7.6  $ 1,090.6  $ 1,121.5  (3)% (3)%
Footwear 257.2  2.6  259.8  320.0  (20)% (19)%
  Total $ 1,340.2  $ 10.2  $ 1,350.4  $ 1,441.5  (7)% (6)%
Channel Net Sales:
Wholesale $ 669.3  $ 3.3  $ 672.6  $ 780.8  (14)% (14)%
DTC 670.9  6.9  677.8  660.7  2% 3%
  Total $ 1,340.2  $ 10.2  $ 1,350.4  $ 1,441.5  (7)% (6)%
(1) Constant-currency net sales is a non-GAAP financial measure. See “Supplemental Financial Information” above for further information.

11
EX-99.2 3 ex992cfocommentaryq22024.htm EX-99.2 ex992cfocommentaryq22024
Sportswear CFO Commentary and Financial R ev1ew Second Quarter 2024 July 25, 2024 Exhibit 99.2


 




DTC DTC.com DTC B&M y/y U.S. LAAP EMEA SG&A EPS bps direct-to-consumer DTC e-commerce DTC brick & mortar year-over-year United States Latin America and Asia Pacific Europe, Middle East and Africa selling, general & administrative earnings per share basis points “+” or “up” “-” or “down” LSD% MSD% HSD% LDD% low-20% mid-30% high-40% increased decreased low-single-digit percent mid-single-digit percent high-single-digit percent low-double-digit percent low-twenties percent mid-thirties percent high-forties percent “$##M” “$##B” c.c. M&A FX ~ H# Q# YTD PFAS in millions of U.S. dollars in billions of U.S. dollars constant-currency mergers & acquisitions foreign exchange approximately First half, second half Quarter 1, 2, 3, 4 Year-to-date perfluoroalkyl and polyfluoroalkyl substances


 
W E C O N N E C T A C T I V E P E O P L E W I T H T H E I R P A S S I O N S


 




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• • • (dollars in millions, except per share amounts) Q2'24 Q2'23 Change Net Sales $570.2 $620.9 -8% Gross margin 47.9% 50.6% -270 bps SG&A percent of net sales 53.1% 50.3% +280 bps Operating income (loss) ($23.8) $6.2 ($30.0) Operating margin -4.2% 1.0% -520 bps Net income (loss) ($11.8) $8.4 ($20.2) Diluted EPS ($0.20) $0.14 ($0.34)


 
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Headwinds • Channel Profitability: lower margins primarily due to the impact of efforts to spur demand and reduce inventory, as well as changes in sales provisions • Other: includes changes in inventory provisions • FX: unfavorable effects from foreign currency hedge rates Tailwinds • Other: includes benefit from lower inbound freight costs • Channel & Region Sales Mix: favorable channel net sales mix shift


 
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(1) Constant-currency net sales is a non-GAAP financial measure. See “References to Non-GAAP Financial Information” above for further information.