Columbia Sportswear beats Q4 estimates despite annual sales dip

Outerwear player Columbia Sportswear managed to surpass Wall Street’s fourth revenue estimate with sales up 3 percent to 1.10 billion dollars for the fourth quarter of fiscal 2024.

However, according to OregonLive, the company’s shares were down around 8 percent in after-hours trading on Tuesday following a 3 percent decline in full year sales.

Full year operating income also decreased 13 percent to 270.7 million dollars and diluted earnings per share were down 7 percent to 3.82 dollars.

Looking ahead, the company projects a sales rebound in the 2025 fiscal year with an estimated growth in the range of 1 to 3 percent to 3.40 to 3.47 billion dollars.

Despite the mixed results, the company’s chairman, president and CEO Tim Boyle said: “I’m encouraged that sales returned to growth in the fourth quarter, and we expect continued growth in 2025, across most brands and regions.”

He also noted ongoing efforts to enhance profitability, stating: “While we have made substantial progress slowing our rate of SG&A expense growth, we are continuing to pursue cost savings and enhanced profitability.”

The company’s official statement highlighted a strong fourth-quarter performance with a 21 percent increase in operating income to 137.3 million dollars and a 16 percent rise in diluted earnings per share.