Columbia Sportswear announced on Thursday net sales increased 1 percent to $3.49 billion in 2023, compared to 2022, despite a challenging fourth quarter.
The Portland, Oregon-based company said net sales for the fourth quarter ended December 31, 2023, decreased 9 percent to $1.06 billion from $1.17 billion for the comparable period in 2022.
The decline in net sales primarily reflected earlier shipment of Fall 2023 wholesale orders in the third quarter 2023, compared to late shipment of Fall 2022 wholesale orders in fourth quarter 2022, as well as lower U.S. direct-to-consumer (DTC) net sales.
By brand, Columbia sales dropped 7 percent to $891 million, with Sorel down 18 percent to $116 million. Smaller brands PraNa and Mountain Hardwear fell 29 percent and 11 percent, respectively.
Net income decreased by 26 percent to $93.3 million, or $1.55 per diluted share, in the quarter.
“I’m proud of what our global workforce was able to achieve in 2023. We successfully executed our inventory reduction plan, which contributed to operating cash flow generation of over $600 million for the year,” said chairman, president and chief executive officer Tim Boyle.
“The Columbia brand generated healthy growth outside of the U.S., led by China and Europe-direct markets. In the U.S., we navigated a difficult U.S. marketplace and a warm winter, both of which impacted our fourth quarter performance.”
Looking ahead to 2024, net sales are expected to decrease by 4 to 2 percent, ranging from $3.35 to $3.42 billion. Net income is expected to be $207 to $231 million, resulting in diluted earnings per share of $3.45 to $3.85.
“Looking ahead, we expect 2024 to be a challenging year. Retailers are placing orders cautiously, and economic and geopolitical uncertainty remains high. We are working diligently to maximize sales in this environment, while optimizing our product, brand marketing and marketplace strategies to accelerate growth in 2025 and beyond,” added Boyle.
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