“I take pride in the accomplishments of our global workforce throughout 2023. We effectively executed our plan to reduce inventory, which contributed to generating over $600 million in operating cash flow for the year. The Columbia brand experienced robust growth in international markets, particularly in China and Europe, while facing challenges in the US market and unseasonably warm weather, impacting our performance in the fourth quarter,” remarked Tim Boyle, who serves as Chairman, President, and Chief Executive Officer.
Columbia Sportswear saw a 1% increase in net sales for 2023, totaling $3.49 billion US dollars on both reported and constant currency bases compared to the previous year. The Columbia brand accounted for $2.94 billion US dollars of the total sales, marking a 2% increase (or 3% on a constant currency basis) compared to fiscal 2022. However, Sorel, prAna, and Mountain Hardwear experienced declines in net sales of 3%, 21%, and 7% respectively (or the same percentages on a constant currency basis).
Net income for Columbia Sportswear decreased by 19% in 2023 to $251.4 million US dollars, or $4.09 US dollars per diluted share, compared to $311.4 million US dollars, or $4.95 US dollars per diluted share, reported in fiscal 2022.
“Looking ahead, we anticipate 2024 to present challenges. Retailers are exercising caution in their orders, and economic and geopolitical uncertainties persist,” cautioned Tim Boyle. “We are diligently working to maximize sales in this environment while enhancing our product offerings, brand marketing, and marketplace strategies to drive growth in 2025 and beyond. To offset profitability declines and enhance operational efficiency, we are implementing a multi-year profit improvement initiative aiming to achieve $125 to $150 million US dollars in annual savings by 2026,” he added.
Given the circumstances, Columbia Sportswear expects net sales to decline between 4.0% and 2.0% in 2024, resulting in a range of $3.35 billion US dollars to $3.42 billion US dollars (compared to $3.49 billion US dollars in 2023). Net income for the current year is projected to be between $207 million US dollars and $231 million US dollars, or diluted earnings per share between $3.45 US dollars and $3.85 US dollars (compared to $241.4 million US dollars or diluted earnings per share of $4.09 US dollars in 2023).
