Columbia Sportswear net sales for the quarter ending 31 March (Q1) fell 6% to $770m while operating income fell 21% to $44.7m and net income fell 8% to $42.3m.

Columbia Sportswear said profit for Q1 decreased on the back of a decline in net sales primarily driven by lower wholesale net sales in the United States and Canada on the back of retailer cautiousness, a difficult competitive environment, and generally soft consumer demand.

Chairman, president and CEO Tim Boyle commented: “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% 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.

“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.

“Our financial position remains strong, with approximately $788m in cash and short-term investments, and no borrowings at quarter end. I’m confident in our team, our strategies, and our ability to achieve the significant long-term growth opportunities we see across the business. We are committed to investing in our strategic priorities to:

• 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

• Empower talent that is driven by our core values, through a diverse and inclusive workforce."

For the full year, Columbia Sportswear is expecting net sales to fall 2%-4% to $3.35 to $3.42bn.

Operating income is expected to be $259m to $291m compared to $256m to $288m.

Net income is expected to be $217m to $240m compared with $207m to $231m.

In February Columbia warned of a challenging 2024 after its fourth quarter and full-year profits slid on the back of impairment charges related to its prAna brand as well as sluggish sales.

"Columbia Sportswear Q1 sales, profit sink on demand softness" was originally created and published by Just Style, a GlobalData owned brand.

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