Columbia Sportswear's stock is experiencing a downturn following the company's release of its annual forecasts for sales and profit, which analysts have described as weaker than expected. Despite a 3% increase in fourth-quarter revenue to $1.10 billion, the company reported a 3% decline in full-year sales and a 13% drop in operating income to $270.7 million. Diluted earnings per share also fell by 7% to $3.82. The company's projections for the 2025 fiscal year indicate a modest sales growth of 1% to 3%, reaching between $3.40 billion and $3.47 billion. CEO Tim Boyle expressed optimism about the fourth-quarter growth and anticipated continued expansion in 2025, but the market remains cautious.
The company's strategic plans include ramping up marketing efforts, conducting cost reviews, and pursuing global expansion to address the challenges faced in fiscal year 2024. However, these initiatives have not fully alleviated investor concerns about the company's ability to achieve significant growth in the near term. Columbia Sportswear's focus on enhancing profitability through cost savings and slowing the rate of SG&A expense growth is seen as a positive step, but the overall outlook remains mixed.
Columbia Sportswear (COLM) shares are down 5.95% to $80.75 as of 10:43 am on February 5th, compared to its previous close of $85.86 on February 4th.