Columbia Sportswear Company · NASDAQ:COLM
Columbia Sportswear — Q4 2024 Earnings Presentation
23 slides from Columbia Sportswear's earnings presentation, Feb 4, 2025
Slide 1: CFO Commentary and Financial Review: Fourth Quarter and Full Year 2024
Columbia S Sportswear Company. Exhibit 99.2 CFO Commentary and Financial Review ot Fourth Quarter and Full Year 2024 February 4, 2025
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation contains forward-looking statements within the meaning of the federal securities laws regarding Co
Slide 3: Abbreviations and definitions
DTC DTC.com DTC B&M y/y U.S. LAAP EMEA SG&A EPS bps direct-to-consumer DTC e-commerce DTC brick & mortar year-over-year United States Latin America and Asia Pacific Europe, Middle East and Africa selling, general & administrative earnings per share basis points “+” or “up” “-” or “down” LSD% MSD% HS
Slide 4: We connect active people with their passions
W E C O N N E C T A C T I V E P E O P L E W I T H T H E I R P A S S I O N S
Slide 5: Capital Allocation Priorities
CAPITAL ALLOCATION PRIQRIDES Our gents is to maintain our strong balance sheet and disciplined approach to ce capital allocation. Dependent upon our financial position, market conditions and our > strategic priorities, our capital allocation approach includes: @ INVEST INORGANIC GROWTH OPPORTUNITIES
Slide 6: Q4'24 Financial Results Compared to Q4'23
Q4'24 FINANCIAL RESULTS COMPARED TO Q4'23 Net Sales Gross Margin Operating Margin Diluted EPS Q4'24 Highlights: + The increase in net sales primarily reflects growth in EMEA (+24%) and LAAP (+7%), partially offset by declines in the U.S. (-1%). Canada was flat y/y. * Operating margin expansion refle
Slide 7: Q4'24 vs Q4'23 financial summary table
• • • (dollars in millions, except per share amounts) Q4'24 Q4'23 Change Net Sales $1,096.6 $1,060.0 +3% Gross margin 51.1% 50.6% +50 bps SG&A percent of net sales 39.3% 38.2% +110 bps Operating income $137.3 $113.1 +21% Operating margin 12.5% 10.7% +180 bps Net income $102.6 $93.3 +10% Diluted EPS
Slide 8: Q4'24 Net Sales and Growth vs. Q4'23 by region
CANADA 0% (41% c.c.) S65M 2 U.S. =-1% (-1% c.c.) $682M Q4'24 NET SALES AND GROWTH VS. Q4'23 EMEA $162M +7% (+7% c.c.) +24% (+21% c.c.) LAAP $188M Commentary below is based on constant currency performance. us. + Wholesale: down LSD%, primarily reflecting the impact of lower Fall ‘24 orders, partiall
Slide 9: Q4'24 Net Sales by category, brand and channel
= . eas = x asl Q4'24 NET SALES AND GROWTH VS. Q4'23 CATEGORY BRAND CHANNEL = PERFORMANCE PERFORMANCE PERFORMANCE APPAREL, ACCESSORIES . WHOLESALE: & EQUIPMENT: Columbia is % 46% 5% cc) P+6% Ge%c0) -16% - 16%) $ 47% 6%) $869M $946M $98M S460M MOUNTAIN 2 HARD. FOOTWEAR: prAna WEAR *e¥ DTc: -4% (-4% c
Slide 10: Q4'24 gross margin expanded 50 bps to 51.1%
Q4'24 gross margin expanded 50 bps y/y to 51.1% Tailwinds + Channel Profitability: largely reflecting lower closeout sales at improved margins in comparison to Q4'23, as well as favorable input costs and product sales mix Headwinds + FX: unfavorable effects from foreign currency hedge rates Channel
Slide 11: SG&A increased $25.8 million, or 6%
SG&A increased $25.8 million, or 6% — Le == $430.6 M $404.8 M Q4'23. Incentive Omni- Demand Supply Other Q4'24 Comp Channel Creation Chain Q4’24 SG&A expenses were 39.3% of net sales compared to 38.2% in Q4’23 Primary SG&A Expense Increases + Incentive Compensation: y/y changes in accrued incentive
Slide 12: 2024 Highlights
2024 HIGHLIGHTS 2024 FINANCIAL RESULTS COMPARED TO 2023 $3,369M -3% 8.0% $3.82 -90 bps 7% a Net Sales Gross Margin Operating Margin Diluted EPS 2024 Highlights: * Net sales declines were led by U.S. wholesale, driven by lower Spring and Fall ‘24 orders. Global wholesale sales were down 7%, while glo
Slide 13: Balance Sheet Overview
BALANGESHEET OVERVIE Balance Sheet as of December 31, 2024 Cash, Cash Equivalents, and Short-term Investments Inventory Cash, cash equivalents and short-term investments totaled $815.5M, compared to $764.5M as of December 31, 2023. Inventories -7% y/y to $690.5M. Older season inventories represent a
Slide 14: Capital Overview
CAPITAL OVERVIEW ” 2024 Net Cash Flow Provided by Operations S 9 Net cash flow provided by operating activities was $491.0M, 4 1 M compared to net cash flow provided by $636.3M in 2023. 2024 Capital Expenditures S60M Capital expenditures totaled $59.8M compared to $54.6M in 2023. 2024 Share Repurcha
Slide 15: 2025 Financial Outlook
The Company's 2025 Financial Outlook is forward-looking in nature, and the following forward-looking statements reflect our expectations as of February 4, 2025 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below.
Slide 16: Anticipated net sales growth and margin drivers
Anticipated net sales growth primarily reflect: Net sales + DTC up LSD%, Wholesale up LSD% + LAAP up MSD%, EMEA up LSD%, US. up LSD%, Canada down LSD% + MHW up MSD%, prAna up MSD%, Columbia up LSD%, SOREL down LSD% > + Apparel up LSD%, footwear up LSD% + Foreign currency is expected to have a 140 bp
Slide 17: ACCELERATE growth strategy
ACCELERATE is a consumer-centric growth strategy intended to elevate the Columbia brand to attract younger and more active consumers. It is a multi-year initiative centered around several consumer-centric shifts to our brand, product and marketplace strategies, as well as enhanced ways of working. e
Slide 18: Profit Improvement Plan cost savings
* Cost savings related to normalizing Operational Cost inventory levels * Supply chain transformation Savings + Enterprise technology cost structure optimization — Achieved a + We completed a reduction-in-force . @)reEWr-<ilela1 |) primarily impacting U.S. corporate 2024 Savings Target: Cost Savings
Slide 19: Cost structure review and savings target
In response to ongoing SG&A expense and operating profit pressures, the Company is initiating a review of its cost structure. The goal of the review is to pursue additional cost savings, beyond the b current $125 to $150 million target, and enhance profitability. Our 2025 outlook does not include an
Slide 20: Appendix
Slide 21: Constant-currency net sales non-GAAP note
(1) Constant-currency net sales is a non-GAAP financial measure. See “References to Non-GAAP Financial Information” above for further information.
Slide 22: Twelve Months Free Cash Flow Reconciliation
TWELVE MONTHS FREE CASH FLOW RECONCILIATION COLUMBIA SPORTSWEAR COMPANY Reconciliation of GAAP to Non-GAAP Financial Measures Net cash provided by (used in) operating activities to free cash flow (Unaudited) Year Ended December 31, (mins) 2026 20a ‘Net cash provided by (used in) operating activities
Slide 23: Colu
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