Columbia Sportswear, a leading US-based outdoor and active lifestyle apparel and accessories brand, has reported a 7 per cent decline in net sales in the first half of fiscal 2024 (H1 FY24), reaching $1.340 billion, down from $1.441 billion in the comparable period of FY23. On a constant-currency basis, net sales decreased by 6 per cent.

The company's gross margin remained flat at 49.5 per cent of net sales, identical to the same period in 2023. Selling, general, and administrative expenses totalled $652.0 million, accounting for 48.6 per cent of net sales. This is a slight decrease from the $659.9 million, or 45.8 per cent of net sales, reported for the comparable period in 2023, the company said in a press release.

Operating income saw a significant decrease of 67 per cent, falling to $20.9 million, or 1.6 per cent of net sales, compared to $62.7 million, or 4.3 per cent of net sales, for the same period last year. Net income also decreased by 44 per cent to $30.6 million, or $0.51 per diluted share, down from $54.6 million, or $0.88 per diluted share, in the comparable period of 2023.

In the second quarter of fiscal 2024 (Q2 FY24), Columbia Sportswear’s net sales decreased by 8 per cent to $570.2 million, from $620.9 million in Q2 FY23. On a constant-currency basis, net sales saw a 7 per cent decline.

The company's gross margin contracted by 270 basis points, dropping to 47.9 per cent of net sales from 50.6 per cent in the comparable period of 2023. Selling, general, and administrative expenses were reported at $302.7 million, or 53.1 per cent of net sales, compared to $312.5 million, or 50.3 per cent of net sales, for the same period last year.

Columbia Sportswear reported a loss from operations of $23.8 million, or 4.2 per cent of net sales, in stark contrast to an operating income of $6.2 million, or 1.0 per cent of net sales, in Q2 FY23. The company also reported a net loss of $11.8 million, or $0.20 per diluted share, compared to a net income of $8.4 million, or $0.14 per diluted share, in the same quarter of the previous year.

“Second quarter results were generally in line with expectations. We are working to maximise sales in a challenging US marketplace. Most international markets, including China and Europe-direct, continue to see strong demand. We have made meaningful progress on our top priorities, including inventory reduction, rationalising expenses through our Profit Improvement Program, and developing actionable strategies to reinvigorate long-term profitable growth. We are reiterating our net sales and diluted earnings per share outlook and remain on track to generate over $350 million in operating cash flow,” said chairman, president and chief executive officer Tim Boyle.

Fibre2Fashion News Desk (DP)