Columbia Sportswear announced on Thursday sales decreased 8 percent to $570.2 million in the second quarter, with the outdoor wear maker citing a “challenging” U.S. market for the decline.
The Portland, Oregon-based company said the decline in quarterly sales reflected lower wholesale sales in the U.S. due to retailer cautiousness, a difficult competitive environment, and generally soft consumer demand.
For the first half, net sales decreased 7 percent to $1.34 billion, with net income plummeting 44 percent to $30.6 million, or $0.51 per diluted share.
“Second quarter results were generally in line with expectations. We are working to maximize sales in a challenging U.S. marketplace,” said chairman, president and chief executive officer, Tim Boyle.
“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, rationalizing 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.”
Looking ahead, the owner of Columbia, PrAna, and Sorel brands, reaffirmed its full-year guidance. It still expects net sales to decrease 4.0 to 2.0 percent, resulting in net sales of $3.35 to $3.42 billion, compared to $3.49 billion in 2023.
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