PORTLAND - Columbia Sportswear Company (NASDAQ:COLM) reported fourth quarter earnings that fell short of analyst expectations, while providing disappointing guidance for the upcoming year. The outdoor apparel maker's stock plunged 10% in after-hours trading following the release.
The company reported fourth quarter earnings per share of $1.80, missing the analyst consensus of $1.86. Revenue for the quarter came in at $1.1 billion, slightly above estimates of $1.07 billion and representing a 3% YoY increase.
For the full year 2025, Columbia Sportswear forecasts earnings per share between $3.80 and $4.15, well below the $4.35 analysts were expecting. The company projects revenue of $3.40 billion to $3.47 billion, also below the consensus estimate of $3.48 billion.
"While we have made substantial progress slowing our rate of SG&A expense growth, we are continuing to pursue cost savings and enhanced profitability," said Chairman, President and CEO Tim Boyle.
The weak guidance overshadowed some positive developments in the fourth quarter, including a 50 basis point expansion in gross margin to 51.1% and a 21% increase in operating income to $137.3 million.
Columbia Sportswear ended the quarter with $815.5 million in cash and no borrowings. Inventory levels decreased 7% YoY to $690.5 million as the company made progress on reduction efforts.
For the first quarter of 2025, the company expects revenue to decline 1-3% YoY to $749-$764 million, with earnings per share projected between $0.62 and $0.70.
The disappointing outlook suggests Columbia Sportswear continues to face headwinds as it aims to attract younger consumers through its new "ACCELERATE" growth strategy. Investors appear skeptical about the company's near-term prospects given the sharp stock decline following the report.
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