Executive Summary

Q4 delivered a return to top-line growth with net sales $1.10B (+3% YoY), gross margin 51.1% (+50 bps), operating margin 12.5% (+180 bps), and diluted EPS $1.80 (+16% YoY); results were within management’s Q4 guidance range and net sales finished near the high end ($1.04–$1.11B) .
International strength offset U.S. softness: EMEA +24% (constant currency +21%), LAAP +7%; U.S. -1% and Canada flat; Columbia brand +6% while SOREL declined 16% and footwear -4% .
FY25 outlook introduced: net sales $3.40–$3.47B (+1–3%), gross margin ~51% (+80 bps), operating margin 7.7–8.3%, EPS $3.80–$4.15, operating cash flow ≥$250M; FX and closure of temporary clearance stores create ~3pt headwind to reported sales and ~$0.30 EPS drag .
Balance sheet remains a support: $815.5M cash and short-term investments, inventories down 7% to $690.5M, no borrowings; Board declared a $0.30 quarterly dividend .

What Went Well and What Went Wrong

What Went Well

Return to growth and margin expansion: Net sales +3% to $1.10B; gross margin +50 bps to 51.1% driven by lower clearance activity; operating income +21% to $137.3M .
International momentum: EMEA +24% (cc +21%) and LAAP +7%; China grew mid-teens with strong wholesale/DTC and is expected to be fastest-growing in 2025 .
Strategic brand activation and innovation: Omni‑Heat Infinity and Omni‑Heat Arctic highlighted globally; collaborations (e.g., Supreme Caribou) and membership program engagement; “We are investing in our strategic priorities to accelerate profitable growth…” — Tim Boyle .

What Went Wrong

U.S. softness and DTC mix: U.S. net sales -1%; U.S. e‑commerce down mid-single digits amid reduced promotional activity and marketing shift; SG&A deleverage (39.3% of sales, +110 bps) pressured operating leverage .
Brand pressure at SOREL and category mix: SOREL -16% YoY in Q4; footwear -4%; management expects SOREL stabilization with modest H2’25 growth .
Tax headwind: a $6.4M discrete tax valuation allowance reduced Q4 diluted EPS by $0.11; effective tax rate rose to 26.7% (vs. 22.2% LY) .

Financial Results

Year-over-Year (Q4 2023 → Q4 2024)

Metric	Q4 2023	Q4 2024
Revenue ($USD Billions)	$1.060	$1.097
Gross Margin (%)	50.6%	51.1%
SG&A (% of Sales)	38.2%	39.3%
Operating Income ($USD Millions)	$113.1	$137.3
Operating Margin (%)	10.7%	12.5%
Net Income ($USD Millions)	$93.3	$102.6
Diluted EPS ($USD)	$1.55	$1.80

Sequential Trend (Q2 2024 → Q3 2024 → Q4 2024)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Billions)	$0.570	$0.932	$1.097
Gross Margin (%)	47.9%	50.2%	51.1%
Operating Margin (%)	(4.2)%	12.1%	12.5%
Diluted EPS ($USD)	$(0.20)	$1.56	$1.80

Segment Breakdown (Q4 2024)

Geography	Net Sales ($USD Millions)	YoY Change
United States	$682.3	(1)%
LAAP	$187.6	+7%
EMEA	$161.6	+24% (cc +21%)
Canada	$65.2	0% (cc +1%)

Brand	Net Sales ($USD Millions)	YoY Change
Columbia	$945.4	+6%
SOREL	$97.7	(16)%
prAna	$22.4	(2)%
Mountain Hardwear	$31.0	+5%

Product Category	Net Sales ($USD Millions)	YoY Change
Apparel, Accessories & Equipment	$868.8	+6% (cc +5%)
Footwear	$227.8	(4)%

Channel	Net Sales ($USD Millions)	YoY Change
Wholesale	$459.9	+7% (cc +6%)
DTC	$636.7	+1%

KPIs and Balance Sheet (Q4 2024)

KPI	Value
Cash & Equivalents ($USD Millions)	$531.9
Short-term Investments ($USD Millions)	$283.6
Cash + ST Investments ($USD Millions)	$815.5
Inventories ($USD Millions)	$690.5 (−7% YoY)
Operating Cash Flow FY 2024 ($USD Millions)	$491.0
Capital Expenditures FY 2024 ($USD Millions)	$59.8
Shares Repurchased FY 2024 ($USD Millions)	$317.8
Dividend (Declared Feb 4, 2025)	$0.30 per share

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($USD Billions)	FY 2025	N/A	$3.40–$3.47 (+1–3% YoY)	New
Gross Margin (%)	FY 2025	N/A	~51% (+80 bps YoY)	New
SG&A (% of Sales)	FY 2025	N/A	43.4–44.1%	New
Operating Margin (%)	FY 2025	N/A	7.7–8.3%	New
Diluted EPS ($USD)	FY 2025	N/A	$3.80–$4.15	New
Effective Tax Rate (%)	FY 2025	N/A	24–25%	New
Operating Cash Flow ($USD Millions)	FY 2025	N/A	≥$250	New
Capital Expenditures ($USD Millions)	FY 2025	N/A	$60–$80	New
Net Sales ($USD Millions)	1H 2025	N/A	$1,352–$1,378 (+1–3% YoY)	New
Operating Margin (%)	1H 2025	N/A	1.5–2.2% (vs. 1.6% LY)	New
Diluted EPS ($USD)	1H 2025	N/A	$0.43–$0.56 (vs. $0.51 LY)	New
Net Sales ($USD Millions)	Q1 2025	N/A	$749–$764 (−3% to −1% YoY)	New
Operating Margin (%)	Q1 2025	N/A	5.4–6.0% (vs. 5.8% LY)	New
Diluted EPS ($USD)	Q1 2025	N/A	$0.62–$0.70 (vs. $0.71 LY)	New
Dividend	Next Payment	Prior $0.30	$0.30 (Mar 21, 2025)	Maintained

Notes: Management cited ~140 bps FX headwind to FY25 net sales and ~$0.30 EPS drag; temp store closures plus FX together = ~3pt headwind to reported FY25 sales growth .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
International growth (China, Europe)	China mid-teens; Europe +3% (direct)	China low 20%; Europe +10%; strong DTC	China mid-teens; EMEA +21%; fastest-growing in 2025	Strengthening
U.S. demand & promotions	U.S. wholesale cautious; more promotions to clear inventory	Warm start; promotional environment persists	U.S. e‑comm down mid-single; curated promotions; brick & mortar modestly up	Mixed/Challenged
Inventory & margins	Inventory down 29% YoY; margin guide trimmed	Cleaner inventories driving Q4 margin expansion	Lower clearance driving +50 bps GM; inventories −7% YoY	Improving
Supply chain disruptions	Red Sea delays manageable	Shift Q3→Q4 from delays; $15–$20M timing	$60M shifted from Q3 to Q4 due to Red Sea/Bangladesh	Stabilizing with timing shifts
ACCELERATE growth strategy	Announced; focus younger active consumers	Reinforced strategic shifts	Implementation in fall; demand creation to 6.5% of sales	Executing
SOREL brand trajectory	Q2 sales −44%; stabilization efforts	−39% in Q3; spring ’25 soft	−16% in Q4; stabilization expected, H2’25 growth	Stabilizing (H2 bias)
DTC strategy & loyalty	De-emphasize promotions; revamp loyalty	Membership engagement growing	Premium brand expression on columbia.com; store openings; Titanium members	Building
Tariffs/FX	FX drag raised in guide	Sourcing exposure to China limited (footwear ~20%, apparel low single-digit)	FX −140 bps to sales, −$0.30 EPS; temp store closures add to sales headwind	Headwind persists

Management Commentary

“I’m encouraged that sales returned to growth in the fourth quarter, and we expect continued growth in 2025, across most brands and regions… We also laid the foundation for Columbia’s ACCELERATE Growth Strategy” — Tim Boyle, CEO .
“Gross margin is expected to expand 80 basis points to approximately 51%… SG&A is expected to grow in 2025… we expect an operating margin of 7.7% to 8.3%, leading to diluted EPS of $3.80 to $4.15… includes a $0.30 negative impact due to changes in foreign currency exchange rates” — Jim Swanson, CFO .
“Our order book for spring and fall will be up… led by China and Europe… we’re also excited about the growth in the U.S.” — Tim Boyle .
“We’re expanding the review of our cost structure as we pursue additional savings and enhanced profitability” — Jim Swanson .
“We are being thoughtful about how, when and where we utilize promotions across all channels and consumer segments” — Tim Boyle .

Q&A Highlights

Order book and geography: Spring ’25 wholesale up mid-single digits globally; fall ’25 low single-digit growth led by China/Europe; U.S. improving; ~90% of fall orders booked .
DTC and promotions: Premium expression on columbia.com, moderated promotions; closing most temp clearance stores in 1H’25; selective permanent store conversions .
Gross margin cadence: FY25 +80 bps; Q2 strongest on full-price mix; Q1 below full-year; lower product input costs benefiting margins .
SOREL outlook: Brand stabilization targeted with collaborations and expanded women’s/men’s offerings; return to growth in H2’25 .
Cash flow guide: FY25 operating cash flow ≥$250M below FY24 $491M due to less working capital tailwind despite similar operating margin .

Estimates Context

S&P Global consensus EPS and revenue estimates for Q4 2024 were unavailable at time of analysis due to provider request limits; comparison anchored to company guidance: actual net sales $1.097B versus guided $1.04–$1.11B (near high end), diluted EPS $1.80 versus guided $1.68–$2.03 (within range), operating income $137.3M versus guided $123–$151M (within range) .
Given international strength and cleaner inventories driving margin expansion, sell-side estimates for FY25 gross margin and EPS may need to reflect the planned demand creation investments (SG&A 43.4–44.1%) and FX/temporary store headwinds embedded in the outlook .

Key Takeaways for Investors

Q4 inflection: Modest top-line growth with margin expansion and EPS within guidance, supported by cleaner inventory; international remains the growth engine .
FY25 setup: Low-single-digit sales growth with gross margin tailwinds offset by SG&A deleverage from demand creation; watch FX and temp store closure impacts (≈3pt headwind, −$0.30 EPS) .
Brand execution: ACCELERATE strategy prioritizes younger/active consumers via innovation (Omni‑Heat Arctic, Omni‑Max) and premium brand expression; membership program engagement rising .
SOREL stabilization: Expect H2 ’25 improvement; trajectory is a swing factor for category mix and overall growth .
China/Europe catalysts: Continued strength (localized product, digital/TikTok activations, DTC expansion) positions these regions as key drivers in 2025 .
Cost discipline: Expanded review of SG&A and supply chain efficiency is underway; track updates on additional savings and potential charges .
Near-term trading: Q1 guide implies modest EPS down vs prior year on lapping cold winter and normalized shipment timing; Q2 expected stronger gross margin — look for confirmation of sequential acceleration and demand creation ROI .

Sources: Q4 2024 Form 8‑K and Exhibits (press release and CFO commentary) ; Q4 2024 earnings call transcript ; Q3 2024 press release ; Q3 2024 earnings call transcript ; Q2 2024 press release . Constant-currency figures are non‑GAAP as disclosed by the company .

COLUMBIA SPORTSWEAR CO (COLM)·Q4 2024 Earnings Summary