Columbia Sportswear Beats Q4 Sales Targets but Misses Earnings Expectations: Stock Drops

Key Financial Metrics Q4 CY2024:

* Revenue: $1.10 billion (3.5% YoY growth, 1.4% beat)
* EPS: $1.80 (7.3% miss)
* Adjusted EBITDA: $175.9 million (0.6% miss)
* Operating Margin: 12.5% (up from 10.7% last year)
* Free Cash Flow Margin: 55.6% (down from 56.7% last year)

Guidance for FY2025:

* Revenue: $3.44 billion (1.4% below analyst estimates, 2% growth YoY)
* EPS: $3.98 (8% below analyst estimates)

Company Overview:

Columbia Sportswear (NASDAQ: COLM) manufactures and sells outerwear, sportswear, and footwear for outdoor enthusiasts.

Sales Growth:

* Long-term sales growth rate: 2.1% CAGR over the past five years
* Revenue declined 1.4% annually over the past two years
* Modest 3.5% YoY revenue growth in Q4, beating Wall Street estimates

Earnings:

* GAAP EPS missed analyst expectations by 7.3%
* EPS guidance for FY2025 falls short of analyst estimates
* Stock traded down 7.6% after earnings announcement

Cash Flow:

* Impressive cash profitability with a 55.6% free cash flow margin in Q4
* Free cash flow margin declined slightly from the same quarter last year
* Analysts predict a decrease in free cash flow margin to 6.1% in the next year

Key Takeaways:

* Columbia Sportswear met revenue expectations but missed EPS targets.
* Guidance for FY2025 suggests a decline in sales and earnings.
* Stock performance has been impacted by weaker-than-expected earnings.

Disclaimer: This analysis is provided for informational purposes only and should not be construed as financial advice.