Outdoor apparel maker, Columbia Sportswear, reported an 8 per cent drop in sales to US $ 570.2 million in the second quarter, attributing the drop to the “challenging” US market.
According to the company, a challenging competitive landscape, generally soft consumer demand, and retailer caution all contributed to reduced wholesale sales in the United States during the quarter.
Net income fell 44 per cent to US $ 30.6 million, or US $ 0.51 per diluted share, during the first half of the year, while net sales fell 7 per cent to US $ 1.34 billion.
“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.
He added by saying, the majority of global markets, such as Europe-direct and China, are still seeing robust demand. The business has made significant strides towards achieving its key goals, which include reducing inventory, streamlining spending through the Profit Improvement Program, and creating workable plans to resurrect profitable growth over the long run.
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 per cent, resulting in net sales of US $ 3.35 to US $ 3.42 billion, compared to US $ 3.49 billion in 2023.
