COLM - Earnings call transcript Q2 2024 | Columbia Sportswear Company

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Operator

Good afternoon, everyone, and welcome to Columbia Sportswear's Second Quarter 2024 Financial Results. [Operator Instructions].

It is now my pleasure to turn the floor over to your host, Andrew Burns. Sir, the floor is yours.

Andrew Burns

Good afternoon, and thanks for joining us to discuss Cambia Sportswear Company's second quarter results.

earnings commentary furnished explaining and the a X-K our to CFO detailed financial addition release, an we containing results. In review presentation website, Financial the Chief General is me Tim and President Boyle; document also and President on Administrative Swanson; Officer, Investor This Counsel, and and Vice Chief Vice available Chief Executive and today Jim Peter are call Relations on Executive Chairman, Officer, Bragdon. President Officer our investor.columbia.com. With Executive

anticipations forward-looking faith contain about statements to will or call expectations, are good beliefs future. Columbia's in have conference and statements These This basis. the regarding believed a expressed reasonable are

less are statement forward-looking in We filings. duty any expectations. that results after from call each now to and is forward-looking than to Columbia's forward-looking actual historical forward-looking many date statements update to may of inherently caution information. statements We statements is However, uncertainties in risks what and our these the uncertainties, described conference to subject to changes of the projected. the SEC the materially differ of Many are undertake reliable results conform or and any risks actual

currency certain to I'd we sales. reference during including out non-GAAP net constant financial the point may measures, call, that also like

measures, our tables and For the in CFO refer including and section GAAP non-GAAP our to for to of measures an rationale information further non-GAAP the in financial financial financial explanation and about please commentary financial review. a earnings information these appendix referencing measures non-GAAP supplemental results, reconciliation of included of and release management's

questions, by end limit we Q&A a get of the period to each everyone prepared which the our Following host can will caller X to we we will hour. so remarks, during

to Tim. the turn call I'll Now over

Timothy Boyle

direct by guidance. for strong pleased to characterized Thanks, Andrew, results our challenging consumer with most in retailers. international were we're Outside maximize business. second report generally experiencing and demand demand markets, working U.S., including the good U.S. cautious to sales marketplace Europe line a slow and China in afternoon. in We're quarter our and products I'm

first our top line reflecting year, efforts. XX% half made in was Through in meaningful down of we've year-over-year, the the reduction inventory priorities. our exited quarter the substantial Inventory progress progress on

is The $XX $XX cost reducing on expenses between in focused million the this program with inventory cost business. to and year. improvement savings million and reductions track deliver associated in carrying of excess areas profit driving We're

half generate in generated enabling have first to cash flow over operating through million We meaningful of of shareholders. operating over flow of $XXX $XXX cash this year, to track strong on million return capital year. the the We're

the of much With cost reduction to containment growth. focus actions well on returning our inventory and underway, is

new marketing. to and Columbia, building For our through enhancing consumers strategy we're product the brand bring line into

efforts are of motion. to stabilize lay the next phase in Our foundation growth its SOREL for and

on with begun to Hardware path benefiting to have efforts recent to brand track the growth turnaround on from Corona's ahead. return Mountain in growth is a brand is that and signs year. is the refresh this deliver its seasons

and to enables over remains profit quarter exited approach the no debt. business. million We improvement and a thoughtful unlocking sheet fortress $XXX Our growth and competitive we of balance to investments the and long-term cash us a across short-term opportunities see advantage with take the

return our begin quarter. potential the fall book improvement half fourth the overall growth with As the for the of we sequential to in sales year, second to wholesale 'XX supports by order sales

strategies share guidance. per capture growth position reaccelerate we confident differentiated that our full trends our to and our diluted brand over that year-to-date our reiterating Overall, us balance net sales portfolio earnings business, across share and current we market and fortress remain we performance the sheet Given year see time. are and

within quarter. second second impact review I quarter a shifts Small everyone the the to and in efforts have like range. results. to on Gross the expenses and shipments can decreased reduce year-over-year spur volume that million material demand points, margin our made guidance performance. X% sales and contracted plan $XXX I'd inventory sales our remind of timing Net slightly of below in we lowest reported as U.S. financial were quarter now XXX is will our basis

loss lower decreased than expenses. expenses slightly quarter, and supply guidance in SG&A X% SG&A below our better the primarily resulting plan the reflecting was chain range. in in operating coming

in of quarter of earnings $X.XX compares XXXX. share the second of loss share quarter per diluted $X.XX Our per to second

'XX retailer The net spring by geography. sales primarily results. high net U.S. of and in decreased by at driven combination impacted wholesale. ongoing cautiousness sales XX% Looking decrease U.S. shipments, lower a XX%

While wholesale sell-through well brand due was well season channel the U.S. below prior Columbia channel exit shipments, to We're lower to trending seasons. lean are part down mid-single-digit positioned percent, with inventories. in inventories

net single-digit was and ] Claris locations decreased from year. percent. USDTC sales stores mid-single-digit the up driven over opened by Brick-and-mortar last the low [ temporary percent contribution permanent new

high percent. coupled e-commerce challenging environment promotions brands, teens for efforts deemphasize down outdoor traditional U.S. on to columbia.com on weighed with e-commerce were A net performance. sales

the the columbia.com have latest the said see we best to site goal our calls, As brand, our on products innovations and ensuring storytelling. of as enriched expression that is brand with past establish visitors to

reference quarter From illustrate underlying market. our each in review growth in constant net international currency of rates second geographies, sales trends will year-over-year I to

mid-teens with successful LAAP, Highlights or growth. growth sales America, our e-commerce sales net of increased continued quarter platforms. fastest-growing by event the China TikTok, X.XX increased in which remains Latin robust led and one include Pacific percent net Asia XX%. region a

lower increased we levels. inventory translating leading, and in store is which seeing DTC wholesale productivity performance performance brick-and-mortar. strong marketplace leaner China e-commerce Overall, and the is While healthy, discounting are to is

and brands deep investments this market product and heritage innovation. by a is fueled rooted localized Our marketing in success competitive our in

the consumer the quarter highlight focus on Our brand in and relevance activations cultural team's connections.

enthusiasts a a appeal brand influencer top sites. of Our validated that campaign TikTok We with outdoor on successful and campaign garnered the cooperation with in on with summer hike impressions more fishing TFG's millions views popular featured even video social global a platform.

in the year for this marketing market. We activations this several have important more balance of planned

China anticipate to continue of XXXX. our We fastest-growing be in one markets that will

we'll than Japan Outdoors, marketing including net and throughout in activations. season, continued fall called fishing summer, and Tokyo across highlighting travel, Columbia be sales softer single-digit a campaigns the this Life program the tourism spending. hike, international rainwear season, air several sponsoring connection millions offset the more domestic consumers This of percent. innovations month, area. in will short-form to our the This throughout Beginning the greater activated increased high The we TV outdoors. program reaching increase

LAAP of orders. 'XX increased declined percent. Korea earlier net shipments distributor primarily sales reflecting markets up fall low XX%, teens high were

leaders net businesses direct a Europe visit double-digit I low East percent, sales the our that customers. partners. net strategic meet Europe, to with these X%. bigger to have clear opportunity Middle by sales or led and with Africa increased and It's we DTC largest EMEA, growth. robust increased a build had of several tremendous Europe, region, recently opportunity

strengthening are in brand Europe in through creating efforts teams Columbia generating hiked the a the exceptional focused and of and an marketing visibility with on efforts partnership important in hiked geography. Hike our Our we to variety Marsh, an relevance This summer, momentum brand doing job get this category exclusive our the marketplace. Mega grassroot marketing presence in Columbia's are Columbia events. and Society From campaign

one to our remains on fastest-growing year. direct this markets of be track Europe business Our

business Our EMEA distributor low decreased single-digit percent.

awareness remains lower with sales partially consumer brand sales well offset positioned were Colombia wholesale DTC Canada growth. in Canada net high as trust. by and X% decreased

features enhancing annually our net of by U.S. newly offers the to includes titanium exclusive at earns reflecting X%, their aimed now with Looking members new Columbia are U.S. Spending revamped June, and Members launched perks early at the performance tailored marketplace, status consumer earn international enjoy trends which $XXX launched new exciting brand. rewards offset sales challenging on ability many engagement. partially decreased we events Columbia in points end a purchases. and brand healthy additional Rewards primarily like over program At Greater benefits loyalty products. by markets. access preferences personalized to to and several

customers DTC Columbia already users typically majority made Greater Columbia U.S. X active purchase the purchase These with valuable frequently more million spend than last members in over have the who program a more nonmembers. sales year. and Rewards of represent

new of increase we to I With enhanced over time. as benefits, features, able believe of impact program be further as and important our expansion continued this the well will

innovation technologies spring, our the which are provides breathable lightweight protection protection. key introduced differentiators. cooling sun Columbia front, we This products and UV broad-spectrum airflow, Brands On Omni-Shade cooling latest technology,

also During clothing to shirts your Sun highlighted the News tooling several were publications quarter, an and in sport technologies, skin sun the Day keep gifts best unique safe. Father best our list ABC highlighted on Several protective article including products Columbia of Best for fisherman. fishing's Forbes

cash been as best awarded Omni-Max ahead. several shoe sneaker recognized PFG Omni-Max and stability is system, and new of This 'XX also in best combines reviewers. key the footwear back the season important Columbia styles and reviews. new growth several in a footwear an component Health spring, has increased launched Magazine as fishing will which our Life media our of footwear annual the and top we in boat Women's featured traction. outlets versatile by cushioning, its enhanced footwear our be strategy Outdoor shoe named Omni-Max

that layer Omni-Heat Omni-Heat family to solar forward warm in a is body by power. starts of with a in. maximum building Arctic biomimicry system. transmitted expanding lets keep polar inspired Arctic. mimicking more been look warmth insulation Heat a the campaign. addition to efficient Omni-Heat the Bears bears success highly and lightweight, by with outer insulation for of styles of energy This close result warmth technologies we translucent protection global an on Infinity fall, The solar extreme conditions. is new marketing As layer we're We're boosted warrant, has to the the Omni-Heat with warming system how Polar

increased brands. X% wholesale by net DTC Mountain Shifting net was Hardware our offset sales. to lower partially sales growth emerging as

community and increase activated and benefits. During and content sun and from Be influencers campaign, brand. into its key online [ athletes, media bring protective Wise highlights marketing the new Hardware partnering with products the to Mountain leveraging which By quarter, Hardware ] outlets, was Mountain Strava visibility consumers sports Sun able Sun their

several second luck, outdoor product reigniting Mountain the Ghost month Jesse. apparel team and activations, and in the Grouper Paris. Mountain member iconic equipment and Looking collection Climbing at as for premier its next Hardware the include validating gold half when the excited snow for expanding year, Good competing athlete has brand. the Hardware and of offering. position These who brand be will USA their sports also Jesse I'm Whisper

team across and DTC. sales I'm talent, that decreased with in XX% quarter strategies. net wholesale leadership brand's and Prana confident marketing Prana's the declines the new has strengthened And product

While promise for XX spring apparent quarter products sales revitalization in a evident season orders, decreased DTC. brand second return challenging wholesale SOREL which across to results, is demand suggests net it's growth. in with not future XX% and

full of XX% the is typically quarter lowest a As second about net reminder, sales. volume year SOREL's quarter, representing

on New focused leadership This the is trends SOREL's drive time, will brand stabilizing I long-term remain sustainable growth. confident but to evolution revitalizing future. while business take in

our outlook details discuss our and presentation see to This XXXX forward-looking for include disclosures related now Please and commentary statements. financial I'll outlook. statements. additional CFO review these financial commentary and

Industry risks others, have impact the our across external many global upcoming consumer marketplace, chain and many our and demand supply in are major uncertainties. markets. geopolitical potential operations. the These to disruptions Looking consumer of conflicts, and there Outdoor U.S. among headwinds, elections and factors,

to majority We on in is in the this the and time appear vast expected line delivered Sea. monitor our At disruptions product of manageable, continue to time, Red full. and delays be

risks contracted in recent exposure spot ] also for our and to for months. said, the that spike the which balance guidance peak in spot of pricing a pricing bulk the estimate minimizes increase season freight, the in for have our impact of our and best have seen [ We utilized of an With of these freight pricing. We ocean incorporates our Oak chain supply noted we year. surcharges,

reiterating a outlook X% X% net to are decline. our sales We of

leading sales across meaningful sales, to our margin inventory demand overall is expectations levels. to margin have down to to not expected XX% While there an of of to XX% change. efforts spur SG&A to be reflecting Gross guidance opportunistically and to basis work This expected to prior XX% X.X%. between modest changes XX X.X% is is are to our now expand operating below net points XX XX.X%. portfolio, our

to $X.XX We are outlook reiterating diluted our of earnings per share $X.XX.

continue operating flows to at strong least expect in year. million of cash We the $XXX

wholesale Spring XXXX to growth I'd book early business suggests to from on share our a it's prospects, half too our 'XX. that order return the growth first indications While like of early 'XX wholesale to in in comment

plans beyond with of brands. and strategic 'XX, Looking we're spring the encouraged sharpened focus for growth each our

performance enhanced an brand focused emphasizes For consumers Colombia, and that we're active innovation, bringing further through style. on product into younger line the

We also with see the marketplace. the innovative presentation we right in brand's consumers we products channels. across our target that elevate the opportunity win to the know We when

confident, in the engagement see accelerate experiences I'm consumer right and talent priorities drive In led growth, innovative, business. we in of strategies the to amplify our growth by focused functional summary, the unlock across with that by brand empower we values. that's to strategic products create increased opportunities iconic place to creation significant have investing driven that's delight and profitable consumers, digitally are global and we're investing one capabilities excellence and marketplace enhance in demand investments, our core retain omnichannel differentiated,

concludes with welcome remainder the your We my remarks. Operator, you prepared of help us for That can hour. questions the that?

Operator

Instructions]. [Operator

Guggenheim Securities. question first from Your Drbul is Bob coming from

Robert Drbul

for improvement the specifically rest what return possibility to to outlook the you that And if was Europe it growth wondering more? sequential of return can upon, then for take spring? just expand expand in is it a in would Is U.S. on and of growth some growth growth in if the in wholesale QX? in return book year, the bit comments. the continued early you I the QX? returning growth? to to your Tim, bit those of, guess, for the of Like wondering Just expand 'XX, you you And the sort order can can on a to the I spring read

Timothy Boyle

our certainly. is half year. shape in Yes, of back the for Well, order book today, good the

in big terms volumes our us we're changes the So of for balance of give the we what year. that expect expecting to book don't in

incredibly compare ourselves which liquidating was on we our year, year said If was just We And last too much. focus warm. to last inventories.

from of U.S. in inventory, So normal an especially for we think this perspective, expectations year, inventory we're our quality are a the position and in better year, a more

-- all for our year. QX So have last we for get on full the can year, but expecting be QX to growth the I estimates we're an don't certainly improved now, to know way based if to against

then North spring as hand. for that in the including America that of the it of something we're 'XX, year, have going high our growth relates to percentage And book wholesale. to And at already in got we've order neighborhood a indicates growth XX%

Robert Drbul

Got it.

weeks, and around I You Okay. And you're can then it, guess, just gave some more bit on margin, expand just the -- around the terms gross freight seeing? you what of within has in your a if of sort that months, but your developments more and the all? sort few of just -- business, impacted how last it the few at last any has color

Timothy Boyle

relates issue. we've deliveries noted contemplated it Well, Red guidance issues those today. the Certainly. the our you on we gave Sea And as that impact are to in

As some rates. it relates seen have we rates, on pressure to

rate carriers place our relates And with the their year the contracts. our have in We high-quality contemplated contracts guidance. of are of it back impact in are on that that expectations as half the changes are keeping

a And our Sea issue of fairly merchandise probably already be especially the [indiscernible] issue We've in not big into we're warehouses. we So on that's freight percentage expecting constant year, good a our will we're balance got delivered But for shape. the the think today changes. good this based Red of

Operator

coming Your Paribas. next question from Laurent from Vasilescu is BNP

Laurent Vasilescu

through XQ. I like, about heard XQ And to I Red a potential Tim, of quarter? between, retailers going wanted quarters, inventories. ask trickle a the that's saw We've to into you talk delays fourth potentially number shift if of between about to don't Sea. know, the if the

Jim Swanson

Yes, Jim Laurent, is this speaking.

zone. we're seen the a the week we're the result to Sea some And seeing two Red in shift -- have a slight We of weeks delays. as again, delays of

relatively really percentages, year, and reflective distribution. time essentially an even So slight chain providing despite QX, a delays the outlook that's in this the revenues notice earlier terms quarter would QX should today. outlook we from quarter of you'll thought believe mention nothing on-time of the third and And when they're provided of supply shift also for that we on full the meaningful. that With overly to ways. with our still out some be said, fourth into we we're we'll those market those be of and in our high, . I

Laurent Vasilescu

potentially Okay. That's I books grow to spring I Can comment And you early But you Jim. kind a very or know going from commenting some at year, for next thinking spring, appreciate SOREL to you year we new now. brand to you early commentary helpful, you and the growth that from brand -- us coming they're I order think they're how think up about -- Columbia around answered least for spring Bob's maybe Tim, for around year-over-year potentially it's had back how soft XXXX? as perspective. well a about geo how give question, of but with can leadership, do for do we SOREL are but the about

Timothy Boyle

look forward the Certainly. it and I get on was might that piece at on Well, ] customer of that think [ or first, a spring and any if to apparel 'XX we delta our PFAS. contain between particular strong base clean prior focus periods,

focus the was looking well globally, big we then 'XX markets spring that as we the it reloading reflects strong and world. happening those in and certain clean business So other and are we're order both said, the as in on . And book Europe, extent as to China international for at items. markets had around a getting

brand So we're -- growth got in coming that for we've encouraged the 'XX. spring Columbia

much as brand's the sales The heavily year. new we've perspective, the business only the know, our improve companies to of been made and summer. area, And progress that SOREL, more weighted. although to try for there. about is generally QX in leadership of spring And have in the historical and XX% the a relates we has brand it As fall always you from was goal

things, improve to number there significant springing but get investments see made So the we being the summer. to better at I need business in of a

Jim Swanson

just perspective half from maybe then still the brands see Laurent, currently. next here to in on to wholesale order build first pleased both the close from We certainly see of that. can down Hardware that. book We're and Mountain to not in on do the up 'XX of that experienced of out And our we being growth just on half we've two on and Corona. what based extent maybe the [indiscernible] first nice coming those year,

Laurent Vasilescu

sportswear like concerns of Obviously, really Very Okay. question If luxury more hold world. to continues outerwear on I seems the could well. like one It helpful. squeeze now lots China around in China. world

I you mid-teens. about in was up be helpful. think the China you're Maybe very seeing comment would if could marketplace what there

Timothy Boyle

Certainly. Well, China, when a talk was about we it's business against that underperforming.

able been we've China that with the in place to in teams business. improve our we have So

so not huge And growth we'll but and the we continued excited own there, e-com, very market, there. and our It's opportunities. well expect wholesale. in about in stores a we We're only do also think

Operator

from Perry of question next America. Bank coming Alex is Your from

Alexander Perry

Or your from to versus driving the just assumption Red behavior XQ an wholesale inventory the I there, take just on in be wholesale partners would closer wanted Is Is that? and sort of buying to wanting is question slightly on Sea are a there delay? great. follow line that DXC implied up there. different seeing sort weighting easier you need. different that guide to What earlier of comp of

Timothy Boyle

we last the we the focus available no of timing DXC was and wholesale Sure. stores inventories these improved stores of changes liquidation had. less better from for liquidations. do Well, on will for year be partners. the expect of a that on significance have that We deliveries high any no, profitable that merchandise really against Weston the our Columbia

So that's the dose. primary

Jim Swanson

we're this mean, of weather. Tim And into for business And just healthier the I much then normalized the add, planned that I year would we touched with more on. part Yes. obviously, latter inventory coming

the quarter that, course, doubt of was look some on unseasonably year, that Of at when had and it impact demand. you fourth warm, last no there's consumer

we've approach the growth some factors fourth that's this So in with degree of projected the Tim on, more touched quarter. with normalized a that where coupled year,

Alexander Perry

the Perfect. on That's then margins. follow-up And is my really helpful. just gross

more? bit Just guide. a it more in there? that just there the the promo freight sort difference great. Is be Is contemplated Can us surcharge? the little anything there you of Just a prior bit would versus walk through

Jim Swanson

in through had were bit the Yes, more a quarter inventory. part the a second inventory significant was of result, promotional move excess demand spur direct-to-consumer our as and clearing a we channel. that. And certain bit of most certainly, we driver need more markdowns that saw and more this in and our a the of to continue And

So that's what drove the second quarter.

operating that lesser place, certain ocean the we've got Certainly, of made reflection regarding far by degree, that the looked But the large, in made how type And contracts seeing relates to to and Tim's point, And is in any of that believe we of freight margin would that a ocean or in half we've adjustment. then got outlook a the back seeing But in year, surcharge might we're similar of say, it adequately are promotional we've the to assumptions I rates that an that, a currently. standpoint. just of light terms in we've gross what incur. with we're from you're we up. at including environment our the covered. competitive change freight

Operator

from is next Your coming Serna from UBS. Mauricio question

Mauricio Serna Vega

holding what sales talk in and the U.S.? maybe a demand seems to pretty the in temporary more the positioned then quarter about in you the business the be and Great. on bit is the strongly. the the up details for any more stores, growth I you're Could about key on little That wanted helpful. contribution how there the to markets. will details to brand in super hear in Europe And performance be category seeing

Timothy Boyle

Yes.

historical in customers about of of in think market. with you our And Europe So that the of to I our just the my in last was have the underperformance brand or week met in think June, in I Europe. many so biggest trip context

meaning and awareness in results. France, efforts. by and that there seeing we the level you're their larger the team especially U.K. where better, of North significant the on adoption building with that's And way terrific moved we're would a brand -- So a customers. we're I seeing Germany focused brand now seeing markets the in bigger results has have say the by

combination of those So better much the things, -- we're getting that all I we're say would business including now. just fact a getting

with really is brand the European consumer. With the resonating

opened temp As stores and almost the it relates inventories stores, liquidate necessarily to inventories which during while -- to in otherwise company to profitable those operating the the less We've liquidate us the they produce stores, help margin. highly that not helping to -- liquidate us would exclusively they're are U.S. that the accumulated pandemic the are the against a method much

can we months the we stores So of operated closing. number inventory the we'll get for be then be of a until size believe and our right

Jim Swanson

vehicle not going better of, contribution a these obviously a margin through business, when emphasize Mauricio, really but inventory European to alternative And or the terms than year outcome regard operating the the with to of much of the think operating Tim's XX in part more around consolidated just side. There's But end terms question the liquidate distressed we've level to we've of brick-and-mortar just in our through closeout sales. from the and But far at that of business stores. in of -- about of the estimated case the seen currently both X% across robust your in then detail. year, e-commerce in magnitude, level stores point, that will stores the will And be terms business with direct-to-consumer to growth of the on our quarterly I it's the temp channel. the get contribution, you we of to out we're down speak

Mauricio Serna Vega

guidance I what -- what of like it. may to in And if growth the or I embedding business second which you very kind think or are the it on half first down of half, was up Got wholesale year. the in kind growth the percentages? follow I low just mean for expecting XXs yes, the of quickly compared U.S.

Jim Swanson

reflective it's wholesale all seeing what of in book. Well, our order we're

XX%. the below the our wholesale order down So year half book first was for of

the on overall of basis look that 'XX a And down percent with relatively fall wholesale order worldwide business indication is consolidated gives par the book business the Our wholesale our . believe us half year. mid-single in to our wholesale I U.S. digit that things. of on be second

part still growth a sequential but point it to the we're in that quarter. could with some going we quite the more in some a be improvement, shifts just not you belief to timing So of a gives growth. the out the but that is still back fourth of in some little shipments bit there's maybe picture, of the fourth see quarter, going

Mauricio Serna Vega

is a how come Got already improvement the the materials it like PFAS like Or you have because like it. And out? like yes, sequential there's just in U.S., wholesale?

Timothy Boyle

Well, we're normalized. will the expecting weather be that more

mix. will composition was some us additional year so that our optimal And percentage DTC give last own plus the of very merchandising stores and high revenue of liquidation merchandise not necessarily an

that's improved So year. this

today, with you for that. are expectations the comfortable guidance we've that we're our given So

Jim Swanson

with hand, would reorders, of similarly we average assumptions that top what place replenishment, in and we've do Yes. an on Mauricio, order that to mind in we cancels, that the approached keep book in year. that are

business. middle approach. conservative to taking the So overly the we've been overly our of aggressive we've planned the road approach I how don't or think We're in

Operator

Your from Cowen. is from TD next coming question John Kernan

Alexander Douglas

for Douglas John. This on is Alex

into point, my think you was bleeding related about those do -- where then So like at inventory of question about that clarifying some how for with fiscal guys just And you a anticipate of all? just Or Are of are the measures? we done? to 'XX? clearance at completely that, should QX modeling more the inventory dollars balance

Timothy Boyle

give less have can run we on been. business the the X that you we and can approach very Let we Jim me than business to turns get inventory modify if annually, a could think which that high-level necessary. we But a means lot

the X the so liquidate right inventories of level area to continue in turns of to the inventory be get ourselves is in annually. And to to profitably goal

we goal, here. on management path put that see So of the of is is the least based a and automation that's towards into which our that, we -- number a which inventory not systems the things,

Jim Swanson

Yes.

It's turns. That's years. add I think few to that, the to the to that. speaks Xx going some just time of course next to to take over do us Tim

you look on basis. a trailing I think if XX-month

are X.Xx. are that Our we to terms improve. forecasting I would for anticipate

be Over of this balance end plan business at the in year, year. year. for to the inventory course the the down this at our we'll of be said Xx that, to certainly, of we Having continue

So increasing as in rate we as hence, sit the a inventory relates are year. ago. half, the year. our in in you we see but in it balance decline of our clearance sequentially, improvement back decrease, in shape you'll And anticipate And we we much to were of second healthier today the still to activity gross the see here end year of half this where margins an in the comparison at

do certain While at the hand continue the PFAS through that on chemistry need same inventory that time, it. remained in we add we of that working have to

these to able we'll operate temporary stores that inventory other clearance work So being continue to of months. . in through the and coming means

Operator

coming question next Jim Instructions] [Operator from Stifel. Your is Duffy from

Jim Duffy

with kind you're or outlook the behavior the that the Broadly of on of speaking, year? unique you've and DTC in seen detectable half are in you lot A which U.S. months sell-throughs. any consider. in things cross I'm recent currents the changes channel of curious wholesale second-guess based to what comparisons for to back caused and there consumer seeing

Timothy Boyle

a spending. highly if consumers their have many the an have the in And be track trend, I of we we it our of that are much our overall values Well, record it's fairly to guess cautious I in than in helps there's many very predictability. And be would tend merchandise our say competitors. in good able that us Are greater being efficient actually to [indiscernible]

Jim Duffy

channel. to American And a for brands. the many state about I Okay. been North the It's challenged outdoor channel wanted of Tim, just ask

you the the the what Given more state what the more are see normalized marketplace, what based on now, -- channel? prospects for from trends of buoyant are a demand key that right or

Timothy Boyle

in products? an reduction of Jim, Yes. for the across marketplace? what's happening the outdoor a in to was sheet It's a competitors other meaningfully difficult, on the make understand it's than to do balance different we've demand competitors. whether which regardless can't But a broader Or what allows sometimes the it to operate investments us reduced is impact of impact business way others got demand, when and specifically to

to our grow, gain on and make to share our financially that are ability to the survivor these based So going continue investments. expectations we're market be

Jim Duffy

book, Helpful. order the very one encouraging. The commentary early And last on spring for me. that's

earlier than you have? orders. offer that much think at typical visibility going How curious would you book season? versus is what into typically spring that how actual like be you would this booked it's think on the I'm spring do perspective order juncture, I this much of of in

Timothy Boyle

wanted We where we're generally sure think to that growth I been historically. our investors par that Yes, future. have in have make on knew with we we

probably we're on in think neighborhood order the I of booked our XX% book.

Jim Swanson

XX% typical. which pretty is It's plus,

As in Tim at point time. this touched on

Operator

in no are further Thank questions queue. the you, there

Timothy Boyle

of for listening thank lots Well, and opportunity future, the for company. there's expecting you in. the We're things in great

So forward thank you very much. to you look talking days. about to We in XX

Operator

today's you, This event. concludes everyone. Thank

You at have participation. and disconnect for this time, may day. you wonderful your a Thank

Columbia Sportswear (COLM) 25 Jul 242024 Q2 Earnings call transcript