Dive Brief:
- Columbia Sportswear reported net sales of $931.8 million for the third quarter, representing a 5% year-over-year decrease, according to a press release Wednesday.
- The company attributed the decline to lower wholesale orders for the fall 2024 season and weak consumer demand in the U.S., “partially attributable to warm weather and outdoor category headwinds,” the company said. In the quarter, wholesale fell 9%, while DTC grew 2%.
- In the earnings report, Columbia additionally reported that it was working on a growth strategy for its namesake brand, in a bid to attract “younger and more active consumers.”
Dive Insight:
The multi-year growth strategy, dubbed Accelerate, is centered on consumer-centric shifts in the brand’s product and marketplace strategies, said Tim Boyle, chairman, president and CEO.
Part of this plan included a revamp of its creative and marketing strategy. Last month, it hired Matthew Sutton, previously of Black Tux, FreshDirect and Facebook, as its senior vice president and head of marketing. It also named a new agency of record, Adam&eveDDB.
“I’m confident the Accelerate Growth Strategy will enable brand-right profitable growth and I’m eager to see it come to life in the seasons ahead,” Boyle said in the release.
The Accelerate plan also involves boosting Columbia’s brand presence in the U.S., which involves investing with its retail partners to elevate its in-store presentations, Boyle said in an earnings call following the results.
By 2025, the changes will become “increasingly evident to consumers,” Boyle said.
The North America region has been a pain point for the conglomerate. In Q3, net sales in the U.S. fell 10% and in Canada, they fell by 21%.
By contrast, in the combined region of Europe, the Middle East and Africa, sales increased 10%, and in the combined region of Latin America and Asia Pacific, sales grew 17%.
In addition to its namesake brand, Columbia also owns the Sorel, Mountain Hardwear and PrAna brands. The Columbia brand’s net sales fell by 1% in the quarter, while Sorel fell 39% and PrAna fell 7%. Mountain Hardwear’s net sales grew 2%.
