Columbia Sportswear CEO told CNBC’s Jim Cramer on Friday that the company is still heavily dependent on winter weather for sales and is looking or opportunities to venture out after reporting disappointing fourth-quarter earnings.
Columbia, known for its winter apparel, faces challenges with increasingly warm weather. Last year was confirmed to be the hottest year on record according to the European Union’s Copernicus Climate Change Service (C3S), leaving less room for winter apparel.
Boyles said the company is focused on innovating to compete with rival footwear and apparel brands. He is also looking into updating Columbia’s footwear brand for the upcoming spring season.
“We can make changes in the business that are not knee jerk” Boyle said. “Those kinds of things can keep us straight and narrow and a time when the business has been more challenged.”
Columbia shares were down 0.87% on Friday after the bell after the company reported weaker than expected earnings.
“We’re thrilled with the way the year came out, not so thrilled with the numbers, but we’ve cleaned up our inventories in a profitable way and we’re on to the next year and things are going to improve,” Boyle said.
The company said in its earnings report that its balance sheet “remains strong.” However it expects 2024 to be a challenging year as “retailers are placing orders cautiously, and economic and geopolitical uncertainty remains high.”
“We currently plan to add another $300 million or so of free cashflow in 2024 by just further managing our inventory, so we’ve given some guidance, and we think we’re pretty right on but it allows us to do things that others can’t when they don’t have the kind of financial strength that we do,” Boyle said.