Columbia Sportswear CEO Jim Cramer told CNBC on Friday that the company is still relying heavily on winter weather for sales and is looking for opportunities to venture out after reporting disappointing fourth-quarter earnings.
Colombia, known for its winter clothing, faces challenges as the weather gets warmer. 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 clothing.
Boyles said the company is focusing on innovation to compete with rival shoe and apparel brands. He's also looking forward to updating the Columbia footwear brand for the upcoming spring season.
“We can make changes in the business without jerking,” Boyle said. “These types of things can keep us on the straight and narrow, at a time when the business is facing more challenges.”
Columbia shares fell 0.87% on Friday after the bell following the company's announcementEarnings were weaker than expected.
“We're happy with the way the year ended, we're not very happy with the numbers, but we've cleaned up our inventory in a profitable way as we move into next year and things will get better,” Boyle said. He 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 place their orders cautiously, and economic and geopolitical uncertainty remains high.”
“We currently plan to add another $300 million or so of free cash flow in 2024 by managing our inventory more, so we've provided some guidance, and we think we're absolutely right but it allows us to do things that others can do,” Boyle said. “When they don't have the kind of financial strength that we have.”
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”