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The CEO of Columbia Sportswear told CNBC’s Jim Cramer on Friday that the company still relies heavily on winter weather for sales and is looking for opportunities to venture out after reporting disappointing fourth-quarter earnings.
Columbia, known for its winter clothing, faces challenges with a warming climate. According to the European Union’s Copernicus Climate Change Service (C3S), last year was confirmed to be the hottest on record, leaving less room for winter clothing.
Boyles said the company is focused on innovating to compete with rival footwear and apparel brands. He is also looking into updating the Columbia footwear brand for the upcoming spring season.
“We can make changes in the business that are not instinctive,” Boyle said. “Those kinds of things can keep us straight and narrow at a time when the business has been most challenged.”
Columbia shares fell 0.87% Friday after the bell after the company rreported weaker-than-expected earnings.
“We’re excited about the way the year ended, not so much about the numbers, but we’ve cleaned out our inventories profitably and we’re into next year and things are going to get better,” 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 cautiously placing orders and economic and geopolitical uncertainty remains high.”
“We currently plan to add another $300 million or so of free cash flow in 2024 simply by managing our inventory more, so we’ve provided some guidance and we think we’re pretty much right, but it allows us to do things that others can do.” “Not when they don’t have the kind of financial strength that we have,” Boyle said.