PORTLAND, OR – Columbia Sportswear Company (NASDAQ:COLM), a $4.76 billion market cap outdoor apparel company with $3.33 billion in trailing twelve-month revenue, announced today the departure of Skip Potter, who served as the Executive Vice President, Chief Digital Information Officer. The company stated that it will initiate a search for Potter's successor. In the meantime, Jim Swanson, the Executive Vice President and Chief Financial Officer, will assume responsibility for the digital technology department.
The Oregon-based apparel company, known for its outdoor clothing and gear, did not provide specifics regarding the reason for Potter's departure. Columbia Sportswear has emphasized that the transition in the digital technology leadership is effective immediately, ensuring continuity in their operations.
This change comes as companies in the apparel industry continue to focus heavily on digital transformation and e-commerce to meet the evolving consumer demands. The digital technology department is crucial for Columbia Sportswear's strategy to integrate innovative solutions across its global business operations.
In other recent news, Columbia Sportswear reported a 5% year-over-year decrease in net sales for the third quarter of 2024, totaling $932 million, primarily due to a 9% drop in global wholesale sales. Despite this decline, the company exceeded its diluted earnings per share projections, thanks to improved gross margins and disciplined expense management.
Columbia Sportswear also announced a $600 million share buyback program and the introduction of the ACCELERATE growth strategy, aimed at attracting younger consumers and bolstering brand perception.
TD (TSX:TD) Cowen increased Columbia Sportswear's stock price target from $70.00 to $84.00, maintaining a Hold rating. The firm's analysis reflects broader market trends and the company's current financial standing. The new price target suggests potential for steady growth based on the company's fundamentals and market conditions.
Despite challenges in the North American market, Columbia Sportswear witnessed robust growth in international markets, particularly China and Europe. The company also revised its net sales outlook for the year to a 3-5% decline, while maintaining its expectation to achieve approximately $90 million in cost savings for the year.
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