For people who enjoy outdoor activities like hiking, snowboarding, fishing, and hunting, finding a brand that offers good quality and long-lasting outdoor wear can be difficult for anyone who wants to spend less than a thousand dollars on a jacket.
Columbia Sportswear Company has long been a more affordable staple brand for outdoor activity lovers. This American company manufactures and distributes active lifestyle gear and outdoor apparel at lower prices than most of its rival brands.
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Although the brand is still considered among the top ten outdoor wear brands in the U.S., it has been experiencing some rough patches and reporting declining sales for the last four consecutive quarters.
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Maybe it's the current state of the economy, growing competition, or possibly fallout from global warming, but despite all outside factors, Columbia refuses to let a rocky road prevent it from trying to exit this sales slump.
On Thursday, Columbia published its third-quarter earnings for 2024, and although the company met analysts' expectations, sales continued to follow a pattern of negative numbers.
According to Columbia's earnings report, total sales declined by 5% compared to the same time last year, and the Columbia brand decreased by 1%.
The company reported earnings per share of $1.56, which declined from $1.70 in Q3 2023 yet exceeded analysts' expectations by $0.20.
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Nonetheless, Columbia (COLM) decided that enough was enough and unveiled a turnaround plan to fix its declining sales, although part of its new approach might be a little controversial.
"In recent months, the Columbia brand embarked on ACCELERATE, a growth strategy intended to elevate the brand and attract younger and more active consumers," said Columbia CEO Tim Boyle.
He also stated that this multi-year plan will be accomplished through multiple changes in the company's brand, product, and marketplace strategies.
Columbia's desire to target a "younger and more active consumer" is a strategy that might work for the brand, but if not managed properly, it could go south really fast.
This is not the first time a company has tried targeting a specific customer. Abercrombie & Fitch (ANF) is famously known for making this business move, and the consequences of it continue to haunt the brand to this day.