Columbia Sportswear Company (COLM) saw its stock price surge by 5.83% on Wednesday, following the release of its third-quarter earnings report for the period ended January 1, 2024. The outdoor apparel and footwear company reported better-than-expected earnings per share (EPS) of $1.56, surpassing analysts' consensus estimate of $1.36.

Despite a slight miss on revenue, with reported sales of $931.77 million falling short of the expected $936.33 million, the company's strong profitability and strategic initiatives fueled investor confidence. Columbia Sportswear's gross margins expanded by 150 basis points to 50.2%, driven by disciplined expense management and a cleaner inventory position.

The company's financial position remains robust, with over $370 million in cash and short-term investments, and no debt. Additionally, Columbia Sportswear generated positive momentum in its international markets, particularly in China and Europe, where its direct businesses experienced significant growth.