Columbia Reports Second Quarter 2025 Financial Results; Provides Third Quarter 2025 & Limited Full Year 2025 Financial Outlook

 Columbia Sportswear Company (NASDAQ: COLM, the "Company"), a multi-brand global leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment, today announced second quarter 2025 financial results for the period ended June 30, 2025.

Second Quarter 2025 Highlights

• Net sales increased 6 percent (6 percent constant-currency) to $605.2 million, compared to second quarter 2024.
• Operating loss decreased to $23.6 million, or 3.9 percent of net sales, compared to second quarter 2024 operating loss of $23.8 million, or 4.2 percent of net sales.
• Net loss per diluted share of $0.19, compared to second quarter 2024 net loss per diluted share of $0.20.
• Exited the quarter with $579.0 million of cash, cash equivalents and short-term investments and no borrowings.

Full Year 2025 Financial Outlook

The following forward-looking statements reflect our expectations as of July 31, 2025 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. Additional disclosures and financial outlook details can be found in the Full Year 2025 Financial Outlook section below and the CFO Commentary and Financial Review presentation.

Due to macroeconomic uncertainty stemming from global trade policies, the Company is providing a limited 2025 financial outlook.

• Net sales of $3.33 to $3.40 billion, representing a net sales decline of 1.0 percent to an increase of 1.0 percent compared to 2024.

Chairman, President and Chief Executive Officer Tim Boyle commented, “Second quarter and first half financial results reflect sustained momentum in our international markets. While business trends in our U.S. business remain soft, we continue to take steps to re-energize the Columbia brand through our ACCELERATE growth strategy. In the coming days, we will launch one of the most impactful components of this strategy, our new highly differentiated Columbia brand voice and marketing campaign.

“The apparel and footwear industry is facing increasing tariffs, on top of already high existing duties. In this period of global trade policy uncertainty, we continue to take actions to mitigate the financial and operational impacts to our business. For the upcoming Fall 2025 season, our focus is delivering exceptional value to consumers, who are pressured by higher prices for many consumer goods, as well as keeping inventory and dealer margins healthy.

“Our fortress balance sheet, differentiated brand portfolio and disciplined approach to managing the business, give me confidence in our ability to emerge from this period as a stronger company. We are committed to investing in our strategic priorities to:

• accelerate profitable growth;
• create iconic products that are differentiated, functional and innovative;
• drive brand engagement through increased, focused demand creation investments;
• enhance consumer experiences by investing in capabilities to delight and retain consumers;
• amplify marketplace excellence, with digitally-led, omni-channel, global distribution; and
• empower talent that is driven by our core values, through a diverse and inclusive workforce."

CFO's Commentary and Financial Review Presentation Available Online

For a detailed review of the Company's second quarter 2025 financial results, please refer to the CFO Commentary and Financial Review presentation furnished to the Securities and Exchange Commission (the "SEC") on a Current Report on Form 8-K and published on the Investor Relations section of the Company's website at http://investor.columbia.com/financial-results at approximately 4:15 p.m. ET today. Analysts and investors are encouraged to review this commentary prior to participating in our conference call.

ACCELERATE Growth Strategy

ACCELERATE is a growth strategy intended to elevate the Columbia brand to attract younger and more active consumers. It is a multi-year effort centered around several consumer-centric shifts to our brand, product and marketplace strategies, as well as enhanced ways of working. For more information on the ACCELERATE Growth Strategy, please refer to the CFO Commentary and Financial Review presentation.

Second Quarter 2025 Financial Results
(All comparisons are between second quarter 2025 and second quarter 2024, unless otherwise noted.)

Net sales increased 6 percent (6 percent constant-currency) to $605.2 million from $570.2 million for the comparable period in 2024. The increase primarily reflects changes in wholesale shipment timing which benefited sales in the quarter, and higher Spring 2025 wholesale orders, partially offset by lower direct-to-consumer ("DTC") net sales. Sales growth in most of our international markets was offset by underlying weakness in the U.S.

Gross margin expanded 120 basis points to 49.1 percent of net sales from 47.9 percent of net sales for the comparable period in 2024. Gross margin expansion reflected several factors including healthier overall inventory composition resulting in less clearance and promotional activity, as well as favorable product sales mix, partially offset by unfavorable channel and region sales mix.

SG&A expenses were $325.6 million, or 53.8 percent of net sales, compared to $302.7 million, or 53.1 percent of net sales, for the comparable period in 2024. The largest changes in SG&A expenses were higher DTC and demand creation expenses.

Operating loss decreased to $23.6 million, or 3.9 percent of net sales, compared to an operating loss of $23.8 million, or 4.2 percent of net sales, for the comparable period in 2024.

Interest income, net of $4.8 million, compared to $8.3 million for the comparable period in 2024.

Income tax benefit of $6.4 million resulted in an effective income tax rate of 38.5 percent, compared to income tax benefit of $3.2 million, or an effective income tax rate of 21.6 percent, for the comparable period in 2024.

Net loss of $10.2 million, or $0.19 per diluted share, compared to a net loss of $11.7 million, or $0.20 per diluted share, for the comparable period in 2024.

First Half 2025 Financial Results
(All comparisons are between first half 2025 and first half 2024, unless otherwise noted.)

Net sales increased 3 percent (4 percent constant-currency) to $1,383.7 million from $1,340.2 million for the comparable period in 2024.

Gross margin expanded 60 basis points to 50.1 percent of net sales from 49.5 percent of net sales for the comparable period in 2024.

SG&A expenses were $680.1 million, or 49.2 percent of net sales, compared to $652.0 million, or 48.6 percent of net sales, for the comparable period in 2024.

Operating income increased 10 percent to $22.9 million, or 1.7 percent of net sales, compared to operating income of $20.9 million, or 1.6 percent of net sales, for the comparable period in 2024.

Interest income, net of $11.7 million, compared to $17.5 million for the comparable period in 2024.

Income tax expense of $6.2 million resulted in an effective income tax rate of 16.3 percent, compared to income tax expense of $8.6 million, or an effective income tax rate of 22.0 percent, for the comparable period in 2024.

Net income increased 5 percent to $32.1 million, or $0.58 per diluted share, compared to net income of $30.6 million, or $0.51 per diluted share, for the comparable period in 2024.

Balance Sheet as of June 30, 2025

Cash, cash equivalents, and short-term investments totaled $579.0 million, compared to $711.1 million as of June 30, 2024.

The Company had no borrowings as of either June 30, 2025 or June 30, 2024.

Inventories increased 13 percent to $926.9 million, compared to $823.6 million as of June 30, 2024.

Cash Flow for the Six Months Ended June 30, 2025

Net cash used in operating activities was $62.9 million, compared to net cash provided by operating activities of $108.9 million for the same period in 2024.

Capital expenditures totaled $30.0 million, compared to $27.8 million for the same period in 2024.

Share Repurchases for the Six Months Ended June 30, 2025

The Company repurchased 1,677,784 shares of common stock for an aggregate of $131.7 million, or an average price per share of $78.49.

At June 30, 2025, $495.9 million remained available under our stock repurchase authorization, which does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Quarterly Cash Dividend

The Board of Directors approved a regular quarterly cash dividend of $0.30 per share, payable on September 4, 2025 to shareholders of record on August 21, 2025.

Full Year 2025 Financial Outlook
(Additional financial outlook details can be found in the CFO Commentary and Financial Review presentation.)

The Company's 2025 Full Year and Third Quarter Financial Outlooks are forward-looking in nature, and the following forward-looking statements reflect our expectations as of July 31, 2025 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. These risks and uncertainties limit our ability to accurately forecast results. The Company's Full Year and Third Quarter 2025 Financial Outlooks reflect U.S. tariff rates in place on July 31, 2025.

• Net sales are expected to decrease 1 percent to increase 1 percent, resulting in net sales of $3.33 to $3.40 billion, compared to $3.37 billion in 2024.

Third Quarter 2025 Financial Outlook

• Net sales are expected to be $904 to $922 million, representing a decrease of 3 to 1 percent from $932 million for the comparable period in 2024.
• Operating margin is expected to be 7.6 to 9.0 percent, compared to operating margin of 12.1 percent in the comparable period in 2024.
• Diluted earnings per share are expected to be $1.00 to $1.20, compared to $1.56 for the comparable period in 2024.