Columbia Sportswear Company Reports Q1, 2025 Financial Results; Withdraws Full Year 2025 Financial Outlook Due To Tariff Uncertainty

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 first quarter 2025 financial results for the period ended March 31, 2025.

First Quarter 2025 Highlights

• Net sales increased 1 percent (3 percent constant-currency) to $778.5 million, compared to first quarter 2024.
• Operating income increased 4 percent to $46.5 million, or 6.0 percent of net sales, compared to first quarter 2024 operating income of $44.7 million, or 5.8 percent of net sales.
• Diluted earnings per share increased 6 percent to $0.75, compared to first quarter 2024 diluted earnings per share of $0.71.
• Exited the quarter with $658.4 million of cash, cash equivalents and short-term investments and no borrowings.
• The Company repurchased $101.4 million of common stock during the quarter.

Full Year 2025 Financial Outlook

Due to macroeconomic uncertainty stemming from global trade policies, the Company is withdrawing its full year 2025 financial outlook that was provided on February 4, 2025 and not providing a full year 2025 financial outlook at this time.

Additional disclosures and second quarter 2025 financial outlook details can be found in the Second Quarter 2025 Financial Outlook section below and the CFO Commentary and Financial Review presentation.

Chairman, President and Chief Executive Officer Tim Boyle commented, “I’m encouraged by our first quarter results, with net sales and earnings exceeding our guidance range. We generated healthy growth in nearly all our international markets, including double-digit percent growth in the LAAP region and high-single-digit percent constant currency growth in the EMEA region.

“In light of macro-economic uncertainty resulting from U.S. tariff increases and ambiguous public policy, we are taking decisive actions to maintain the Company’s financial strength. We have the opportunity to gain market share in the current environment.

“I believe the Columbia brand’s exceptional value is a competitive advantage. As part of our ACCELERATE Growth Strategy, we remain committed to increasing investments in demand creation to bring our new highly differentiated marketing campaign and enhanced product assortment to life this Fall.

“Our fortress balance sheet, with $658 million in cash and short-term investments, and no bank borrowings exiting the quarter, will enable us to confidently weather turbulent periods and manage the business to drive long-term market share gains. 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."

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.

First Quarter 2025 Financial Results

(All comparisons are between first quarter 2025 and first quarter 2024, unless otherwise noted.)

• Net sales increased 1 percent (3 percent constant-currency) to $778.5 million from $770.0 million for the comparable period in 2024. The increase was led by the Latin America, Asia Pacific ("LAAP") and Europe, Middle East and Africa ("EMEA") regions, partially offset by declines in Canada and the United States ("U.S.").
• Gross margin expanded 30 basis points to 50.9 percent of net sales from 50.6 percent of net sales for the comparable period in 2024. Gross margin expansion reflected several factors including lower outbound shipping expenses, higher closeout margins and favorable Spring 2025 product input costs, partially offset by unfavorable FX hedging rates.
• SG&A expenses were $354.5 million, or 45.5 percent of net sales, compared to $349.3 million, or 45.4 percent of net sales, for the comparable period in 2024. The largest changes in SG&A expenses were higher direct-to-consumer ("DTC") and demand creation expenses, partially offset by lower supply chain expenses.
• Operating income increased 4 percent to $46.5 million, or 6.0 percent of net sales, compared to operating income of $44.7 million, or 5.8 percent of net sales, for the comparable period in 2024.
• Interest income, net of $6.8 million, compared to $9.2 million for the comparable period in 2024.
• Income tax expense of $12.6 million resulted in an effective income tax rate of 23.0 percent, compared to income tax expense of $11.8 million, or an effective income tax rate of 21.9 percent, for the comparable period in 2024.
• Net income was relatively flat at $42.2 million, or $0.75 per diluted share, compared to net income of $42.3 million, or $0.71 per diluted share, for the comparable period in 2024.
• Balance Sheet as of March 31, 2025
• Cash, cash equivalents, and short-term investments totaled $658.4 million, compared to $787.7 million as of March 31, 2024.
• The Company had no borrowings as of either March 31, 2025 or March 31, 2024.
• Inventories increased 3 percent to $623.7 million, compared to $607.4 million as of March 31, 2024.
• Cash Flow for the Three Months Ended March 31, 2025
• Net cash used in operating activities was $32.0 million, compared to net cash provided by operating activities of $106.8 million for the same period in 2024.
• Capital expenditures totaled $15.6 million, compared to $14.8 million for the same period in 2024.
• Share Repurchases for the Three Months Ended March 31, 2025
• The Company repurchased 1,251,784 shares of common stock for an aggregate of $101.4 million, or an average price per share of $81.03.
• At March 31, 2025, $526.1 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 June 5, 2025 to shareholders of record on May 22, 2025.

Second Quarter 2025 Financial Outlook

The Company's Second Quarter 2025 Financial Outlook is forward-looking in nature, and the following forward-looking statement reflects our expectations as of May 1, 2025 and is 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 Second Quarter 2025 Financial Outlook reflects U.S. tariff rates in place on May 1, 2025.

• Net sales are expected to be $575 to $600 million, representing growth of 1 to 5 percent from $570.2 million for the comparable period in 2024.

Full Year 2025 Financial Outlook

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

Due to macroeconomic uncertainty stemming from global trade policies, the Company is withdrawing its full year 2025 financial outlook that was provided on February 4, 2025 and is not providing a full year 2025 financial outlook at this time.