Columbia Sportswear Company Reports Third Quarter 2025 Financial Results; Updates 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 third quarter 2025 financial results for the period ended September 30, 2025.

Third Quarter 2025 Highlights

• Net sales increased 1 percent (flat on a constant-currency basis) to $943.4 million, compared to third quarter 2024.
• Operating income decreased 40 percent to $67.4 million, or 7.1 percent of net sales, compared to third quarter 2024 operating income of $112.5 million, or 12.1 percent of net sales. Third quarter 2025 operating income includes $29.0 million of impairment charges related to prAna and Mountain Hardwear.
• Diluted earnings per share of $0.95, compared to third quarter 2024 diluted earnings per share of $1.56. The impairment charges referred to above negatively impacted diluted earnings per share by $0.46.
• Exited the quarter with $236.0 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 October 30, 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.

• Net sales of $3.33 to $3.37 billion, representing a net sales decline of 1.0 percent to flat compared to 2024.
• Operating income of $163 to $185 million, representing operating margin of 4.9 to 5.5 percent, including $29.0 million in impairment charges related to prAna and Mountain Hardwear.
• Diluted earnings per share of $2.55 to $2.85, including a $0.46 negative impact from the impairment charges referred to above.

Chairman, President and Chief Executive Officer Tim Boyle commented, “Third quarter results reflect sustained momentum in our international business, led by double-digit percent sales growth in our Europe-direct markets. This strong international performance underscores the Columbia brand’s ability to connect with younger and more active consumers, a key tenet of our ACCELERATE Growth Strategy.

“In the U.S., we are focused on revitalizing the Columbia brand through our ACCELERATE Growth Strategy. The launch of our new brand platform, 'Engineered for Whatever,' was a major milestone—celebrating the extremes of outdoor adventure and rekindling the brand’s irreverent spirit from the '80s and '90s. The early response has been overwhelmingly positive, and we intend to build upon that momentum with a robust pipeline of differentiated activations and other media investments during the important holiday sales period ahead.

“I’m confident we have the right strategy in place to unlock significant long-term growth opportunities. We remain 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 third 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.

Third Quarter 2025 Financial Results

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

Net sales increased 1 percent (flat on a constant-currency basis) to $943.4 million from $931.8 million for the comparable period in 2024. The increase primarily reflected changes in wholesale shipment timing, which benefitted sales in the quarter by approximately $30 million, partially offset by lower direct-to-consumer ("DTC") net sales. Sales growth in most of our international markets was partially offset by underlying weakness in the U.S.

Gross margin contracted 20 basis points to 50.0 percent of net sales from 50.2 percent of net sales for the comparable period in 2024. Gross margin contraction reflected the impact of incremental tariffs and unfavorable foreign exchange rates, which more than offset higher channel profitability from lower clearance and promotional activity.

SG&A expenses were $380.9 million, or 40.4 percent of net sales, compared to $361.2 million, or 38.8 percent of net sales, for the comparable period in 2024. The largest changes in SG&A expenses were driven by higher demand creation and omni-channel expenses.

Impairment of goodwill and intangible assets included $29.0 million of charges related to prAna and Mountain Hardwear.

Operating income decreased 40 percent to $67.4 million, or 7.1 percent of net sales, compared to operating income of $112.5 million, or 12.1 percent of net sales, for the comparable period in 2024.

Interest income, net of $2.9 million, compared to $5.4 million for the comparable period in 2024.

Income tax expense of $19.0 million resulted in an effective income tax rate of 26.7 percent, compared to income tax expense of $29.0 million, or an effective income tax rate of 24.4 percent, for the comparable period in 2024.

Net income was $52.0 million, or $0.95 per diluted share, compared to net income of $90.2 million, or $1.56 per diluted share, for the comparable period in 2024. The impairment charges related to prAna and Mountain Hardwear in third quarter 2025 negatively impacted diluted earnings per share by $0.46.

First Nine Months 2025 Financial Results

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

Net sales increased 2 percent (3 percent constant-currency) to $2,327.1 million from $2,272.0 million for the comparable period in 2024.

Gross margin expanded 30 basis points to 50.1 percent of net sales from 49.8 percent of net sales for the comparable period in 2024.

SG&A expenses were $1,061.0 million, or 45.6 percent of net sales, compared to $1,013.3 million, or 44.6 percent of net sales, for the comparable period in 2024.

Impairment of goodwill and intangible assets included $29.0 million of charges related to prAna and Mountain Hardwear.

Operating income decreased 32 percent to $90.3 million, or 3.9 percent of net sales, compared to operating income of $133.4 million, or 5.9 percent of net sales, for the comparable period in 2024.

Interest income, net of $14.5 million, compared to $22.9 million for the comparable period in 2024.

Income tax expense of $25.2 million resulted in an effective income tax rate of 23.1 percent, compared to income tax expense of $37.6 million, or an effective income tax rate of 23.8 percent, for the comparable period in 2024.

Net income decreased 30 percent to $84.1 million, or $1.53 per diluted share, compared to net income of $120.7 million, or $2.04 per diluted share, for the comparable period in 2024.

Balance Sheet as of September 30, 2025

Cash, cash equivalents, and short-term investments totaled $236.0 million, compared to $373.9 million as of September 30, 2024.

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

Inventories of $800.4 million compared to $798.2 million as of September 30, 2024.

Cash Flow for the Nine Months Ended September 30, 2025

Net cash used in operating activities was $333.4 million, compared to $76.6 million for the same period in 2024.

Capital expenditures totaled $46.6 million, compared to $41.7 million for the same period in 2024.

Share Repurchases for the Nine Months Ended September 30, 2025

The Company repurchased 2,400,131 shares of common stock for an aggregate of $171.7 million, or an average price per share of $71.53.

At September 30, 2025, $455.9 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 December 4, 2025 to shareholders of record on November 20, 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 Fourth Quarter Financial Outlooks, as well as first half 2026 commentary, are forward-looking in nature, and the following forward-looking statements reflect our expectations as of October 30, 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 Fourth Quarter 2025 Financial Outlooks, as well as first half 2026 commentary, reflect U.S. tariff rates in place on October 30, 2025.

• Net sales of $3.33 to $3.37 billion, representing a net sales decline of 1.0 percent to flat compared to $3.37 billion in 2024.
• Gross margin of 50.0 to 50.2 percent, representing contraction of 20 basis points to flat, compared to 50.2 percent in 2024.
• Operating income of $163 to $185 million, representing operating margin of 4.9 to 5.5 percent, compared to 8.0 percent in 2024. Operating income includes $29.0 million in impairment charges related to prAna and Mountain Hardwear, as well as $35 to $40 million of incremental tariffs prior to mitigation actions.
• Diluted earnings per share of $2.55 to $2.85, including a $0.46 negative impact from impairment charges related to prAna and Mountain Hardwear, compared to $3.82 in 2024.

Fourth Quarter 2025 Financial Outlook

• Net sales of $1,008 to $1,041 million, representing a decrease of 8 to 5 percent from $1,097 million for the comparable period in 2024. Net sales guidance includes a $30 to $40 million impact of a higher proportion of Fall 2025 shipments occurring in third quarter 2025 in comparison to third quarter 2024.
• Operating margin is expected to be 7.2 to 9.1 percent, compared to operating margin of 12.5 percent in the comparable period in 2024. Operating income includes $20 to $25 million of incremental tariffs prior to mitigation actions.
• Diluted earnings per share are expected to be $1.04 to $1.34, compared to $1.80 for the comparable period in 2024.

Preliminary First Half 2026 Commentary

• Wholesale net sales is expected to be flat to up low-single-digit percent, contemplating sustained international growth across direct and distributor markets, partially offset by a decline in the U.S.

Conference Call

The Company will hold its third quarter 2025 conference call at 5:00 p.m. ET today. Dial (888) 506-0062 to participate. The call will also be webcast live on the Investor Relations section of the Company's website at https://investor.columbia.com.

Fourth Quarter 2025 Reporting Date

The Company plans to report fourth quarter 2025 financial results on Tuesday, February 3, 2026 at approximately 4:05 p.m. ET.