Columbia Sportswear Company (COLM) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales grew 1% year-over-year to $778.5M, led by strong international performance in LAAP and EMEA, offsetting declines in the U.S. and Canada.

• Gross margin expanded 30 basis points to 50.9%, aided by lower shipping and input costs, partially offset by unfavorable FX hedging.

• Operating income increased 4% to $46.5M (6.0% margin); diluted EPS rose 6% to $0.75.

• Ended Q1 with $658.4M in cash and short-term investments, no borrowings, and $101.4M in share repurchases.

• Full-year 2025 outlook withdrawn due to macroeconomic, trade policy, and tariff uncertainty.

Financial highlights

• Net sales: $778.5M (+1% y/y); Columbia brand up 3%, SOREL down 8%, prAna down 10%, Mountain Hardwear down 14%.

• Gross margin: 50.9% (+30 bps y/y); operating margin: 6.0% (+20 bps y/y).

• SG&A expenses up 1% to $354.5M (45.5% of net sales), mainly from higher DTC and demand creation costs.

• Free cash flow was negative, impacted by higher inventory replenishment and share repurchases.

• Inventory increased 3% year-over-year to $623.7M.

Outlook and guidance

• Full-year 2025 outlook withdrawn due to global trade policy and tariff uncertainty.

• Q2 2025 net sales expected between $575M and $600M, representing 1–5% growth over Q2 2024.

• $40–$45M in incremental U.S. tariff costs expected in the second half of 2025.

• Annualized cost savings from the Profit Improvement Program expected to exceed $150M.

• Capital expenditures for 2025 planned at $60–$80M, focused on DTC and digital.