Columbia Sportswear Company (COLM) Q2 2025 earnings summary

Executive summary

• Net sales rose 6% year-over-year to $605.2 million in Q2 2025, driven by strong international growth and favorable wholesale shipment timing, while U.S. sales declined due to softness in DTC channels and increased competition.

• Gross margin expanded 120 basis points to 49.1%, reflecting healthier inventory and less promotional activity.

• Operating loss narrowed slightly to $23.6 million, with net loss per diluted share improving to $0.19 from $0.20 year-over-year.

• Inventory increased 13% year-over-year, reflecting earlier receipts to mitigate tariff risks.

• Strategic focus remains on the ACCELERATE growth strategy, brand engagement, and operational discipline, with annualized cost savings now exceeding $150 million.

Financial highlights

• Q2 2025 net sales: $605.2 million, up 6% year-over-year; six-month net sales: $1.38 billion, up 3%.

• Gross margin: 49.1% (up 120 bps year-over-year); operating loss: $23.6 million (improved from $23.8 million); net loss: $10.2 million (EPS: $(0.19)), compared to $11.7 million loss (EPS: $(0.20)) last year.

• SG&A expenses rose 8% to $325.6 million in Q2, mainly due to higher omni-channel and demand creation investments.

• Inventories rose 13% year-over-year to $926.9 million; cash and equivalents at quarter-end were $579 million.

• Net cash used in operating activities was $62.9 million for the first half, compared to $108.9 million provided in the prior year.

Outlook and guidance

• Full year 2025 net sales expected between $3.33 and $3.40 billion, a change of -1% to +1% versus 2024, below initial guidance.

• Q3 2025 net sales projected at $904–$922 million, down 3% to 1% year-over-year; diluted EPS forecasted at $1.00–$1.20, down from $1.56 in Q3 2024.

• 2025 guidance assumes $35–$40 million tariff impact; Q3 2025 assumes $15–$20 million tariff impact.

• Spring 2026 order book supports flat growth globally, with U.S. wholesale expected to remain down in first half 2026.

• Strategies to offset future tariff impacts include price increases, vendor negotiations, and SG&A efficiencies.