Columbia Sportswear Company (COLM) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 rose 1% to $943.4 million, driven by strong international growth in Europe, China, and distributor markets, offsetting a 4% decline in U.S. sales.

• Operating income dropped 40% to $67.4 million, primarily due to $29 million in impairment charges for prAna and Mountain Hardwear and higher SG&A expenses.

• Diluted EPS was $0.95, down from $1.56, with impairment charges reducing EPS by $0.46.

• The "Engineered for Whatever" brand platform and ACCELERATE Growth Strategy are driving renewed brand energy and consumer engagement.

• Cash and short-term investments at quarter-end were $236 million, with no borrowings.

Financial highlights

• Net sales: $943.4 million (+1% y/y); gross margin: 50.0% (down 20 bps y/y) due to tariffs and FX headwinds; operating income: $67.4 million (down 40% y/y); net income: $52.0 million (down 42% y/y); diluted EPS: $0.95 (down 39% y/y).

• SG&A expenses increased 5% to $380.9 million (40.4% of sales), mainly from higher marketing and omni-channel costs.

• Inventory at quarter-end was $800.4 million, flat year-over-year.

• Net cash used in operating activities for nine months was $333.4 million, primarily due to increased inventory and earlier payments.

Outlook and guidance

• FY 2025 net sales expected at $3.33–$3.4 billion (flat to down 1% y/y); gross margin 50.0%–50.2%; diluted EPS forecasted at $2.55–$2.85, including $0.46 negative impact from impairments.

• Q4 2025 net sales expected to decline 5%–8% y/y, with operating margin 7.2%–9.1%.

• 2026 spring wholesale forecast is flat to low single-digit growth, led by international markets, with U.S. expected to decline.

• Full-year 2025 capital expenditures planned at $65–$75 million, focused on DTC and digital investments.