Columbia Sportswear Company Chairman, President and CEO Tim Boyle said he was encouraged by the company’s first-quarter results, with net sales and earnings exceeding its 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,” Boyle detailed. “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,” he continued.

Boyle added that in light of macroeconomic uncertainty resulting from U.S. tariff increases and ambiguous public policy, the company is taking decisive actions to maintain the company’s financial strength.

“We have the opportunity to gain market share in the current environment,” he said in an earnings release.

First-quarter 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 the Europe, Middle East and Africa (EMEA) regions, partially offset by declines in Canada and the U.S.

The U.S. business declined 1 percent overall, while the Canada business was down 2 percent in constant-currency terms. The LAAP region grew double digits for the quarter, and EMEA grew 7 percent in constant-currency (cc) terms.

From a brand standpoint, Columbia grew 5 percent cc globally in Q1, while all other brands declined year-over-year, with Sorel down 6 percent cc, Prana down 10 percent cc and Mountain Hardwear declining 13 percent cc year-over-year.

Global Wholesale sales were up 4 percent cc and DTC grew 2 percent cc year-over-year.

Gross margin expanded 30 basis points to 50.9 percent of net sales in Q1 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 75 cents per diluted share, compared to net income of $42.3 million, or 71 cents 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 at quarter-end, 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
The company repurchased 1,251,784 shares of common stock for an aggregate of $101.4 million in Q1, or an average price per share of $81.03.

At March 31, 2025, $526.1 million remained available under the company’s stock repurchase authorization, which does not obligate the company to acquire any specific number of shares or to acquire shares over any specified time period.

Quarterly Cash Dividend
The Board of Directors approved a regular quarterly cash dividend of 30 cents per share, payable on June 5, 2025, to shareholders of record on May 22, 2025.

Full Year 2025 Financial Outlook
Due to macroeconomic uncertainty stemming from global trade policies, the company is withdrawing its full-year 2025 financial outlook it provided on February 4, 2025, and is not providing a full-year 2025 financial outlook at this time.

Second Quarter 2025 Financial Outlook
The company said its second-quarter 2025 Financial Outlook is forward-looking, and the following statement for the second quarter reflects expectations as of May 1, 2025, and is subject to significant risks and business uncertainties. The company said these risks and uncertainties limit its ability to forecast results accurately. 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 percent to 5 percent from $570.2 million for the comparable period in 2024.

Image courtesy Columbia Sportswear