Columbia Sportswear’s sales in the U.S. slid 2 percent in the second quarter, but overall sales grew 6 percent with a boost from double-digit gains overseas. The loss in the quarter was lower than analysts expected. The outerwear giant also provided a “limited” outlook for the year, projecting flat revenues.

Second Quarter 2025 Highlights

  • Net sales increased 6 percent (6 percent constant-currency) to $605.2 million, compared to second quarter 2024. Columbia had forecast sales in the range of $575 to $600 million, representing growth of 1 to 5 percent. Analysts’ consensus target had been $589.5 million.
  • Operating loss decreased to $23.6 million, or 3.9 percent of net sales, compared to second quarter 2024 operating loss of $23.8 million, or 4.2 percent of net sales.
  • Net loss per diluted share of 19 cents, compared to second quarter 2024 net loss per diluted share of 20 cents. Columbia didn’t provide EPS guidance. Analysts’ consensus estimate had been a loss of 28 cents a share.
  • Exited the quarter with $579.0 million of cash, cash equivalents and short-term investments and no borrowings.

Chairman, President and Chief Executive Officer Tim Boyle commented, “Second quarter and first half financial results reflect sustained momentum in our international markets. While business trends in our U.S. business remain soft, we continue to take steps to re-energize the Columbia brand through our Accelerate growth strategy. In the coming days, we will launch one of the most impactful components of this strategy, our new highly differentiated Columbia brand voice and marketing campaign.

“The apparel and footwear industry is facing increasing tariffs, on top of already high existing duties. In this period of global trade policy uncertainty, we continue to take actions to mitigate the financial and operational impacts to our business. For the upcoming Fall 2025 season, our focus is delivering exceptional value to consumers, who are pressured by higher prices for many consumer goods, as well as keeping inventory and dealer margins healthy.

“Our fortress balance sheet, differentiated brand portfolio and disciplined approach to managing the business, give me confidence in our ability to emerge from this period as a stronger company. We are 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.”

Second Quarter 2025 Financial Results
(all comparisons are between second quarter 2025 and second quarter 2024, unless otherwise noted)

  • Net sales increased 6 percent (6 percent constant-currency) to $605.2 million from $570.2 million for the comparable period in 2024. The increase primarily reflects changes in wholesale shipment timing which benefited sales in the quarter, and higher Spring 2025 wholesale orders, partially offset by lower direct-to-consumer DTC) net sales. Sales growth in most of ITS international markets was offset by underlying weakness in the U.S.
  • By region, sales were down 2 percent in the United States to $335.1 million, rose 13 percent (12 percent currency-neutral) in Latin America and Asia Pacific to $112.3 million; jumped 26 percent (24 percent currency-neutral) in Europe, Middle East and Africa to $130.6 million, and nudged up 2 percent (5 percent currency-neutral) in Canada to $27.2 million.
  • By brand, Columbia’s sales were up 8 percent (7 percent currency-neutral) to $548.3 million. Sorel’s sales fell 10 percent (11 percent currency-neutral) to $18.8 million. Prana’s sales were down 6 percent (6 percent currency-neutral) to $20.5 million. Mountain Hardwear’s sales were off 7 percent (7 percent currency-neutral) to $17.5 million.
  • By product category, sales in apparel, accessories and equipment were up 7 percent (6 percent currency-neutral) to $494.3 million. Footwear sales gained 4 percent (4 percent currency-neutral) to $110.9 million.
  • By channel, wholesale sales jumped 14 percent (14 percent currency-neutral) to $317.2 million, DTC sales eased 1 percent (2 percent currency-neutral) to $288.0 million.
  • Gross margin expanded 120 basis points to 49.1 percent of net sales from 47.9 percent of net sales for the comparable period in 2024. Gross margin expansion reflected several factors including healthier overall inventory composition resulting in less clearance and promotional activity, as well as favorable product sales mix, partially offset by unfavorable channel and region sales mix.
  • SG&A expenses were $325.6 million, or 53.8 percent of net sales, compared to $302.7 million, or 53.1 percent of net sales, for the comparable period in 2024. The largest changes in SG&A expenses were higher DTC and demand creation expenses.
  • Operating loss decreased to $23.6 million, or 3.9 percent of net sales, compared to an operating loss of $23.8 million, or 4.2 percent of net sales, for the comparable period in 2024.
  • Interest income, net of $4.8 million, compared to $8.3 million for the comparable period in 2024.
  • Income tax benefit of $6.4 million resulted in an effective income tax rate of 38.5 percent, compared to income tax benefit of $3.2 million, or an effective income tax rate of 21.6 percent, for the comparable period in 2024.
  • Net loss of $10.2 million, or $0.19 per diluted share, compared to a net loss of $11.7 million, or $0.20 per diluted share, for the comparable period in 2024.

First Half 2025 Financial Results
(all comparisons are between first half 2025 and first half 2024, unless otherwise noted)

  • Net sales increased 3 percent (4 percent constant-currency) to $1,383.7 million from $1,340.2 million for the comparable period in 2024.
  • Gross margin expanded 60 basis points to 50.1 percent of net sales from 49.5 percent of net sales for the comparable period in 2024.
  • SG&A expenses were $680.1 million, or 49.2 percent of net sales, compared to $652.0 million, or 48.6 percent of net sales, for the comparable period in 2024.
  • Operating income increased 10 percent to $22.9 million, or 1.7 percent of net sales, compared to operating income of $20.9 million, or 1.6 percent of net sales, for the comparable period in 2024.
  • Interest income, net of $11.7 million, compared to $17.5 million for the comparable period in 2024.
  • Income tax expense of $6.2 million resulted in an effective income tax rate of 16.3 percent, compared to income tax expense of $8.6 million, or an effective income tax rate of 22.0 percent, for the comparable period in 2024.
  • Net income increased 5 percent to $32.1 million, or $0.58 per diluted share, compared to net income of $30.6 million, or $0.51 per diluted share, for the comparable period in 2024.
  • Balance Sheet as of June 30, 2025
  • Cash, cash equivalents, and short-term investments totaled $579.0 million, compared to $711.1 million as of June 30, 2024.
  • The company had no borrowings as of either June 30, 2025 or June 30, 2024.
  • Inventories increased 13 percent to $926.9 million, compared to $823.6 million as of June 30, 2024.

Cash Flow for the Six Months Ended June 30, 2025

  • Net cash used in operating activities was $62.9 million, compared to net cash provided by operating activities of $108.9 million for the same period in 2024.
  • Capital expenditures totaled $30.0 million, compared to $27.8 million for the same period in 2024.

Share Repurchases for the Six Months Ended June 30, 2025

  • The company repurchased 1,677,784 shares of common stock for an aggregate of $131.7 million, or an average price per share of $78.49.
  • At June 30, 2025, $495.9 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 September 4, 2025 to shareholders of record on August 21, 2025.

Full Year 2025 Financial Outlook
The company’s Full Year and Third Quarter 2025 Financial Outlooks reflect U.S. tariff rates in place on July 31, 2025.

  • Net sales are expected to decrease 1 percent to increase 1 percent, resulting in net sales of $3.33 to $3.40 billion, compared to $3.37 billion in 2024.

Third Quarter 2025 Financial Outlook

  • Net sales are expected to be $904 to $922 million, representing a decrease of 3 to 1 percent from $932 million for the comparable period in 2024.
  • Operating margin is expected to be 7.6 to 9.0 percent, compared to operating margin of 12.1 percent in the comparable period in 2024.
  • Diluted earnings per share are expected to be $1.00 to $1.20, compared to $1.56 for the comparable period in 2024.

Image courtesy Columbia Sportswear