The operating income fell 23.5 per cent to $207 million, reflecting higher selling, general and administrative (SG&A) expenses and $29 million in impairment charges related to prAna and Mountain Hardwear.
Columbia Sportswear has reported full-year 2025 net sales growth of 1 per cent to $3.4 billion, with margin gains offset by tariff pressure and impairment charges that weighed on profits.
Q4 sales declined despite stronger margins and international growth.
For 2026, the company expects modest revenue growth but cautioned on margin pressure from US tariffs, with a softer outlook for Q1 earnings.
The net income in the year declined 21 per cent to $177.2 million, or $3.24 per diluted share, compared with $3.82 in 2024. The impairment charges reduced diluted earnings per share (EPS) by $0.45, Columbia Sportswear said in a press release.
The company ended the year with a strong balance sheet, holding $790.8 million in cash, cash equivalents, and short-term investments, and no borrowings. Inventories remained flat at $689.5 million. During 2025, Columbia generated $282.9 million in operating cash flow and repurchased $201.1 million worth of shares, with $426.5 million remaining under its repurchase authorisation.
Meanwhile, in the fourth quarter (Q4) of 2025, net sales fell 2 per cent YoY, or 3 per cent on a constant-currency basis, to $1,070.2 million. The decline was primarily attributed to earlier shipment of Fall ’25 wholesale orders, partly offset by modest growth in direct-to-consumer (DTC) sales. Weakness in the US market was cushioned by growth across international regions.
Despite lower sales, gross margin expanded by 50 bps to 51.6 per cent, supported by healthier inventory composition, reduced clearance activity, and lower inventory loss provisions. These gains were partly offset by incremental US tariffs, which impacted gross margin by $20 million before mitigation actions.
The operating income declined 15 per cent to $116.7 million, representing 10.9 per cent of net sales, compared with 12.5 per cent a year earlier. Net income stood at $93.2 million, or $1.73 per diluted share, down from $1.8 in the prior-year quarter.
“We are pleased to have delivered net sales and profitability exceeding our guidance for the fourth quarter driven by better-than-expected demand in the US. While our US business remains challenged, I’m encouraged with continued growth internationally combined with early signs of momentum indicating that the Columbia Accelerate Growth Strategy is resonating with consumers, including new and enhanced product collections and differentiated marketing,” said Tim Boyle, chairman and chief executive officer (CEO) at Columbia Sportswear Company.
“Over the past few months, we’ve witnessed brand momentum as consumers embraced our new product collections, with even more exciting launches on the horizon. ‘Engineered for Whatever’ has not only re-energised our unique brand voice but has provided powerful differentiation in a competitive marketplace,” added Boyle.
Looking ahead, Columbia Sportswear projected full-year 2026 net sales of $3.43 to $3.50 billion, representing growth of 1 to 3 per cent. Operating income is expected to range between $211 million and $243 million, with operating margins of 6.2 to 6.9 per cent. Diluted EPS are forecast at $3.2 to $3.65.
However, the company cautioned that gross margin is expected to contract to 49.8 to 50 per cent, reflecting an estimated 300 basis point unfavourable impact from incremental US tariffs before mitigation.
For the first quarter (Q1) of 2026, the company expects net sales to range between $747 million and $759 million, reflecting a YoY decline of 4 to 2.5 per cent from $778 million in the same period of 2025, despite an estimated 200 basis point benefit from foreign currency translation. The operating margin is projected at 2.1 to 2.9 per cent, down sharply from 6 per cent a year earlier, driven by SG&A expense deleverage amid low single-digit cost growth on lower sales and gross margin pressure from unmitigated incremental US tariffs. Diluted EPS are forecast to fall to $0.29 to $0.37, compared with $0.75 in the prior-year quarter, added the release.
Fibre2Fashion News Desk (SG)
