The gross margin contracted 20 basis points (bps) to 50 per cent, impacted by incremental tariffs and unfavourable exchange rates, offsetting benefits from reduced clearance activity and higher channel profitability. Selling, general, and administrative (SG&A) expenses rose to $380.9 million (40.4 per cent of net sales), up from $361.2 million (38.8 per cent) a year earlier, largely due to higher demand creation and omni-channel investments, Columbia Sportswear said in a press release.
Columbia Sportswear’s Q3 2025 net sales rose 1 per cent to $943.4 million, driven by strong Europe-direct growth offset by weaker US DTC sales.
Operating income fell 40 per cent to $67.4 million due to $29 million impairment charges.
For FY 2025, sales are forecast at $3.33–$3.37 billion and EPS at $2.55–$2.85.
The brand remains focused on global expansion and its Accelerate Growth Strategy.
The operating income fell sharply by 40 per cent to $67.4 million, or 7.1 per cent of net sales, compared to $112.5 million (12.1 per cent) in Q3 2024, primarily due to $29 million in impairment charges related to Prana and Mountain Hardwear. Net income dropped to $52 million, or $0.95 per diluted share, versus $90.2 million, or $1.56 per share, last year. The impairment reduced earnings per share (EPS) by $0.46.
Region-wise, sales in the United States declined 4 per cent to $546.7 million, while Latin America and Asia Pacific (LAAP) rose 6 per cent to $143.4 million. The Europe, Middle East and Africa (EMEA) region recorded the strongest growth, climbing 16 per cent (10 per cent constant-currency) to $164.5 million, driven by Europe-direct market gains. Canada also grew 6 per cent to $88.9 million.
By brand, Columbia generated $804 million in sales, up 1 per cent, while SOREL surged 10 per cent to $81 million. Prana rose 6 per cent to $30.4 million, and Mountain Hardwear declined 5 per cent to $28.1 million. Across product categories, apparel, accessories and equipment contributed $734.3 million (flat YoY), whereas footwear advanced 6 per cent to $209.1 million.
From a channel perspective, wholesale sales grew 5 per cent to $634.2 million, supported by shipment timing, while DTC sales fell 5 per cent to $309.3 million, affected by weaker demand in the US market.
“Third quarter results reflect sustained momentum in our international business, led by double-digit per cent sales growth in our Europe-direct markets. This strong performance underscores Columbia’s ability to connect with younger and more active consumers, a key tenet of our Accelerate Growth Strategy,” said Tim Boyle, chairman, president, and CEO of Columbia Sportswear Company.
“In the US, we are focused on revitalising the Columbia brand through our ‘Engineered for Whatever’ platform—a celebration of outdoor extremes and a revival of our irreverent spirit from the ’80s and ’90s. The early response has been overwhelmingly positive, and we plan to leverage this through the upcoming holiday season,” added Boyle.
For the first nine months (9M) of 2025, Columbia’s net sales increased 2 per cent (3 per cent constant-currency) to $2.33 billion. The gross margin expanded 30 bps to 50.1 per cent, while operating income dropped 32 per cent to $90.3 million. Net income for the period fell 30 per cent to $84.1 million, or $1.53 per diluted share.
As of September 30, 2025, Columbia reported inventories of $800.4 million, up slightly from $798.2 million in 2024. Net cash used in operating activities totalled $333.4 million, compared to $76.6 million a year earlier, primarily reflecting working capital changes. Capital expenditures stood at $46.6 million, while share repurchases reached 2.4 million shares worth $171.7 million.
The board of directors approved a regular quarterly cash dividend of $0.30 per share, payable on 4 December 2025 to shareholders of record on November 20, 2025.
For the full year, Columbia expects net sales of $3.33–3.37 billion, representing a 1 per cent decline to flat compared to $3.37 billion in 2024. Gross margin is forecast at 50.0–50.2 per cent, down up to 20 basis points from 2024. Operating income is projected at $163–185 million (operating margin 4.9–5.5 per cent), compared to 8 per cent in 2024, including $29 million in impairment charges related to Prana and Mountain Hardwear and $35–40 million of incremental tariffs prior to mitigation. Diluted EPS is anticipated between $2.55 and $2.85, including a $0.46 negative impact from the impairment, compared to $3.82 in 2024.
For the fourth quarter (Q4) of 2025, Columbia projects net sales of $1.01–1.04 billion, representing a decline of 8–5 per cent from $1.10 billion in Q4 2024. This guidance reflects a $30–40 million impact from a higher proportion of Fall 2025 shipments that occurred in Q3 instead of Q4. The operating margin is expected to range between 7.2 and 9.1 per cent, compared to 12.5 per cent in Q4 2024, and includes $20–25 million of incremental tariffs before mitigation. EPS is projected at $1.04–1.34, compared to $1.80 last year.
Columbia expects wholesale net sales in the first half of 2026 to be flat to up low-single-digit per cent, driven by continued international growth across direct and distributor markets, partially offset by a decline in the US, added the release.
“We remain committed to investing in our strategic priorities—accelerating profitable growth, creating iconic products, driving brand engagement, and empowering talent through a diverse and inclusive culture,” concluded Boyle.
Fibre2Fashion News Desk (SG)
