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Sep 30
Columbia Q3 2025 Earnings Report
Columbia Sportswear Company reported its third quarter 2025 financial results, showing a slight increase in net sales but a significant decrease in operating income and diluted earnings per share compared to the prior year.
Key Takeaways
Columbia Sportswear Company experienced a mixed third quarter in 2025. While net sales saw a modest 1% increase to $943.4 million, operating income sharply declined by 40% to $67.4 million, primarily due to $29.0 million in impairment charges related to prAna and Mountain Hardwear. Diluted earnings per share also fell significantly to $0.95 from $1.56 in the prior year, impacted by these same impairment charges.
Net sales increased by 1% to $943.4 million, remaining flat on a constant-currency basis, compared to the third quarter of 2024.
Operating income decreased by 40% to $67.4 million, or 7.1% of net sales, largely due to $29.0 million in impairment charges.
Diluted earnings per share were $0.95, a decrease from $1.56 in the prior year, with impairment charges negatively impacting EPS by $0.46.
The company ended the quarter with $236.0 million in cash, cash equivalents, and short-term investments, with no borrowings.
Columbia
Columbia
Columbia Revenue by Segment
Columbia Revenue by Geographic Location
Revenue by Segment
Columbia Revenue
CapyFin.comSOREL Revenue
CapyFin.comprAna Revenue
CapyFin.comMountain Hardwear Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comLatin America and Asia Pacific Revenue
CapyFin.comEurope, Middle East and Africa Revenue
CapyFin.comCanada Revenue
CapyFin.com Forward Guidance
For the full year 2025, Columbia Sportswear expects net sales to be between $3.33 billion and $3.37 billion, representing a decline of 1.0% to flat compared to 2024. Operating income is projected to be $163 million to $185 million, with an operating margin of 4.9% to 5.5%, including $29.0 million in impairment charges and $35 million to $40 million of incremental tariffs. Diluted earnings per share are anticipated to be $2.55 to $2.85, also reflecting the negative impact of impairment charges.
Positive Outlook
- Sustained international growth is expected, particularly in Europe-direct markets, driven by the Columbia brand's appeal to younger consumers.
- The ACCELERATE Growth Strategy is in place to revitalize the Columbia brand in the U.S. and unlock long-term growth opportunities.
- The launch of the new brand platform, 'Engineered for Whatever,' has received overwhelmingly positive early responses.
- Commitment to investing in strategic priorities, including creating iconic products and enhancing consumer experiences.
- Robust pipeline of differentiated activations and media investments planned for the important holiday sales period.
Challenges Ahead
- Full year 2025 net sales are projected to decline by 1.0% to be flat compared to 2024.
- Operating income for the full year is expected to be significantly lower than 2024, with an operating margin of 4.9% to 5.5% compared to 8.0% in 2024.
- Diluted earnings per share for the full year are forecasted to be $2.55 to $2.85, a notable decrease from $3.82 in 2024.
- The full year outlook includes $29.0 million in impairment charges related to prAna and Mountain Hardwear.
- Incremental tariffs of $35 million to $40 million are expected to impact operating income for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income