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Sep 30, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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