Executive Summary

Q2 2025 revenue was $605.2M, up 6% year over year, and diluted EPS was -$0.19; both modestly better than Street expectations (Rev: $588.5M*, EPS: -$0.234*) driven by wholesale shipment timing and international strength .
International regions (EMEA +26%, LAAP +13% cc) and Columbia brand (+8%) offset ongoing U.S. softness (-2%), while DTC declined 1% amid promotional normalization and site refresh efforts .
Management reintroduced limited FY25 outlook, lowering the prior February revenue range to $3.33–$3.40B (from $3.40–$3.47B), citing tariff uncertainty; Q3 FY25 guide implies revenue $904–$922M, operating margin 7.6–9.0%, EPS $1.00–$1.20 .
Near-term stock reaction catalysts: tariff-driven gross margin pressure (Q3 gross margin contraction of ~150 bps tied to $15–$20M tariffs), U.S. DTC recovery pace, and evidence of ACCELERATE campaign traction in the U.S. .

What Went Well and What Went Wrong

What Went Well

Strong international momentum: EMEA +26% and LAAP +12% constant currency in Q2; Europe Direct high-teens growth with robust DTC execution; China high-teens growth with record e-commerce during 6.18 and live-streaming success .
Columbia brand growth: Net sales +8% on differentiated spring cooling tech (OmniFreeze Zero), PFG activations, and footwear (OmniMax Konos Featherweight) awards; elevated in-store storytelling and brand partnerships .
Inventory quality improved and balance sheet remains strong: healthier inventory mix supported 120 bps gross margin expansion; ended Q2 with $579.0M cash/short-term investments and no borrowings .

What Went Wrong

U.S. softness persisted: U.S. net sales -2%, DTC -1% (e-commerce down low double-digits given less promotions and site changes); management planning cautiously for H2 .
Tariff overhang and margin headwinds: FY25 tariff impact estimated at $35–$40M, with Q3 specific $15–$20M impact driving gross margin contraction (CFO: ~150 bps) .
Emerging brands mixed: SOREL -10% (lower spring orders, less clearance), prAna -6%, Mountain Hardwear -7% versus prior-year PFAS clearance base; stabilization expected but requires execution .

Financial Results

Consolidated Performance vs Prior Periods and Estimates

Metric	Q4 2024	Q1 2025	Q2 2025	YoY (Q2)	Vs. Street (Q2)
Revenue ($USD Millions)	$1,096.6	$778.5	$605.2	+6%	$605.2 vs $588.5* (Beat)
Gross Margin %	51.1%	50.9%	49.1%	+120 bps	—
Operating Margin %	12.5%	6.0%	-3.9%	+30 bps vs Q2’24	—
Diluted EPS ($)	$1.80	$0.75	-$0.19	Better vs -$0.20 LY	-$0.19 vs -$0.234* (Beat)

Values with asterisk (*) are retrieved from S&P Global.

Street comparison detail (S&P Global):

Q2 2025 Revenue consensus: $588.5M*; actual: $605.246M .
Q2 2025 EPS consensus: -$0.2339*; actual: -$0.19 .
Q1 2025 Revenue consensus: $763.2M*; actual: $778.452M .
Q1 2025 EPS consensus: $0.6607*; actual: $0.75 .

Segment Breakdown (Q2 2025)

Geography

Geography	Q2 2025 ($M)	Q2 2024 ($M)	YoY %
United States	$335.1	$340.2	-2%
LAAP	$112.3	$99.5	+13%
EMEA	$130.6	$103.9	+26%
Canada	$27.2	$26.6	+2%
Total	$605.2	$570.2	+6%

Brand

Brand	Q2 2025 ($M)	Q2 2024 ($M)	YoY %
Columbia	$548.3	$508.6	+8%
SOREL	$18.8	$21.0	-10%
prAna	$20.5	$21.8	-6%
Mountain Hardwear	$17.5	$18.8	-7%
Total	$605.2	$570.2	+6%

Product Category

Category	Q2 2025 ($M)	Q2 2024 ($M)	YoY %
Apparel, Accessories & Equipment	$494.3	$463.9	+7%
Footwear	$110.9	$106.3	+4%
Total	$605.2	$570.2	+6%

Channel

Channel	Q2 2025 ($M)	Q2 2024 ($M)	YoY %
Wholesale	$317.2	$278.4	+14%
DTC	$288.0	$291.9	-1%
Total	$605.2	$570.2	+6%

KPIs and Balance Sheet

KPI	Q2 2025	Q2 2024 / Prior
Cash & Equivalents ($M)	$427.8	$341.8
Short-term Investments ($M)	$151.2	$369.3
Cash + STI ($M)	$579.0	$711.1
Inventories ($M)	$926.9	$823.6
Net Cash from Ops (YTD) ($M)	-$62.9	$108.9
Capex (YTD) ($M)	$30.0	$27.8
Share Repurchases (YTD) ($M)	$131.7	$102.6 (1H24)
Dividend per Share	$0.30 (approved for Sep 4, 2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($B)	FY 2025	$3.40–$3.47	$3.33–$3.40	Lowered
Net Sales ($M)	Q3 2025	N/A	$904–$922	New
Operating Margin %	Q3 2025	N/A	7.6–9.0	New
Diluted EPS ($)	Q3 2025	N/A	$1.00–$1.20	New
Dividend	Quarterly	$0.30 (Mar/Jun)	$0.30 (Sep)	Maintained

Management also flagged tariff rate assumptions embedded in guidance (10% universal; China 30%), noting further tariff increases would pressure COGS and profit .

Earnings Call Themes & Trends

Topic	Q4 2024 (Feb 4)	Q1 2025 (May 1)	Q2 2025 (Jul 31)	Trend
Tariffs/Macro	Introduced FY25 outlook; cost savings plan; FX headwinds; planning demand creation spend	Withdrew FY25 guide; estimated $40–$45M 2H COGS tariffs; absorb most in FY25	Limited FY25 guide; total tariffs ~$35–$40M FY25; Q3 impact $15–$20M → gross margin contraction	Worsening near term
U.S. DTC	Premium positioning; fewer promotions; temp clearance locations to close	U.S. e-comm down high single digits; B&M up low single digits; 8 temp clearance exits	.com redesign, mobile upgrades; DTC down 1%; e-comm low double-digit decline	Stabilizing after reset
International	Europe Direct top market; China mid-teens; distributors +30%	LAAP +14%; China high teens cc; Japan mid-teens; Europe +7% cc	EMEA +26%; LAAP +12% cc; Europe Direct high teens; China record e-comm	Strengthening
Product/Brand	Omni-Heat innovation; collaborations; ACCELERATE groundwork	OmniMax footwear; PFG collections; awards; loyalty program momentum	Columbia +8%; PFG influencer; Insect Shield launch; footwear awards	Positive for Columbia
Supply Chain	Red Sea/Bangladesh delayed Q3 → Q4 $60M shift	Accelerated receipts during tariff pause; diversified sourcing; limited China U.S. import exposure	Pulled forward fall inventory; ~70% U.S. fall product by Aug 1	Proactive mitigation
Cost Actions	$90M 2024 PIP saves; expanding review	Targeting cumulative $150M ann. saves by YE25; further evaluation	Reduction in force; ongoing SG&A efficiencies	Ongoing

Management Commentary

“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…we estimate the financial impact…will be approximately $35 to $40 million in 2025” .
“We’re launching a new site redesign on columbia.com with enhanced mobile capabilities and up leveled photography” .
“Europe is sustaining its brand momentum…immense market share opportunities in Europe” .
“Our fortress balance sheet…gives me confidence in our ability to emerge from this period as a stronger company” .

Q&A Highlights

Tariffs and margins: CFO indicated Q3 gross margin contraction largely aligns with $15–$20M tariff impact (~150 bps), partially offset by cleaner inventory .
Inventory health: CFO described inventories as “exceptionally clean,” adjusted for earlier fall production and tariffs; flat to slightly down year over year on an adjusted basis .
U.S. DTC outlook: Site refresh and marketing expected to lift .com; wholesale to be down in Q3 due to earlier shipments .
Cost saves: Outlook includes achieved cost takeout; further savings under evaluation beyond ~$150M run-rate .
Order book & mitigation: ~70% of U.S. fall product received by Aug 1; continued actions on pricing, vendor negotiations, SG&A efficiencies over time .

Estimates Context

Q2 2025 delivered a modest beat: Revenue $605.2M vs $588.5M*, EPS -$0.19 vs -$0.2339*; beats driven by wholesale timing and international strength .
With FY25 revenue outlook lowered to $3.33–$3.40B and explicit tariff headwinds, Street models likely need to trim H2 margin assumptions and full-year revenue at the margin; management suggests absorbing most tariff impact in FY25 (mitigation more evident in FY26) .