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COLUMBIA SPORTSWEAR CO (COLM)·Q3 2025 Earnings Summary

Executive Summary

  • Net sales rose 1% to $943.4M, ahead of plan due to earlier Fall ’25 wholesale shipments; gross margin contracted 20 bps to 50.0% on incremental tariffs and FX headwinds .
  • EPS of $0.95 missed consensus $1.17* on $29.0M impairments (prAna, Mountain Hardwear) that reduced EPS by $0.46; revenue beat consensus $917.2M* with wholesale +5% and DTC -5% .
  • FY 2025 outlook refined: net sales $3.33–$3.37B, GM 50.0–50.2%, operating income $163–$185M (4.9–5.5%), EPS $2.55–$2.85; Q4 EPS guided to $1.04–$1.34 with $20–$25M tariff impact in Q4 .
  • International strength (EMEA +16% reported; +10% c.c.) and brand momentum (“Engineered for Whatever”) offset U.S. softness; inventory units -5% y/y, cash and ST investments $236.0M, no borrowings .

What Went Well and What Went Wrong

What Went Well

  • International momentum: “double-digit percent sales growth in our Europe-direct markets” illustrating connection with younger, active consumers via ACCELERATE .
  • Brand platform launched: “Engineered for Whatever has re-energized our unique brand voice… we’re just getting started” .
  • Product highlights: Early sell-through on new Amaze Puff jacket and Rock Pant; Bugaboo One limited release “selling out in hours” on columbia.com .

What Went Wrong

  • U.S. softness: U.S. net sales -4% y/y; U.S. DTC down HSD%, e-commerce down LDD% amid reduced promotional activity and fewer temporary clearance locations (8 vs 42) .
  • Margin pressure: Gross margin -20 bps from ~$15M incremental tariffs and unfavorable FX; SG&A deleverage with demand creation rising to 6.8% of sales (vs 5.7% LY) .
  • EPS impact: $29.0M impairments tied to prAna/Mountain Hardwear reduced EPS by $0.46, contributing to EPS miss versus Street .

Financial Results

YoY Comparison (Q3 2025 vs Q3 2024)

MetricQ3 2024Q3 2025
Revenue ($USD Millions)$931.8 $943.4
Gross Margin (%)50.2% 50.0%
SG&A as % of Sales38.8% 40.4%
Operating Income ($USD Millions)$112.5 $67.4
Operating Margin (%)12.1% 7.1%
Net Income ($USD Millions)$90.2 $52.0
Diluted EPS ($)$1.56 $0.95

Drivers: ~$30M shipment timing benefit; tariff and FX headwinds in gross margin; demand creation and omni-channel costs in SG&A; $29.0M impairments (EPS -$0.46) .

Sequential Trend (2025)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$778.5 $605.2 $943.4
Gross Margin (%)50.9% 49.1% 50.0%
Operating Margin (%)6.0% -3.9% 7.1%
Diluted EPS ($)$0.75 -$0.19 $0.95

Q3 2025 vs Consensus

MetricConsensus*ActualResult
Revenue ($USD Millions)$917.2*$943.4 Bold beat
EPS ($)$1.17*$0.95 Bold miss

Values marked with * are retrieved from S&P Global.

Segment Breakdown – Q3 2025

Geography

RegionQ3 2024 ($M)Q3 2025 ($M)YoY %c.c. YoY %
United States$571.3 $546.7 -4% -4%
LAAP$135.0 $143.4 +6% +6%
EMEA$141.8 $164.5 +16% +10%
Canada$83.7 $88.9 +6% +7%
Total$931.8 $943.4 +1% —

Channel

ChannelQ3 2024 ($M)Q3 2025 ($M)YoY %c.c. YoY %
Wholesale$605.2 $634.2 +5% +4%
DTC$326.6 $309.3 -5% -6%
Total$931.8 $943.4 +1% —

Brand

BrandQ3 2024 ($M)Q3 2025 ($M)YoY %c.c. YoY %
Columbia$799.7 $804.0 +1% -1%
SOREL$73.9 $81.0 +10% +9%
prAna$28.6 $30.4 +6% +6%
Mountain Hardwear$29.6 $28.1 -5% -5%

Product Category

CategoryQ3 2024 ($M)Q3 2025 ($M)YoY %c.c. YoY %
Apparel, Accessories & Equipment$735.4 $734.3 0% -1%
Footwear$196.4 $209.1 +6% +5%

KPIs and Balance Sheet

KPIQ3 2024Q3 2025
Cash & ST Investments ($M)$373.9 $236.0
Inventory ($M)$798.2 $800.4; units -5% y/y
U.S. Store Count169 (152 outlets, 17 branded) 172 (152 outlets, 20 branded)
Temporary Clearance Locations42 8
SG&A Marketing Rate5.7% of sales 6.8% of sales
Dividend Declared$0.30/sh payable Dec 4, 2025 $0.30/sh payable Dec 4, 2025

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net SalesFY 2025$3.33–$3.40B (decrease 1% to increase 1% vs 2024) $3.33–$3.37B (decline 1% to flat vs 2024) Narrowed lower top end
Gross MarginFY 2025N/A50.0–50.2% New
Operating IncomeFY 2025N/A$163–$185M (4.9–5.5%) New
Diluted EPSFY 2025N/A$2.55–$2.85 (includes -$0.46 impairments) New
Tariff Impact (pre-mitigation)FY 2025N/A$35–$40M New
Net SalesQ4 2025N/A$1,008–$1,041M (shifted $30–$40M from Q4 to Q3) New
Operating MarginQ4 2025N/A7.2–9.1% New
Diluted EPSQ4 2025N/A$1.04–$1.34 New
Wholesale Net SalesH1 2026N/AFlat to +LSD% (intl growth; U.S. decline) New
DividendQ4 2025$0.30/sh (Sep payment in Q3) $0.30/sh payable Dec 4; record Nov 20 Maintained

Note: July Q3 guidance had net sales $904–$922M, EPS $1.00–$1.20; actual Q3 net sales $943.4M, EPS $0.95 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Tariffs & MitigationWithdrew FY outlook due to tariff uncertainty ; preparing mitigation actions 2025 impact $35–$40M; Q4 $20–$25M; 2026 plan: price increases HSD%, vendor negotiations, resourcing; aim to offset dollar impact, restore margins longer-term Active mitigation; pressure near term
Brand Platform & MarketingTeased major brand voice refresh coming “Engineered for Whatever” launched; increased demand creation to 6.8% of sales; early engagement signs and sell-through on new lines Building momentum
International vs U.S.LAAP/EMEA growth in Q1; U.S. soft EMEA +16% reported (+10% c.c.), Canada +6%; U.S. -4% with DTC down HSD% Intl stronger; U.S. stabilization needed
DTC Promotions & DigitalReducing over-promotion; investing in digital Fewer temp clearance stores; refined online promotions; redesigned columbia.com to enhance discovery and engagement Rationalization continues
Product InnovationOngoing innovation across brands New Amaze Puff, Rock Pant, Bugaboo One re-release; MH Mythogen kit; SOREL collabs; initial sell-through encouraging Positive product cycle
Inventory & Wholesale TimingInventories up in Q2; shipment timing benefited Q2 ~$30–$40M Fall ’25 shipments pulled into Q3; inventory units -5% y/y; dealer margins healthier y/y Cleaner channel

Management Commentary

  • “Third quarter results reflect sustained momentum in our international business, led by double-digit percent sales growth in our Europe-direct markets.” — Tim Boyle
  • “Engineered for Whatever has re-energized our unique brand voice… helping to set us apart in a competitive environment.” — Tim Boyle .
  • “We estimate the 2025 direct impact of the incremental tariff rates will be approximately $35 to $40 million prior to any mitigation actions… annualized unmitigated impact would be approximately $160 million.” — Tim Boyle .
  • “Our goal in 2026 is to offset the dollar impact of higher tariffs… restore our product margin percentages to historic levels.” — Tim Boyle .

Q&A Highlights

  • Tariffs and pricing: Confidence in offsetting tariff dollars via HSD% U.S. price increases for Spring/Fall ’26, vendor negotiations, and resourcing; long history of navigating duty environments .
  • SG&A deleverage: Marketing step-up (≈6.5% FY25) is strategic; targeting SG&A leverage and operating margin improvement in 2026 as cost savings lap and growth resumes .
  • Promotions: Lapping heavy liquidation last year; dealer margins healthier; expecting promotional tailwinds vs LY in Q4, not overly promotional early holiday season .
  • U.S. demand/weather: Season started slow; demand “lumpy” but pickup in late October; guidance assumes normal winter .
  • Order books & units: Spring ’26 wholesale flat to +LSD% dollars (units down in U.S. given price increases); stronger international vs cautious U.S. .

Estimates Context

Revenue vs Consensus*

MetricQ1 2025Q2 2025Q3 2025
Consensus Revenue* ($USD Millions)763.2*588.5*917.2*
Actual Revenue ($USD Millions)778.5 605.2 943.4

EPS vs Consensus*

MetricQ1 2025Q2 2025Q3 2025
Consensus EPS* ($)0.661*-0.234*1.169*
Actual EPS ($)0.75 -0.19 0.95

Interpretation:

  • Q3: revenue beat; EPS miss on impairments ($0.46) and tariff/FX gross margin headwinds .
  • Q1/Q2: both quarters modestly beat revenue and EPS consensus on shipment timing and cleaner channel mix .

Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term: Expect heavier tariff pressure in Q4 ($20–$25M) and lower operating margin (7.2–9.1%) with EPS $1.04–$1.34; watch holiday sell-through and U.S. DTC traffic/promotions .
  • Mix: Wholesale strength (earlier shipments) and international growth (EMEA +16%) offset U.S. softness; inventory units -5% and healthier dealer margins support cleaner channel into Q4 .
  • Brand momentum: “Engineered for Whatever” plus new product franchises (Amaze Puff, Rock Pant, Bugaboo One) provide catalysts for demand creation and ASP lift in 2026 .
  • Margin trajectory: FY25 GM flattish to slightly down (50.0–50.2%); 2026 margin recovery depends on tariff mitigation and SG&A leverage as profit improvement actions lap .
  • Capital allocation: Strong balance sheet (cash/ST investments $236.0M, no debt), ongoing buybacks ($171.7M YTD), and $0.30 dividend maintained; provides flexibility amid macro volatility .
  • Guidance risk: EPS miss vs Street in Q3 driven by impairments; monitor further brand-level actions and any incremental non-recurring charges .
  • International thesis: Continued above-market execution in Europe and healthy LAAP distributor growth support medium-term topline resilience .

Additional Context and Sources

  • Q3 2025 earnings press release and detailed financial tables (Exhibit 99.1) .
  • CFO Commentary: shipment timing (+$30–$40M), tariff quantification, SG&A bridges, segment color, inventory/cash .
  • Q3 2025 earnings call: prepared remarks and Q&A (tariff mitigation, pricing, SG&A, promotions, product cycle, digital) .
  • Prior quarters for trend analysis: Q2 2025 release with Q3 guidance ; Q1 2025 release with tariff-driven outlook withdrawal .
  • Brand platform launch press release (Aug 4, 2025) .