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Columbia Sportswear Reports First Quarter 2025 Financial Results But Withdraws Full Year 2025 Financial Outlook Due to Tariff Uncertainty

Columbia Sportswear has announced first quarter 2025 financial results for the period ended March 31, 2025

First Quarter 2025 Highlights

• Net sales increased 1 percent (3 percent constant-currency) to $778.5 million, compared to first quarter 2024.
• Operating income increased 4 percent to $46.5 million, or 6.0 percent of net sales, compared to first quarter 2024 operating income of $44.7 million, or 5.8 percent of net sales.
• Exited the quarter with $658.4 million of cash, cash equivalents and short-term investments and no borrowings.
• The Company repurchased $101.4 million of common stock during the quarter.

Full Year 2025 Financial Outlook

Due to macroeconomic uncertainty stemming from global trade policies, the Company is withdrawing its full year 2025 financial outlook that was provided on February 4, 2025 and not providing a full year 2025 financial outlook at this time.

Chairman, President and Chief Executive Officer Tim Boyle commented, “I’m encouraged by our first quarter results, with net sales and earnings exceeding our guidance range. We generated healthy growth in nearly all our international markets, including double-digit percent growth in the LAAP region and high-single-digit percent constant currency growth in the EMEA region.

“In light of macro-economic uncertainty resulting from U.S. tariff increases and ambiguous public policy, we are taking decisive actions to maintain the Company’s financial strength. We have the opportunity to gain market share in the current environment.

“I believe the Columbia brand’s exceptional value is a competitive advantage. As part of our ACCELERATE Growth Strategy, we remain committed to increasing investments in demand creation to bring our new highly differentiated marketing campaign and enhanced product assortment to life this Fall.

“Our fortress balance sheet, with $658 million in cash and short-term investments, and no bank borrowings exiting the quarter, will enable us to confidently weather turbulent periods and manage the business to drive long-term market share gains. CFO’s Commentary and Financial Review Presentation Available Online

ACCELERATE Growth Strategy

ACCELERATE is a growth strategy intended to elevate the Columbia brand to attract younger and more active consumers. It is a multi-year effort centered around several consumer-centric shifts to our brand, product and marketplace strategies, as well as enhanced ways of working. For more information on the ACCELERATE Growth Strategy,

First Quarter 2025 Financial Results

Net sales increased 1 percent (3 percent constant-currency) to $778.5 million from $770.0 million for the comparable period in 2024. The increase was led by the Latin America, Asia Pacific (“LAAP”) and Europe, Middle East and Africa (“EMEA”) regions, partially offset by declines in Canada and the United States (“U.S.”).

Gross margin expanded 30 basis points to 50.9 percent of net sales from 50.6 percent of net sales for the comparable period in 2024. Gross margin expansion reflected several factors including lower outbound shipping expenses, higher closeout margins and favorable Spring 2025 product input costs, partially offset by unfavorable FX hedging rates.

SG&A expenses were $354.5 million, or 45.5 percent of net sales, compared to $349.3 million, or 45.4 percent of net sales, for the comparable period in 2024. The largest changes in SG&A expenses were higher direct-to-consumer (“DTC”) and demand creation expenses, partially offset by lower supply chain expenses.

Operating income increased 4 percent to $46.5 million, or 6.0 percent of net sales, compared to operating income of $44.7 million, or 5.8 percent of net sales, for the comparable period in 2024.

Net income was relatively flat at $42.2 million, or $0.75 per diluted share, compared to net income of $42.3 million, or $0.71 per diluted share, for the comparable period in 2024.

Net cash used in operating activities was $32.0 million, compared to net cash provided by operating activities of $106.8 million for the same period in 2024.

Full Year 2025 Financial Outlook

Due to macroeconomic uncertainty stemming from global trade policies, the Company is withdrawing its full year 2025 financial outlook that was provided on February 4, 2025 and is not providing a full year 2025 financial outlook at this time.

Second Quarter 2025 Financial Outlook

The Company’s Second Quarter 2025 Financial Outlook is forward-looking in nature, and the following forward-looking statement reflects our expectations as of May 1, 2025 and is subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. These risks and uncertainties limit our ability to accurately forecast results. The Company’s Second Quarter 2025 Financial Outlook reflects U.S. tariff rates in place on May 1, 2025.  Net sales are expected to be $575 to $600 million, representing growth of 1 to 5 percent from $570.2 million for the comparable period in 2024.