Columbia Sportswear Company reported third‑quarter 2025 results with net sales up 1% year over year to $943.4 million and adjusted diluted earnings per share of $1.41, surpassing consensus estimates of $1.25. The company’s adjusted net margin was 6.6%, while gross margin stood at 50% and operating margin at 7.1%.
Adjusted earnings exclude a $29 million non‑cash impairment charge related to the prAna and Mountain Hardwear brands, which lowered GAAP diluted EPS to $0.95. The impairment reduced net income and operating income, explaining the compression in profitability relative to the prior year’s adjusted EPS of $1.56.
In the third quarter of 2024, Columbia posted net sales of $931.8 million and diluted EPS of $1.56. The current quarter’s sales growth of 1% and EPS decline reflect the impact of the impairment and ongoing U.S. market softness, while international markets continue to drive double‑digit growth in EMEA and LAAP.
Segment performance varied: Sorel sales rose 10%, prAna up 6%, Columbia brand up 1%, and Mountain Hardwear declined 5%. U.S. sales remained flat, with challenges stemming from the closure of temporary clearance locations, lower brick‑and‑mortar productivity, and soft e‑commerce traffic.
For the fourth quarter, Columbia revises diluted EPS guidance to $1.04–$1.34 and revenue to $1.02 billion, a 4.1% decline from analyst expectations. Full‑year 2025 diluted EPS guidance is now $2.55–$2.85, a downward revision from the prior estimate of $4.10. The guidance reflects the company’s assessment of ongoing tariff uncertainty and the need to maintain margin protection.
Columbia’s ACCELERATE growth strategy and investment in differentiated technologies such as Omni‑Heat Infinity and Omni‑MAX Footwear underpin its long‑term profitability outlook. The company’s tariff mitigation program—price increases, vendor negotiations, and production resourcing—aims to offset an estimated $35–$40 million incremental tariff impact in 2025, with an annualized unmitigated impact of roughly $160 million.
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