Columbia Sportswear Company Reports Fourth Quarter and Full Year 2025 Financial Results; Provides Full Year 2026 Financial Outlook

Columbia Sportswear Company (NASDAQ: COLM, the "Company"), a multi-brand global leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment, today announced fourth quarter and full year 2025 financial results for the period ended December 31, 2025.

Fourth Quarter 2025 Highlights

• Net sales decreased 2 percent (3 percent on a constant-currency basis) to $1,070.2 million, compared to fourth quarter 2024.

• Gross margin expanded 50 basis points to 51.6 percent of net sales from 51.1 percent of net sales in fourth quarter 2024. Fourth quarter 2025 gross margin included $20.0 million of incremental U.S. tariffs, prior to mitigation tactics.

• Operating income decreased 15 percent to $116.7 million, or 10.9 percent of net sales, compared to fourth quarter 2024 operating income of $137.3 million, or 12.5 percent of net sales.

• Diluted earnings per share of $1.73, compared to fourth quarter 2024 diluted earnings per share of $1.80.

• Exited the quarter with $790.8 million of cash, cash equivalents and short-term investments and no borrowings.

Full Year 2025 Highlights

• Net sales increased 1 percent (1 percent on a constant-currency basis) to $3,397.4 million, compared to 2024.

• Gross margin expanded 30 basis points to 50.5 percent of net sales from 50.2 percent of net sales, compared to 2024. 2025 gross margin included $31.0 million of incremental U.S. tariffs, prior to mitigation tactics.

• Operating income decreased 23.5 percent to $207.0 million, or 6.1 percent of net sales, compared to 2024 operating income of $270.7 million, or 8.0 percent of net sales. 2025 operating income included $29.0 million of impairment charges related to prAna and Mountain Hardwear.

• Diluted earnings per share of $3.24, compared to 2024 diluted earnings per share of $3.82. Impairment charges, referred to above, negatively impacted diluted earnings per share by $0.45.

Full Year 2026 Financial Outlook

The following forward-looking statements reflect our expectations as of February 3, 2026 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. Additional disclosures and financial outlook details can be found in the Full Year 2026 Financial Outlook section below and the CFO Commentary and Financial Review presentation.

• Net sales of $3.43 to $3.50 billion, representing net sales growth of 1.0 to 3.0 percent compared to 2025.

• Operating income of $211 to $243 million, representing operating margin of 6.2 to 6.9 percent of net sales.

• Diluted earnings per share of $3.20 to $3.65.

Chairman and Chief Executive Officer Tim Boyle commented, “We’re pleased to have delivered net sales and profitability exceeding our guidance for the fourth quarter driven by better-than-expected demand in the U.S. While our U.S. business remains challenged, I’m encouraged with continued growth internationally combined with early signs of momentum indicating that the Columbia ACCELERATE Growth Strategy is resonating with consumers, including new and enhanced product collections and differentiated marketing.

“Over the past few months, we've witnessed brand momentum as consumers embraced our new product collections, with even more exciting launches on the horizon. 'Engineered for Whatever' has not only re-energized our unique brand voice but has provided powerful differentiation in a competitive marketplace.

“This momentum positions us well for continued success as we execute our vision and continue investing across all our brands to:

• accelerate profitable growth;

• create iconic products that are differentiated, functional and innovative;

• drive brand engagement with increased, focused demand creation investments;

• enhance consumer experiences by investing in capabilities to delight and retain consumers;

• amplify marketplace excellence that is digitally-led, omni-channel, and global; and

• empower talent that is driven by our core values."

CFO's Commentary and Financial Review Presentation Available Online

For a detailed review of the Company's fourth quarter and full year 2025 financial results, please refer to the CFO Commentary and Financial Review presentation furnished to the Securities and Exchange Commission (the "SEC") on a Current Report on Form 8-K and published on the Investor Relations section of the Company's website at http://investor.columbia.com/financial-results at approximately 4:15 p.m. ET today. Analysts and investors are encouraged to review this commentary prior to participating in our conference call.

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. 2025 was an important milestone in this journey. The Columbia brand launched its new brand platform “Engineered for Whatever” through a global brand campaign in print, on social, and in-person. The Columbia brand also released certain new products designed with a younger, more active consumer in mind, and re-launched the U.S. Columbia.com website, with enhanced features and photography. We’re encouraged with early indicators, which signal that our differentiated marketing communications and enhanced products are resonating with consumers, providing us confidence as we plan for future seasons. For more information on the ACCELERATE Growth Strategy, please refer to the CFO Commentary and Financial Review presentation.

Fourth Quarter 2025 Financial Results

(All comparisons are between fourth quarter 2025 and fourth quarter 2024, unless otherwise noted.)

Net sales decreased 2 percent (3 percent on a constant-currency basis) to $1,070.2 million from $1,096.6 million for the comparable period in 2024. The decrease primarily reflected earlier shipment of Fall '25 wholesale orders, partially offset by a modest increase in direct-to consumer ("DTC") net sales. Sales decline in the U.S. was partially offset by growth in international markets.

Gross margin expanded 50 basis points to 51.6 percent of net sales from 51.1 percent of net sales for the comparable period in 2024. Gross margin expansion included healthier inventory composition resulting in less clearance and promotional activity, as well as lower inventory loss provisions, partially offset by the impact of incremental U.S. tariffs. Incremental U.S. tariffs prior to mitigation actions impacted gross margin by $20.0 million.

SG&A expenses were $441.5 million, or 41.3 percent of net sales, compared to $430.6 million, or 39.3 percent of net sales, for the comparable period in 2024. The largest changes in SG&A expenses were driven by higher DTC expenses and other non-recurring SG&A expenses associated with our profit improvement program, partially offset by lower enterprise technology and supply chain expenses, largely resulting from our profit improvement program.

Operating income decreased 15 percent to $116.7 million, or 10.9 percent of net sales, compared to operating income of $137.3 million, or 12.5 percent of net sales, for the comparable period in 2024.

Interest income, net of $3.3 million, compared to $4.8 million for the comparable period in 2024.

Income tax expense of $27.2 million resulted in an effective income tax rate of 22.6 percent, compared to income tax expense of $37.3 million, or an effective income tax rate of 26.7 percent, for the comparable period in 2024.

Net income was $93.2 million, or $1.73 per diluted share, compared to net income of $102.6 million, or $1.80 per diluted share, for the comparable period in 2024.

Full Year 2025 Financial Results

(All comparisons are between full year 2025 and full year 2024, unless otherwise noted.)

• Net sales increased 1 percent (1 percent on a constant-currency basis) to $3,397.4 million from $3,368.6 million in 2024.

• Gross margin expanded 30 basis points to 50.5 percent of net sales from 50.2 percent of net sales in 2024. Incremental U.S. tariffs prior to mitigation actions impacted gross margin by $31.0 million.

• SG&A expenses were $1,502.5 million, or 44.2 percent of net sales, compared to $1,443.9 million, or 42.9 percent of net sales in 2024.

• Impairment of goodwill and intangible assets included $29.0 million of charges related to prAna and Mountain Hardwear.

• Operating income decreased 24 percent to $207.0 million, or 6.1 percent of net sales, compared to operating income of $270.7 million, or 8.0 percent of net sales in 2024.

• Interest income, net of $17.9 million, compared to $27.7 million in 2024.

• Income tax expense of $52.4 million resulted in an effective income tax rate of 22.8 percent, compared to income tax expense of $74.9 million, or an effective income tax rate of 25.1 percent, in 2024.

• Net income decreased 21 percent to $177.2 million, or $3.24 per diluted share, compared to net income of $223.3 million, or $3.82 per diluted share, in 2024. The impairment charges related to prAna and Mountain Hardwear negatively impacted diluted earnings per share by $0.45 in 2025.

Balance Sheet as of December 31, 2025

• Cash, cash equivalents, and short-term investments totaled $790.8 million, compared to $815.5 million as of December 31, 2024.

• The Company had no borrowings as of either December 31, 2025 or December 31, 2024.

• Inventories were essentially flat at $689.5 million, compared to $690.5 million as of December 31, 2024.

• Cash Flow for the Twelve Months Ended December 31, 2025

• Net cash provided by operating activities was $282.9 million, compared to $491.0 million in 2024.

• Capital expenditures totaled $66.2 million, compared to $59.8 million in 2024.

• Share Repurchases for the Twelve Months Ended December 31, 2025

• The Company repurchased 2,972,889 shares of common stock for an aggregate of $201.1 million, or an average price per share of $67.64.

• At December 31, 2025, $426.5 million remained available under our stock repurchase authorization, which does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Quarterly Cash Dividend

The Board of Directors approved a regular quarterly cash dividend of $0.30 per share, payable on March 20, 2026 to shareholders of record on March 9, 2026.

Full Year 2026 Financial Outlook

(Additional financial outlook details can be found in the CFO Commentary and Financial Review presentation.)

The Company's 2026 Financial Outlook is forward-looking in nature, and the following forward-looking statements reflect our expectations as of February 3, 2026 and are 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 Full Year and First Quarter 2026 Financial Outlooks, reflect U.S. tariff rates in place on February 3, 2026.

• Net sales are expected to increase 1.0 to 3.0 percent, resulting in net sales of $3.43 to $3.50 billion, compared to $3.40 billion in 2025. Foreign currency translation is expected to benefit net sales by approximately 50 to 100 basis points.

• Gross margin is expected to contract 70 to 50 basis points to 49.8 to 50.0 percent of net sales, compared to 50.5 percent of net sales in 2025. Gross margin expectations include roughly a 300 basis point unfavorable impact of incremental tariffs prior to mitigation actions.

• SG&A expenses, as a percent of net sales, are expected to be 43.6 to 44.2 percent, compared to SG&A expense as a percent of net sales of 44.2 percent in 2025.

• Operating margin is expected to be 6.2 to 6.9 percent of net sales, compared to operating margin of 6.1 percent of net sales in 2025.

• Effective income tax rate is expected to be 24.0 to 25.0 percent.

• Diluted earnings per share is expected to be $3.20 to $3.65, compared to $3.23 in 2025.

• Operating cash flow is expected to be $300 to $330 million.

• Capital expenditures are planned to be in the range of $65 to $75 million, roughly in-line with our run rate over the past several years.

First Quarter 2026 Financial Outlook

Net sales are expected to be $747 to $759 million, representing a decrease of 4.0 to 2.5 percent from $778 million for the comparable period in 2025. Foreign currency translation is expected to benefit net sales by approximately 200 basis points.

Operating margin is expected to be 2.1 to 2.9 percent of net sales, compared to operating margin of 6.0 percent of net sales in the comparable period in 2025. Operating margin includes SG&A expense deleverage driven by low-single-digit percent SG&A growth on declining net sales, and gross margin contraction primarily resulting from the impact of unmitigated incremental U.S. tariffs.

Diluted earnings per share is expected to be $0.29 to $0.37, compared to $0.75 for the comparable period in 2025.