Companies

Columbia Sportswear lowers full year outlook

Nov 4, 2025 United States

The US-based company has lowered its full year outlook following a third quarter in which weak US sales continued to offset strong international growth. Impairment charges for prAna and Mountain Hardwear hit profits

“Third quarter results reflect sustained momentum in our international business, led by double-digit percent sales growth in our Europe-direct markets. This strong international performance underscores the Columbia brand’s ability to connect with younger and more active consumers, a key tenet of our ACCELERATE Growth Strategy”, commented Chairman, President and Chief Executive Officer Tim Boyle.

He also hopes that the campaign will help revitalise the brand in the US. “The early response has been overwhelmingly positive, and we intend to build upon that momentum with a robust pipeline of differentiated activations and other media investments during the important holiday sales period ahead”, he added.

Third Quarter Results

In the third quarter of the 2025 financial year, Columbia Sportswear reported net sales of 943.4 million US dollars, an increase of 1% or flat on a constant-currency basis, as compared to the same period of last year. This was driven by changes in wholesale shipment timing, which increased sales by around 30 million US dollars in the quarter, though this was partially offset by lower direct-to-consumer (DTC) net sales.

“Sales growth in most of our international markets was partially offset by underlying weakness in the US”, Columbia noted. Particularly, in the US, the company’s net sales declined by 4% in the quarter to 546.9 million US dollars, on a comparable basis to the same period in 2024.

Conversely, third quarter sales grew by 16% (or 10% on a constant currency basis) year-on-year in the EMEA region to reach 164.4 million US dollars; by 6% year-on-year in Latin America and the Asia-Pacific region to reach 143.4 million US dollars; and by 6% (or 7% on a constant currency basis) year-on-year in Canada to reach 88.9 million US dollars.

In the third quarter of the current year, the company’s gross margin narrowed by 20 basis points year-on-year to 50.0%, reflecting the impact of incremental tariffs and unfavourable foreign exchange rates. These more than offset higher channel profitability resulting from lower clearance and promotional activity.

Columbia Sportswear recorded an operating income of 67.4 million US dollars in the third quarter, down by 40% from 112.5 million US dollars in the same quarter of 2024. Net income meanwhile was 52.0 million US dollars, or 0.95 US dollars per diluted share, compared to 90.2 million US dollars, or 1.56 US dollars per diluted share, in the same quarter of 2024.

“The impairment charges related to prAna and Mountain Hardwear in third quarter 2025 negatively impacted diluted earnings per share by 0.46 US dollars”, the company reported.

Outlook

Columbia Sportswear reduced its full year net sales outlook from 3.33 to 3.40 billion US dollars to 3.33 to 3.37 billion US dollars, indicating expectations of flat to slightly negative growth compared to 2024.

The company also introduced full year profit guidance for the first time, projecting operating income of between 163 and 185 million US dollars and earnings per share of between 2.55 and 2.85 US dollars. This reflects impairment charges related to prAna and Mountain Hardwear, as well as softer market conditions.

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United States Columbia Sportswear Companies Quarter Results Results