Companies

Columbia Sportswear posts mixed fourth-quarter results

Feb 6, 2026 United States

The US-based outdoor company posted mixed results in the fourth quarter, with stronger demand outside the US offsetting continued weakness at home. Higher costs impacted profits

“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 US. While our US 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”, commented Chairman and Chief Executive Officer Tim Boyle.

Fourth Quarter Results

In the fourth quarter of the 2025 financial year, Columbia Sportswear reported a 2% decrease in net sales (or 2% on a constant currency basis), totalling 1.09 billion US dollars, as compared to the same period in the previous financial year. This decrease was mainly due to the earlier shipment of autumn 2025 wholesale orders, which was partially offset by a modest increase in direct-to-consumer net sales.

The US remains a challenging market for the company at present. Third quarter net sales declined by 8% year-on-year to 626.0 million US dollars. Meanwhile, net sales grew by 8% year-on-year in the Europe, Middle East and Africa region (or 3% on a constant currency basis), by 8% (or 10% on a constant currency basis) in the Latin America and Asia Pacific region, and by 2% (or 2% on a constant currency basis) in Canada.

Columbia Sportswear recorded a slight improvement in gross margin in the fourth quarter, rising from 51.1% in the same quarter a year ago to 51.6%. This was supported by healthier inventory levels and reduced promotional activity. However, the gain was partially offset by 20 million US dollars in incremental US tariffs before mitigation measures were implemented.

During the quarter, selling, general and administrative (SG&A) expenses increased to 41.3% of net sales. This was largely driven by higher direct-to-consumer costs and one-off expenses related to a profit improvement programme.

As a result, operating income fell by 15% year-on-year to 116.7 million US dollars in the three months ending December 2025. Net income also fell to 93.2 million US dollars, or 1.73 US dollars per diluted share, from 102.6 million US dollars, or 1.80 US dollars per share, in the fourth quarter of financial year 2024.

Full Year 2025 Results

Columbia Sportswear reported full year net sales of 3.4 billion US dollars, marking a 1% increase on a reported and constant-currency basis, as compared to the 2024 financial year. However, rising operating expenses, coupled with 29 million US dollars in goodwill and intangible asset impairment charges relating to prAna and Mountain Hardwear, impacted the results.

As a result, operating income decreased by 24% to 207 million US dollars and net income fell by 21% to 177.2 million US dollars (or 3.24 US dollars per share), compared with 3.82 US dollars per share a year earlier. The company noted that the impairment charges reduced full-year earnings per share by 0.45 US dollars.

2026 Outlook

For the full year of 2026, Columbia Sportswear expects net sales to increase by between 1.0% and 3.0%, resulting in net sales of between 3.43 billion and 3.50 billion US dollars. Diluted earnings per share are expected to be between 3.20 and 3.65 US dollars.

Image Credits: pilotplans.com

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