Columbia Sportswear's international strength offset by US weakness in Q3 2025

Columbia Sportswear's third quarter 2025 results painted a picture of a company navigating a complex landscape, with robust international performance partially offsetting challenges in the US market. The company is actively pursuing strategic shifts to revitalise its core brand and position itself for future growth.

Net sales for the quarter increased modestly by 1 percent to 943.4 million dollars, and almost flat on a constant-currency basis. However, the bottom line told a different story, with operating income declining significantly by 40 percent to 67.4 million dollars. This translated to a diluted earnings per share of 0.95 dollars, a substantial decrease compared to the 1.56 dollars reported in the same period of 2024. A key factor impacting profitability was 29 million dollars in impairment charges related to the prAna and Mountain Hardwear brands, which negatively affected diluted earnings per share by 0.46 dollars for the period ended September 30, 2025.

Revitalisation of core portfolio and new brand platform intend to target weaknesses

Despite the overall decline in profitability, Columbia Sportswear found strength in its international operations. "Third quarter results reflect sustained momentum in our international business, led by double-digit percent sales growth in our Europe-direct markets," stated chairman, president, and CEO Tim Boyle. He emphasised that this strong international performance underscored the Columbia brand's ability to resonate with younger and more active consumers, a central element of the company's Accelerate Growth Strategy.

In the US, where the company faced underlying weakness, Columbia is actively focused on revitalising its core brand. Boyle highlighted the recent launch of the new brand platform, "Engineered for Whatever," as a major milestone, with the initial response being "overwhelmingly positive". Following the launch of the platform, which aims to rekindle the brand's spirit from the '80s and '90s, the company intends to capitalise on this momentum with a series of differentiated activations and media investments during the crucial holiday sales period.

International markets to continue driving growth

Looking ahead, Columbia Sportswear is projecting a mixed outlook for the remainder of 2025. The company expects full-year net sales to range from 3.33 to 3.37 billion dollars, representing a net sales decline of 1 percent to flat. Operating income is anticipated to be between 163 and 185 million dollars, which includes the previously mentioned 29 million dollars in impairment charges. Diluted earnings per share are projected at 2.55 to 2.85 dollars.

For the fourth quarter of 2025, the company anticipates net sales of 1.008 to 1.041 billion dollars, a decrease of 8 to 5 percent compared to the 1.097 billion dollars reported in the same period of 2024. This guidance takes into account a 30 to 40 million dollars impact from a higher proportion of autumn 2025 shipments occurring in the third quarter, compared to the third quarter of 2024. Operating margin is expected to be between 7.2 and 9.1 percent, lower than the 12.5 percent reported in the fourth quarter of 2024.

Turning to the preliminary outlook for the first half of 2026, Columbia Sportswear expects wholesale net sales to be flat to up low-single-digit percent, reflecting continued international growth across both direct and distributor markets, which is expected to partially offset a decline in the US market.

This article has been made with assistance from AI.