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

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.

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.

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.

Conference Call

The Company will hold its fourth quarter 2025 conference call at 5:00 p.m. ET today. Dial (888) 506-0062 to participate. The call will also be webcast live on the Investor Relations section of the Company's website at https://investor.columbia.com.

First Quarter 2026 Reporting Date

The Company plans to report first quarter 2026 financial results on Thursday, April 30, 2026 at approximately 4:05 p.m. ET.

Supplemental Financial Information

Since Columbia Sportswear Company is a global company, the comparability of its operating results reported in United States dollars is affected by foreign currency exchange rate fluctuations because the underlying currencies in which it transacts change in value over time compared to the United States dollar. To supplement financial information reported in accordance with GAAP, the Company discloses constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in the exchange rates used to translate net sales generated in foreign currencies into United States dollars. The Company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into United States dollars at the average exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP financial measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results.

The non-GAAP financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" table included herein. The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company's expectations, anticipations or beliefs about the Company's ability to realize growth opportunities, drive long-term market share gains and manage expenses, financial position, marketing strategies, anticipated product launches, timing and payment of dividends, and the Company's expectations regarding its financial results for full year 2026 net sales, gross margin, SG&A expenses, operating margin, effective income tax rate, diluted earnings per share, operating cash flow, and capital expenditures, as well as first quarter 2026 net sales, operating margin, and diluted earnings per share. Forward-looking statements often use words such as "will," "anticipate," "estimate," "expect," "should," "may," "plan", "intend", and other words and terms of similar meaning or reference future dates. The Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties that may affect our future revenues, earnings and performance and could cause the actual results of operations or financial condition of the Company to differ materially from the anticipated results expressed or implied by forward-looking statements in this document include: loss of key customer accounts; our ability to execute our ACCELERATE Growth Strategy; our ability to execute and realize cost savings related to our Profit Improvement Plan; our ability to effectively execute our business strategies, including initiatives to upgrade our business processes and information technology ("IT") systems and investments in our DTC businesses; our ability to maintain the strength and security of our IT systems; the effects of unseasonable weather, including global climate change; the seasonality of our business and timing of orders; trends affecting consumer spending, including changes in the level of consumer spending, and retail traffic patterns; unfavorable economic conditions generally; the financial health of our customers and retailer consolidation; higher than expected rates of order cancellations; changes affecting consumer demand and preferences and fashion trends; changes in international, federal or state tax, labor and other laws and regulations that affect our business, including changes in corporate tax rates, tariffs, international trade policy and geopolitical tensions, or increasing wage rates; our ability to attract and retain key personnel; risks inherent in doing business in foreign markets, including fluctuations in currency exchange rates, global credit market conditions, changes in global regulation and economic and political conditions and disease outbreaks; volatility in global production and transportation costs and capacity and timing; our ability to effectively manage our inventory and our wholesale customer's to manage their inventories; our dependence on third-party manufacturers and suppliers and our ability to source at competitive prices from them or at all; the effectiveness of our sales and marketing efforts; business disruptions and acts of terrorism, cyber-attacks or military activities around the globe; intense competition in the industry; our ability to establish and protect our intellectual property; and our ability to develop innovative products. The Company cautions that forward-looking statements are inherently less reliable than historical information. The Company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time and it is not possible for the Company to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

About Columbia Sportswear Company

Columbia Sportswear Company connects active people with their passions and is a global multi-brand leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment. Founded in 1938 in Portland, Oregon, the Company's brands are sold in 115 countries. In addition to the Columbia® brand, Columbia Sportswear Company also owns the Mountain Hard Wear®, SOREL® and prAna® brands. To learn more, please visit the Company's websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, and www.prana.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260203436531/en/

Reed Anderson

ICR

(646) 277-1260

investorrelations@columbia.com