Columbia Sportswear reports margin improvement despite sales decline in Q3

Despite a 5-percent Q3 revenue decline to $931.8 million, Columbia Sportswear saw a gross margin rise of 150 basis points to 50.2 percent, thanks to lower freight costs and a favorable regional and channel mix. The company’s operating income fell 16 percent to $112.5 million, and net income dropped 13 percent to $90.2 million year-over-year, affected by weak consumer demand in the US.

PrAna sales dropped 7 percent to $28.6 million, while the Columbia brand declined by 1 percent to $799.7 million, reflecting challenging conditions in North America. By geography, the EMEA and LAAP regions posted gains of 17 percent and 10 percent, reaching $135.0 million and $141.8 million, respectively. Direct-to-consumer (DTC) sales rose 2 percent to $326.6 million, with European DTC growth supporting the brand’s momentum.

Columbia’s updated FY24 outlook narrows its annual sales forecast to $3.31–$3.38 billion, expecting gross margins of 50.0–50.2 percent. Projections indicate a high-single-digit revenue drop in the US but gains in EMEA and LAAP. While Columbia brand sales are forecasted to be flat or slightly down, Prana is expected to dip by mid-single digits.

Under its Accelerate plan, Columbia aims to enhance brand perception and connect with younger, active consumers through targeted marketing and in-store improvements, led by new Creative Director Matt Sutton. Columbia is also refining product lines for greater consumer focus and impact, with changes expected to resonate more broadly in 2025.

You can read more details in our sister publication, The Outdoor Industry Compass.