Columbia Sportswear has reported second-quarter 2025 financial results, showing improved profitability despite continued challenges in the domestic market. Net sales increased 6 percent to $605.2 million, up from $570.2 million in Q2 2024, while the net loss narrowed by 13 percent to $10.2 million, or $0.19 per share, from $11.7 million the previous year.
“Second quarter and first half financial results reflect sustained momentum in our international markets,” said Tim Boyle, Chairman, President and CEO. “While business trends in our US business remain soft, we continue to take steps to re-energize the Columbia brand through our Accelerate Growth strategy.”
International markets drive top-line growth
Performance was led by double-digit gains abroad. In the EMEA region, sales jumped 26 percent to $130.6 million, with strong growth in both direct-to-consumer and distributor channels. The LAAP region rose 13 percent to $112.3 million, including high-teens growth in China and low-teens growth in Japan, though Korea declined slightly. Canada improved 2 percent to $27.2 million, benefiting from earlier wholesale shipments.
In contrast, US sales fell 2 percent to $335.1 million. While wholesale ticked up modestly due to order timing, direct-to-consumer sales declined mid-single digits, as e-commerce dropped in the low-double digits and owned retail stores slipped slightly.
Columbia brand grows, others decline
The Columbia brand grew 8 percent to $548.3 million, with strength in footwear offsetting weaker apparel sales for smaller brands. Sorel declined 10 percent, Mountain Hardwear fell 7 percent and PrAna dropped 6 percent. Overall apparel, equipment and accessories sales rose 7 percent to $494 million; footwear grew 4 percent to $111 million.
Margins up, inventory builds early
Gross margin improved 120 basis points to 49.1 percent, aided by reduced promotional activity and a favorable product mix. Selling, general and administrative expenses rose to 53.8 percent of net sales due to higher DTC operating costs and increased marketing spend tied to the Accelerate Growth strategy. Inventory was up 13 percent to $926.9 million due to early receipts ahead of potential tariffs. Cash and equivalents declined 19 percent to $579 million. The company remains debt-free.
Reinstated full-year guidance
Columbia now expects full-year 2025 sales to range between $3.33 billion and $3.40 billion, flat to slightly up from $3.37 billion in 2024. Third-quarter revenue is forecast between $904 million and $922 million, slightly down year-over-year. EPS is projected between $1.00 and $1.20 for Q3, compared to $1.56 a year earlier. Tariffs are expected to impact 2025 results by $35–40 million.
Despite continued macroeconomic uncertainty, Columbia sees international momentum and gross margin improvements as encouraging signs for the second half of the year.
This story appeared originally in our sister publication The Outdoor Industry Compass.
