With a new campaign, Columbia Sportswear is reviving the spirit of the ’80s and ’90s – bold, loud, outdoor. “Engineered for Whatever” is intended to revitalize the brand and appeal to younger target groups. This is because international business grew strongly in the third quarter, while the hoped-for turnaround in the US failed to materialize.
The traditional Portland-based brand is selling more, but earning significantly less: Although sales rose slightly in the third quarter of fiscal year 2025, the bottom line was significantly lower. Operating income fell by 40 percent, burdened by write-downs, increased costs and continued weakness in the US business. Investors reacted soberly: the share price has almost halved since the beginning of the year.
| Columbia Sportswear - Income | |||
|---|---|---|---|
| 2025 | 2024 | Change | |
| Q3, ended Sept. 30 ($ thousand) | |||
| Net sales | 943,425 | 931,768 | 1.3% |
| Cost of sales | 471,607 | 464,209 | 1.6% |
| Gross profit | 471,818 | 467,559 | 0.9% |
| SG&A expenses | 380,892 | 361,243 | 5.4% |
| Impairment of goodwill and intangible assets | 29,000 | – | – |
| Net licensing income | 5,460 | 6,225 | -12.3% |
| Operating income | 67,386 | 112,541 | -40.1% |
| Interest income, net | 2,870 | 5,364 | -46.5% |
| Other non-operating income | 732 | 1,283 | -42.9% |
| Pre-tax | 70,988 | 119,188 | -40.4% |
| Tax | 18,983 | 29,031 | -34.6% |
| Net income | 52,005 | 90,157 | -42.3% |
| Diluted EPS | 0.95 | 1.56 | -39.1% |
| 9M, ended Sept. 30 ($ thousand) | |||
| Net sales | 2,327,123 | 2,271,994 | 2.4% |
| Cost of sales | 1,162,140 | 1,141,457 | 1.8% |
| Gross profit | 1,164,983 | 1,130,537 | 3.0% |
| SG&A expenses | 1,060,991 | 1,013,262 | 4.7% |
| Impairment of goodwill and intangible assets | 29,000 | – | – |
| Net licensing income | 15,311 | 16,145 | -5.2% |
| Operating income | 90,303 | 133,420 | -32.3% |
| Interest income, net | 14,525 | 22,905 | -36.6% |
| Other non-operating income | 4,447 | 2,030 | 119.1% |
| Pre-tax | 109,275 | 158,355 | -31.0% |
| Tax | 25,218 | 37,639 | -33.0% |
| Net income | 84,057 | 120,716 | -30.4% |
| Diluted EPS | 1.53 | 2.04 | -25.0% |
| Source: Columbia Sportswear | |||
Solid sales, weak yield
Driven by early deliveries in the wholesale business, sales in Q3 FY25 rose by 1 percent year over year to $943.4 million. This sounds stable, but it is a positive sign only at first glance: in direct customer business – i.e., e-commerce and the company’s own stores – business was weaker. The bottom line was significantly lower: operating income fell from $112.5 million to $67.4 million, and the operating margin shrank from 12.1 percent to 7.1 percent. Earnings per share were $0.95, compared with $1.56 in the previous year.
US business weakens, but Europe delivers
The problems in the US business are particularly evident. Sales there fell by 4 percent. The decline was even greater in direct sales: e-commerce slumped in the low-double-digit percentage range, and brick-and-mortar stores also fell below the previous year’s level. Internationally, however, things went much better: Europe saw double-digit growth, and Asia also contributed to growth. “We continue to see strong momentum from our international business, particularly in Europe,” said CEO Tim Boyle.
| Columbia Sportswear - Revenues | ||||
|---|---|---|---|---|
| 2025 | 2024 | Change | ||
| Q3, ended Sept. 30 | ||||
| Regions | ||||
| US | 546,690 | 571,306 | -4.3% | |
| Latin America & Asia-Pacific | 143,358 | 134,985 | 6.2% | |
| EMEA | 164,461 | 141,785 | 16.0% | |
| Canada | 88,916 | 83,692 | 6.2% | |
| Total | 943,425 | 931,768 | 1.3% | |
| Brands | ||||
| Columbia | 803,973 | 799,653 | 0.5% | |
| Sorel | 80,964 | 73,903 | 9.6% | |
| Prana | 30,375 | 28,566 | 6.3% | |
| Mountain Hardware | 28,113 | 29,646 | -5.2% | |
| Total | 943,425 | 931,768 | 1.3% | |
| Product categories | ||||
| Apparel, accessories & equipment | 734,315 | 735,356 | -0.1% | |
| Footwear | 209,110 | 196,412 | 6.5% | |
| Total | 943,425 | 931,768 | 1.3% | |
| Channels | ||||
| Wholesale | 634,171 | 605,217 | 4.8% | |
| DTC | 309,254 | 326,551 | -5.3% | |
| Total | 943,425 | 931,768 | 1.3% | |
| 9M, ended Sept. 30 | ||||
| Regions | ||||
| US | 1,352,988 | 1,385,940 | -2.4% | |
| Latin America & Asia-Pacific | 407,901 | 373,115 | 9.3% | |
| EMEA | 402,503 | 350,227 | 14.9% | |
| Canada | 163,731 | 162,712 | 0.6% | |
| Total | 2,327,123 | 2,271,994 | 2.4% | |
| Brands | ||||
| Columbia | 2,035,439 | 1,972,231 | 3.2% | |
| Sorel | 141,995 | 140,597 | 1.0% | |
| Prana | 79,026 | 81,660 | -3.2% | |
| Mountain Hardware | 70,663 | 77,506 | -8.8% | |
| Total | 2,327,123 | 2,271,994 | 2.4% | |
| Product categories | ||||
| Apparel, accessories & equipment | 1,857,437 | 1,818,350 | 2.1% | |
| Footwear | 469,686 | 453,644 | 3.5% | |
| Total | 2,327,123 | 2,271,994 | 2.4% | |
| Channels | ||||
| Wholesale | 1,351,158 | 1,274,498 | 6.0% | |
| DTC | 975,965 | 997,496 | -2.2% | |
| Total | 2,327,123 | 2,271,994 | 2.4% | |
| Sources: Columbia Sportswear | ||||
Cool campaign against the crisis
In the US, however, the situation is tense. With ”Engineered for Whatever,” Columbia is focusing on a new brand platform that picks up on the unconventional tone of the ’80s and ’90s. Outdoor adventures staged in exaggerated scenarios and with tongue-in-cheek humor are a conscious return to the brand’s former strength. “The initial response has been encouraging,” said Boyle.
Subdued expectations for the full year
Accordingly, the outdoor specialist has lowered its annual forecast. Columbia now expects revenues of between $3.33 and $3.37 billion for 2025 – which corresponds to stagnation at best but could also mean a decline of 1 percent. The operating margin is now expected to end up between 4.9 and 5.5 percent (previous year: 8.0 percent). According to the company, earnings per share should lie between $2.55 and $2.85 – significantly below the previous year’s figure of $3.82.
CFO Kari Yagnik explained that the updated outlook now also takes into account new burdens – tariffs, exchange rates and write-downs on the two brands prAna and Mountain Hardwear. Their book values had to be reduced by $29 million in the third quarter. In addition, there were higher marketing and operating costs – the SG&A ratio rose to 40.4 percent of sales.
Rays of hope in Q4 – and on the balance sheet
Columbia has high hopes for the effects of its new brand strategy – and for a better final quarter. “We expect the majority of our full-year profit to be earned in the fourth quarter,” said Yagnik. The importance of the Christmas business is thus clear. At the same time, however, the company’s own forecast is much more cautious: Columbia expects sales to decline by 5 to 8 percent in the fourth quarter, with earnings per share likely to be only between $1.04 and $1.34 – significantly below the previous year’s figure of $1.80.
The outlook for the first half of 2026 also remains subdued: Wholesale business is expected to see only stable to slightly rising sales, while the US market remains under pressure. Despite its operational weakness, Columbia remains financially stable: The company is debt-free, has cash and cash equivalents of $236 million, and has repurchased $171.7 million worth of its own shares in the current year.
