The caution was sounded as Columbia Sportswear reported a 6% increase in net sales on constant-currency basis for the second quarter (Q2) of 2025, totaling $605.2m, slightly “ahead of its outlook” due to advanced shipments of its fall wholesale products.
During the quarter ended 30 June 2025, the company’s net sales in its wholesale channel rose by 14% over the quarter reaching $317.22m, however, this was partially offset by a 1% decline in its direct-to-consumer (DTC) net sales.
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Despite sales growth in most international markets, the US market displayed “underlying weakness” with a net sales drop of 2%.
The company’s Europe, Middle East and Africa (EMEA) and Latin America and Asia Pacific (LAAP) regions both grew by a double digit percentage in the first half, led by China, Japan, Europe direct, and international distributor markets.
Columbia Sportswear’s brand apparel, accessories and equipment category saw 7% growth to $494m in Q2 and its footwear category reported 4% rise to $111m.
Columbia Sportswear’s key metrics in Q2 FY25
Columbia Sportswear reported a net loss of $10.19m or $0.19 per diluted share, an improvement from a net loss of $11.74m or $0.20 per diluted share during the same period in 2024.
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By GlobalDataGross margin saw an expansion of 120 basis points to 49.1% of net sales, up from 47.9% for the comparable period in 2024. The margin improvement was credited to a “healthier overall inventory composition” with reduced clearance and promotional activity, as well as a favourable product sales mix.
The company’s selling, general, and administrative (SG&A) expenses were $325.63m or 53.8% of net sales versus $302.75m in the prior year quarter. The rise was mainly due to higher DTC and demand creation expenses.
Operating loss of Columbia Sportswear decreased marginally to $23.59m compared to an operating loss of $23.80m or 4.2% for the comparable period in 2024.
Columbia Sportswear’s overall performance in H1 FY25
Columbia Sportswear’s net sales increased by 3% to $1.38bn in the year to date, from $1.34bn in the same period in 2024.
Its gross margin improved by 60 basis points to 50.1% of net sales from 49.5%. SG&A expenses rose to $680.09m from $652.02m.
The company’s operating income for the first half increased by 10% to $22.92m and its net income also saw a boost of 5%, reaching $32.05m or $0.58 per diluted share.
Columbia Sportswear chairman, president, and CEO Tim Boyle said: “Second quarter and first half financial results reflect sustained momentum in our international markets. While business trends in our US business remain soft, we continue to take steps to re-energise the Columbia brand through our Accelerate growth strategy.”
Columbia Sportswear’s 2025 outlook
Columbia Sportswear provided a cautious financial outlook for fiscal year 2025 due to global trade policy uncertainties and macroeconomic concerns.
In May this year, the company withdrew its 2025 financial outlook, citing uncertainties related to tariffs.
For fiscal 2025, the company expects net sales between $3.33bn and $3.40bn. This forecast indicates a potential decline of up to 1% or an increase of up to 1% compared to fiscal year 2024.
In the third quarter, the company expects net sales to decline 3% to 1% and diluted EPS to be in the range of $1 to $1.2.
“The apparel and footwear industry is facing increasing tariffs, on top of already high existing duties. In this period of global trade policy uncertainty, we continue to take actions to mitigate the financial and operational impacts to our business. For the upcoming fall 2025 season, our focus is delivering exceptional value to consumers, who are pressured by higher prices for many consumer goods, as well as keeping inventory and dealer margins healthy,” Boyle added.
Columbia Sportswear recently initiated a lawsuit against Columbia University, claiming that the university’s merchandise infringes on its trademarks and could potentially lead to consumer confusion.
The legal action, filed on 23 July in a federal court located in Oregon, accuses the New York City-based Ivy League institution of deliberately breaching a contract both parties agreed upon on 13 June 2023.
The agreement in question outlined specific terms regarding the university’s use of the “Columbia” name on its clothing and accessory products.
