Columbia Sportswear's wholesale timing benefits in Q3 were partly offset by lower direct-to-consumer net sales, and sales growth in most international markets was partially offset by weakness in the US.
Europe, Middle East and Africa (EMEA) registered the highest sales growth at 16%, followed by Latin America and Asia Pacific as well as Canada, where sales grew 6% each. US sales dropped 4%.
Columbia Sportswear chairman, president and chief executive officer Tim Boyle said: “Third quarter results reflect sustained momentum in our international business, led by double-digit percent sales growth in our Europe-direct markets. This strong international performance underscores the Columbia brand’s ability to connect with younger and more active consumers, a key tenet of our ACCELERATE Growth Strategy.”
Columbia Sportswear Q3 key results
During the quarter ended 30 September 2025, the company’s net income was $52.0m, or $0.95 per diluted share, versus $90.2m, or $1.56 per diluted share, in the same quarter of 2024.
The diluted earnings per share for the quarter was “negatively impacted” by the impairment charges related to prAna and Mountain Hardwear.
Operating income of Columbia Sportswear declined by 40% to $67.4m in Q3 FY25, from $112.5m in Q3 FY24.
The company’s gross margin contracted 20 basis points to 50.0% of net sales, down from 50.2% in the comparable quarter of 2024.
This contraction was attributed to incremental tariffs and unfavourable foreign exchange rates, which it said outweighed higher channel profitability stemming from reduced clearance and promotional activity.
Selling, general and administrative (SG&A) expenses increased to $380.9m, or 40.4% of net sales, compared with $361.2m, or 38.8% of net sales, in the prior-year period.
Outlook for Q4 and FY25
For the full year, the company-maintained guidance for net sales of $3.33bn to $3.37bn, marking a decline of 1.0% to flat against $3.37bn in 2024.
It forecast a gross margin of 50.0% to 50.2%, representing a contraction of 20 basis points to flat versus the prior year.
The company set an operating income outlook of $163m to $185m, equating to an operating margin of 4.9% to 5.5%, compared with 8.0% in 2024.
For the fourth quarter of 2025, Columbia Sportswear projected net sales of $1.01bn to $1.04bn, which is decrease of 8% to 5% from the same period in FY24.
The guidance reflects a $30m to $40m effect from a higher proportion of Fall 2025 shipments occurring in the third quarter of 2025 versus the third quarter of 2024.
The company expects an operating margin of 7.2% to 9.1%, including $20m to $25m of incremental tariffs before mitigation, and forecasts diluted earnings per share of $1.04 to $1.34, compared with $1.80 in the fourth quarter of 2024.
“Looking to 2026, we have concluded our spring season order taking. Our forecast is for flat to low single-digit wholesale growth in the first half of 2026, and it's unchanged from our last call. This forecast contemplates sustained international growth across our direct and distributor markets, partially offset by a decline in the US,” Timothy Boyle said during the earnings call.
