Columbia Sportswear Company registered a 1 per cent Y-o-Y increase in net sales to $943.4 million in Q3, FY25. This slight rise was attributed primarily to the timing of wholesale shipments, which added roughly $30 million, but was largely offset by weaker direct-to-consumer (DTC) performance in the US market.

The company's international business provided the main momentum, with Europe-direct markets leading the gains with double-digit growth. This strong performance in the Europe, Middle East, and Africa (EMEA) region drove sales up 16 per cent to $164.5 million, reflecting successful engagement with younger consumers. The Latin America and Asia Pacific (LAAP) and Canada regions also reported growth. Conversely, US sales declined by 4 per cent.

Financially, the quarter saw a sharp drop in profitability. Their operating income declined by 40 per cent to $67.4 million, primarily due to $29 million in impairment charges related to the Prana and Mountain Hardwear brands. This led to a drop in net income to $52 million, or $0.95 per diluted share. The gross margin also contracted slightly to 50 per cent due to incremental tariffs and unfavorable exchange rates.

By brand, Sorel reported the highest growth in sales of 10 per cent while sales of the brand Columbia grew by only 1 per cent.

Tim Boyle, Chairman and CEO notes, international success validates the company’s growth strategy, while acknowledging the need to revitalize the Columbia brand in the US. The brand’s new ‘Engineered for Whatever’ platform aims to revive its irreverent spirit, he adds.

For the full year, Columbia forecasts, net sales are likely to decline by 1 per cent to $3.33–3.37 billion. Full-year diluted EPS is anticipated to be between $2.55 and $2.85, reflecting the one-time impairment charge. Looking ahead, the company projects an 8–5 per cent sales decline in Q4, FY25, heavily impacted by the shipment timing that benefited Q3.