Multi-brand global leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment, Columbia Sportswear Company has published its outlook for Q3, FY25.

According to this outlook, the company’s net sales are expected to decline by 1-3 per cent to $922 million from $932 million for the comparable period in 2024. Operating margin is expected to decline to 7.6 to 9.0 per cent, compared to operating margin of 12.1 per cent in the comparable period in 2024.

In Q2, FY25, the company’s net sales increased 6 per cent (6 per cent constant-currency) to $605.2 million from $570.2 million for the comparable period in 2024. The increase primarily reflects changes in wholesale shipment timing which benefited sales in the quarter, and higher Spring 2025 wholesale orders, partially offset by lower direct-to-consumer ("DTC") net sales. Sales growth in most of our international markets was offset by underlying weakness in the U.S.

The company’s gross margin expanded 120 basis points to 49.1 per cent of net sales from 47.9 percent of net sales for the comparable period in 2024. Gross margin expansion reflected several factors including healthier overall inventory composition resulting in less clearance and promotional activity, as well as favorable product sales mix, partially offset by unfavorable channel and region sales mix.

Operating loss decreased to $23.6 million, or 3.9 percent of net sales, compared to an operating loss of $23.8 million, or 4.2 percent of net sales, for the comparable period in 2024.

Tim Boyle, Chairman, President and CEO, says, while business trends in the company’s US business remain soft, the company continues to take steps to re-energize the Columbia brand through its Accelerate growth strategy. In the coming days, the brand plans to launch one of the most impactful components of this strategy, their new highly differentiated Columbia brand voice and marketing campaign, he adds.