PART I — FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2025 detail slight sales growth, stable net income, and decreased operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to **$2.71 billion** from year-end 2024, driven by lower cash, while total liabilities also declined Key Balance Sheet Items (in thousands) | Account | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $323,339 | $531,869 | $418,462 | | Inventories | $623,700 | $690,515 | $607,373 | | Total current assets | $1,741,336 | $2,008,582 | $1,846,218 | | Total assets | $2,707,415 | $2,975,265 | $2,762,231 | | Total current liabilities | $558,783 | $766,545 | $447,306 | | Total liabilities | $997,648 | $1,195,226 | $852,788 | | Total shareholders' equity | $1,709,767 | $1,780,039 | $1,909,443 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, net sales increased **1.1%** to **$778.5 million**, gross margin improved to **50.9%**, and diluted EPS rose to **$0.75** due to share repurchases Q1 2025 vs Q1 2024 Performance (in thousands, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $778,452 | $769,982 | | Gross profit | $396,057 | $389,559 | | Operating income | $46,508 | $44,681 | | Net income | $42,248 | $42,300 | | Diluted EPS | $0.75 | $0.71 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$32.0 million** in Q1 2025, a significant shift from **$106.8 million** provided in Q1 2024, primarily due to working capital changes Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(32,038) | $106,773 | | Net cash provided by (used in) investing activities | $(61,431) | $37,109 | | Net cash used in financing activities | $(118,649) | $(71,343) | | Net decrease in cash and cash equivalents | $(208,530) | $68,143 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation by product and channel, segment performance, and financial instrument risk management, including **$696.7 million** in currency forward contracts Q1 2025 Net Sales by Product Category and Channel (in thousands) | Category/Channel | Net Sales | | :--- | :--- | | **Product Category** | | | Apparel, accessories and equipment | $628,820 | | Footwear | $149,632 | | **Channel** | | | Wholesale | $399,769 | | Direct-to-consumer | $378,683 | | **Total** | **$778,452** | Q1 2025 Segment Operating Income (in thousands) | Segment | Operating Income | | :--- | :--- | | U.S. | $65,954 | | LAAP | $26,330 | | EMEA | $18,978 | | Canada | $8,963 | | **Total Segment Operating Income** | **$120,225** | - The company offers a voluntary supply chain financing (SCF) program. As of March 31, 2025, outstanding payables under this program were **$51.4 million**, recorded within Accounts Payable[54](index=54&type=chunk) - The company uses currency forward contracts to hedge cash flow and manage currency risk. The notional amount of outstanding cash flow hedges was **$696.7 million** as of March 31, 2025[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the 'ACCELERATE Growth Strategy' and 'Profit Improvement Program' targeting over **$150 million** in savings, alongside Q1 2025 performance and tariff uncertainties [Overview and Strategic Initiatives](index=29&type=section&id=Overview%20and%20Strategic%20Initiatives) The company is implementing the 'ACCELERATE Growth Strategy' to attract younger consumers and a 'Profit Improvement Program' targeting over **$150 million** in annualized savings - The Columbia brand's ACCELERATE Growth Strategy is a multi-year initiative to elevate the brand and target a younger, more active consumer[80](index=80&type=chunk) - The Profit Improvement Program delivered approximately **$90 million** in cost savings in 2024. Actions planned for 2025 are intended to bring cumulative annualized savings to over **$150 million**[85](index=85&type=chunk) [Business Environment and Trends](index=31&type=section&id=Business%20Environment%20and%20Trends) The business faces significant uncertainty from potential U.S. tariffs, impacting costs and demand, while adapting North American DTC strategy and monitoring international trends - In April 2025, the U.S. announced an incremental **10%** tariff on products imported from most countries, creating significant volatility and uncertainty[86](index=86&type=chunk) - The company expects to absorb much of the incremental tariff cost for Fall 2025 products and is exploring mitigation tactics like re-design, re-sourcing, and re-pricing for 2026[88](index=88&type=chunk) - In North America, the company is shifting its DTC e-commerce to be less promotional and is opening new branded stores in high-traffic malls to elevate the brand image[94](index=94&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2025 consolidated net sales grew **1%** (or **3%** constant-currency) to **$778.5 million**, driven by international segments, with gross margin improving **30 basis points** to **50.9%** Q1 2025 Net Sales Growth by Brand (Constant Currency) | Brand | Constant Currency Net Sales % Change | | :--- | :--- | | Columbia | +5% | | SOREL | -6% | | prAna | -10% | | Mountain Hardwear | -13% | | **Total** | **+3%** | Q1 2025 Net Sales Growth by Segment (Constant Currency) | Segment | Constant Currency Net Sales % Change | | :--- | :--- | | U.S. | -1% | | LAAP | +14% | | EMEA | +7% | | Canada | -2% | - Gross margin expanded by **30 basis points** to **50.9%**, benefiting from lower outbound shipping expenses, higher closeout margins, and favorable Spring 2025 product input costs[105](index=105&type=chunk) - SG&A expenses increased **1%**, driven by higher costs for DTC brick-and-mortar stores and increased investment in demand creation aligned with the ACCELERATE strategy[107](index=107&type=chunk)[109](index=109&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$658.4 million** in cash and investments, but Q1 2025 operating cash flow was a **$32.0 million** use, with future tariff impacts expected - As of March 31, 2025, the company had cash and cash equivalents of **$323.3 million** and short-term investments of **$335.1 million**[124](index=124&type=chunk) - The company has a **$500.0 million** unsecured, committed revolving credit facility, with no balance outstanding as of March 31, 2025[125](index=125&type=chunk) - Planned capital expenditures for 2025 are approximately **$60 to $80 million**, focusing on DTC operations, supply chain, and digital capabilities[132](index=132&type=chunk) - Inventory purchase obligations stood at **$708.6 million** as of March 31, 2025, up from **$675.0 million** a year prior[134](index=134&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk disclosures from its 2024 Annual Report on Form 10-K - There has not been any material change in the market risk disclosure from the company's 2024 Annual Report on Form 10-K[142](index=142&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures are effective at a reasonable assurance level[144](index=144&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[145](index=145&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters not expected to materially affect its financial condition, results of operations, or cash flows - The company is involved in litigation and legal matters in the normal course of business, which are not expected to have a material adverse effect on its financials[148](index=148&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) Key risks include evolving U.S. trade policy and tariffs, changes in demand, supply chain reliance, IT challenges, cybersecurity threats, and global operational risks - Rapidly evolving U.S. global trade policy, including new tariffs, has had and may continue to have an adverse impact on the business, operating results, and financial condition[151](index=151&type=chunk) - The business is subject to risks from volatile economic conditions, highly competitive markets, and changing consumer preferences and fashion trends[155](index=155&type=chunk) - Reliance on contract manufacturers, primarily in the Asia Pacific region, creates risks related to production capacity, quality control, and compliance with labor and environmental laws[163](index=163&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - The company relies on information technology systems, and any failure, interruption, or security breach could disrupt operations, cause data loss, and negatively affect its reputation and financials[183](index=183&type=chunk)[190](index=190&type=chunk) - As of March 31, 2025, three related shareholders controlled just over **50%** of the company's common stock, allowing them to exercise significant influence over corporate matters[233](index=233&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,251,784** shares for **$101.4 million** in Q1 2025, with **$526.1 million** remaining for future repurchases Share Repurchases for Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | $627.6 | | Feb 2025 | **923,879** | **$80.58** | $553.1 | | Mar 2025 | **327,905** | **$82.33** | $526.1 | | **Total Q1** | **1,251,784** | **$81.03** | **$526.1** | - As of March 31, 2025, the company had **$526.1 million** remaining available under its share repurchase authorization[236](index=236&type=chunk) [Other Information](index=69&type=section&id=Item%205.%20Other%20Information) No directors or officers entered into or terminated Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers entered into or terminated Rule 10b5-1 trading arrangements during the first quarter of 2025[239](index=239&type=chunk) [Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed, including corporate governance documents, incentive plan agreements, and CEO/CFO certifications - The Exhibit Index lists documents filed with the report, including CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and forms of new long-term incentive cash and RSU award agreements (Exhibits 10.1, 10.2)[241](index=241&type=chunk)

Core Viewpoint - Columbia Sportswear Company (COLM) reported strong first-quarter 2025 results, with both sales and earnings exceeding expectations, despite facing challenges from U.S. tariffs and a slight decline in U.S. sales [1][2]. Financial Performance - Earnings per share (EPS) reached 75 cents, surpassing the Zacks Consensus Estimate of 68 cents, and increased by 5.6% from 71 cents in the prior year [3]. - Net sales totaled $778.5 million, exceeding the Zacks Consensus Estimate of $760 million, and rose 1.1% year over year, driven by strong performance in Latin America, Asia Pacific, and EMEA regions [3]. - Gross profit increased by 1.7% to $396.1 million, with a gross margin of 50.9%, up 30 basis points from the previous year [4]. - Operating income rose to $46.5 million, a 4.1% increase from the prior year, with an operating margin of 6% [5]. Sales Performance by Region and Channel - U.S. net sales declined by 1% to $471.2 million, slightly missing estimates, while EMEA sales surged by 3% to $107.5 million, and Latin America and Asia Pacific sales grew by 10% to $152.2 million [8]. - Direct-to-consumer (DTC) sales remained flat at $378.7 million, while wholesale channel sales increased by 2% to $399.8 million [9]. Product Category Performance - Net sales in the Apparel, Accessories, and Equipment category increased by 2% to $628.8 million, surpassing estimates, while Footwear sales fell by 1% to $149.6 million [10]. Financial Position and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $323.3 million and no debt, with inventories increasing by 2.7% to $623.7 million [11]. - During the quarter, the company repurchased 1,251,784 shares for $101.4 million and announced a quarterly cash dividend of 30 cents per share [12]. Future Outlook - The company has withdrawn its full-year 2025 financial outlook due to macroeconomic uncertainties and expects second-quarter net sales to be in the range of $575-$600 million, representing year-over-year growth of 1-5% [13].

Core Insights - Columbia Sportswear reported revenue of $778.45 million for the quarter ended March 2025, reflecting a year-over-year increase of 1.1% and a surprise of +2.49% over the Zacks Consensus Estimate of $759.57 million [1] - The company's EPS for the same period was $0.75, compared to $0.71 a year ago, resulting in an EPS surprise of +10.29% against the consensus estimate of $0.68 [1] Financial Performance - The stock has returned -19.6% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change, indicating underperformance relative to the broader market [3] - Columbia Sportswear holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3] Geographic Sales Breakdown - United States: Net sales of $471.18 million, exceeding the two-analyst average estimate of $465.92 million, but showing a year-over-year decline of -0.7% [4] - Canada: Net sales of $47.58 million, below the average estimate of $49.51 million, with a year-over-year change of -9.2% [4] - EMEA: Net sales of $107.48 million, surpassing the estimated $103.98 million, representing a +2.9% year-over-year increase [4] - LAAP: Net sales of $152.21 million, exceeding the average estimate of $141.39 million, with a year-over-year change of +9.7% [4]

Columbia Sportswear (COLM) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.29%. A quarter ago, it was expected that this maker of outdoor gear would post earnings of $1.92 per share when it actually produced earnings of $1.80, delivering a surprise of -6.25%.Over the last four quar ...

Financial Data and Key Metrics Changes - First quarter net sales increased by 1% year over year to $778 million, with wholesale net sales up 2% and direct-to-consumer sales flat [21][22] - Gross margin expanded by 30 basis points to 50.9%, while SG&A expenses increased by 1% [21][22] - Diluted earnings per share rose by 6% year over year to $0.75 [21] Business Line Data and Key Metrics Changes - Columbia brand net sales increased by 3%, while Mountain Hardwear net sales decreased by 14% and SOREL net sales decreased by 8% [30][35][37] - Direct-to-consumer net sales in the US declined by low single digits, with e-commerce sales down by high single digits [22][23] - International markets showed strong performance, with LAAP net sales up 14% and EMEA net sales up 7% [24][28] Market Data and Key Metrics Changes - US net sales decreased by 1%, with the wholesale business relatively flat [22] - China net sales increased by low teens percent, driven by strong e-commerce growth [24] - Japan net sales increased by mid-teens percent, benefiting from strong demand for late season and winter products [26] Company Strategy and Development Direction - The company is focused on mitigating the impacts of US tariff increases and has a diversified supply chain to navigate uncertainties [9][14] - Columbia plans to increase investment in demand creation and launch a new global marketing platform starting in August [15][17] - The company aims to preserve capital and mitigate tariff impacts while seeking opportunities to gain market share from competitors [14][54] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding consumer behavior in the second half of the year due to tariff impacts and economic conditions [20][108] - The company has withdrawn its full-year 2025 outlook due to heightened uncertainty but anticipates net sales growth of 1% to 5% for the second quarter [18][108] - Management remains optimistic about international markets, particularly in China and Japan, where growth opportunities are strong [24][26] Other Important Information - The company has identified cost savings and profit-enhancing opportunities beyond the $150 million target established in 2024 [19] - Columbia's marketing spend as a percentage of sales for the first quarter was 6.4%, indicating a commitment to increasing marketing investments [58] Q&A Session Summary Question: What is the outlook for wholesale in the second half? - Management indicated that the wholesale order book has not changed meaningfully and expects similar growth to earlier projections [41][45] Question: Are there opportunities to take market share due to private label offerings from China? - Management believes there are opportunities to gain market share from smaller brands and private label businesses affected by tariff challenges [43][54] Question: How will the company manage the $40 million to $45 million in incremental costs due to tariffs? - Management stated that these costs are direct and will be absorbed primarily in the second half of the year, with potential for some costs to carry into 2026 [48][92] Question: What are the expectations for demand creation and marketing spend? - Management plans to increase marketing investments and improve efficiency in spending, with a focus on new campaigns starting in August [56][58] Question: What is the current state of the business in China? - Management noted strong growth in China and plans to continue investing in localized design and production to capitalize on market opportunities [66][68]

Financial Data and Key Metrics Changes - In Q1 2025, net sales increased by 1% year over year to $778 million, with wholesale net sales up 2% and direct-to-consumer sales flat [19][20] - Gross margin expanded by 30 basis points to 50.9%, while SG&A expenses increased by 1% [19][20] - Diluted earnings per share rose by 6% year over year to $0.75 [19] Business Line Data and Key Metrics Changes - Columbia brand net sales increased by 3%, while Mountain Hardwear net sales decreased by 14% and SOREL net sales decreased by 8% [28][33][35] - The US direct-to-consumer net sales declined by low single digits, with e-commerce down by high single digits, while brick-and-mortar sales were up low single digits due to new store contributions [21][20] - International markets showed strong performance, with LAAP net sales up 14% and EMEA net sales up 7% [22][25] Market Data and Key Metrics Changes - US net sales decreased by 1%, with the wholesale business relatively flat [20] - China net sales increased in the low teens percentage, driven by strong e-commerce growth [22] - Japan net sales increased in the mid-teens percentage, benefiting from strong demand for late-season and winter products [23] Company Strategy and Development Direction - The company is focused on mitigating the impacts of US tariff increases and has a diversified supply chain to navigate uncertainties [6][11] - Columbia plans to increase investment in demand creation and launch a new global marketing platform starting in August [15][56] - The company aims to absorb much of the incremental tariff costs in 2025 while exploring strategies to offset higher tariffs in 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the company's brands and strategies, despite the unprecedented level of public policy uncertainty regarding trade [6][7] - The company has withdrawn its full-year 2025 outlook due to heightened uncertainty regarding tariff rates and consumer demand [16][109] - Management anticipates a challenging US market in the latter half of the year, with higher prices negatively impacting consumer demand [18] Other Important Information - The company has identified cost savings and profit-enhancing opportunities beyond the $150 million target established in 2024 [17] - Columbia's greater reward program has been recognized as a top loyalty program, contributing significantly to direct-to-consumer sales [32] Q&A Session Summary Question: What is the expectation for wholesale in the second half of the year? - Management indicated that the fall order book has not changed meaningfully and expects wholesale growth to be similar to early February expectations [39][42] Question: Are there opportunities to take market share due to private label offerings from China? - Management believes there are opportunities to gain market share from competitors facing challenges with imports from China [41][52] Question: How will the $40 to $45 million in incremental COGS from tariffs be distributed? - Management expects the majority of the tariff costs to be realized in the second half of the year, with potential impacts extending into 2026 [43][46] Question: What is the outlook for demand creation spending? - The company plans to increase marketing spending and improve efficiency in campaigns starting in August [54][56] Question: What are the recent trends in the China market? - Management noted strong growth in China, with plans to continue investing in localized design and production [67] Question: How is the company managing inventory in light of tariff uncertainties? - The company is rationalizing inventory purchases and pulling in inventory to mitigate potential tariff impacts [100][101]

Financial Performance - Net sales increased by 1% to $778.5 million compared to Q1'24[34] - Gross margin increased by 30 bps to 50.9%[27,34] - Operating margin increased by 20 bps to 6.0%[29,34] - Diluted EPS increased by 6% to $0.75[29,34] - The company repurchased 1.25 million shares of common stock for $101.4 million[31] Regional Performance - U S net sales decreased by 1%[38] - LAAP net sales increased by 10% (14% in constant currency)[38] - EMEA net sales increased by 3% (7% in constant currency)[38] - Canada net sales decreased by 9% (-2% in constant currency)[38] Brand and Category Performance - Columbia brand net sales increased by 3%[49] - SOREL net sales decreased by 8%[49] - Apparel, Accessories & Equipment net sales increased by 2%[46] - Footwear net sales remained flat[46] Financial Position - Cash, cash equivalents, and short-term investments totaled $658 million[70] - Inventories increased by 3% year-over-year to $623.7 million[71]

[Q1 2025 Financial Results Overview](index=1&type=section&id=Q1%202025%20Financial%20Results%20Overview) [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Columbia Sportswear reported solid Q1 2025 results with increased net sales and diluted EPS, driven by international growth, while maintaining a strong balance sheet despite tariff uncertainties | Financial Metric | Q1 2025 | Change vs Q1 2024 | | :--- | :--- | :--- | | Net Sales | $778.5 million | +1% (+3% constant-currency) | | Operating Income | $46.5 million | +4% | | Operating Margin | 6.0% | +20 bps | | Diluted EPS | $0.75 | +6% | - The company generated healthy growth in most international markets, with **double-digit growth** in the LAAP region and **high-single-digit constant currency growth** in the EMEA region[4](index=4&type=chunk) - The company ended the quarter with a strong balance sheet, holding **$658.4 million** in cash, cash equivalents, and short-term investments, with no bank borrowings[7](index=7&type=chunk) - The company is committed to its ACCELERATE Growth Strategy, focusing on investments in demand creation to support its new marketing campaign and product assortment for the Fall season[6](index=6&type=chunk)[10](index=10&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) Q1 2025 net sales growth was driven by international regions, offsetting North American declines, while gross margin improved due to lower shipping costs and SG&A expenses slightly increased - Net sales increased **1%** to **$778.5 million**, led by growth in the LAAP and EMEA regions, which was partially offset by declines in Canada and the U.S[11](index=11&type=chunk) - Gross margin expanded by **30 basis points** to **50.9%**, primarily due to lower outbound shipping expenses, higher closeout margins, and favorable Spring 2025 product input costs[12](index=12&type=chunk) - SG&A expenses rose to **$354.5 million** (**45.5% of net sales**) from **$349.3 million** (**45.4% of net sales**) in the prior year, driven by higher DTC and demand creation expenses[13](index=13&type=chunk) - Net income was relatively flat at **$42.2 million**, while diluted EPS increased to **$0.75** from **$0.71**, benefiting from a lower share count[14](index=14&type=chunk) [Balance Sheet and Cash Flow](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company maintained a strong balance sheet with **$658.4 million** in cash and no debt, though net cash used in operating activities shifted to **$32.0 million** for Q1 2025 | Balance Sheet Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, & short-term investments | $658.4 million | $787.7 million | | Inventories | $623.7 million | $607.4 million | | Borrowings | $0 | $0 | - Net cash used in operating activities was **$32.0 million** for the first three months of 2025, compared to net cash provided by operating activities of **$106.8 million** in the same period of 2024[19](index=19&type=chunk) - Capital expenditures totaled **$15.6 million**, a slight increase from **$14.8 million** in the prior year period[20](index=20&type=chunk) [Shareholder Returns](index=5&type=section&id=Shareholder%20Returns) The company returned capital to shareholders through **$101.4 million** in common stock repurchases and a **$0.30** per share quarterly cash dividend - The company repurchased **1,251,784 shares** of common stock for **$101.4 million** at an average price of **$81.03 per share**[21](index=21&type=chunk) - As of March 31, 2025, **$526.1 million** remained available under the stock repurchase authorization[21](index=21&type=chunk) - A quarterly cash dividend of **$0.30 per share** was approved, payable on June 5, 2025[22](index=22&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) [Full Year 2025 Outlook](index=1&type=section&id=Full%20Year%202025%20Outlook) The company withdrew its full-year 2025 financial outlook due to significant macroeconomic uncertainty stemming from global trade policies and potential U.S. tariff increases - The company is withdrawing its full year 2025 financial outlook, which was originally provided on February 4, 2025[2](index=2&type=chunk)[23](index=23&type=chunk) - The withdrawal is a result of macroeconomic uncertainty stemming from global trade policies and ambiguous public policy regarding U.S. tariffs[2](index=2&type=chunk)[5](index=5&type=chunk)[23](index=23&type=chunk) [Second Quarter 2025 Outlook](index=5&type=section&id=Second%20Quarter%202025%20Outlook) For Q2 2025, Columbia Sportswear anticipates net sales between **$575 million** and **$600 million**, representing **1% to 5%** growth compared to the prior year | Q2 2025 Outlook | Value | | :--- | :--- | | Expected Net Sales | $575 to $600 million | | Expected Growth Rate | 1% to 5% | - This outlook is based on U.S. tariff rates in place as of May 1, 2025, and is subject to significant risks and uncertainties[24](index=24&type=chunk) [Performance by Segment (Non-GAAP)](index=11&type=section&id=Performance%20by%20Segment%20(Non-GAAP)) [Geographical, Brand, Category, and Channel Net Sales](index=11&type=section&id=Geographical%2C%20Brand%2C%20Category%2C%20and%20Channel%20Net%20Sales) Q1 2025 constant-currency net sales grew **3%**, primarily driven by strong performance in the LAAP and EMEA regions and the Columbia brand, while other brands and categories saw declines | Geographical Net Sales | Reported % Change | Constant-Currency % Change | | :--- | :--- | :--- | | United States | (1)% | (1)% | | Latin America and Asia Pacific | 10% | 14% | | Europe, Middle East and Africa | 3% | 7% | | Canada | (9)% | (2)% | | Brand Net Sales | Reported % Change | Constant-Currency % Change | | :--- | :--- | :--- | | Columbia | 3% | 5% | | SOREL | (8)% | (6)% | | prAna | (10)% | (10)% | | Mountain Hardwear | (14)% | (13)% | | Category & Channel Net Sales | Reported % Change | Constant-Currency % Change | | :--- | :--- | :--- | | **Product Category** | | | | Apparel, Accessories & Equipment | 2% | 3% | | Footwear | (1)% | 1% | | **Channel** | | | | Wholesale | 2% | 4% | | DTC | —% | 2% | [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to **$2.71 billion**, while total liabilities increased to **$997.6 million**, leading to a decrease in total shareholders' equity | (in thousands) | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,741,336 | $1,846,218 | | **Total assets** | **$2,707,415** | **$2,762,231** | | Total current liabilities | $558,783 | $447,306 | | **Total liabilities** | **$997,648** | **$852,788** | | **Total shareholders' equity** | **$1,709,767** | **$1,909,443** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, net sales reached **$778.5 million**, with operating income of **$46.5 million** and diluted EPS increasing to **$0.75** despite a slight decrease in net income | (In thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $778,452 | $769,982 | | Gross profit | $396,057 | $389,559 | | Operating income | $46,508 | $44,681 | | **Net income** | **$42,248** | **$42,300** | | **Diluted EPS** | **$0.75** | **$0.71** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, the company reported net cash used in operating activities of **$32.0 million**, with significant cash outflows from investing and financing activities, including **$101.4 million** in stock repurchases | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(32,038) | $106,773 | | Net cash provided by (used in) investing activities | $(61,431) | $37,109 | | Net cash used in financing activities | $(118,649) | $(71,343) | | **Cash and cash equivalents, end of period** | **$323,339** | **$418,462** |

Core Viewpoint - Columbia Sportswear Company (COLM) is expected to report a decline in both revenues and earnings for the first quarter of 2025, with revenues estimated at $761.9 million, reflecting a 1.1% decrease year-over-year [1]. Revenue Expectations - The Zacks Consensus Estimate for first-quarter revenues is $761.9 million, indicating a 1.1% decrease from the previous year, aligning with the company's guidance of a 1-3% decline, projecting net sales between $749 million and $764 million [1][2]. - The decline in revenues is attributed to the absence of last year's unusually cold winter, which had temporarily boosted demand, and a return to normalized shipping patterns after accelerated shipments in the previous year [2]. Earnings Projections - The consensus estimate for first-quarter earnings per share is stable at 69 cents, representing a 2.8% decline from the year-ago period, with management guiding earnings between 62 cents and 70 cents per share [2]. - Columbia Sportswear has delivered an average earnings surprise of 36.7% over the trailing four quarters [2]. Market Conditions - The company is facing a challenging U.S. market characterized by softened consumer demand, although it has seen stronger performance internationally, particularly in China and the EMEA region [3]. Operating Margin Insights - The projected operating margin for the first quarter is between 5.4% and 6%, with a midpoint of 5.7%, which is a decrease of 10 basis points from the same quarter last year [4]. Strategic Initiatives - Columbia Sportswear's product innovation, ACCELERATE Growth Strategy, and cost-saving initiatives are expected to provide some support against the anticipated declines, with efforts to expand premium product lines and enhance marketing investments [5]. Earnings Prediction Model - The Zacks model does not predict an earnings beat for Columbia Sportswear this quarter, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [6].

Company Overview - Columbia Sportswear (COLM) shares increased by 12.1% to close at $68.35, following a period of 24.3% loss over the past four weeks, indicating a significant rebound in investor sentiment [1][2] - The stock's recent performance was supported by a broader market rally and positive developments such as President Trump's announcement of a 90-day pause on reciprocal tariffs for all countries except China [2] Financial Performance - Columbia Sportswear is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year decline of 2.8%, with revenues projected at $761.9 million, down 1.1% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] Industry Context - Columbia Sportswear operates within the Zacks Textile - Apparel industry, which includes other companies like Crocs (CROX), which saw an 11.5% increase in its stock price to $99.59, despite a -9.2% return over the past month [4] - Crocs is also expected to report unchanged EPS estimates of $2.52, representing a 16.6% decline from the previous year [5]