[Q2 2025 Earnings Release Overview](index=1&type=section&id=Columbia%20Sportswear%20Company%20Reports%20Second%20Quarter%202025%20Financial%20Results) [Executive Summary and Strategic Overview](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company reported a 6% Q2 net sales increase driven by international markets, maintains a strong balance sheet, and provides a limited full-year 2025 outlook Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $605.2M | $570.2M | +6% | | Operating Loss | ($23.6M) | ($23.8M) | +0.8% | | Net Loss per Diluted Share | ($0.19) | ($0.20) | +5.0% | - The company's fortress balance sheet is highlighted by **$579.0 million in cash**, cash equivalents, and short-term investments, with **no outstanding borrowings**[6](index=6&type=chunk) - Strategic priorities are centered on the **ACCELERATE growth strategy**, which aims to attract younger consumers by creating iconic products, increasing brand engagement, and enhancing consumer experiences[4](index=4&type=chunk)[7](index=7&type=chunk)[9](index=9&type=chunk) - Management notes that the apparel industry is facing **increasing tariffs** and is focused on mitigating financial impacts and delivering value to consumers for the Fall 2025 season[5](index=5&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) Q2 2025 net sales grew 6% to $605.2 million and gross margin improved to 49.1%, while a slight improvement was seen in operating loss to $23.6 million Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $605.2M | $570.2M | | Gross Margin | 49.1% | 47.9% | | SG&A Expenses | $325.6M (53.8% of sales) | $302.7M (53.1% of sales) | | Operating Loss | ($23.6M) | ($23.8M) | | Net Loss | ($10.2M) | ($11.7M) | | Diluted Loss Per Share | ($0.19) | ($0.20) | - Net sales increase was primarily driven by changes in wholesale shipment timing and higher Spring 2025 wholesale orders, with **international market growth offsetting weakness in the U.S.** and lower DTC sales[10](index=10&type=chunk) - **Gross margin expansion** was attributed to healthier inventory composition leading to less clearance activity and favorable product sales mix[11](index=11&type=chunk) [First Half 2025 Financial Results](index=2&type=section&id=First%20Half%202025%20Financial%20Results) For the first six months of 2025, net sales increased 3% to $1.38 billion, operating income rose 10%, and diluted EPS grew to $0.58 First Half 2025 vs First Half 2024 Performance | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Sales | $1,383.7M | $1,340.2M | | Gross Margin | 50.1% | 49.5% | | Operating Income | $22.9M | $20.9M | | Net Income | $32.1M | $30.6M | | Diluted EPS | $0.58 | $0.51 | [Financial Position and Cash Flow](index=4&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company's balance sheet remained strong with $579.0 million in cash and no debt, though inventories rose 13% and operating activities used cash Balance Sheet Highlights (as of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, & short-term investments | $579.0M | $711.1M | | Inventories | $926.9M | $823.6M | | Borrowings | $0 | $0 | Cash Flow Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | ($62.9M) | $108.9M | | Capital Expenditures | $30.0M | $27.8M | [Capital Allocation](index=4&type=section&id=Capital%20Allocation) In H1 2025, the company returned capital to shareholders by repurchasing 1.7 million shares for $131.7 million and declaring a quarterly dividend of $0.30 per share - The company repurchased **1,677,784 shares** of common stock for **$131.7 million** in the first six months of 2025[24](index=24&type=chunk) - A quarterly cash dividend of **$0.30 per share** was approved by the Board of Directors[25](index=25&type=chunk) - As of June 30, 2025, **$495.9 million remained available** under the stock repurchase authorization[24](index=24&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) The company issued a limited full-year 2025 outlook projecting net sales between -1% and +1%, with Q3 2025 net sales expected to decrease by 1% to 3% Full Year 2025 Financial Outlook | Metric | Expected Range | YoY Change | | :--- | :--- | :--- | | Net Sales | $3.33B - $3.40B | -1.0% to +1.0% | Third Quarter 2025 Financial Outlook | Metric | Expected Range | YoY Comparison (2024) | | :--- | :--- | :--- | | Net Sales | $904M - $922M | $932M | | Operating Margin | 7.6% - 9.0% | 12.1% | | Diluted EPS | $1.00 - $1.20 | $1.56 | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section provides detailed unaudited financial statements, including balance sheets, statements of operations, cash flows, and a GAAP to non-GAAP reconciliation [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet shows an increase in total assets to $2.89 billion and total liabilities to $1.24 billion, driven by higher inventories and lease liabilities - This section contains the detailed Condensed Consolidated Balance Sheets as of June 30, 2025, compared to June 30, 2024[37](index=37&type=chunk)[38](index=38&type=chunk) [Condensed Consolidated Statements of Operations](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The income statement details increased net sales and gross profit for Q2 and H1 2025, with a narrowing Q2 net loss and rising H1 net income - This section contains the detailed Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024[39](index=39&type=chunk)[40](index=40&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The statement shows a net cash decrease of $104.1 million in H1 2025, driven by cash used in operating and financing activities - This section contains the detailed Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024[41](index=41&type=chunk)[42](index=42&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles reported net sales growth to constant-currency growth, highlighting strong international performance in EMEA and LAAP - The company provides constant-currency net sales information, a non-GAAP measure, to assess performance excluding foreign currency exchange rate fluctuations[30](index=30&type=chunk) Q2 2025 Net Sales Growth by Geography (Constant-Currency) | Region | Reported Change | Constant-Currency Change | | :--- | :--- | :--- | | United States | (2)% | (2)% | | LAAP | 13% | 12% | | EMEA | 26% | 24% | | Canada | 2% | 5% | | **Total** | **6%** | **6%** | H1 2025 Net Sales Growth by Brand (Constant-Currency) | Brand | Reported Change | Constant-Currency Change | | :--- | :--- | :--- | | Columbia | 5% | 6% | | SOREL | (8)% | (8)% | | prAna | (8)% | (8)% | | Mountain Hardwear | (11)% | (11)% | | **Total** | **3%** | **4%** |

Company Overview - Columbia Sportswear (COLM) is expected to report a year-over-year decline in earnings, with a projected loss of $0.28 per share, reflecting a -40% change, while revenues are anticipated to be $589.48 million, up 3.4% from the previous year [3][12] - The consensus EPS estimate has been revised 1.89% lower over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12] Earnings Expectations - The upcoming earnings report is scheduled for July 31, and the stock may experience price movement based on whether the actual results exceed or fall short of expectations [2][3] - Columbia Sportswear currently has an Earnings ESP of -46.43%, suggesting a lower Most Accurate Estimate compared to the Zacks Consensus Estimate, which complicates the prediction of an earnings beat [12] Historical Performance - In the last reported quarter, Columbia Sportswear had an earnings surprise of +10.29%, with actual earnings of $0.75 per share against an expectation of $0.68 [13] - Over the past four quarters, the company has beaten consensus EPS estimates three times, indicating some historical strength in performance [14] Industry Context - In the broader Zacks Textile - Apparel industry, V.F. (VFC) is also expected to report a loss of $0.34 per share, reflecting a -3% year-over-year change, with revenues projected at $1.69 billion, down 11.3% from the previous year [18][19] - V.F. has an Earnings ESP of -9.47% and a Zacks Rank of 5 (Strong Sell), making it difficult to predict an earnings beat for the company [20]

Core Insights - The sports footwear and apparel industry demonstrates resilience amid a sluggish global economic recovery and differentiated consumer demand, outperforming other sectors [1][2] - The analysis includes 19 brands/groups, primarily publicly listed companies, with revenue data for the 2024 calendar year, adjusted for fiscal year discrepancies and currency fluctuations [1][2] Global Market Overview - Total global revenue for the 18 brands/groups in 2024 is approximately $183.61 billion, reflecting a 3.78% increase from 2023 [8] - Nike and Adidas remain the dominant players, while Lululemon has surged to third place, surpassing Puma and VF Corporation [6][7] - The industry structure remains stable, with a leading tier of Nike and Adidas, followed by a growing middle tier including Decathlon, Anta, VF, and Lululemon [7][8] Chinese Market Insights - The total revenue for the Chinese market is estimated at around $37 billion for 2024, with an 8.8% year-over-year growth, outpacing global growth [14] - Anta Group leads the Chinese market, with significant contributions from its multi-brand strategy, while Nike retains the top position for single-brand revenue [14][15] - The competitive landscape in China features intense rivalry among brands like Anta, Li Ning, Adidas, and FILA, with Puma also showing growth [14][15] Growth Drivers - Running remains the highest growth segment in the sports footwear and apparel industry, with brands like HOKA and On experiencing significant revenue increases [15][16] - Outdoor brands, particularly those appealing to the middle class, are also thriving, driven by a shift in consumer identity and preferences [16] Future Considerations - The industry faces challenges related to brand positioning in either stock or incremental competition, necessitating strategic decisions on growth potential and market dynamics [17] - Established brands are undergoing transformations while new entrants must navigate consumer expectations and market integration [17]

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]

分组1 - Columbia Sportswear reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, and showing an increase from $0.71 per share a year ago, resulting in an earnings surprise of 10.29% [1] - The company achieved revenues of $778.45 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.49%, and an increase from $769.98 million year-over-year [2] - Columbia Sportswear has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] 分组2 - The stock has underperformed, losing approximately 25.9% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $602.81 million, and for the current fiscal year, it is $4.03 on revenues of $3.45 billion [7] - The Zacks Industry Rank for Textile - Apparel is in the bottom 37% of over 250 Zacks industries, indicating potential challenges for the sector [8]

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]