[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, reflect total assets of $2.89 billion, a Q2 net loss of $10.2 million, and a six-month negative operating cash flow of $62.9 million, largely due to increased inventory [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $2.89 billion, with key changes including a decrease in cash to $579.0 million and a significant increase in inventories to $926.9 million, while total liabilities rose to $1.24 billion and equity decreased to $1.65 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $427,804 | $531,869 | $341,822 | | Inventories | $926,929 | $690,515 | $823,557 | | Total current assets | $1,894,029 | $2,008,582 | $1,847,810 | | Total assets | $2,890,377 | $2,975,265 | $2,760,821 | | **Liabilities & Equity** | | | | | Accounts payable | $478,948 | $385,695 | $267,853 | | Total current liabilities | $761,282 | $766,545 | $544,441 | | Total liabilities | $1,236,505 | $1,195,226 | $936,859 | | Total shareholders' equity | $1,653,872 | $1,780,039 | $1,823,962 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, net sales increased to $605.2 million, gross profit rose to $297.1 million with improved margin, and the company reported a net loss of $10.2 million, while six-month net income increased to $32.1 million Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $605,246 | $570,244 | $1,383,698 | $1,340,226 | | Gross profit | $297,108 | $273,419 | $693,165 | $662,978 | | Operating income (loss) | $(23,591) | $(23,802) | $22,917 | $20,879 | | Net income (loss) | $(10,196) | $(11,741) | $32,052 | $30,559 | | Diluted EPS | $(0.19) | $(0.20) | $0.58 | $0.51 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $62.9 million, a significant reversal from the prior year, primarily due to a $218.1 million increase in inventories Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(62,886) | $108,893 | | Net cash provided by investing activities | $110,582 | $29,951 | | Net cash used in financing activities | $(165,262) | $(138,960) | | **Net decrease in cash and cash equivalents** | **$(104,065)** | **$(8,497)** | - The significant use of cash in operations was primarily due to a **$218.1 million increase in inventories**, compared to an **$88.8 million increase** in the prior year period[16](index=16&type=chunk) - The company repurchased **$131.7 million of common stock** in the first six months of 2025, an increase from **$102.6 million** in the same period of 2024[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed breakdowns of financial data, including disaggregated revenue by product and channel, segment performance, increased use of Supply Chain Financing, and share repurchase activity Q2 2025 Net Sales by Product Category (in thousands) | Product Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Apparel, Accessories and Equipment | $494,302 | $463,940 | +6.6% | | Footwear | $110,944 | $106,304 | +4.4% | | **Total** | **$605,246** | **$570,244** | **+6.1%** | Q2 2025 Net Sales by Channel (in thousands) | Channel | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Wholesale | $317,218 | $278,384 | +14.0% | | Direct-to-consumer | $288,028 | $291,860 | -1.3% | | **Total** | **$605,246** | **$570,244** | **+6.1%** | - Outstanding payables under the Supply Chain Financing (SCF) program were **$137.2 million** as of June 30, 2025, compared to **$0** as of June 30, 2024, indicating increased use of this financing tool[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2025 net sales growth to strong EMEA and LAAP performance, offset by U.S. declines, while focusing on 'ACCELERATE Growth Strategy' and 'Profit Improvement Program' amidst tariff uncertainties and a soft U.S. consumer environment [Overview and Strategy](index=31&type=section&id=Overview%20and%20Strategy) The company is executing its 'ACCELERATE Growth Strategy' to attract younger consumers and a 'Profit Improvement Program' that has already achieved over $150 million in annualized cost savings - The Columbia brand's ACCELERATE Growth Strategy is a multi-year initiative focused on elevating the brand to attract younger consumers while retaining its core value-oriented customer base[88](index=88&type=chunk)[91](index=91&type=chunk) - The Profit Improvement Program has yielded annualized cost savings exceeding **$150 million** through actions executed in 2024 and the first half of 2025, surpassing the initial target of **$125-$150 million**[93](index=93&type=chunk) [Business Environment and Trends](index=33&type=section&id=Business%20Environment%20and%20Trends) The business environment is marked by significant uncertainty from U.S. tariffs, prompting accelerated inventory receipts, while the North American market remains soft and competitive, contrasting with healthy international trends - To mitigate potential tariff impacts, the company has accelerated the timing of inventory receipts and worked with wholesale customers to ship Fall 2025 orders earlier[95](index=95&type=chunk) - The company expects to absorb much of the incremental tariff cost for Fall 2025 but plans to offset higher tariffs over time through price increases, vendor negotiations, and SG&A efficiencies[97](index=97&type=chunk) - In response to a soft U.S. market, the company is implementing the ACCELERATE Growth Strategy, which includes becoming less promotional on Columbia.com and opening new branded stores in high-traffic malls[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) [Results of Operations — Consolidated](index=35&type=section&id=Results%20of%20Operations%20%E2%80%94%20Consolidated) For Q2 2025, consolidated net sales grew 6% to $605.2 million, driven by wholesale, with gross margin expanding to 49.1% due to healthier inventory, while SG&A expenses rose 8% to $325.6 million Q2 2025 Net Sales Performance vs. Q2 2024 | Category | Reported % Change | Constant Currency % Change | | :--- | :--- | :--- | | **Total Net Sales** | **6%** | **6%** | | **By Brand** | | | | Columbia | 8% | 7% | | SOREL | (10)% | (11)% | | **By Channel** | | | | Wholesale | 14% | 14% | | Direct-to-consumer | (1)% | (2)% | - Q2 2025 gross margin expanded by **120 basis points** to **49.1%**, primarily due to a **245 bps increase** from healthier inventory, which led to higher product margins and less promotional activity[112](index=112&type=chunk)[116](index=116&type=chunk) - Q2 2025 SG&A expenses increased by **8%** to **$325.6 million**, driven by higher omni-channel expenses (**$12.7 million**) from new stores and increased investment in demand creation[113](index=113&type=chunk)[117](index=117&type=chunk) [Results of Operations — Segment](index=42&type=section&id=Results%20of%20Operations%20%E2%80%94%20Segment) In Q2 2025, EMEA and LAAP segments showed strong net sales growth of 26% and 13% respectively, while the U.S. segment declined 2% and Canada experienced a larger operating loss due to higher SG&A Q2 2025 Net Sales by Geographic Segment (in thousands) | Segment | Q2 2025 Net Sales | Q2 2024 Net Sales | Reported % Change | | :--- | :--- | :--- | :--- | | U.S. | $335,117 | $340,228 | (2)% | | LAAP | $112,333 | $99,484 | 13% | | EMEA | $130,562 | $103,922 | 26% | | Canada | $27,234 | $26,610 | 2% | Q2 2025 Segment Operating Income (Loss) (in thousands) | Segment | Q2 2025 Op. Income | Q2 2024 Op. Income | Change | | :--- | :--- | :--- | :--- | | U.S. | $17,338 | $23,466 | $(6,128) | | LAAP | $7,022 | $6,082 | $940 | | EMEA | $21,630 | $14,419 | $7,211 | | Canada | $(1,954) | $(23) | $(1,931) | [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $579.0 million in cash and access to a $500.0 million credit facility, despite negative operating cash flow for the first half due to strategic inventory increases to mitigate tariff impacts - Cash flow from operations was a use of **$62.9 million** for the first six months of 2025, a **$171.8 million decrease** from the prior year, mainly due to a **$129.3 million increase** in cash used for inventories[146](index=146&type=chunk) - Inventory balance increased to **$926.9 million** as of June 30, 2025, compared to **$823.6 million** a year prior, as the company accelerated production and receipt of Fall 2025 inventory to mitigate tariff risks[154](index=154&type=chunk) - Planned capital expenditures for the full year 2025 are approximately **$60 to $80 million**, targeting investments in DTC operations, new stores, and supply chain capabilities[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes in its market risk disclosures from those reported in its Annual Report on Form 10-K for the year ended December 31, 2024 - There has not been any material change in the market risk disclosure from the company's most recent Annual Report on Form 10-K[165](index=165&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures are effective at providing reasonable assurance[167](index=167&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[168](index=168&type=chunk) [PART II — OTHER INFORMATION](index=54&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters arising in the normal course of business, which management does not believe will have a material adverse effect on its financial condition - The company is involved in routine litigation but does not expect the outcomes to have a material adverse effect on its financial position[171](index=171&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) The company outlines numerous risks, with a significant focus on adverse impacts from evolving U.S. global trade policy and tariffs, alongside dependencies on consumer spending, intense competition, supply chain reliance, and IT system vulnerabilities - Rapidly evolving U.S. global trade policy and tariffs may reduce consumer demand, impair the financial health of wholesale customers, and cause supply chain disruptions[174](index=174&type=chunk) - The company's success is highly dependent on consumer discretionary spending, which can be volatile, and faces significant competition from global brands, emerging brands, and private labels[178](index=178&type=chunk) - Reliance on contract manufacturers, primarily in Asia, creates risks related to production capacity, quality control, and potential supply disruptions[186](index=186&type=chunk) - A security breach of IT systems or those of third-party cloud providers could disrupt operations, expose confidential data, and result in substantial costs or reputational damage[212](index=212&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 426,000 shares of common stock for approximately $30.2 million, with $495.9 million remaining available under the authorized share repurchase program Common Stock Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 426,000 | $71.01 | | May 2025 | — | $— | | June 2025 | — | $— | | **Total** | **426,000** | **$71.01** | - As of June 30, 2025, the company had **$495.9 million** remaining available under its share repurchase program[257](index=257&type=chunk)[259](index=259&type=chunk) [Other Information](index=78&type=section&id=Item%205.%20Other%20Information) The company provided an update on U.S. tariff expenses following executive orders in July and August 2025, noting that over 90% of its Fall 2025 U.S.-bound inventory was shipped before the effective date, mitigating immediate impact - Executive orders in July and August 2025 revised incremental tariffs for key sourcing countries, including Vietnam (**10% to 20%**), Bangladesh (**10% to 20%**), and India (**10% to 25%**, plus an additional **25%**)[261](index=261&type=chunk) - The company mitigated the immediate impact of the new tariffs as over **90%** of its Fall 2025 U.S.-bound inventory was shipped before the August 7, 2025 effective date[261](index=261&type=chunk) [Exhibits](index=78&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents and certifications from the CEO and CFO, along with XBRL interactive data files - The report includes required certifications from the CEO and CFO under Rules 13a-14(a) and Section 1350[264](index=264&type=chunk)

Core Viewpoint - Columbia Sportswear has filed a lawsuit against Columbia University for alleged trademark infringement and breach of contract, claiming that the university's merchandise closely resembles its own products [1][4]. Group 1: Lawsuit Details - The lawsuit was filed on July 23 in the U.S. District Court for the District of Oregon, alleging that the university intentionally violated an agreement signed on June 13, 2023 [4][5]. - The agreement allowed the university to use the name "Columbia" on its merchandise only if it included recognizable school insignia, the word "university," or other specified elements [5]. - Columbia Sportswear claims that the university has breached this agreement by selling garments without any school logos, which are similar in color to Columbia Sportswear's products [6][8]. Group 2: Impact and Claims - The lawsuit argues that the university's actions are causing irreparable harm to Columbia Sportswear's brand and goodwill associated with its registered trademark [8]. - Columbia Sportswear is seeking to halt sales of the infringing clothing, recall products already sold, and donate remaining merchandise to charity [10]. - The company is also pursuing three times the actual damages determined by a jury [10]. Group 3: Contextual Background - The lawsuit coincides with Columbia University facing potential loss of billions in government support, having recently reached a $220 million settlement with the Trump administration [9].

Group 1 - Columbia Sportswear Company (NASDAQ: COLM) reported a very positive quarter, benefiting from early shipments to avoid tariffs [1] - The company is evaluated from an operational, buy-and-hold perspective, focusing on long-term earnings power and competitive dynamics [1] - The investment strategy emphasizes holding companies rather than frequent trading, with most recommendations being holds [1] Group 2 - The article does not provide specific financial metrics or detailed performance data for Columbia Sportswear [1]

Core Insights - Columbia Sportswear reported revenue of $605.25 million for the quarter ended June 2025, reflecting a year-over-year increase of 6.1% [1] - The company's EPS was -$0.19, an improvement from -$0.20 in the same quarter last year, with an EPS surprise of +32.14% compared to the consensus estimate of -$0.28 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $589.48 million, resulting in a surprise of +2.67% [1] Financial Performance - Columbia Sportswear's stock has returned -9.2% over the past month, underperforming the Zacks S&P 500 composite, which increased by +2.7% [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Geographic Sales Breakdown - Net sales in Canada reached $27.23 million, surpassing the average estimate of $24.11 million, marking a year-over-year increase of +2.4% [4] - In the EMEA region, net sales were $130.56 million, exceeding the average estimate of $110.37 million, with a significant year-over-year increase of +25.7% [4] - U.S. net sales totaled $335.12 million, falling short of the average estimate of $351.59 million, representing a year-over-year decline of -1.5% [4] - Latin America and Asia Pacific net sales were $112.33 million, above the average estimate of $103.61 million, reflecting a year-over-year increase of +12.9% [4]

Core Viewpoint - Columbia Sportswear reported a quarterly loss of $0.19 per share, better than the Zacks Consensus Estimate of a loss of $0.28, indicating an earnings surprise of +32.14% [1] - The company has shown resilience by surpassing consensus EPS estimates three times over the last four quarters [2] Financial Performance - Columbia Sportswear posted revenues of $605.25 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.67% and up from $570.24 million year-over-year [2] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $940.7 million, and for the current fiscal year, it is $3.46 on revenues of $3.4 billion [7] Stock Performance and Outlook - Columbia Sportswear shares have declined approximately 30.4% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The company's earnings outlook is crucial for investors, as it reflects current consensus expectations and any recent changes [4] Industry Context - The Textile - Apparel industry, to which Columbia Sportswear belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the company's stock may underperform in the near future [5][6]

Financial Data and Key Metrics Changes - Net sales increased by 6% year over year to $605 million, slightly ahead of expectations, primarily driven by earlier fall wholesale shipments [13] - Gross margin expanded by 120 basis points to 49.1%, while SG&A expenses increased by 8% [14] - Loss per share was 19 cents compared to a loss of 20 cents in the prior year [14] Business Line Data and Key Metrics Changes - Wholesale net sales increased by 14%, while direct-to-consumer (DTC) sales decreased by 1% [14] - US net sales decreased by 2%, with DTC net sales declining in the mid-single digits [15] - SOREL net sales decreased by 10%, while Prana net sales decreased by 6% [27][28] Market Data and Key Metrics Changes - EMEA and LAAP regions both grew in double digits in the first half, led by China, Japan, and Europe [5] - China net sales increased in the high teens percentage, with strong growth across wholesale and DTC [18] - Europe direct net sales increased in the high teens percentage, with growth across all channels [21] Company Strategy and Development Direction - The company is focused on reenergizing the Columbia brand through the Accelerate Growth strategy, including a new global marketing platform [6] - Investments are being made in demand creation and digital strategies, including a redesign of the website [7] - The company aims to balance actions to offset higher tariffs while maximizing market share potential [12] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about ongoing public policy uncertainty in the US, particularly regarding tariffs [9] - The company expects higher prices for consumer goods to negatively impact demand and cautious inventory intakes from retailers [10] - Full year 2025 net sales outlook is projected between $3.3 billion and $3.4 billion, reflecting a decline of 1% to an increase of 1% year over year [31] Other Important Information - The company has actioned over $70 million in annual cost savings year to date [12] - A new organizational structure has been implemented to improve focus on growth opportunities in North America [26] - The company released its 2024 impact report highlighting efforts in environmental, social, and governance matters [34] Q&A Session Summary Question: Clarification on first half results and guidance - Management confirmed that first half results were largely in line with expectations, with stronger international performance offsetting US softness [38] Question: Insights on DTC performance and consumer behavior - Management acknowledged pressure on DTC sales but expects improvements with upcoming website refresh and marketing efforts [42][79] Question: Impact of tariffs on gross margins - Management indicated that tariffs are expected to impact gross margins by approximately $15 to $20 million in the third quarter [45] Question: Inventory composition and markdown perspective - Management expressed confidence in inventory composition, stating it is in excellent shape and flat to slightly down year over year [56] Question: Opportunities for improvement under new organizational structure - Management anticipates immediate results from the new structure, enhancing market approach and consumer engagement [64]

Financial Performance - Net sales increased by 6% from $570.2 million to $605.2 million[36] - Gross margin expanded by 120 bps to 49.1%[28, 58] - Operating margin improved by 30 bps to -3.9%[30, 36] - Diluted EPS increased by 5% to -$0.19[30, 36] Regional Performance - U S net sales decreased by 2% to $335 million[40] - LAAP net sales increased by 13% to $112 million[40] - EMEA net sales increased by 26% to $131 million[40] - Canada net sales increased by 2% to $27 million[40] Brand & Channel Performance - Columbia brand net sales increased by 8% to $548 million[50] - SOREL brand net sales decreased by 10% to $19 million[51] - Wholesale net sales increased by 14% to $317 million[53] - DTC net sales decreased by 1% to $288 million[54] Balance Sheet & Outlook - Cash, cash equivalents, and short-term investments totaled $579 million[33, 70] - Inventory increased by 13% to $926.9 million[31, 71] - The company expects net sales of $3.33 billion to $3.40 billion for 2025, representing a 1% decline to a 1% increase compared to 2024[81]

[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]