Columbia(COLM) - 2025 Q1 - Quarterly Results

Q1 2025 Financial Results Overview First Quarter 2025 Highlights 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] - 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] - 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][10] Financial Performance Analysis 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] - 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] - 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] - 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] Balance Sheet and Cash Flow 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] - Capital expenditures totaled $15.6 million, a slight increase from $14.8 million in the prior year period[20] Shareholder Returns 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] - As of March 31, 2025, $526.1 million remained available under the stock repurchase authorization[21] - A quarterly cash dividend of $0.30 per share was approved, payable on June 5, 2025[22] Financial Outlook Full Year 2025 Outlook 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][23] - The withdrawal is a result of macroeconomic uncertainty stemming from global trade policies and ambiguous public policy regarding U.S. tariffs[2][5][23] Second Quarter 2025 Outlook 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] Performance by Segment (Non-GAAP) Geographical, Brand, Category, and Channel Net Sales 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) Condensed Consolidated Balance Sheets 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 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 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 |