The company highlighted several 2025 themes, including broad-based international growth, early traction for its Columbia brand “Accelerate Growth Strategy,” and the “Engineered for Whatever” marketing platform launched in August. Management also said inventories were “healthy and essentially flat” exiting 2025, inclusive of increased tariff costs in the U.S., and that SG&A growth slowed as spending was optimized to support increased marketing.For the full year 2025, management said net sales rose 1% to $3.4 ...

Columbia Sportswear Company (NasdaqGS:COLM) Q4 2025 Earnings call February 03, 2026 05:00 PM ET Company ParticipantsJim Swanson - EVP and CFOMauricio Serna - Director of Equity ResearchPeter Bragdon - Co-PresidentReed Anderson - Managing DirectorTim Boyle - Chairman and CEOConference Call ParticipantsLaurent Vasilescu - Managing Director and Senior Equity AnalystMitch Kummetz - Senior Equity AnalystPeter McGoldrick - Equity Research AnalystRobert Drbul - Managing Director and Consumer Retail AnalystTom Niki ...

Columbia Sportswear Company (NasdaqGS:COLM) Q4 2025 Earnings call February 03, 2026 05:00 PM ET Company ParticipantsJim Swanson - EVP and CFOMauricio Serna - Director of Equity ResearchPeter Bragdon - EVP, Chief Administrative Officer, and General CounselReed Anderson - Managing DirectorTim Boyle - Chairman and CEOConference Call ParticipantsLaurent Vasilescu - Managing Director and Senior Equity AnalystMitch Kummetz - Senior Equity AnalystPeter McGoldrick - Equity Research AnalystRobert Drbul - Managing Di ...

Financial Data and Key Metrics Changes - Net sales increased by 1% year-over-year to $943 million, driven by earlier-than-planned shipments of Fall '25 wholesale orders [7][8] - Gross margin declined by 20 basis points to 50% due to higher tariff expenses and foreign exchange headwinds [7][8] - SG&A expenses increased by 5%, reflecting investments in demand creation for the new brand platform [8][54] - Diluted earnings per share were $0.95, impacted by $0.46 from non-cash impairment charges related to Prana and Mountain Hardwear [8][20] Business Line Data and Key Metrics Changes - U.S. net sales decreased by 4%, with wholesale business flat and direct-to-consumer (DTC) net sales declining by high single digits [8][9] - International sales showed growth, with LAAP net sales increasing by 6% and China net sales increasing by mid-single-digit percentages [9][10] - Sorel net sales increased by 10%, while Prana net sales grew by 6% [17][18] - Mountain Hardwear net sales decreased by 5%, but full-price sales showed healthy growth [18][19] Market Data and Key Metrics Changes - U.S. DTC sales were down high single digits, primarily due to the closure of temporary clearance locations [9][50] - E-commerce sales declined by low double digits, reflecting soft traffic and demand trends [9][10] - Canada net sales increased by 7%, driven by earlier shipments of Fall 2025 wholesale orders [12] - EME net sales increased by 10%, with Europe direct net sales growing by low double digits [12] Company Strategy and Development Direction - The company is focused on revitalizing the Columbia brand in the U.S. through the Accelerate Growth strategy and the new global brand platform, "Engineered for Whatever" [5][6] - The strategy includes a robust marketing pipeline and product differentiation to engage younger consumers [5][6] - The company aims to offset tariff impacts through price increases and other mitigation tactics while restoring product margin percentages to historic levels [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by tariffs and the competitive environment, emphasizing the importance of brand revitalization [6][30] - The company anticipates a decline in net sales of 5% to 8% year-over-year for Q4, with full-year net sales outlook at $3.3 billion to $3.4 billion [20][21] - For 2026, the company expects flat to low single-digit wholesale growth in the first half, driven by sustained international growth [21][22] Other Important Information - The company incurred $29 million in non-cash impairment charges during the quarter, primarily due to tariff impacts [8][20] - Columbia launched a redesigned website to enhance product discovery and consumer engagement [14][15] - The company is actively engaging in unique marketing activations, including a scavenger hunt in New York City to promote brand awareness [16][17] Q&A Session Summary Question: Impact of the Bugaboo re-release - The collaboration on the Bugaboo One involved both the CEO and his mother, with the CEO handling product work and his mother focusing on the name [23] Question: Future product pipeline - The company plans to introduce more products in the Amaze family and original Peter Moore designs, indicating strong sales velocity [24][25] Question: Confidence in offsetting tariff impacts - Management expressed confidence in navigating tariff challenges through price increases and strategic factory partnerships [30] Question: SG&A rate recovery - The company aims to achieve SG&A leverage through growth and cost reduction initiatives, with a focus on marketing investments [31][32] Question: Promotional levels and inventory - The company noted lower promotions compared to the previous year, with healthy margins in the marketplace [34] Question: U.S. DTC performance - The decline in U.S. DTC was primarily due to fewer temporary clearance stores, with digital visibility being a key focus [50] Question: Gross margin outlook - The fourth quarter is expected to see a heavier tariff impact, with gross margin anticipated to decline more than in Q3 [45] Question: Channel inventory levels - Current channel inventories are considered healthy, with no significant buildup observed [46]