Columbia Sportswear 2025 Q3 Earnings Revenue Grows 1.3% Despite 42.3% Net Income Drop

Columbia Sportswear (COLM) reported fiscal 2025 Q3 earnings on Nov 6, 2025, with revenue rising 1.3% year-over-year to $943.42 million, outpacing expectations. However, net income fell 42.3% to $52.01 million, and the company maintained its full-year guidance of 6–8% revenue growth.

Revenue

Columbia Sportswear’s Q3 revenue rose to $943.42 million, driven by robust performance in apparel, accessories, and equipment, which contributed $734.32 million. Footwear revenue added $209.11 million, reflecting mixed demand dynamics across segments. The growth in outdoor apparel and accessories offset challenges in footwear, where supply chain constraints weighed on performance.

Earnings/Net Income

The company’s EPS declined 39.1% to $0.95 in Q3 2025, compared to $1.56 in the prior-year period. Net income dropped to $52.01 million, a 42.3% year-over-year decline, underscoring margin pressures despite revenue growth. The EPS shortfall highlights operational challenges, including cost inflation and tariff impacts.

Price Action

Columbia Sportswear’s stock has seen a 2.12% drop in the latest trading day, 1.44% decline for the week, and a 2.44% monthly slump, reflecting investor caution amid mixed earnings results.

Post-Earnings Price Action Review

The strategy of buying COLM after revenue beats and holding for 30 days has historically shown favorable outcomes, supported by recent data. For instance, Q3 earnings of $1.41 per share exceeded the Zacks Consensus Estimate by 16.53%, and the company has surpassed revenue estimates four times in four quarters. While the stock initially dipped post-announcement, historical trends suggest short-term gains as the market digests positive news. Long-term growth is bolstered by 1.3% year-on-year revenue expansion and double-digit sales growth in Europe, though U.S. net sales declines and tariff pressures remain risks. Analysts have revised EPS estimates downward by 9.8% over 30 days, signaling caution.

CEO Commentary

CEO Tim Boyle highlighted “strong execution in Q3,” emphasizing double-digit growth in outdoor apparel and accessories while acknowledging footwear supply chain challenges. He reiterated investments in sustainability and digital commerce, stating, “We’re accelerating our shift to renewable materials,” and expressed confidence in long-term positioning despite macroeconomic headwinds.

Guidance

The company reaffirmed full-year 2025 revenue growth of 6–8% and adjusted EPS of $3.75–$3.90, citing cost optimization and product mix improvements. Capital expenditures of $120–$130 million will prioritize technology upgrades and sustainable manufacturing, aligning with Q3’s inventory discipline and stable core category demand.

Additional News

Columbia Sportswear’s price target was cut to $55.00 by Citigroup on Nov 4, 2025, from $61.00, reflecting a 9.39% potential upside. Institutional investors, including Deutsche Bank AG and Trexquant Investment LP, increased holdings in Q1 2025, signaling confidence in the company’s strategic direction. Meanwhile, tariffs and U.S. sales declines remain near-term risks, though management is addressing these through price adjustments and vendor negotiations.