Columbia Sportswear 2025 Q3 Earnings Revenue Grows 1.3%, Net Income Falls 42.3%

Columbia Sportswear (COLM) reported fiscal 2025 Q3 earnings on Nov 06, 2025, with revenue rising 1.3% year-over-year to $943.42 million. However, the company’s net income and EPS declined sharply, reflecting margin pressures. Guidance for full-year 2025 revenue of $3.9 billion and Q4 EPS of $1.20 signals cost discipline and inventory optimization efforts.

Revenue

Apparel, accessories, and equipment drove the majority of revenue at $734.32 million, with footwear contributing $209.11 million. The combined total of $943.42 million marked a modest 1.3% increase from the prior year’s $931.77 million.

Earnings/Net Income

Columbia Sportswear’s EPS dropped 39.1% to $0.95 in Q3 2025, down from $1.56 in Q3 2024, while net income fell to $52.01 million, a 42.3% decline from $90.16 million. The significant reduction in profitability highlights ongoing operational challenges despite revenue growth.

Price Action

The stock price of COLM has declined across multiple timeframes, falling 2.12% in the latest trading day, 1.44% over the past week, and 2.44% month-to-date.

Post-Earnings Price Action Review

The strategy of buying COLM on revenue beats and holding for 30 days has historically shown favorable outcomes, supported by a 16.53% earnings surprise in the latest report. Despite an initial post-earnings dip, the company’s international sales growth and strategic investments in sustainability and digital engagement suggest potential for recovery. However, downward revisions in analyst expectations and risks like U.S. sales declines and tariffs could temper gains.

CEO Commentary

CFO Tim Boyle highlighted resilience in core outdoor and winter categories, which drove 8% year-over-year revenue growth, though e-commerce channels in North America faced margin pressures. The CEO emphasized product innovation, sustainability, and direct-to-consumer engagement to strengthen brand loyalty. Leadership expressed cautious optimism, citing agility in navigating macroeconomic uncertainties while maintaining profitability.

Guidance

The company guided to full-year 2025 revenue of $3.9 billion, with Q4 EPS expected to reach $1.20, reflecting cost discipline and inventory optimization. CAPEX will prioritize digital transformation and supply chain efficiency, aligning with cash flow sustainability. Management aims to balance near-term margin protection with long-term market share expansion in key geographies.

Additional News

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No significant non-earnings-related news was reported by Columbia Sportswear within the three-week period preceding the earnings release. The company remains focused on its core operational and strategic initiatives, with no publicized M&A activity, C-level changes, or dividend/buyback announcements during this timeframe.