Columbia Sportswear’s third quarter results were met with disappointment by the market, reflecting challenges in the U.S. and margin compression despite a slight revenue increase. Management pointed to continued strength in international markets, notably Europe and China, as offsetting weaker domestic demand. CEO Tim Boyle explained, “Our strong financial performance in these [international] markets demonstrates our ability to effectively reach younger and more active consumers.” However, persistent softness in U.S. direct-to-consumer sales and higher tariff-related costs weighed on profitability.
Is now the time to buy COLM? Find out in our full research report (it’s free for active Edge members).
Columbia Sportswear (COLM) Q3 CY2025 Highlights:
- Revenue: $943.4 million vs analyst estimates of $918.7 million (1.3% year-on-year growth, 2.7% beat)
- EPS (GAAP): $0.95 vs analyst expectations of $1.18 (19.5% miss)
- Adjusted EBITDA: $117.5 million vs analyst estimates of $110.6 million (12.5% margin, 6.3% beat)
- Revenue Guidance for Q4 CY2025 is $1.02 billion at the midpoint, below analyst estimates of $1.07 billion
- EPS (GAAP) guidance for the full year is $2.70 at the midpoint, missing analyst estimates by 15.7%
- Operating Margin: 7.1%, down from 12.1% in the same quarter last year
- Constant Currency Revenue fell 1% year on year, in line with the same quarter last year
- Market Capitalization: $2.87 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Columbia Sportswear’s Q3 Earnings Call
- Robert Drbul (BTIG) asked about the product pipeline after the successful launches of the Amaze Puff and Bugaboot 1. CEO Tim Boyle said there are more new products coming, including a men’s Amaze Puff and additional retro footwear.
- John Kernan (TD) questioned the company’s confidence in offsetting a $160 million unmitigated tariff impact in 2026. CEO Tim Boyle pointed to Columbia’s historical expertise in navigating tariffs and ongoing mitigation actions.
- Paul Lejuez (Citigroup) inquired about the sustainability of lower promotional activity and its effect on margins. CFO Jim Swanson said reduced clearance activity is a tailwind, with healthy dealer margins expected to continue.
- Peter McGoldrick (Stifel) sought clarity on the DTC segment’s softness and whether the new brand platform was boosting sales. Boyle and Swanson attributed most of the decline to fewer clearance stores, with early digital brand engagement showing promise.
- Laurent Vasilescu (BNP Paribas) asked for more detail on the magnitude of expected U.S. sales declines and the elasticity of demand in light of price increases. Management acknowledged retailer caution but expressed confidence in international growth offsetting U.S. softness.
Catalysts in Upcoming Quarters
In the coming quarters, we will be closely monitoring (1) the pace and impact of new product launches under the ACCELERATE Growth Strategy, (2) the effectiveness of tariff mitigation measures and the acceptance of higher prices by U.S. consumers, and (3) the sustainability of international sales momentum, especially in Europe and China. The ability to achieve SG&A leverage and margin improvement will also serve as a key indicator of execution.
Columbia Sportswear currently trades at $51.31, in line with $51.46 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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