Columbia Sportswear Company closed 2025 with softer top line trends but stronger than expected profitability and a rock solid balance sheet, while setting cautious but positive guidance for 2026 as its accelerate growth strategy and “Engineered for Whatever” brand platform begin to gain traction. Net sales dipped in the fourth quarter but rose modestly for the full year, even as tariffs, brand impairments, and profit improvement costs weighed on operating income.
Fourth Quarter 2025: Sales Dip, Margins Hold
In the fourth quarter ended December 31, 2025, net sales fell 2% to $1.07 billion (down 3% in constant currency) versus $1.10 billion a year earlier, mainly due to earlier shipment of Fall ’25 wholesale orders and ongoing U.S. softness. International growth and a modest increase in direct to consumer (DTC) partially offset the decline.
Despite lower sales, gross margin expanded 50 basis points to 51.6%, helped by healthier inventory, less clearance,…
and lower inventory loss provisions, offset by about $20 million in incremental U.S. tariffs before mitigation. Operating income declined 15% to $116.7 million, or 10.9% of net sales, from $137.3 million and a 12.5% margin in Q4 2024.
Net income was $93.2 million, or $1.73 per diluted share, versus $102.6 million and $1.80 per diluted share a year earlier. Full Year 2025: Slight Growth, Tariffs and Impairments Bite For full year 2025, net sales edged up 1% to $3.40 billion (flat in constant currency) from $3.37 billion in 2024.
Gross margin improved 30 basis points to 50.5%, even after absorbing around $31 million in incremental U.S. tariffs ahead of mitigation actions.
Operating income fell 24% to $207.0 million, or 6.1% of net sales, compared with $270.7 million and an 8.0% margin in 2024, weighed down by $29.0 million of impairment charges tied to prAna and Mountain Hardwear…
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