Columbia Sportswear Company Reports First Quarter 2025 Financial Results; Withdraws Full Year 2025 Financial Outlook Due to Tariff Uncertainty
First Quarter 2025 Highlights
-
Net sales increased 1 percent (3 percent constant-currency) to
$778.5 million , compared to first quarter 2024. -
Operating income increased 4 percent to
$46.5 million , or 6.0 percent of net sales, compared to first quarter 2024 operating income of$44.7 million , or 5.8 percent of net sales. -
Diluted earnings per share increased 6 percent to
$0.75 , compared to first quarter 2024 diluted earnings per share of$0.71 . -
Exited the quarter with
$658.4 million of cash, cash equivalents and short-term investments and no borrowings. -
The Company repurchased
$101.4 million of common stock during the quarter.
Full Year 2025 Financial Outlook
Due to macroeconomic uncertainty stemming from global trade policies, the Company is withdrawing its full year 2025 financial outlook that was provided on
Additional disclosures and second quarter 2025 financial outlook details can be found in the Second Quarter 2025 Financial Outlook section below and the CFO Commentary and Financial Review presentation.
Chairman, President and Chief Executive Officer
“In light of macro-economic uncertainty resulting from
“I believe the Columbia brand’s exceptional value is a competitive advantage. As part of our ACCELERATE Growth Strategy, we remain committed to increasing investments in demand creation to bring our new highly differentiated marketing campaign and enhanced product assortment to life this Fall.
“Our fortress balance sheet, with
- accelerate profitable growth;
- create iconic products that are differentiated, functional and innovative;
- drive brand engagement through increased, focused demand creation investments;
- enhance consumer experiences by investing in capabilities to delight and retain consumers;
- amplify marketplace excellence, with digitally-led, omni-channel, global distribution; and
- empower talent that is driven by our core values, through a diverse and inclusive workforce."
CFO's Commentary and Financial Review Presentation Available Online
For a detailed review of the Company's first quarter 2025 financial results, please refer to the CFO Commentary and Financial Review presentation furnished to the
ACCELERATE Growth Strategy
ACCELERATE is a growth strategy intended to elevate the Columbia brand to attract younger and more active consumers. It is a multi-year effort centered around several consumer-centric shifts to our brand, product and marketplace strategies, as well as enhanced ways of working. For more information on the ACCELERATE Growth Strategy, please refer to the CFO Commentary and Financial Review presentation.
First Quarter 2025 Financial Results
(All comparisons are between first quarter 2025 and first quarter 2024, unless otherwise noted.)
Net sales increased 1 percent (3 percent constant-currency) to
Gross margin expanded 30 basis points to 50.9 percent of net sales from 50.6 percent of net sales for the comparable period in 2024. Gross margin expansion reflected several factors including lower outbound shipping expenses, higher closeout margins and favorable Spring 2025 product input costs, partially offset by unfavorable FX hedging rates.
SG&A expenses were
Operating income increased 4 percent to
Interest income, net of
Income tax expense of
Net income was relatively flat at
Balance Sheet as of
Cash, cash equivalents, and short-term investments totaled
The Company had no borrowings as of either
Inventories increased 3 percent to
Cash Flow for the Three Months Ended
Net cash used in operating activities was
Capital expenditures totaled
Share Repurchases for the Three Months Ended
The Company repurchased 1,251,784 shares of common stock for an aggregate of
At
Quarterly Cash Dividend
The Board of Directors approved a regular quarterly cash dividend of
Full Year 2025 Financial Outlook
(Additional financial outlook details can be found in the CFO Commentary and Financial Review presentation.)
Due to macroeconomic uncertainty stemming from global trade policies, the Company is withdrawing its full year 2025 financial outlook that was provided on
Second Quarter 2025 Financial Outlook
The Company's Second Quarter 2025 Financial Outlook is forward-looking in nature, and the following forward-looking statement reflects our expectations as of
-
Net sales are expected to be
$575 to$600 million , representing growth of 1 to 5 percent from$570.2 million for the comparable period in 2024.
Conference Call
The Company will hold its first quarter 2025 conference call at
Second Quarter 2025 Reporting Date
The Company plans to report second quarter 2025 financial results on
Supplemental Financial Information
Since
The non-GAAP financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" table included herein. The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company’s expectations, anticipations or beliefs about the Company's ability to realize growth opportunities, drive long-term market share gains and manage expenses, financial position, marketing strategies, timing and payment of dividends, and second quarter 2025 net sales. Forward-looking statements often use words such as "will," "anticipate," "estimate," "expect," "should," "may," "plan" and other words and terms of similar meaning or reference future dates. The Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties that may affect our future revenues, earnings and performance and could cause the actual results of operations or financial condition of the Company to differ materially from the anticipated results expressed or implied by forward-looking statements in this document include: loss of key customer accounts; our ability to execute our ACCELERATE Growth Strategy; our ability to execute and realize cost savings related to our Profit Improvement Plan; our ability to effectively execute our business strategies, including initiatives to upgrade our business processes and information technology (“IT”) systems and investments in our DTC businesses; our ability to maintain the strength and security of our IT systems; the effects of unseasonable weather, including global climate change; the seasonality of our business and timing of orders; trends affecting consumer spending, including changes in the level of consumer spending, and retail traffic patterns; unfavorable economic conditions generally; the financial health of our customers and retailer consolidation; higher than expected rates of order cancellations; changes affecting consumer demand and preferences and fashion trends; changes in international, federal or state tax, labor and other laws and regulations that affect our business, including changes in corporate tax rates, tariffs, international trade policy and geopolitical tensions, or increasing wage rates; our ability to attract and retain key personnel; risks inherent in doing business in foreign markets, including fluctuations in currency exchange rates, global credit market conditions, changes in global regulation and economic and political conditions and disease outbreaks; volatility in global production and transportation costs and capacity and timing; our ability to effectively manage our inventory and our wholesale customer’s to manage their inventories; our dependence on third-party manufacturers and suppliers and our ability to source at competitive prices from them or at all; the effectiveness of our sales and marketing efforts; business disruptions and acts of terrorism, cyber-attacks or military activities around the globe; intense competition in the industry; our ability to establish and protect our intellectual property; and our ability to develop innovative products. The Company cautions that forward-looking statements are inherently less reliable than historical information. The Company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time and it is not possible for the Company to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.
About
|
|
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
(Unaudited) |
||||||||
|
|
|
As of |
||||||
|
(in thousands) |
|
|
2025 |
|
|
2024 |
||
|
ASSETS |
|
|
|
|
||||
|
Current Assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
323,339 |
|
$ |
418,462 |
||
|
Short-term investments |
|
|
335,076 |
|
|
369,270 |
||
|
Accounts receivable, net |
|
|
387,850 |
|
|
366,375 |
||
|
Inventories |
|
|
623,700 |
|
|
607,373 |
||
|
Prepaid expenses and other current assets |
|
|
71,371 |
|
|
84,738 |
||
|
Total current assets |
|
|
1,741,336 |
|
|
1,846,218 |
||
|
Property, plant and equipment, net |
|
|
282,605 |
|
|
277,947 |
||
|
Operating lease right-of-use assets |
|
|
408,048 |
|
|
361,103 |
||
|
Intangible assets, net |
|
|
79,221 |
|
|
79,496 |
||
|
|
|
|
26,694 |
|
|
26,694 |
||
|
Deferred income taxes |
|
|
104,747 |
|
|
100,162 |
||
|
Other non-current assets |
|
|
64,764 |
|
|
70,611 |
||
|
Total assets |
|
$ |
2,707,415 |
|
$ |
2,762,231 |
||
|
LIABILITIES AND EQUITY |
|
|
|
|
||||
|
Current Liabilities: |
|
|
|
|
||||
|
Accounts payable |
|
$ |
268,504 |
|
$ |
150,131 |
||
|
Accrued liabilities |
|
|
205,328 |
|
|
216,903 |
||
|
Operating lease liabilities |
|
|
76,314 |
|
|
71,550 |
||
|
Income taxes payable |
|
|
8,637 |
|
|
8,722 |
||
|
Total current liabilities |
|
|
558,783 |
|
|
447,306 |
||
|
Non-current operating lease liabilities |
|
|
380,562 |
|
|
340,310 |
||
|
Income taxes payable |
|
|
14,052 |
|
|
26,262 |
||
|
Deferred income taxes |
|
|
320 |
|
|
— |
||
|
Other long-term liabilities |
|
|
43,931 |
|
|
38,910 |
||
|
Total liabilities |
|
|
997,648 |
|
|
852,788 |
||
|
Total shareholders' equity |
|
|
1,709,767 |
|
|
1,909,443 |
||
|
Total liabilities and shareholders' equity |
|
$ |
2,707,415 |
|
$ |
2,762,231 |
||
|
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
(Unaudited) |
||||||||
|
|
|
Three Months Ended |
||||||
|
(In thousands, except per share amounts) |
|
|
2025 |
|
|
|
2024 |
|
|
Net sales |
|
$ |
778,452 |
|
|
$ |
769,982 |
|
|
Cost of sales |
|
|
382,395 |
|
|
|
380,423 |
|
|
Gross profit |
|
|
396,057 |
|
|
|
389,559 |
|
|
Gross margin |
|
|
50.9 |
% |
|
|
50.6 |
% |
|
|
|
|
|
|
||||
|
Selling, general and administrative expenses |
|
|
354,471 |
|
|
|
349,270 |
|
|
Net licensing income |
|
|
4,922 |
|
|
|
4,392 |
|
|
Operating income |
|
|
46,508 |
|
|
|
44,681 |
|
|
Interest income, net |
|
|
6,817 |
|
|
|
9,197 |
|
|
Other non-operating income, net |
|
|
1,551 |
|
|
|
271 |
|
|
Income before income tax |
|
|
54,876 |
|
|
|
54,149 |
|
|
Income tax expense |
|
|
12,628 |
|
|
|
11,849 |
|
|
Net income |
|
$ |
42,248 |
|
|
$ |
42,300 |
|
|
|
|
|
|
|
||||
|
Earnings per share: |
|
|
|
|
||||
|
Basic |
|
$ |
0.76 |
|
|
$ |
0.71 |
|
|
Diluted |
|
$ |
0.75 |
|
|
$ |
0.71 |
|
|
Weighted average shares outstanding: |
|
|
|
|
||||
|
Basic |
|
|
55,734 |
|
|
|
59,823 |
|
|
Diluted |
|
|
55,983 |
|
|
|
59,998 |
|
|
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Unaudited) |
||||||||
|
|
|
Three Months Ended |
||||||
|
(in thousands) |
|
|
2025 |
|
|
|
2024 |
|
|
Cash flows from operating activities: |
|
|
|
|
||||
|
Net income |
|
$ |
42,248 |
|
|
$ |
42,300 |
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
13,465 |
|
|
|
15,070 |
|
|
Non-cash lease expense |
|
|
20,921 |
|
|
|
18,603 |
|
|
Provision for uncollectible accounts receivable |
|
|
763 |
|
|
|
1,033 |
|
|
Deferred income taxes |
|
|
2,658 |
|
|
|
1,232 |
|
|
Share-based compensation |
|
|
5,224 |
|
|
|
5,644 |
|
|
Other, net |
|
|
(2,385 |
) |
|
|
(4,198 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
|
Accounts receivable |
|
|
33,254 |
|
|
|
50,409 |
|
|
Inventories |
|
|
71,634 |
|
|
|
131,721 |
|
|
Prepaid expenses and other current assets |
|
|
7,868 |
|
|
|
(511 |
) |
|
Other assets |
|
|
4,252 |
|
|
|
(2,055 |
) |
|
Accounts payable |
|
|
(117,346 |
) |
|
|
(77,004 |
) |
|
Accrued liabilities |
|
|
(71,010 |
) |
|
|
(49,050 |
) |
|
Income taxes payable |
|
|
(22,227 |
) |
|
|
(8,128 |
) |
|
Operating lease assets and liabilities |
|
|
(21,609 |
) |
|
|
(18,410 |
) |
|
Other liabilities |
|
|
252 |
|
|
|
117 |
|
|
Net cash provided by (used in) operating activities |
|
|
(32,038 |
) |
|
|
106,773 |
|
|
Cash flows from investing activities: |
|
|
|
|
||||
|
Purchases of short-term investments |
|
|
(152,779 |
) |
|
|
(58,974 |
) |
|
Sales and maturities of short-term investments |
|
|
106,913 |
|
|
|
110,878 |
|
|
Capital expenditures |
|
|
(15,565 |
) |
|
|
(14,795 |
) |
|
Net cash provided by (used in) investing activities |
|
|
(61,431 |
) |
|
|
37,109 |
|
|
Cash flows from financing activities: |
|
|
|
|
||||
|
Proceeds from issuance of common stock related to share-based compensation |
|
|
4,931 |
|
|
|
1,106 |
|
|
Tax payments related to share-based compensation |
|
|
(5,550 |
) |
|
|
(4,354 |
) |
|
Repurchase of common stock |
|
|
(101,430 |
) |
|
|
(50,168 |
) |
|
Cash dividends paid |
|
|
(16,600 |
) |
|
|
(17,927 |
) |
|
Net cash used in financing activities |
|
|
(118,649 |
) |
|
|
(71,343 |
) |
|
Net effect of exchange rate changes on cash |
|
|
3,588 |
|
|
|
(4,396 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
|
(208,530 |
) |
|
|
68,143 |
|
|
Cash and cash equivalents, beginning of period |
|
|
531,869 |
|
|
|
350,319 |
|
|
Cash and cash equivalents, end of period |
|
$ |
323,339 |
|
|
$ |
418,462 |
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
|
Cash paid during the year for income taxes |
|
$ |
35,832 |
|
|
$ |
29,070 |
|
|
Supplemental disclosures of non-cash investing and financing activities: |
|
|
|
|
||||
|
Property, plant and equipment acquired through increase in liabilities |
|
$ |
8,712 |
|
|
$ |
3,492 |
|
|
|
|||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||||||||||||||
|
Net Sales Growth - Constant-currency Basis |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
|
Three Months Ended |
|||||||||||||||||
|
|
|
Reported
|
|
Adjust for Foreign Currency |
|
Constant-currency
|
|
Reported
|
|
Reported
|
|
Constant-currency
|
|||||||
|
(In thousands, except percentage changes) |
|
|
2025 |
|
Translation |
|
|
2025(1) |
|
|
2024 |
|
% Change |
|
% Change(1) |
||||
|
Geographical |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
$ |
471,181 |
|
$ |
— |
|
$ |
471,181 |
|
|
$ |
474,406 |
|
(1 |
)% |
|
(1 |
)% |
|
|
|
|
152,210 |
|
|
5,263 |
|
|
157,473 |
|
|
|
138,646 |
|
10 |
% |
|
14 |
% |
|
|
|
|
107,480 |
|
|
4,438 |
|
|
111,918 |
|
|
|
104,520 |
|
3 |
% |
|
7 |
% |
|
|
|
|
47,581 |
|
|
3,590 |
|
|
51,171 |
|
|
|
52,410 |
|
(9 |
)% |
|
(2 |
)% |
|
Total |
|
$ |
778,452 |
|
$ |
13,291 |
|
$ |
791,743 |
|
|
$ |
769,982 |
|
1 |
% |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Brand |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Columbia |
|
$ |
683,121 |
|
$ |
12,470 |
|
$ |
695,591 |
|
|
$ |
663,965 |
|
3 |
% |
|
5 |
% |
|
SOREL |
|
|
42,205 |
|
|
515 |
|
|
42,720 |
|
|
|
45,660 |
|
(8 |
)% |
|
(6 |
)% |
|
prAna |
|
|
28,114 |
|
|
8 |
|
|
28,122 |
|
|
|
31,298 |
|
(10 |
)% |
|
(10 |
)% |
|
|
|
|
25,012 |
|
|
298 |
|
|
25,310 |
|
|
|
29,059 |
|
(14 |
)% |
|
(13 |
)% |
|
Total |
|
$ |
778,452 |
|
$ |
13,291 |
|
$ |
791,743 |
|
|
$ |
769,982 |
|
1 |
% |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Product Category |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Apparel, Accessories and Equipment |
|
$ |
628,820 |
|
$ |
10,312 |
|
$ |
639,132 |
|
|
$ |
619,054 |
|
2 |
% |
|
3 |
% |
|
Footwear |
|
|
149,632 |
|
|
2,979 |
|
|
152,611 |
|
|
|
150,928 |
|
(1 |
)% |
|
1 |
% |
|
Total |
|
$ |
778,452 |
|
$ |
13,291 |
|
$ |
791,743 |
|
|
$ |
769,982 |
|
1 |
% |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Channel |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Wholesale |
|
$ |
399,769 |
|
$ |
6,421 |
|
$ |
406,190 |
|
|
$ |
390,897 |
|
2 |
% |
|
4 |
% |
|
DTC |
|
|
378,683 |
|
|
6,870 |
|
|
385,553 |
|
|
|
379,085 |
|
— |
% |
|
2 |
% |
|
Total |
|
$ |
778,452 |
|
$ |
13,291 |
|
$ |
791,743 |
|
|
$ |
769,982 |
|
1 |
% |
|
3 |
% |
|
(1) Constant-currency net sales is a non-GAAP financial measure. See “Supplemental Financial Information” above for further information. |
|||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250501515354/en/
Vice President of Investor Relations and Strategic Planning
(503) 985-4112
investorrelations@columbia.com
Source:
