We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Columbia Sportswear Q4 Earnings Beat Estimates, Sales Down Y/Y
Read MoreHide Full Article
Key Takeaways
COLM posted Q4 EPS of $1.73 and sales of $1.07B, beating estimates even as both declined year over year.
Columbia Sportswear saw U.S. sales fall 8%, offset by DTC growth and 8% gains across EMEA and Asia Pacific.
COLM expanded gross margin 50 bps on better inventory quality, though higher U.S. tariffs cut about $20M.
Columbia Sportswear Company (COLM - Free Report) reported fourth-quarter 2025 results, wherein both sales and earnings beat the Zacks Consensus Estimate. However, both top and bottom lines decreased year over year.
The company reported fourth-quarter results above guidance, driven by stronger-than-expected demand in the United States, despite ongoing challenges in the domestic market. International markets continued to grow and early signs suggest the company’s ACCELERATE Growth Strategy, supported by new product launches and refreshed marketing, is gaining traction with consumers.
This designer, marketer and distributor of outdoor and active lifestyle apparel, footwear and accessories reported earnings of $1.73 per share, surpassing the Zacks Consensus Estimate of $1.22. However, the bottom line decreased 3.9% from $1.80 reported in the prior-year period.
Columbia Sportswear Company Price, Consensus and EPS Surprise
The company generated net sales of $1,070.2 million, which exceeded the Zacks Consensus Estimate of $1,037 million. The metric fell 2.4% from the year-ago period. The decline was largely timing-related, as some Fall 2025 wholesale shipments were pulled forward into earlier periods. This was partly offset by continued momentum in the direct-to-consumer (“DTC”) channel and solid performance in international markets, which helped cushion weaker demand in the United States. Net sales decreased 3% at constant currency.
Gross profit decreased 1.6% year over year to $551.7 million. The gross margin increased 50 basis points (bps) to 51.6%, which fared better than our estimate of 50.7%, mainly driven by improved inventory quality that reduced markdowns and promotional activity, along with lower inventory write-downs. These benefits were partially offset by higher U.S. tariffs, which negatively affected gross margin by $20 million before mitigation measures.
SG&A expenses were up 2.5% to $441.5 million from $430.6 million reported in the year-ago quarter. As a percentage of sales, the same increased 200 bps to 41.3%. The increase was primarily driven by higher DTC-related spending and one-time costs tied to the company’s profit improvement initiatives. These increases were partly offset by savings in technology and supply-chain operations.
Columbia Sportswear reported an operating income of $116.7 million, down 15% from the year-ago quarter. Operating margin decreased 160 bps to 10.9%.
COLM’s Sales by Channels & Regional Segments
In the United States, net sales declined 8% year over year to $626 million, which slightly missed our estimate of $633.3 million. Net sales surged 8% to $174.4 million in Europe, the Middle East and Africa, surpassing our estimate of $147.1 million. Latin America and Asia Pacific net sales grew 8% to $203.2 million, beating our estimate of $186.3 million. In Canada, net sales increased 2% to $66.5 million, which lagged our estimate of $74.4 million.
During the quarter, DTC sales increased 1% to $640.8 million. Our model expected total DTC sales of $610.1 million for the quarter. Wholesale channel sales went down 7% to $429.4 million, which missed our estimate of $431 million.
COLM’s Sales by Product Category & Brand
Net sales in the Apparel, Accessories and Equipment category inched down 2% to $855 million, which beat our estimate of $816.8 million. Footwear's net sales fell 5% to $215.3 million, which lagged our estimate of $224.3 million.
Columbia, SOREL and Mountain Hardwear brands registered sales declines of 1%, 18% and 5%, respectively. Sales for the prAna brand increased 6% year over year.
Other Financial Updates of COLM
The company ended the quarter with cash and cash equivalents of $442 million, short-term investments of $348.8 million and shareholders’ equity of almost $1,710.1 million. COLM had no debt on its balance sheet as of Dec. 31, 2025. Inventories remained broadly stable at $689.5 million compared with $690.5 million reported in the year-ago quarter.
For the year ended Dec. 31, 2025, Columbia Sportswear’s cash provided by operating activities was $282.9 million and capital expenditures were $66.2 million.
For the 12 months ended Dec. 31, 2025, the company repurchased 2,972,889 shares of common stock for a total of $201.1 million. As of Dec. 31, 2025, $426.5 million remained available under its stock repurchase authorization. Management announced a regular quarterly cash dividend of 30 cents per share, payable on March 20, 2026, to its shareholders of record as of March 9.
What to Expect From COLM Ahead
For 2026, the company expects net sales to grow 1% to 3%, implying revenues of $3.43 billion to $3.50 billion, up from $3.40 billion in 2025. Favorable foreign exchange movements are anticipated to contribute roughly 50-100 basis points to reported sales growth.
Gross margin is projected to decline to a range of 49.8% to 50% compared with 50.5% in 2025, indicating a contraction of 50 bps to 70 bps. This outlook incorporates an estimated 300 bps headwind from incremental tariffs before any mitigating actions. Operating margin is expected to improve modestly to between 6.2% and 6.9%, compared with 6.1% in the prior year, implying incremental operating leverage despite margin pressures at the gross profit level.
Earnings per share are forecasted to range from $3.20 to $3.65, broadly in line with the $3.23 reported in 2025.
The company expects first-quarter 2026 net sales of $747 million to $759 million, implying a year-over-year decline of approximately 2.5% to 4% from $778 million in the prior-year period. Favorable foreign exchange effects are expected to add roughly 200 bps to reported revenues. Operating margin is projected to fall sharply to a range of 2.1% to 2.9%, compared with 6% in the same quarter of 2025.
Earnings per share for the first quarter are expected to decline between 29 cents and 37 cents, compared with 75 cents in the comparable period last year.
Shares of this Zacks Rank #3 (Hold) company have gained 14.4% in the past three months compared with the industry’s 8.6% growth.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 2.1% and 26.3%, respectively, from the year-ago figures. VNCE delivered a trailing four-quarter earnings surprise of 229.6%, on average.
Ralph Lauren Corporation (RL - Free Report) designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. At present, RL has a Zacks Rank of 2 (Buy). RL delivered a trailing four-quarter earnings surprise of 9.8%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and earnings implies growth of 10% and 25.6%, respectively, from the year-ago figures.
Revolve Group, Inc. (RVLV - Free Report) operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. It currently carries a Zacks Rank of 2. RVLV delivered a trailing four-quarter average earnings surprise of 61.7%.
The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales and earnings implies growth of 6.8% and 8.7%, respectively, from the year-ago figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Columbia Sportswear Q4 Earnings Beat Estimates, Sales Down Y/Y
Key Takeaways
Columbia Sportswear Company (COLM - Free Report) reported fourth-quarter 2025 results, wherein both sales and earnings beat the Zacks Consensus Estimate. However, both top and bottom lines decreased year over year.
The company reported fourth-quarter results above guidance, driven by stronger-than-expected demand in the United States, despite ongoing challenges in the domestic market. International markets continued to grow and early signs suggest the company’s ACCELERATE Growth Strategy, supported by new product launches and refreshed marketing, is gaining traction with consumers.
COLM’s Quarterly Performance: Key Metrics & Insights
This designer, marketer and distributor of outdoor and active lifestyle apparel, footwear and accessories reported earnings of $1.73 per share, surpassing the Zacks Consensus Estimate of $1.22. However, the bottom line decreased 3.9% from $1.80 reported in the prior-year period.
Columbia Sportswear Company Price, Consensus and EPS Surprise
Columbia Sportswear Company price-consensus-eps-surprise-chart | Columbia Sportswear Company Quote
The company generated net sales of $1,070.2 million, which exceeded the Zacks Consensus Estimate of $1,037 million. The metric fell 2.4% from the year-ago period. The decline was largely timing-related, as some Fall 2025 wholesale shipments were pulled forward into earlier periods. This was partly offset by continued momentum in the direct-to-consumer (“DTC”) channel and solid performance in international markets, which helped cushion weaker demand in the United States. Net sales decreased 3% at constant currency.
Gross profit decreased 1.6% year over year to $551.7 million. The gross margin increased 50 basis points (bps) to 51.6%, which fared better than our estimate of 50.7%, mainly driven by improved inventory quality that reduced markdowns and promotional activity, along with lower inventory write-downs. These benefits were partially offset by higher U.S. tariffs, which negatively affected gross margin by $20 million before mitigation measures.
SG&A expenses were up 2.5% to $441.5 million from $430.6 million reported in the year-ago quarter. As a percentage of sales, the same increased 200 bps to 41.3%. The increase was primarily driven by higher DTC-related spending and one-time costs tied to the company’s profit improvement initiatives. These increases were partly offset by savings in technology and supply-chain operations.
Columbia Sportswear reported an operating income of $116.7 million, down 15% from the year-ago quarter. Operating margin decreased 160 bps to 10.9%.
COLM’s Sales by Channels & Regional Segments
In the United States, net sales declined 8% year over year to $626 million, which slightly missed our estimate of $633.3 million. Net sales surged 8% to $174.4 million in Europe, the Middle East and Africa, surpassing our estimate of $147.1 million. Latin America and Asia Pacific net sales grew 8% to $203.2 million, beating our estimate of $186.3 million. In Canada, net sales increased 2% to $66.5 million, which lagged our estimate of $74.4 million.
During the quarter, DTC sales increased 1% to $640.8 million. Our model expected total DTC sales of $610.1 million for the quarter. Wholesale channel sales went down 7% to $429.4 million, which missed our estimate of $431 million.
COLM’s Sales by Product Category & Brand
Net sales in the Apparel, Accessories and Equipment category inched down 2% to $855 million, which beat our estimate of $816.8 million. Footwear's net sales fell 5% to $215.3 million, which lagged our estimate of $224.3 million.
Columbia, SOREL and Mountain Hardwear brands registered sales declines of 1%, 18% and 5%, respectively. Sales for the prAna brand increased 6% year over year.
Other Financial Updates of COLM
The company ended the quarter with cash and cash equivalents of $442 million, short-term investments of $348.8 million and shareholders’ equity of almost $1,710.1 million. COLM had no debt on its balance sheet as of Dec. 31, 2025. Inventories remained broadly stable at $689.5 million compared with $690.5 million reported in the year-ago quarter.
For the year ended Dec. 31, 2025, Columbia Sportswear’s cash provided by operating activities was $282.9 million and capital expenditures were $66.2 million.
For the 12 months ended Dec. 31, 2025, the company repurchased 2,972,889 shares of common stock for a total of $201.1 million. As of Dec. 31, 2025, $426.5 million remained available under its stock repurchase authorization. Management announced a regular quarterly cash dividend of 30 cents per share, payable on March 20, 2026, to its shareholders of record as of March 9.
What to Expect From COLM Ahead
For 2026, the company expects net sales to grow 1% to 3%, implying revenues of $3.43 billion to $3.50 billion, up from $3.40 billion in 2025. Favorable foreign exchange movements are anticipated to contribute roughly 50-100 basis points to reported sales growth.
Gross margin is projected to decline to a range of 49.8% to 50% compared with 50.5% in 2025, indicating a contraction of 50 bps to 70 bps. This outlook incorporates an estimated 300 bps headwind from incremental tariffs before any mitigating actions. Operating margin is expected to improve modestly to between 6.2% and 6.9%, compared with 6.1% in the prior year, implying incremental operating leverage despite margin pressures at the gross profit level.
Earnings per share are forecasted to range from $3.20 to $3.65, broadly in line with the $3.23 reported in 2025.
The company expects first-quarter 2026 net sales of $747 million to $759 million, implying a year-over-year decline of approximately 2.5% to 4% from $778 million in the prior-year period. Favorable foreign exchange effects are expected to add roughly 200 bps to reported revenues. Operating margin is projected to fall sharply to a range of 2.1% to 2.9%, compared with 6% in the same quarter of 2025.
Earnings per share for the first quarter are expected to decline between 29 cents and 37 cents, compared with 75 cents in the comparable period last year.
Shares of this Zacks Rank #3 (Hold) company have gained 14.4% in the past three months compared with the industry’s 8.6% growth.
Image Source: Zacks Investment Research
Key Picks
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 2.1% and 26.3%, respectively, from the year-ago figures. VNCE delivered a trailing four-quarter earnings surprise of 229.6%, on average.
Ralph Lauren Corporation (RL - Free Report) designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. At present, RL has a Zacks Rank of 2 (Buy). RL delivered a trailing four-quarter earnings surprise of 9.8%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and earnings implies growth of 10% and 25.6%, respectively, from the year-ago figures.
Revolve Group, Inc. (RVLV - Free Report) operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. It currently carries a Zacks Rank of 2. RVLV delivered a trailing four-quarter average earnings surprise of 61.7%.
The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales and earnings implies growth of 6.8% and 8.7%, respectively, from the year-ago figures.