Columbia Sportswear’s first quarter results received a negative market reaction, despite exceeding Wall Street’s revenue and non-GAAP profit expectations. Management pointed to strong performance in international regions, particularly the Asia-Pacific and Europe, as key drivers. CEO Tim Boyle noted, “Our business outside of North America, which represents approximately 40% of annual sales, remained strong,” highlighting double-digit growth in the LAAP region and robust expansion in Europe. However, U.S. net sales were pressured by soft consumer demand and challenging conditions in the outdoor apparel category, with direct-to-consumer e-commerce sales declining. Boyle also addressed the backdrop of heightened U.S. tariff uncertainty, which weighed on investor sentiment.
Is now the time to buy COLM? Find out in our full research report (it’s free).
Columbia Sportswear (COLM) Q1 CY2025 Highlights:
- Revenue: $778.5 million vs analyst estimates of $756.9 million (1.1% year-on-year growth, 2.9% beat)
- Adjusted EPS: $0.75 vs analyst estimates of $0.66 (13.5% beat)
- Adjusted EBITDA: $75.01 million vs analyst estimates of $76.45 million (9.6% margin, 1.9% miss)
- Revenue Guidance for Q2 CY2025 is $587.5 million at the midpoint, below analyst estimates of $605 million
- Operating Margin: 6%, in line with the same quarter last year
- Constant Currency Revenue rose 5% year on year (-5% in the same quarter last year)
- Market Capitalization: $3.3 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 Columbia Sportswear’s Q1 Earnings Call
- Laurent Vasilescu (Exane BNP Paribas) asked about the stability of the fall order book and market share prospects given tariff-driven disruptions. CEO Tim Boyle and CFO Jim Swanson emphasized no meaningful cancellations to date and highlighted share gain opportunities as competitors face sourcing headwinds.
- Peter McGoldrick (Stifel) inquired about demand creation spending and the company’s commitment to marketing. Boyle confirmed a strategic increase in marketing investment, with greater efficiency and a new campaign launching in August.
- Krista Zuber (TD Cowen) sought details on the $150 million in cost savings and long-term SG&A rate targets. Swanson cited ongoing supply chain optimization, automation, and discretionary spending control, aiming for eventual double-digit operating margins.
- Paul Lejuez (Citigroup) pressed on whether the estimated $40–$45 million in tariff costs included vendor sharing. Swanson clarified that figure represents direct company exposure and that Columbia will work with vendors to mitigate impacts where possible.
- Alex Perry (Bank of America) asked if the withdrawal of full-year guidance was driven by demand or cost uncertainty. Swanson explained that both factors contributed, but emphasized the unpredictability of consumer and retailer responses to tariffs as the main reason.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) the effectiveness of Columbia’s tariff mitigation strategies and their impact on margins, (2) the ability to sustain international growth momentum, especially in China and Japan, and (3) the progress and return on increased marketing investments. Additionally, we will monitor inventory management and any shifts in U.S. consumer demand as tariff effects ripple through the market.
Columbia Sportswear currently trades at $62.60, in line with $62.22 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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