Columbia Sportswear has reported that its sales and profitability for the fourth quarter have exceeded previous projections, even in the face of ongoing challenges in the U.S. market.
For the quarter ending on December 31, 2025, the company achieved net sales of $1.07 billion, down by 2% from the same period last year. This figure is above the earlier estimated range of $1.01 billion to $1.04 billion, which indicated a potential decline of 5% to 8%.
International markets contributed significantly to countering the decrease in U.S. revenue, while an increase in direct-to-consumer sales provided a modest uplift. The overall net sales figures for the quarter were also influenced by the early shipment of fall 2025 wholesale orders.
Tim Boyle, Columbia Sportswear’s chairman and CEO, said: “We’re pleased to have delivered net sales and profitability exceeding our guidance for the fourth quarter driven by better-than-expected demand in the US.”
“While our US business remains challenged, I’m encouraged with continued growth internationally combined with early signs of momentum indicating that the Columbia ACCELERATE Growth Strategy is resonating with consumers, including new and enhanced product collections and differentiated marketing.”
Key Insights from Q4 Results
The company reported increased expenses related to direct-to-consumer initiatives and non-recurring costs associated with its profit improvement program. These were partly offset by lower expenses in technology and supply chain management.
Operating income for the quarter fell 15% to $116.7 million. Net income was $93.2 million, translating to $1.73 per diluted share, a decline from $102.6 million or $1.80 per diluted share during the same quarter in 2024.
Full-Year Performance Overview
For the entire fiscal year 2025, Columbia Sportswear experienced a slight increase in net sales of 1%, reaching $3.4 billion compared to $3.37 billion in 2024. This result met the upper limit of its anticipated range and avoided a forecasted decline of up to 1%.
Gross margin improved to 50.5%, up from 50.2% the year prior, although the impact of tariffs negatively affected earnings by $31 million before any mitigation measures were applied.
However, the full-year operating income dropped by 24% to $207 million, while net income decreased by 21% to $177.2 million.
Sales Projections for 2026
Looking ahead to fiscal year 2026, Columbia Sportswear is projecting net sales growth between 1% and 3%, which equates to anticipated revenues of $3.43 billion to $3.50 billion.
Operating income is expected to range from $211 million to $243 million, representing an operating margin of 6.2% to 6.9% of net sales. Diluted earnings per share are anticipated to fall between $3.20 and $3.65.
With a focus on managing challenges effectively, Columbia Sportswear’s positive outlook for sales reflects its commitment to growth and adapting to market dynamics.