US' Columbia Sportswear posts modest Q1 growth, led by LAAP and EMEA

The gross margin of the company expanded 30 basis points (bps) to 50.9 per cent of net sales from 50.6 per cent of net sales in Q1 2024. The gross margin expansion reflected several factors including lower outbound shipping expenses, higher closeout margins and favourable spring 2025 product input costs, partially offset by unfavourable FX hedging rates, Columbia Sportswear said in a press release.

Selling, general and administrative (SG&A) expenses were $354.5 million, or 45.5 per cent of net sales compared to 45.4 per cent of net sales in Q1 2024. The largest changes in SG&A expenses were higher direct-to-consumer (DTC) and demand creation expenses, partially offset by lower supply chain expenses.

The operating income of the company rose 4 per cent to $46.5 million, or 6.0 per cent of net sales. The net income was relatively flat at $42.2 million, or $0.75 per diluted share.

“I am encouraged by our first quarter results, with net sales and earnings exceeding our guidance range. We generated healthy growth in nearly all our international markets, including double-digit percent growth in the LAAP region and high-single-digit percent constant currency growth in the EMEA region,” said Tim Boyle chairman, president and chief executive officer (CEO). “In light of macro-economic uncertainty resulting from US tariff increases and ambiguous public policy, we are taking decisive actions to maintain the Company’s financial strength. We have the opportunity to gain market share in the current environment.”

“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,” added Boyle.

The company aims to invest in strategic priorities aimed at accelerating profitable growth; developing iconic, differentiated, and innovative products; enhancing brand engagement through focused demand creation investments; improving consumer experiences by building capabilities to retain and delight customers; amplifying marketplace excellence via digitally led, omni-channel global distribution; and empowering a diverse and inclusive workforce aligned with its core values, added the release.

In the second quarter (Q2) of 2025, Columbia Sportswear is projecting net sales between $575 million and $600 million, reflecting an anticipated YoY growth of 1 to 5 per cent compared to $570.2 million in the corresponding period of 2024.

Due to macroeconomic uncertainty stemming from global trade policies, the company is withdrawing its full year 2025 financial outlook and not providing a full year 2025 financial outlook currently.

ALCHEMPro News Desk (SG)