In This Article:
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Net Sales: Increased 1% year over year to $778 million.
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Wholesale Net Sales: Increased 2%.
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Direct-to-Consumer Sales: Flat performance.
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Gross Margin: Expanded 30 basis points to 50.9%.
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SG&A Expenses: Increased 1%.
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Diluted Earnings Per Share: $0.75, up 6% year over year.
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US Net Sales: Decreased 1%.
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LAAP Net Sales: Increased 14%.
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EMEA Net Sales: Increased 7%.
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Canada Net Sales: Decreased 2%.
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Columbia Brand Net Sales: Increased 3%.
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Mountain Hardware Net Sales: Decreased 14%.
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prAna Net Sales: Decreased 10%.
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SOREL Net Sales: Decreased 8%.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Columbia Sportswear Co (NASDAQ:COLM) exceeded its guidance range for first-quarter net sales and earnings.
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The company's international markets showed strong performance, with double-digit growth in the LAAP region and high single-digit growth in the EMEA region.
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Columbia Sportswear Co (NASDAQ:COLM) has a diversified supply chain and a team with deep international trade experience, which helps mitigate the impact of US tariffs.
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The company is committed to increasing investment in demand creation and launching a new global marketing platform to enhance brand engagement.
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Columbia Sportswear Co (NASDAQ:COLM) has a strong balance sheet and is well-positioned to gain market share during periods of rising prices for US consumers.
Negative Points
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The company faces significant uncertainty due to recent US tariff increases, impacting its ability to confidently plan and invest in the US market.
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Columbia Sportswear Co (NASDAQ:COLM) has withdrawn its full-year 2025 outlook due to the heightened uncertainty regarding tariff rates and their impact on product costs and consumer demand.
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The US market is expected to be challenging in the back half of the year, with higher prices potentially impacting consumer demand.
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The company anticipates absorbing much of the incremental tariff costs in 2025, which could affect profitability.
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Columbia Sportswear Co (NASDAQ:COLM) is planning its US business conservatively to minimize inventory risk and preserve profitability amid uncertain market conditions.
Q & A Highlights
Q: Should we assume that wholesale for the second half should be similar to what was expected in early February, and are there opportunities to take market share due to the situation with private label offerings from China? A: The category headwinds are uncertain, but there is an opportunity to gain market share due to the reliance on Chinese imports by private labels and smaller brands. We are focusing on taking advantage of this opportunity. As for the fall order book, there have been no surprises or meaningful cancellations to date. (Timothy Boyle, CEO; Jim Swanson, CFO)