Q4 Results Above Guidance
Fourth-quarter results exceeded guidance with net sales of $1.1 billion (down 2% YoY) and operating income and diluted EPS above guidance driven by stronger-than-anticipated demand in the U.S.
Full-Year Revenue and International Strength
Full-year 2025 net sales increased 1% to $3.4 billion with broad-based international growth offsetting U.S. headwinds; LIAP net sales +10% (constant currency), China grew low double-digits, Japan high single-digits, LAP distributor markets high-teens, EMEA +3%, Canada +3%.
Gross Margin Expansion in Q4
Gross margin expanded 50 basis points in Q4 to 51.6%, driven by cleaner inventories, lower promotions/clearance and reduced inventory loss provisions that more than offset incremental U.S. tariff costs.
Direct-to-Consumer Resilience Globally
Global DTC net sales increased 1% in Q4 (partially offset by wholesale declines), and improvements in ecommerce conversion and marketing efficiency were highlighted in multiple markets (notably China and Korea).
Brand Momentum and Marketing Wins
Columbia Accelerate Growth strategy gaining traction: Amaze Puff and Amaze collections drove engagement and new customers; 'Engineered for Whatever' campaign increased unaided brand awareness and branded searches and produced strong activation results (e.g., Expedition Impossible).
Healthy Balance Sheet and Shareholder Returns
Exited year with $791 million in cash and equivalents, no debt, $201 million in share repurchases and $66 million in dividends returned to shareholders in 2025.
Inventory Discipline and SG&A Optimization
Inventories described as healthy and essentially flat exiting 2025 inclusive of tariff costs; rate of SG&A growth slowed with targeted cost reductions while maintaining elevated marketing investments (marketing spend was ~6.5% of sales in 2025, planned ~6.4% in 2026).
Positive 2026 Initial Outlook
Initial full-year 2026 guidance calls for net sales growth of 1%–3%, operating margin improvement from 2025, diluted EPS of $3.20–$3.65 (including ~+$0.10 from FX), and second-half wholesale growth supported by >80% of fall '26 bookings in hand.