Columbia Sportswear Had A Flat Quarter, But Underlying Trends Are Not That Good

**Columbia Sportswear Had a Flat Quarter, But Underlying Trends Are Not That Good**
*Nov. 02, 2025 | 8:14 AM ET*

Columbia Sportswear Company (COLM) delivered slightly better-than-expected Q3 results, but underlying trends remain challenged, especially in the U.S. and direct-to-consumer channels. While the top-line performance was supported by earlier wholesale shipments, the company faced pressure on the bottom line due to impairments.

COLM continues to face margin pressure from tariffs and rising selling, general, and administrative expenses (SG&A). Operating margins for the full fiscal year 2025 are expected to decline, with further headwinds anticipated in fiscal year 2026.

On the positive side, product and marketing innovation—including new campaigns and higher-priced items—offer some promising opportunities. However, the overall impact of these initiatives remains uncertain at this stage.

With a valuation at approximately 15 times earnings and a flat growth outlook, COLM appears more attractive than it did a year ago. Nevertheless, a cautious **Hold** rating is warranted given the challenges ahead.

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### Q3 2025 Results Highlights

Columbia Sportswear reported Q3 2025 results that slightly exceeded expectations on the top line, driven mainly by earlier wholesale shipments. However, impairments impacted the bottom line, reflecting persistent operational challenges.

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### Operational Perspective

This analysis is provided by Quipus Capital, a long-only investment firm focused on evaluating companies from an operational, buy-and-hold perspective. Unlike market-driven analyses, our research emphasizes understanding long-term earnings power, competitive dynamics, and investing in companies we would be comfortable holding regardless of short-term price fluctuations.

Most of our recommendations result in “Hold” ratings by design, reflecting a cautious approach in a generally bullish market. Only a small fraction of companies are deemed Buy candidates at any given time. Hold ratings offer valuable information for future investors and encourage a healthy dose of skepticism.

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### Disclaimer

All articles represent the author’s opinions only and are provided “as is” without any warranty. They do not constitute professional investment advice. Readers should conduct their own due diligence and consult licensed professionals before making investment decisions. The author disclaims any liability for actions taken based on the information contained herein.

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### Analyst’s Disclosure

I/we have no stock, option, or similar derivative positions in any companies mentioned, nor plans to initiate any within the next 72 hours. This article expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationships with any companies mentioned.

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