What changed in this filing

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Item 1. Financial Statements

2025-05-08 compared with 2024-11-07 · 234 added, 254 removed, 387 unchanged (56% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands) September 30,

(in thousands) March 31,

2025 December 31,

2023 September 30,

2024 March 31,

Current Assets:

33 unchanged sentences

250,000 shares authorized;

57,261 , 59,996 and 60,526 issued and outstanding, respectively

55,169 , 56,245 and 59,473 issued outstanding, respectively

Retained earnings 1,771,218 1,843,261 1,960,634

Accumulated other comprehensive loss ( 61,451 ) ( 63,222 ) ( 51,191 )

( 49,438 ) ( 45,836 ) ( 47,398 )

Total shareholders' equity 1,709,767 1,780,039 1,909,443

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except per share amounts) 2025 2024

6 unchanged sentences

Interest income, net 6,817 9,197

Other non-operating income (expense), net 1,283 ( 311 ) 2,030 354

Other non-operating income, net 1,551 271

Income before income tax 54,876 54,149

11 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2025 2024

1 unchanged sentence

Other comprehensive income (loss):

Change in available-for-sale securities (net of tax effect of $ 46 )

Change in available-for-sale securities (net of tax effect of $ 26 and $ 46 , respectively)

( 84 ) ( 145 )

9 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2025 2024

6 unchanged sentences

Deferred income taxes 2,658 1,232

Stock-based compensation 18,478 17,026

Share-based compensation

Other, net ( 2,385 ) ( 4,198 )

16 unchanged sentences

Cash flows from financing activities:

Proceeds from credit facilities — 837

Repayments on credit facilities — ( 837 )

Proceeds from issuance of common stock related to stock-based compensation 3,955 7,081

Tax payments related to stock-based compensation ( 4,806 ) ( 4,620 )

Proceeds from issuance of common stock related to share-based compensation

Tax payments related to share-based compensation

( 5,550 ) ( 4,354 )

Repurchase of common stock ( 101,430 ) ( 50,168 )

2 unchanged sentences

Net effect of exchange rate changes on cash 3,588 ( 4,396 )

Net decrease in cash and cash equivalents ( 43,639 ) ( 216,959 )

Net increase (decrease) in cash and cash equivalents ( 208,530 ) 68,143

Cash and cash equivalents, beginning of period 531,869 350,319

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Income (Loss)

Outstanding Amount

Balance, June 30, 2024

Balance, December 31, 2024

56,245 $ — $ 1,843,261 $ ( 63,222 ) $ 1,780,039

1 unchanged sentence

Other comprehensive income

Cash dividends ($ 0.30 per share)

— — — 1,771 1,771

Issuance of common stock related to stock-based compensation, net

12 ( 137 ) — — ( 137 )

Stock-based compensation expense — 6,470 — — 6,470

Repurchase of common stock ( 1,503 ) ( 5,145 ) ( 114,987 ) — ( 120,132 )

Excise taxes related to repurchase of common stock — ( 1,188 ) — — ( 1,188 )

Balance, September 30, 2024

57,261 $ — $ 1,836,910 $ ( 49,438 ) $ 1,787,472

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Loss Total

Outstanding Amount

Balance, June 30, 2023

61,358 $ — $ 1,915,990 $ ( 41,332 ) $ 1,874,658

Net income — — 103,508 — 103,508

Other comprehensive loss — — — ( 6,066 ) ( 6,066 )

Cash dividends ($ 0.30 per share)

— — ( 16,600 ) — ( 16,600 )

Issuance of common stock related to stock-based compensation, net

55 2,237 — — 2,237

Stock-based compensation expense — 5,818 — — 5,818

Repurchase of common stock ( 887 ) ( 7,435 ) ( 58,509 ) — ( 65,944 )

Excise taxes related to repurchase of common stock — ( 620 ) — — ( 620 )

Balance, September 30, 2023

60,526 $ — $ 1,942,709 $ ( 47,398 ) $ 1,895,311

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Loss Total

Outstanding Amount

Balance, December 31, 2023

59,996 $ — $ 1,984,446 $ ( 45,836 ) $ 1,938,610

Net income — — 120,716 — 120,716

Other comprehensive loss — — — ( 3,602 ) ( 3,602 )

Cash dividends ($ 0.90 per share)

Issuance of common stock related to share-based compensation, net

176 ( 619 ) — — ( 619 )

Issuance of common stock related to stock-based compensation, net

Share-based compensation

— 5,224 — — 5,224

Stock-based compensation expense — 18,478 — — 18,478

Repurchase of common stock ( 1,252 ) ( 3,747 ) ( 97,691 ) — ( 101,438 )

Excise taxes related to repurchase of common stock — ( 858 ) — — ( 858 )

Balance, September 30, 2024

Balance, March 31, 2025

55,169 $ — $ 1,771,218 $ ( 61,451 ) $ 1,709,767

COLUMBIA SPORTSWEAR COMPANY | Q3 2024 FORM 10-Q | 5

Notes to unaudited Condensed Consolidated Financial Statements

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Loss Total

6 unchanged sentences

— — ( 17,927 ) — ( 17,927 )

Issuance of common stock related to stock-based compensation, net

Issuance of common stock related to share-based compensation, net

108 ( 3,248 ) — — ( 3,248 )

Stock-based compensation expense — 17,026 — — 17,026

Share-based compensation

— 5,644 — — 5,644

Repurchase of common stock ( 631 ) ( 1,983 ) ( 48,185 ) — ( 50,168 )

Excise taxes related to repurchase of common stock — ( 413 ) — — ( 413 )

Balance, September 30, 2023

Balance, March 31, 2024

59,473 $ — $ 1,960,634 $ ( 51,191 ) $ 1,909,443

5 unchanged sentences

Note 2 Revenues 7

Note 3 Segment Information 8

Note 4 Share-Based Compensation 10

Note 5 Earnings Per Share 12

Note 6 Intangible Assets, Net and Goodwill 12

Note 7 Supply Chain Financing 13

Note 8 Commitments and Contingencies 13

Note 9 Shareholders' Equity 13

Note 6 Stock-Based Compensation 12

Note 7 Earnings Per Share 13

Note 8 Accumulated Other Comprehensive Income (Loss) 14

Note 9 Segment Information 15

Note 10 Accumulated Other Comprehensive Loss 14

Note 11 Financial Instruments and Risk Management 14

Note 12 Fair Value Measures 16

Note 12 Supply Chain Financing 20

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 6

1 unchanged sentence

NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of September 30, 2024, December 31, 2023 and September 30, 2023, the results of operations for the three and nine months ended September 30, 2024 and 2023, and cash flows for the nine months ended September 30, 2024 and 2023.

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of March 31, 2025, December 31, 2024 and March 31, 2024, the results of operations for the three months ended March 31, 2025 and 2024, and cash flows for the three months ended March 31, 2025 and 2024.

The December 31, 2024 financial information was derived from the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

A significant part of the Company's business is of a seasonal nature;

therefore, results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

therefore, results of operations for the three months ended March 31, 2025 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

6 unchanged sentences

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results may differ from these estimates and assumptions.

The Company's significant estimates relate to sales reserves, allowance for uncollectible accounts receivable, excess, close-out and slow-moving inventory, impairment of long-lived assets, impairment of indefinite-lived intangible assets and goodwill, and income taxes.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

Accordingly, actual results may differ from these estimates and assumptions.

The Company's significant estimates relate to sales reserves, excess, close-out and slow-moving inventory, impairment of long-lived assets, impairment of indefinite-lived intangible assets and goodwill, and income taxes.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No.

2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses.

The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within the reported measure of segment profit or loss, among other disclosure requirements.

ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with early adoption permitted, and should be applied retrospectively to all prior periods presented in the financial statements.

The Company is currently evaluating the ASU to determine the impact on the Company's disclosures.

In December 2023, the FASB issued ASU No.

3 unchanged sentences

The Company is currently evaluating the ASU to determine the impact on the Company’s disclosures.

COLUMBIA SPORTSWEAR COMPANY | Q3 2024 FORM 10-Q | 8

Notes to unaudited Condensed Consolidated Financial Statements

In November 2024, the FASB issued ASU No.

4 unchanged sentences

The Company is currently evaluating the ASU to determine the impact on the Company's disclosures.

RECLASSIFICATIONS

Certain amounts in the prior-period financial statements have been reclassified to conform to the current period presentation.

Non-cash lease expense is now presented on its own line in the Company's unaudited Condensed Consolidated Statements of Cash Flows instead of combined with depreciation and amortization.

Additionally, Loss on disposal or impairment of property, plant and equipment is now included in Other, net in the Company's unaudited Condensed Consolidated Statements of Cash Flows.

NOTE 2 — REVENUES

2 unchanged sentences

United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA"), and Canada.

The following tables disaggregate the Company's reportable segment Net sales by product category and channel, which the Company believes provides a meaningful depiction of how the nature, timing and uncertainty of Net sales are affected by economic factors:

Three Months Ended September 30, 2024

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 472,324 $ 109,251 $ 93,027 $ 60,754 $ 735,356

Footwear 98,982 25,734 48,758 22,938 196,412

Total $ 571,306 $ 134,985 $ 141,785 $ 83,692 $ 931,768

Channel net sales

Wholesale $ 331,141 $ 93,482 $ 115,880 $ 64,714 $ 605,217

Direct-to-consumer 240,165 41,503 25,905 18,978 326,551

Total $ 571,306 $ 134,985 $ 141,785 $ 83,692 $ 931,768

Three Months Ended September 30, 2023

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 487,596 $ 88,362 $ 85,051 $ 70,656 $ 731,665

Footwear 147,817 26,995 44,300 34,906 254,018

Total $ 635,413 $ 115,357 $ 129,351 $ 105,562 $ 985,683

Channel net sales

Wholesale $ 391,892 $ 75,814 $ 110,608 $ 86,046 $ 664,360

Direct-to-consumer 243,521 39,543 18,743 19,516 321,323

Total $ 635,413 $ 115,357 $ 129,351 $ 105,562 $ 985,683

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 7

Notes to unaudited Condensed Consolidated Financial Statements

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

(in thousands)

2 unchanged sentences

Apparel, accessories and equipment

$ 393,633 $ 120,292 $ 76,983 $ 37,912 $ 628,820

Footwear 77,548 31,918 30,497 9,669 149,632

4 unchanged sentences

Total $ 471,181 $ 152,210 $ 107,480 $ 47,581 $ 778,452

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

(in thousands)

2 unchanged sentences

Apparel, accessories and equipment

$ 397,488 $ 107,963 $ 72,390 $ 41,213 $ 619,054

Footwear 76,918 30,683 32,130 11,197 150,928

5 unchanged sentences

PERFORMANCE OBLIGATIONS

For the three and nine months ended September 30, 2024 and 2023, Net sales recognized from performance obligations related to prior periods were not material.

Net sales expected to be recognized in any future period related to remaining performance obligations is not material.

For the three months ended March 31, 2025 and 2024, Net sales recognized from performance obligations related to prior periods were not material.

Net sales expected to be recognized in any future period related to remaining performance obligations are not material.

CONTRACT BALANCES

As of September 30, 2024, December 31, 2023 and September 30, 2023, the Company did not have contract assets and had an immaterial amount of contract liabilities included in Accrued liabilities on the unaudited Condensed Consolidated Balance Sheets.

As of March 31, 2025, December 31, 2024 and March 31, 2024, the Company did not have any contract assets and had an immaterial amount of contract liabilities included in Accrued liabilities on the unaudited Condensed Consolidated Balance Sheets.

NOTE 3 — SEGMENT INFORMATION

The Company defines its operating segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker ("CODM") to analyze performance, make decisions, and allocate resources.

The Company aggregates its operating segments with similar economic and operating characteristics into four reportable segments:

U.S., LAAP, EMEA, and Canada.

These reportable segments are organized by geographic location.

Each geographic segment operates predominantly in one industry:

the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment.

The Company’s CODM is the Company’s president and chief executive officer.

The Company’s CODM assesses the segments’ performance by using each segment's operating income.

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 8

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 3 — INTANGIBLE ASSETS, NET AND GOODWILL

INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

The CODM uses each segment's operating income to allocate resources predominantly in the annual budget and forecasting process.

The CODM considers plan-to-actual variances on a quarterly basis for the segment operating income profit measure when making decisions about the allocation of operating and capital resources to each segment.

The CODM also uses this profit measure to assess the performance of each segment by comparing the results of each segment with one another, and in the overall strategic planning for each segment.

Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material.

Unallocated corporate expenses consist of expenses incurred by centrally-managed departmental functions, including information technology, certain supply chain functions, finance, human resources, and legal, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs.

The following tables present segment financial information for the Company's reportable segments:

Three Months Ended March 31, 2025

(in thousands)

September 30, 2024 December 31, 2023 September 30, 2023

Intangible assets with definite lives:

Patents and purchased technology $ 14,198 $ 14,198 $ 14,198

Customer relationships 23,000 23,000 23,000

Gross carrying amount 37,198 37,198 37,198

Accumulated amortization:

Patents and purchased technology ( 14,198 ) ( 14,198 ) ( 14,198 )

Customer relationships ( 23,000 ) ( 22,313 ) ( 21,900 )

Accumulated amortization ( 37,198 ) ( 36,511 ) ( 36,098 )

Net carrying amount — 687 1,100

Intangible assets with indefinite lives 79,221 79,221 79,221

Intangible assets, net $ 79,221 $ 79,908 $ 80,321

Amortization expense for intangible assets subject to amortization was $ 0.0 million and $ 0.4 million for the three months ended September 30, 2024 and 2023, respectively, and was $ 0.7 million and $1.2 million for the nine months ended September 30, 2024 and 2023, respectively.

There have been no changes to the Company's goodwill as described in Note 6 in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

NOTE 4 — COMMITMENTS AND CONTINGENCIES

The Company is involved in litigation and various legal matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, and various regulatory compliance activities.

Management has considered facts related to legal and regulatory matters and opinions of counsel handling these matters, and does not believe the ultimate resolution of these proceedings will have a material adverse effect on the Company's financial position, results of operations or cash flows.

$ 471,181 $ 152,210 $ 107,480 $ 47,581 $ 778,452

Cost of sales

239,908 66,278 52,855 23,354 382,395

Segment selling, general and administrative expenses

146,383 53,081 32,138 11,539 243,141

Other segment items (a)

18,936 6,521 3,509 3,725 32,691

Segment operating income

65,954 26,330 18,978 8,963 120,225

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income 46,508

Interest income, net

Other non-operating income, net

Income before income tax $ 54,876

(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.

Three Months Ended March 31, 2024

(in thousands)

LAAP EMEA Canada Total

$ 474,406 $ 138,646 $ 104,520 $ 52,410 $ 769,982

Cost of sales

241,986 59,045 52,794 26,598 380,423

Segment selling, general and administrative expenses

138,917 50,221 28,796 10,363 228,297

Other segment items (a)

20,510 7,558 3,784 4,281 36,133

Segment operating income

72,993 21,822 19,146 11,168 125,129

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income

Interest income, net

Other non-operating income, net

Income before income tax

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 9

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 5 — SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through September 30, 2024, the Company's Board of Directors has authorized the repurchase of $ 2.0 billion of the Company's common stock, excluding excise tax.

Shares of the Company's common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date.

The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Under this program as of September 30, 2024, the Company had repurchased 37.0 million shares at an aggregate purchase price of $ 1,885.5 million and had $ 114.5 million remaining available, excluding excise tax.

During the three and nine months ended September 30, 2024, the Company repurchased an aggregate of $ 120.1 million and $ 230.9 million, respectively, of common stock under this program, excluding excise tax.

In October 2024, the Company's Board of Directors approved a $ 600.0 million increase to the Company's share repurchase authorization, which does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

NOTE 6 — STOCK-BASED COMPENSATION

The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other stock-based or cash-based awards.

The following table presents segment depreciation and amortization expense information:

Three Months Ended March 31,

(in thousands)

Depreciation and amortization expense:

$ 6,101 $ 5,801

LAAP 1,538 1,389

EMEA 1,054 970

Canada 710 693

Unallocated corporate expense 4,062 6,217

$ 13,465 $ 15,070

The following table presents segment asset information:

(in thousands)

March 31, 2025 December 31, 2024 March 31, 2024

$ 414,998 $ 450,014 $ 401,423

LAAP 87,738 108,818 81,483

EMEA 73,336 79,710 72,834

Canada 47,628 51,973 51,633

Total segment assets

623,700 690,515 607,373

All other assets

2,083,715 2,284,750 2,154,858

$ 2,707,415 $ 2,975,265 $ 2,762,231

CONCENTRATIONS

No single customer accounted for 10% or more of Net sales for the three months ended March 31, 2025 and 2024.

NOTE 4 — SHARE-BASED COMPENSATION

The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other share-based or cash-based awards to officers, executives, key employees and nonemployee members of the Company’s Board of Directors.

The Company uses original issuance shares to satisfy share-based payments.

STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense consisted of the following:

Three Months Ended September 30,

Nine Months Ended September 30,

SHARE-BASED COMPENSATION EXPENSE

Share-based compensation expense, which is primarily recorded in Selling, general and administrative ("SG&A") expenses , consisted of the following:

Three Months Ended March 31,

(in thousands) 2025 2024

Stock options $ 1,570 $ 2,083 $ 4,777 $ 6,019

Restricted stock units 4,900 3,735 13,701 11,007

Share-based compensation expense - equity awards

$ 5,224 $ 5,644

Share-based compensation expense - liability awards

Total $ 5,507 $ 5,644

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 10

Notes to unaudited Condensed Consolidated Financial Statements

STOCK OPTIONS

During the nine months ended September 30, 2024, the Company granted a total of 156,277 stock options at a weighted average grant date fair value of $ 20.86 per option.

As of September 30, 2024, unrecognized costs related to outstanding stock options totaled $ 10.4 million, before any related tax benefit.

These unrecognized costs related to stock options are expected to be recognized over a weighted average remaining period of 2.14 years.

During the three months ended March 31, 2025, the Company granted a total of 160,263 stock options at a weighted average grant date fair value of $ 19.23 per option.

As of March 31, 2025, unrecognized costs related to outstanding stock options, which are net of estimated forfeitures, totaled $ 9.6 million, before any related tax benefit.

These unrecognized costs related to stock options are expected to be recognized over a weighted average period of 2.46 years.

RESTRICTED STOCK UNITS

During the nine months ended September 30, 2024, the Company granted 426,499 restricted stock units at a weighted average grant date fair value of $ 78.82 per restricted stock unit.

As of September 30, 2024, unrecognized costs related to outstanding restricted stock units totaled $ 38.2 million, before any related tax benefit.

These unrecognized costs related to restricted stock units are expected to be recognized over a weighted average remaining period of 2.60 years.

Time-Based Restricted Stock Units

During the three months ended March 31, 2025, the Company granted 333,091 time-based restricted stock units ("time-based RSUs") at a weighted average grant date fair value of $ 82.17 per time-based RSU.

As of March 31, 2025, unrecognized costs related to outstanding time-based RSUs, which are net of estimated forfeitures, totaled $ 48.2 million, before any related tax benefit.

These unrecognized costs related to time-based RSUs are expected to be recognized over a weighted average period of 3.05 years.

Performance-Based Restricted Stock Units

During the three months ended March 31, 2025, the Company granted 22,860 performance-based restricted stock units (“performance-based RSUs”) at a weighted average grant date fair value of $ 81.05 per performance-based RSU.

As of March 31, 2025, unrecognized costs related to outstanding performance-based RSUs, which are net of estimated forfeitures and reflect achievement of performance forecasted as of the balance sheet date, totaled $ 1.6 million, before any related tax benefit.

These unrecognized costs related to performance-based RSUs are expected to be recognized over a weighted average period of 2.01 years.

Market-Based Restricted Stock Units

During the three months ended March 31, 2025, the Company granted 22,860 market-based restricted stock units (“market-based RSUs”) at a weighted average grant date fair value of $ 117.40 per market-based RSU.

As of March 31, 2025, unrecognized costs related to outstanding market-based RSUs, which are net of estimated forfeitures, totaled $ 3.4 million, before any related tax benefit.

These unrecognized costs related to market-based RSUs are expected to be recognized over a weighted average period of 2.25 years.

Market-Based Long-Term Cash Awards

During the three months ended March 31, 2025, the Company issued a long-term cash award to its Chief Executive Officer with a target value of $ 1.3 million that includes both a market and time-based vesting condition.

As of March 31, 2025, the fair value of all outstanding market-based long-term cash awards was $ 3.3 million and the Company had unrecognized compensation costs of $ 2.6 million.

These unrecognized costs are expected to be recognized over a weighted average period of 2.25 years.

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 11

5 unchanged sentences

A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except per share amounts)

2024 2023 2024 2023

Weighted average common shares outstanding, used in computing basic earnings per share

7 unchanged sentences

Weighted average common shares excluded (1)

1,957 2,266 2,005 1,989

(1) Common stock related to stock options, service-based restricted stock units, and performance-based restricted stock units were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

(1) Common stock related to stock options, time-based restricted stock units, market-based restricted stock units, and performance-based restricted stock units were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

NOTE 6 — INTANGIBLE ASSETS, NET AND GOODWILL

INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

(in thousands)

March 31, 2025 December 31, 2024 March 31, 2024

Intangible assets with definite lives:

Patents and purchased technology $ 14,198 $ 14,198 $ 14,198

Customer relationships 23,000 23,000 23,000

Gross carrying amount 37,198 37,198 37,198

Accumulated amortization:

Patents and purchased technology ( 14,198 ) ( 14,198 ) ( 14,198 )

Customer relationships ( 23,000 ) ( 23,000 ) ( 22,725 )

Accumulated amortization ( 37,198 ) ( 37,198 ) ( 36,923 )

Net carrying amount — — 275

Intangible assets with indefinite lives 79,221 79,221 79,221

Intangible assets, net $ 79,221 $ 79,221 $ 79,496

Intangible assets subject to amortization were fully amortized as of March 31, 2025 and December 31, 2024.

For the three months ended March 31, 2024, amortization expense for intangible assets subject to amortization was $ 0.4 million.

There have been no changes to the Company's goodwill as described in Note 5 in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 12

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 8 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) on the unaudited Condensed Consolidated Balance Sheets is net of applicable taxes, and consists of unrealized gains and losses on available-for-sale securities, unrealized gains and losses on certain derivative transactions and foreign currency translation adjustments.

The following tables set forth the changes in Accumulated other comprehensive income (loss) :

(in thousands) Derivative transactions Foreign currency

NOTE 7 — SUPPLY CHAIN FINANCING

The Company offers a voluntary supply chain financing (“SCF”) program facilitated through a third-party service provider.

Under the program, participating suppliers may, at their sole discretion, elect to receive payment from a select number of third-party financial institutions for one or more of the Company’s valid payment obligations prior to their scheduled due dates.

The Company is not a party to the agreements between the participating financial institutions and the suppliers in connection with the program.

The Company’s payment terms, including the timing and amount of payments, are based on the original supplier invoices, irrespective of whether a supplier participates in the program.

The Company does not have an economic interest in a supplier’s decision to participate in the program and has not pledged any assets as security or provided any guarantees as part of the program.

The Company’s outstanding payables under the SCF program were $ 51.4 million, $ 81.3 million and $ 0 as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively, and were recorded within Accounts payable on the Consolidated Balance Sheets.

NOTE 8 — COMMITMENTS AND CONTINGENCIES

NOTE 9 — SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through March 31, 2025, the Company's Board of Directors has authorized the repurchase of $ 2.6 billion of the Company's common stock, excluding excise tax.

Shares of the Company's common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date.

The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Under this program as of March 31, 2025, the Company had repurchased 39.3 million shares at an aggregate purchase price of $ 2,073.9 million and had $ 526.1 million remaining available under the share repurchase program, excluding excise tax.

During the three months ended March 31, 2025 and 2024, the Company repurchased an aggregate of $ 101.4 million and $ 50.2 million, respectively, of common stock under this program, excluding excise tax.

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 13

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 10 — ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss on the unaudited Condensed Consolidated Balance Sheets is net of applicable taxes, and consists of unrealized gains and losses on available-for-sale securities, unrealized gains and losses on certain derivative transactions and foreign currency translation adjustments.

The following tables set forth the changes in Accumulated other comprehensive loss :

(in thousands) Available-for-

sale securities Derivative transactions Foreign currency

adjustments Total

Balance as of June 30, 2024

Balance as of December 31, 2024

$ 84 $ 23,394 $ ( 86,700 ) $ ( 63,222 )

3 unchanged sentences

Net other comprehensive income (loss) during the period

Balance as of September 30, 2024

( 84 ) ( 7,958 ) 9,813 1,771

(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income (expense), net on the unaudited Condensed Consolidated Statements of Operations.

Refer to Note 10 for further information regarding reclassifications.

(in thousands) Derivative transactions Foreign currency

adjustments Total

Balance as of June 30, 2023

$ 15,643 $ ( 56,975 ) $ ( 41,332 )

Other comprehensive income (loss) before reclassifications 9,876 ( 9,659 ) 217

Amounts reclassified from accumulated other comprehensive loss (1)

( 6,283 ) — ( 6,283 )

Net other comprehensive income (loss) during the period 3,593 ( 9,659 ) ( 6,066 )

Balance as of September 30, 2023

Balance as of March 31, 2025

$ — $ 15,436 $ ( 76,887 ) $ ( 61,451 )

(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income (expense), net on the unaudited Condensed Consolidated Statements of Operations.

(1) Amounts reclassified are recorded in Net sales , Cost of sales , or Other non-operating income, net on the unaudited Condensed Consolidated Statements of Operations.

Refer to Note 11 for further information regarding reclassifications .

7 unchanged sentences

— ( 1,950 ) — ( 1,950 )

Net other comprehensive loss during the period ( 145 ) ( 1,071 ) ( 2,386 ) ( 3,602 )

Balance as of September 30, 2024

$ — $ 2,618 $ ( 52,056 ) $ ( 49,438 )

(1) Amounts reclassified are recorded in Net sales , Cost of sales , or Other non-operating income (expense), net on the unaudited Condensed Consolidated Statements of Operations.

Refer to Note 10 for further information regarding reclassifications .

COLUMBIA SPORTSWEAR COMPANY | Q3 2024 FORM 10-Q | 14

Notes to unaudited Condensed Consolidated Financial Statements

(in thousands) Derivative transactions Foreign currency

adjustments Total

Balance as of December 31, 2022

$ 21,790 $ ( 52,427 ) $ ( 30,637 )

Other comprehensive income (loss) before reclassifications 10,602 ( 14,207 ) ( 3,605 )

Amounts reclassified from accumulated other comprehensive loss (1)

Net other comprehensive income (Ioss) during the period

( 145 ) 9,777 ( 14,987 ) ( 5,355 )

Net other comprehensive loss during the period ( 2,554 ) ( 14,207 ) ( 16,761 )

Balance as of September 30, 2023

Balance as of March 31, 2024

$ — $ 13,466 $ ( 64,657 ) $ ( 51,191 )

(1) Amounts reclassified are recorded in Net sales , Cost of sales , or Other non-operating income (expense), net on the unaudited Condensed Consolidated Statements of Operations.

(1) Amounts reclassified are recorded in Net sales , Cost of sales , or Other non-operating income, net on the unaudited Condensed Consolidated Statements of Operations.

Refer to Note 11 for further information regarding reclassifications.

NOTE 9 — SEGMENT INFORMATION

The Company has four reportable geographic segments:

U.S., LAAP, EMEA, and Canada, which are reflective of the Company's internal organization, management and oversight structure.

Each geographic segment operates predominantly in one industry:

the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment.

Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material.

Unallocated corporate expenses consist of expenses incurred by centrally-managed departmental functions, including information technology, certain supply chain functions, finance, human resources and legal, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs.

The following tables present financial information for the Company's reportable segments:

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

2024 2023 2024 2023

Net sales to unrelated entities:

$ 571,306 $ 635,413 $ 1,385,940 $ 1,551,997

LAAP 134,985 115,357 373,115 345,099

EMEA 141,785 129,351 350,227 338,494

Canada 83,692 105,562 162,712 191,619

$ 931,768 $ 985,683 $ 2,271,994 $ 2,427,209

Segment operating income:

$ 115,356 $ 131,602 $ 211,815 $ 268,260

LAAP 20,435 14,509 48,340 36,932

EMEA 33,238 34,241 66,802 69,636

Canada 22,369 30,150 33,515 41,065

Total segment operating income 191,398 210,502 360,472 415,893

Unallocated corporate expenses ( 78,857 ) ( 75,948 ) ( 227,052 ) ( 218,683 )

Interest income, net 5,364 1,870 22,905 8,659

Other non-operating income (expense), net 1,283 ( 311 ) 2,030 354

Income before income tax $ 119,188 $ 136,113 $ 158,355 $ 206,223

CONCENTRATIONS

The Company had one customer that accounted for approximately 11.9 %, 19.8 % and 11.6 % of Accounts receivable, net as of September 30, 2024, December 31, 2023 and September 30, 2023, respectively.

The Company did not have any customers that accounted for 10% or more of Net sales for the three and nine months ended September 30, 2024 and 2023.

COLUMBIA SPORTSWEAR COMPANY | Q3 2024 FORM 10-Q | 15

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 11 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

4 unchanged sentences

The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales.

Subsidiaries that use European euros, Canadian dollars, Japanese yen, Chinese renminbi, or Korean won as their functional currency are primarily exposed to changes in functional currency equivalent cash flows from anticipated United States dollar inventory purchases.

Subsidiaries that use United States dollars and euros as their functional currency also have non-functional currency denominated sales for which the Company hedges the Canadian dollar and British pound sterling.

dollar inventory purchases.

Subsidiaries that use U.S.

dollars and euros as their functional currency also have non-functional currency denominated sales for which the Company hedges the Canadian dollar and British pound sterling.

The Company seeks to manage these risks by using currency forward contracts formally designated and effective as cash flow hedges.

1 unchanged sentence

Time value components ("forward points") for forward contracts are included in the fair value of the cash flow hedge.

These costs or benefits are included in Accumulated other comprehensive income (loss) until the underlying hedge transaction is recognized in either Net sales or Cost of sales , at which time, the forward points will also be recognized as a component of Net income .

The Company also uses currency forward contracts not formally designated as hedges to manage the consolidated currency exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities by subsidiaries that use United States dollars, euros, Canadian dollars, yen, renminbi, or won as their functional currency.

These costs or benefits are included in Accumulated other comprehensive income (loss) until the underlying hedged transaction is recognized in either Net sales or Cost of sales , at which time, the forward points will also be recognized as a component of Net income .

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 14

Notes to unaudited Condensed Consolidated Financial Statements

dollars, euros, Canadian dollars, yen, renminbi, or won as their functional currency.

Non-functional currency denominated monetary assets and liabilities consists of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and intercompany loans and dividends.

The gains and losses generated on these currency forward contracts not formally designated as hedges are expected to be largely offset in Other non-operating income (expense), net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities.

The gains and losses generated on these currency forward contracts not formally designated as hedges are expected to be largely offset in Other non-operating income, net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities.

The following table presents the gross notional amount of outstanding derivative instruments:

(in thousands) September 30, 2024 December 31, 2023 September 30, 2023

(in thousands) March 31, 2025 December 31, 2024 March 31, 2024

Derivative instruments designated as cash flow hedges:

2 unchanged sentences

Currency forward contracts $ 308,063 $ 263,103 $ 231,449

As of September 30, 2024 , $ 5.4 million of deferred net gains on both outstanding and matured derivatives recorded in Accumulated other comprehensive income (loss) are expected to be reclassified to Net income during the next twelve months as a result of underlying hedged transactions also being recorded in Net sales or Cost of sales in the unaudited Condensed Consolidated Statements of Operations.

When outstanding derivative contracts mature, actual amounts ultimately reclassified to Net sales or Cost of sales in the unaudited Condensed Consolidated Statements of Operations are dependent on United States dollar exchange rates in effect against the euro, pound sterling, renminbi, Canadian dollar, won, and yen as well as the euro exchange rate in effect against the pound sterling.

As of September 30, 2024, the Company's derivative contracts had a remaining maturity of less than 3 years.

The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was $ 1.9 million as of September 30, 2024.

As of March 31, 2025, $ 16.3 million of deferred net gains on both outstanding and matured derivatives recorded in Accumulated other comprehensive loss are expected to be reclassified to Net income during the next twelve months as a result of underlying hedged transactions also being recorded in Net sales or Cost of sales in the unaudited Condensed Consolidated Statements of Operations.

dollar exchange rates in effect against the euro, renminbi, Canadian dollar, won, and yen as well as the euro exchange rate in effect against the pound sterling.

As of March 31, 2025, the Company's derivative contracts had a remaining maturity of less than 3 years.

The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was $ 7.7 million as of March 31, 2025.

All of the Company's derivative counterparties have credit ratings that are investment grade or higher.

3 unchanged sentences

The following table presents the balance sheet classification and fair value of derivative instruments:

(in thousands) Balance Sheet Classification September 30, 2024 December 31, 2023 September 30, 2023

(in thousands) Balance Sheet Classification March 31, 2025 December 31, 2024 March 31, 2024

Derivative instruments designated as cash flow hedges:

11 unchanged sentences

The following table presents the statement of operations effect and classification of derivative instruments:

Classification Three Months Ended September 30,

Nine Months Ended September 30,

Classification Three Months Ended March 31,

(in thousands) 2025 2024

1 unchanged sentence

Derivative instruments designated as cash flow hedges:

Gain (loss) recognized in other comprehensive income, net of tax

Gain (loss) recognized in other comprehensive income (loss), net of tax

— $ ( 5,910 ) $ 11,727

Gain (loss) reclassified from accumulated other comprehensive income to income for the effective portion

Loss reclassified from accumulated other comprehensive loss to income for the effective portion

Net sales $ ( 441 ) $ ( 282 )

Gain reclassified from accumulated other comprehensive income to income for the effective portion

Gain reclassified from accumulated other comprehensive loss to income for the effective portion

Cost of sales $ 3,131 $ 2,971

Gain (loss) reclassified from accumulated other comprehensive income to income as a result of cash flow hedge discontinuance

Other non-operating income (expense), net

62 — 130 ( 2 )

Gain reclassified from accumulated other comprehensive loss to income as a result of cash flow hedge discontinuance

Other non-operating income, net

Derivative instruments not designated as cash flow hedges:

Gain (loss) recognized in income

Other non-operating income (expense), net

Other non-operating income, net

$ ( 612 ) $ 2,925

COLUMBIA SPORTSWEAR COMPANY | Q3 2024 FORM 10-Q | 17

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 12 — FAIR VALUE MEASURES

1 unchanged sentence

Fair value is defined as an exit price, representing the amount that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 16

Notes to unaudited Condensed Consolidated Financial Statements

Level 1 — observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;

5 unchanged sentences

Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 are as follows:

Assets and liabilities measured at fair value on a recurring basis are as follows:

As of March 31, 2025

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 364 $ — $ — $ 364

government treasury bills

— 10,158 — 10,158

Time deposits (1)

3 unchanged sentences

government treasury bills

— 333,007 — 333,007

Other short-term investments:

17 unchanged sentences

Notes to unaudited Condensed Consolidated Financial Statements

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 are as follows:

Assets and liabilities measured at fair value on a recurring basis are as follows:

As of December 31, 2024

(in thousands) Level 1 Level 2 Level 3 Total

2 unchanged sentences

government treasury bills

— 84,622 — 84,622

Time deposits (1)

22 unchanged sentences

Notes to unaudited Condensed Consolidated Financial Statements

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 are as follows:

Assets and liabilities measured at fair value on a recurring basis are as follows:

As of March 31, 2024

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 57,144 $ — $ — $ 57,144

Government treasury bills — 74,828 — 74,828

Time deposits (1)

1 unchanged sentence

Short-term investments:

Available-for-sale short-term investments:

Government treasury bills — 366,982 — 366,982

Other short-term investments:

Money market funds 343 — — 343

13 unchanged sentences

(1) Time deposits are carried at amortized cost on the unaudited Condensed Consolidated Balance Sheets, which reasonably approximates fair value.

NON-RECURRING FAIR VALUE MEASUREMENTS

The Company measured the fair value of certain trademark indefinite-lived intangible assets and goodwill as part of impairment testing for the year ended December 31, 2023.

The inputs used to measure the fair value of these assets are primarily significant unobservable inputs and, as such, considered Level 3 fair value measurements.

Refer to Note 6 in Part II, Item 8 in the Annual Report on Form 10-K for further discussion.

NOTE 12 — SUPPLY CHAIN FINANCING

In the third quarter of 2024, the Company began to offer a voluntary supply chain financing (“SCF”) program facilitated through a third-party service provider.

The Company is not a party to the agreements between the participating financial institutions and the suppliers in connection with the program.

The Company’s payment terms, including the timing and amount of payments, are based on the original supplier invoices, irrespective of whether a supplier participates in the program.

The Company does not have an economic interest in a supplier’s decision to participate in the program and has not pledged any assets as security or provided any guarantees as part of the program.

The Company’s outstanding payables under the SCF program were $ 27.2 million as of September 30, 2024, and were recorded within Accounts payable on the unaudited Condensed Consolidated Balance Sheets.

(2) Available-for-sale short-term investments have remaining maturities of less than one year.

COLUMBIA SPORTSWEAR COMPANY | Q1 2025 FORM 10-Q | 19

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements