What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-06 compared with 2025-08-07 · 238 added, 222 removed, 276 unchanged (63% of the section changed)

13 unchanged sentences

ACCELERATE Growth Strategy

Last year, we announced the Columbia brand ("Brand") ACCELERATE Growth Strategy.

Last year, we announced the Columbia brand (the "Brand") ACCELERATE Growth Strategy.

At its core, the ACCELERATE Growth Strategy is intended to elevate the Brand to target a younger and more active consumer while maintaining those consumers that have known and trusted Columbia to offer high quality products at an exceptional value.

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We believe successful execution of the ACCELERATE Growth Strategy can elevate the Brand and drive profitable growth.

Through the ACCELERATE Growth Strategy, we will focus on achieving the following objectives:

The third quarter of 2025 was an important milestone in this journey.

In August 2025, the Columbia brand launched its new brand platform "Engineered for Whatever" through a global brand campaign in print, on social and in-person.

The Columbia brand also released certain new products designed with a younger, more active consumer in mind, such as the Amaze Puff.

Additionally, the Columbia brand re-launched the U.S.

Columbia.com website, with enhanced features and photography.

Through the ACCELERATE Growth Strategy, we are focused on achieving the following objectives:

• steward existing consumer segments while focusing on bringing new younger and active consumers into the Brand;

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• create product based on a consumer-centric product construct;

• enhance the positioning of the Brand in the U.S.

• enhance the positioning of the Brand globally, particularly in the U.S.

• deliver integrated full-funnel marketing.

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Ultimately, we expect our investments to enable market share capture across our brand portfolio, expand gross margin, improve selling, general and administrative expense efficiency, and drive improved operating margin over the long-term.

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Profit Improvement Program

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• operating model improvements;

COLUMBIA SPORTSWEAR COMPANY | Q2 2025 FORM 10-Q | 23

• indirect, or non-inventory, spending.

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In early 2025, in response to ongoing SG&A expense and operating profit pressures, we initiated a review of our cost structure to pursue additional cost savings, beyond the previously stated $125 to $150 million target.

On a cumulative basis, actions executed in 2024 and through the first half of 2025 yield annualized cost savings exceeding $150 million.

On a cumulative basis, actions executed in 2024 and through the third quarter of 2025 yield annualized cost savings exceeding $150 million.

Despite achieving our target, we continue to pursue profit improvement opportunities.

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Business Environment and Trends

The Columbia brand in the U.S.

| The Columbia brand in the U.S.

has been under pressure due to numerous factors.

The Columbia brand's ACCELERATE Growth Strategy is intended to overcome certain of these headwinds, elevate the consumers' perception of the Brand, and to fuel future growth.

Wholesale sales for the Columbia brand in the U.S.

are expected to be down for full year 2025 and extending into first half 2026.

The Columbia brand's U.S.

direct-to-consumer ("DTC") e-commerce channel has also experienced reduced sales year-over-year as we strategically positioned the site to represent a more premium expression of the Brand.

The Columbia brand’s U.S.

DTC brick-and-mortar business primarily consists of outlet stores, and was supplemented in 2024 by temporary clearance stores to clear excess inventory.

To help change consumers’ perception of the Columbia brand from a solely value-oriented proposition at physical retail, the Brand is investing in in-store marketing at key wholesale partners, enhancing our channel segmentation strategies and opening a small number of premium stores in high-traffic shopping malls in North America.

Elevating consumers’ perception of the Columbia brand will take time.

The Brand’s product refresh is still underway, with different segments of the Brand’s global line being updated over time to resonate more with younger and more active consumers while still serving our value-oriented consumers.

The Columbia brand’s ACCELERATE Growth Strategy and increased investment in demand creation began in the second half of this year and we expect will continue in seasons to come.

Over time, we expect these investments and improvements to elevate the Brand in the marketplace and eventually stimulate consumer demand in the U.S.

Tariffs Uncertainty | We are headquartered in the U.S.

and are subject to the laws and regulations governing companies operating in the U.S.

presidential administration has announced incremental tariffs on products imported into the U.S.

from most countries.

These incremental tariffs are in addition to the product-based tariffs the Company already pays for its imported goods into the U.S.

These actions, and the potential for retaliatory actions by other countries and their consumers, have led to significant volatility and uncertainty in global markets.

Incremental tariffs on products imported into the U.S.

from most countries are now in place, in addition to the product-based tariffs the Company has historically paid for its imported goods into the U.S.

Certain of these incremental tariff levels have changed with little notice, making it difficult to predict product costs and market impacts.

We expect Vietnam, Bangladesh, Indonesia, and India to represent approximately 42 percent, 23 percent, 11 percent, and 9 percent, respectively, of our finished goods imports into the U.S.

Additionally, we expect for China to represent a minimal percent of our finished goods imports into the U.S.

While we have very little direct exposure to the new U.S.

tariffs on products from China, China remains a strategically important country for us, and we intend to continue investing in product creation capabilities in China and remain committed to manufacturing in China to support our China direct business as well as other international markets.

Additional information about the potential expense related to these incremental tariffs can be found in Part II, Item 5 under "Tariff Expense" of this Quarterly Report on Form 10-Q.

In an effort to mitigate the impact of further potential tariff increases, we have partnered with our finished goods vendors and logistics providers to accelerate the timing of inventory receipts.

Additionally, we have worked with our wholesale customers to ship Fall 2025 orders earlier than initially planned, which will help alleviate storage capacity constraints within our distribution center network.

Nevertheless, we have begun to incur additional temporary storage expenses as a result of these earlier inventory receipts.

Additionally, we expect for China to represent a minimal percentage of our finished goods imports into the U.S.

Higher tariffs on U.S.

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product input costs.

We expect these incremental tariffs may also impact demand for our products as consumers weigh discretionary spending.

We expect our inventories to also be impacted by a reduction in consumer and customer demand, and have rationalized Fall 2025 inventory buys and are evaluating Spring 2026 inventory plans, while seeking to preserve our strategic sourcing relationships, in order to reduce the risk of holding excess inventory.

For Fall 2025, we are focused on maximizing our marketplace opportunity.

We estimate that the 2025 unmitigated financial impact of the incremental tariffs will be approximately $35 to $40 million.

On an annualized basis utilizing an approximation of our 2024 imports of finished goods inventory, we estimate that the unmitigated financial impact of the incremental tariffs will be approxim ately $160 million.

For Fall 2025, in an effort to mitigate the impact of further potential tariff increases, we have partnered with our finished goods vendors and logistics providers to accelerate the timing of inventory receipts.

Additionally, we have worked with our wholesale customers to ship Fall 2025 orders earlier than initially planned, which has helped alleviate storage capacity constraints within our distribution center network.

We also continue to be focused on maximizing our marketplace opportunity.

We are working with our wholesale partners to deliver value to consumers and keep inventory and wholesale partner margins healthy.

As a result, at this point in time, we expect to absorb much of the incremental tariff cost related to Fall 2025 as the costs are realized.

For 2026, we are implementing strategies to offset the impact of higher U.S.

We are absorbing the incremental tariff cost related to Fall 2025 as the underlying inventory is sold.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 25

For 2026, we intend to continue to take actions to offset the impact of higher U.S.

tariffs on our business.

Our goal is to offset higher tariffs over time through a combination of actions including price increases, vendor negotiations, SG&A expense efficiencies and other mitigation tactics.

For Spring 2026, we increased U.S.

pricing by a high-single digit percent, and we are maintaining similar price increases for the Fall 2026 season.

When combined with other mitigation tactics, our goal in 2026 is to offset the dollar impact of higher tariffs.

Longer-term, our goal is to restore our product margin percentage to historical levels through a combination of actions, including price increases, vendor negotiations, re-sourcing product, and other mitigation tactics.

We intend to balance these actions with our overall growth strategy, seeking to minimize the impact to consumer demand and maximize our market share potential.

Retaliatory actions and anti-American consumer sentiment may also adversely impact our ability to compete in other regions of the world.

We expect these incremental tariffs may also impact demand for our products as end consumers weigh discretionary spending and wholesale customers rationalize their open to buy budgets.

We expect our inventories to also be impacted by a reduction in consumer and customer demand, and have rationalized Fall 2025 inventory buys and Spring 2026 inventory plans, while seeking to preserve our strategic sourcing relationships, in order to reduce the risk of holding excess inventory.

Heightened Geopolitical Risk | We sell our products in more than 110 countries and our ability to sell, import into and produce in certain markets may be impacted by ongoing geopolitical tensions.

We believe these tensions will remain elevated and will continue to manifest themselves in certain regions where we operate.

Evolving North America Strategy | Over the past year, U.S.

consumer demand for many traditional outdoor apparel and footwear brands has softened.

This weakness can be attributed to several factors, including a highly competitive environment as many brands have shifted their strategies and new brands have entered the marketplace to capitalize on the emergence of casual and lifestyle trends.

In response to these trends and to drive profitable growth, the Columbia brand initiated the ACCELERATE Growth Strategy, to retain our historical value-oriented consumers while attracting younger and more active consumers to the Columbia brand.

As part of the Columbia brand ACCELERATE Growth Strategy, we are approaching the North America marketplace with an updated omni-channel perspective and evaluating how, when, and where we utilize promotions across all channels, creating new product assortments and enhancing our marketing to attract these younger and more active consumers.

During 2024, we shifted our marketing strategies for the Columbia brand's U.S.

direct-to-consumer ("DTC") e-commerce business to become less promotional, in order for Columbia.com to represent the best expression of the Brand.

In our DTC brick-and-mortar business, we have

COLUMBIA SPORTSWEAR COMPANY | Q2 2025 FORM 10-Q | 24

opened a small number of branded stores in high-traffic shopping malls in North America, featuring elevated product assortments that showcase Columbia’s apparel and footwear innovations.

Within our U.S.

wholesale business, we are implementing pricing, promotional and segmentation strategies that are also intended to elevate the positioning of the Brand in the marketplace while continuing to serve our core consumer base that is focused primarily on value.

To capture demand associated with value-oriented consumers, we have increasingly relied on our fleet of DTC brick-and-mortar outlet stores.

We remain committed to increasing our investment in demand creation in 2025 to bring our new highly differentiated marketing campaign and products to life.

In August 2025, we began the roll out of our new global marketing platform that will be the Columbia brand character and voice for years to come.

This new campaign is designed to bring Columbia back to the roots of what made us an iconic global brand, by leveraging our signature irreverence and humor in memorable advertising.

Not only are we investing more in demand creation, but we are also investing more efficiently, leveraging modern digital and social-first strategies.

We are launching a new site redesign on Columbia.com with enhanced mobile capabilities and up-leveled photography that highlights the beauty and craftsmanship of our iconic products.

We are also enhancing our product assortment to emphasize innovation and style, with new product launching this coming Fall.

International Trends | We have not seen a meaningful change in trends in the majority of our international businesses, which were quite healthy in the first half of 2025.

Across our LAAP and EMEA markets, our product offerings, marketing activations and marketplace strategies, are working to create a more premium Columbia brand experience.

International Trends | We have not seen a meaningful change in trends in the majority of our international businesses, which were quite healthy for the first nine months of 2025.

Across our EMEA and LAAP markets, our product offerings, marketing activations and marketplace strategies are working to create a more premium Columbia brand experience.

However, it is not possible to predict the extent to which U.S.

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The following table presents the items in our unaudited Condensed Consolidated Statements of Operations, both in dollars and as a percentage of net sales:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands, except for percentage of net sales and per share amounts)

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Selling, general and administrative expenses 380,892 40.4 % 361,243 38.8 % 1,060,991 45.6 % 1,013,262 44.6 %

Impairment of goodwill and intangible assets

29,000 3.1 % — — % 29,000 1.2 % — — %

Net licensing income 5,460 0.6 % 6,225 0.7 % 15,311 0.7 % 16,145 0.7 %

Operating income (loss) (23,591) (3.9) % (23,802) (4.2) % 22,917 1.7 % 20,879 1.6 %

Operating income

67,386 7.1 % 112,541 12.1 % 90,303 3.9 % 133,420 5.9 %

Interest income, net 2,870 0.3 % 5,364 0.6 % 14,525 0.6 % 22,905 1.0 %

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732 0.1 % 1,283 0.1 % 4,447 0.2 % 2,030 0.1 %

Income (loss) before income tax (16,589) (2.7) % (14,982) (2.6) % 38,287 2.8 % 39,167 3.0 %

Income tax expense (benefit) (6,393) (1.1) % (3,241) (0.6) % 6,235 0.5 % 8,608 0.6 %

Net income (loss) $ (10,196) (1.7) % $ (11,741) (2.0) % $ 32,052 2.3 % $ 30,559 2.4 %

Diluted earnings (loss) per share $ (0.19) $ (0.20) $ 0.58 $ 0.51

Income before income tax

70,988 7.5 % 119,188 12.8 % 109,275 4.7 % 158,355 7.0 %

Income tax expense

18,983 2.0 % 29,031 3.1 % 25,218 1.1 % 37,639 1.7 %

$ 52,005 5.5 % $ 90,157 9.7 % $ 84,057 3.6 % $ 120,716 5.3 %

Diluted earnings per share

$ 0.95 $ 1.56 $ 1.53 $ 2.04

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 27

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Net sales by brand, product category and channel are summarized in the following table:

Three Months Ended June 30,

Three Months Ended September 30,

(in thousands, except for percentages) Reported

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Our global net sales increase was driven by growth within our EMEA, LAAP and Canada regions, partially offset by declines in the U.S., as compared to the same period in 2024.

The growth in our EMEA and LAAP net sales was largely driven by increased net sales of our Columbia brand across both wholesale and DTC channels in most markets.

The growth in EMEA and LAAP net sales was largely driven by the strength of the Columbia brand within our wholesale business across many markets.

We attribute the international strength of the Columbia brand to the execution of our business strategies and brand positioning, as well as to the benefit of certain trends and/or factors favorably impacting the outdoor apparel and footwear sector.

The growth in our Canada net sales reflects the impact of favorable timing of wholesale shipments, partially offset by declines in our Canada DTC business.

The decline in the U.S.

net sales was driven by declines in our U.S.

DTC e-commerce and brick-and-mortar businesses, partially offset by growth in our U.S.

wholesale business.

The decline in our U.S.

DTC e-commerce business was attributable to a challenging e-commerce environment for outdoor brands and increased competition within the outdoor lifestyle category, coupled with a difficult macroeconomic environment as global economic uncertainty weighs on consumer sentiment.

The decline in our U.S.

DTC brick-and-mortar business was attributable to the closure of our temporary clearance locations, partially offset by contributions from new stores.

The increase in wholesale net sales reflected the impact of favorable timing of wholesale shipments and increased Spring 2025 orders, partially offset by lower closeout sales.

Underlying business trends within our U.S.

wholesale business remain under pressure.

The growth in Canada net sales reflects the impact of favorable timing of wholesale shipments and modest growth in our Fall 2025 orders, partially offset by declines in our Canada DTC business.

The decline in U.S.

net sales was driven primarily by our U.S.

DTC brick-and-mortar and e-commerce businesses.

wholesale net sales were relatively flat reflecting earlier shipments of Fall 2025 orders, offset by decreased wholesale customer demand and lower closeout sales.

The underlying business trends within our U.S.

business remain under pressure.

Gross Profit.

Gross profit is summarized in the following table:

Three Months Ended June 30,

Three Months Ended September 30,

(in thousands, except for percentages and basis points) 2025 2024 Change

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Gross margin 50.0 % 50.2 % -20 bps

Gross margin contracted primarily due to an approximate 160 bps decrease in channel profitability resulting from unmitigated incremental tariffs, which more than offset higher channel profitability from lower clearance and promotional activity.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 28

Gross margin expanded primarily due to the following factors:

• an approximate 245 bps increase in channel profitability resulting from healthier overall inventory composition, which enabled higher product margins across our wholesale and DTC channels.

Higher wholesale margins were driven by lower closeout sales with higher margins and a favorable product net sales mix.

Higher DTC margins were driven by less promotional activity and lower outbound freight costs;

partially offset by

• unfavorable channel and regional net sales mix resulting from a higher portion of wholesale net sales, including distributor net sales, which generally carry lower margins.

Selling, General and Administrative Expenses.

SG&A expenses are summarized in the following table:

Three Months Ended June 30,

Three Months Ended September 30,

(in thousands, except for percentages and basis points) 2025 2024 Change

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SG&A expenses increased primarily due to the following factors:

• higher omni-channel expenses of $12.7 million, reflecting higher DTC brick-and-mortar expenses associated with new stores, partially offset by temporary clearance location closures;

• higher demand creation expenses, reflecting our increased investment in demand creation in line with our ACCELERATE Growth Strategy;

• higher other expenses, reflecting a variety of both recurring and non-recurring expenses.

• higher demand creation expenses of $11.6 million, reflecting increased investment in demand creation in line with our ACCELERATE Growth Strategy;

• higher omni-channel expenses, reflecting higher DTC brick-and-mortar expenses associated with new stores, partially offset by temporary clearance location closures;

• higher other expenses, reflecting higher supply chain costs, partially offset by lower technology expenses.

Impairment of Goodwill and Intangible Assets.

During the third quarter of 2025, we recognized $29.0 million of impairment charges as a result of our interim quantitative impairment tests for the prAna and Mountain Hardwear indefinite-lived intangible assets (which consists of trade names and trademarks) (collectively, "trade names") and goodwill reporting units.

These charges consisted of a $12.2 million impairment charge related to the Mountain Hardwear goodwill reporting unit, comprising the full Mountain Hardwear goodwill balance, an $8.8 million impairment charge related to the prAna goodwill reporting unit, and an $8.0 million impairment charge related to the prAna trade name.

Refer to Note 6 in Part I, Item 1 and our Critical Accounting Estimates in Part I, Item 2 of this Quarterly Report on Form 10-Q for further information regarding these impairments.

Interest Income, Net.

Interest income, net is summarized in the following table:

Three Months Ended June 30,

Three Months Ended September 30,

(in thousands, except for percentages) 2025 2024 Change

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Interest income, net decreased, primarily reflecting lower yields on decreased levels of cash, cash equivalents and short-term investments.

Income Tax Benefit.

Income tax benefit and the related effective income tax rate are summarized in the following table:

Three Months Ended June 30,

Income Tax Expense.

Income tax expense and the related effective income tax rate are summarized in the following table:

Three Months Ended September 30,

(in thousands, except for percentages) 2025 2024 Change

Income tax benefit $ ( 6,393 ) $ (3,241) $ (3,152) 97 %

Income tax expense

$ 18,983 $ 29,031 $ (10,048) (35) %

Effective income tax rate 26.7 % 24.4 %

Our effective income tax rate increased primarily due to a tax benefit associated with foreign currency losses.

Our effective income tax rate increased primarily due to the impact of non-deductible impairment charges.

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Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net sales by brand, product category and channel are summarized in the following table:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands, except for percentages)

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See "Non-GAAP Financial Measure" above for further information.

Our global net sales increase was driven by growth within our EMEA and LAAP regions, partially offset by declines in the U.S.

and Canada, as compared to the same period in 2024.

The growth in our EMEA and LAAP net sales was largely driven by increased net sales of our Columbia brand across both wholesale and DTC channels in most markets.

Our global net sales increase was driven by growth within our EMEA, LAAP and Canada regions, partially offset by declines in the U.S., as compared to the same period in 2024.

The growth in EMEA and LAAP net sales was largely driven by the strength of the Columbia brand across both wholesale and DTC channels across many markets.

The decline in the U.S.

net sales was driven by declines in our U.S.

DTC e-commerce and brick-and-mortar businesses, partially offset by growth in our U.S.

wholesale business.

The decline in our U.S.

A modest decline in our U.S.

DTC brick-and-mortar business was attributable to the closure of our temporary clearance locations, partially offset by contributions from new stores.

The increase in wholesale net sales reflected the impact of favorable timing of wholesale shipments and increased Spring 2025 orders, partially offset by lower closeout sales.

Underlying business trends within our U.S.

wholesale business remain under pressure.

The decline in Canada net sales was primarily attributable to a difficult macroeconomic environment as global uncertainty weighs on consumer spending, coupled with a shift of consumers turning to local brands.

The growth in Canada net sales reflects the impact of favorable timing of wholesale shipments, partially offset by declines in our Canada DTC business.

The decline in U.S.

net sales was driven primarily by our U.S.

DTC brick-and-mortar and e-commerce businesses, partially offset by a modest increase in our U.S.

wholesale business, which benefitted from earlier shipments of Fall 2025 orders, partially offset by lower closeout sales and decreased wholesale customer demand.

The underlying business trends within our U.S.

business remain under pressure.

Gross Profit.

Gross profit is summarized in the following table:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands, except for percentages and basis points)

2 unchanged sentences

Gross margin 50.1 % 49.8 % 30 bps

COLUMBIA SPORTSWEAR COMPANY | Q2 2025 FORM 10-Q | 29

Gross margin expanded primarily due to a favorable increase in channel profitability resulting from healthier overall inventory composition which enabled higher product margins across our wholesale and DTC channels.

Higher wholesale margins were driven by lower closeout sales with higher margins.

Higher DTC margins were driven by less promotional activity and lower outbound freight costs.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 30

Selling, General and Administrative Expenses.

SG&A expenses are summarized in the following table:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands, except for percentages and basis points)

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• higher omni-channel expenses of $25.4 million, reflecting higher DTC brick-and-mortar expenses associated with new stores, partially offset by temporary clearance location closures;

• higher demand creation expenses, reflecting our increased investment in demand creation in line with our ACCELERATE Growth Strategy;

• higher other expenses, reflecting a variety of both recurring and non-recurring expenses.

• higher demand creation expenses of $22.4 million, reflecting our increased investment in demand creation in line with our ACCELERATE Growth Strategy.

Impairment of Goodwill and Intangible Assets.

During the third quarter of 2025, we recognized $29.0 million of impairment charges as a result of our interim quantitative impairment tests for the prAna and Mountain Hardwear trade names and goodwill reporting units.

Refer to Note 6 in Part I, Item 1 and our Critical Accounting Estimates in Part I, Item 2 of this Quarterly Report on Form 10-Q for further information regarding these impairments.

Interest Income, Net.

Interest income, net is summarized in the following table:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands, except for percentages)

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Income tax expense and the related effective income tax rate are summarized in the following table:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands, except for percentages)

2 unchanged sentences

Effective income tax rate 23.1 % 23.8 %

Our effective income tax rate decreased primarily due to a tax benefit associated with foreign currency losses.

COLUMBIA SPORTSWEAR COMPANY | Q2 2025 FORM 10-Q | 30

Our effective income tax rate decreased primarily due to a tax benefit associated with foreign currency losses, partially offset by the impact of non-deductible impairment charges.

Results of Operations — Segment

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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.

Refer to Note 16 in Part II, Item 8 of our Annual Report on Form 10-K for further information.

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Refer to Note 3 in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 31

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Net sales by geographic segment are summarized in the following table:

Three Months Ended June 30,

Three Months Ended September 30,

(in thousands, except for percentage changes) Reported

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See "Non-GAAP Financial Measure" above for further information.

Segment operating income (loss) for each reportable segment and unallocated corporate expenses are summarized in the following table:

Three Months Ended June 30,

Segment operating income for each reportable segment and unallocated corporate expenses are summarized in the following table:

Three Months Ended September 30,

(in thousands) 2025 2024 Change

5 unchanged sentences

Unallocated corporate expenses 111,828 78,857 32,971

Operating loss $ (23,591) $ (23,802) $ 211

operating income decreased $6.1 million to $17.3 million, or 5.2% of net sales, for the second quarter of 2025 from $23.5 million, or 6.9% of net sales, for the comparable period in 2024.

The decrease was driven primarily by decreased net sales and increased segment SG&A expenses, partially offset by increased gross profit.

net sales decreased $5.1 million, or 2%, for the second quarter of 2025, compared to the same period in 2024, primarily driven by decreased net sales in our DTC e-commerce and brick-and-mortar businesses, partially offset by net sales growth in our U.S.

wholesale business.

The decline in our U.S.

DTC brick-and-mortar business was attributable to the closure of our temporary clearance locations, partially offset by contributions from new stores.

As of June 30, 2025, our U.S.

Operating income

$ 67,386 $ 112,541 $ (45,155)

segment operating income decreased $18.3 million to $97.1 million, or 17.8% of net sales, for the third quarter of 2025 from $115.4 million, or 20.2% of net sales, for the comparable period in 2024.

The decrease in U.S.

segment operating income was driven primarily by decreased net sales and increased segment SG&A expenses.

net sales decreased $24.6 million, or 4%, for the third quarter of 2025, compared to the same period in 2024, driven primarily by our U.S.

DTC brick-and-mortar and e-commerce businesses.

The decline in U.S.

DTC brick-and-mortar net sales was primarily attributable to the closure of temporary clearance locations and, to a lesser degree, decreased productivity from existing stores, partially offset by contributions from new stores.

As of September 30, 2025, our U.S.

business operated 172 retail stores and 8 temporary clearance locations, compared to 169 retail stores and 42 temporary clearance locations for the comparable period in 2024.

The increase in wholesale net sales reflected a shift of Spring 2025 and Fall 2025 shipments into the second quarter of 2025 and increased Spring 2025 orders, partially offset by lower closeout sales.

segment SG&A expenses increased as a percentage of net sales to 40.0% for the second quarter of 2025, compared to 35.1% for the same period in 2024, driven primarily by fixed SG&A expense deleverage on decreased net sales.

The decline in U.S.

DTC e-commerce net sales was attributable to a challenging e-commerce environment for outdoor brands and increased competition within the outdoor lifestyle category, coupled partially with ongoing efforts to refine and evolve our online promotions and marketing strategies.

wholesale net sales were relatively flat, reflecting a shift of Fall 2025 shipments into the third quarter of 2025 out of the fourth quarter of 2025, partially offset by lower Fall 2025 orders and lower closeout sales.

The underlying business trends within our U.S.

business remain under pressure.

segment gross margin expanded to 49.5% for the third quarter of 2025 from 49.4% for the comparable period in 2024, driven primarily by higher channel profitability from lower clearance and promotional activity, partially offset by an approximate 160 bps decrease in channel profitability resulting from unmitigated incremental tariffs.

segment SG&A expenses increased as a percentage of net sales to 28.7% for the third quarter of 2025, compared to 25.8% for the same period in 2024, driven primarily by fixed SG&A expense deleverage on decreased net sales.

In total, U.S.

segment SG&A expenses increased 12.1% for the three months ended June 30, 2025, as compared to the same period in 2024, driven primarily by our investment in demand creation in line with our ACCELERATE Growth Strategy.

segment SG&A expenses increased 6.4% for the three months ended September 30, 2025, as compared to the same period in 2024, driven primarily by our investment in demand creation in line with our ACCELERATE Growth Strategy.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 32

LAAP operating income increased $0.9 million to $7.0 million, or 6.3% of net sales, for the second quarter of 2025 from $6.1 million, or 6.1% of net sales, for the comparable period in 2024.

LAAP net sales increased 13% (12% constant-currency), for the second quarter of 2025, compared to the same period in 2024, primarily driven by our China, LAAP distributor and Japan businesses, partially offset by a decline in our Korea business.

The growth in our China business was driven by robust demand across all channels, which we believe was attributable to the execution of our marketplace strategies, including premium product offerings and unique marketing activations.

The growth was further aided by positive outdoor category trends as compared to the same period in the prior year.

The growth in our LAAP distributor business was driven by growth in our Fall 2025 distributor orders as compared to the same period in the prior year.

The growth in our Japan business was driven by healthy demand across all channels, which we believe was attributable to the execution of our marketplace strategies, as well as the effect of increased inbound international tourism.

The decline in our Korea business reflected unfavorable effects from foreign currency fluctuation, which more than offset constant-currency net sales growth within our Korea wholesale business, which reflected a shift of Fall 2025 shipments into the second quarter of 2025, partially offset by a decline in our Korea DTC business.

LAAP segment SG&A expenses decreased as a percentage of net sales to 39.8% for the second quarter of 2025, compared to 40.9% for the same period in 2024, driven by fixed SG&A expense leverage on increased net sales.

In total, LAAP segment SG&A expenses increased 9.9% for the three months ended June 30, 2025, as compared to the same period in 2024.

EMEA operating income increased $7.2 million to $21.6 million, or 16.6% of net sales, for the second quarter of 2025 from $14.4 million, or 13.9% of net sales, for the comparable period in 2024.

The increase was driven primarily by increased net sales and gross profit, partially offset by increased segment SG&A expenses.

EMEA net sales increased $26.6 million, or 26% (24% constant-currency), for the second quarter of 2025, compared to the same period in 2024, primarily driven by our EMEA distributor and Europe-direct businesses.

The growth in our EMEA distributor business was primarily driven by growth in our Fall 2025 distributor orders, as well as a shift of Fall 2025 shipments out of the third quarter of 2025 into the second quarter of 2025, as compared to the same period in 2024.

The growth in our Europe-direct businesses was driven by robust demand across all channels, which we believe was attributable to the execution of our marketplace strategies, including marketing activations and elevating the online and in-store customer experience.

EMEA segment SG&A expenses decreased as a percentage of net sales to 22.9% for the second quarter of 2025, compared to 23.3% in 2024, driven by fixed SG&A expense leverage on increased net sales.

In total, EMEA segment SG&A expenses increased 23.3% for the three months ended June 30, 2025, as compared to the same period in 2024.

Canada operating loss increased $1.9 million to $2.0 million, or 7.2% of net sales, for the second quarter of 2025 from $0.1 million, or 0.1% of net sales, for the comparable period in 2024.

The increase was driven primarily by increased segment SG&A expenses.

Canada net sales increased $0.6 million, or 2% (5% constant-currency), for the second quarter of 2025, compared to the same period in 2024, primarily driven by increased net sales in our Canada wholesale business, partially offset by decreased net sales in our Canada DTC business.

Canada segment SG&A expenses increased as a percentage of net sales to 41.0% for the second quarter of 2025, compared to 35.8% for the same period in 2024, driven primarily by fixed SG&A expense deleverage on decreased net sales.

In total, Canada segment SG&A expenses increased 17.0% for the three months ended June 30, 2025, as compared to the same period in 2024.

LAAP segment operating income increased $0.7 million to $21.1 million, or 14.7% of net sales, for the third quarter of 2025 from $20.4 million, or 15.1% of net sales, for the comparable period in 2024.

LAAP net sales increased $8.4 million, or 6% (6% constant-currency), for the third quarter of 2025, compared to the same period in 2024, driven primarily by our LAAP distributor and China businesses, partially offset by declines in our Japan and Korea businesses.

The growth in LAAP distributor net sales was driven by growth in our Fall distributor orders as compared to the same period in the prior year.

The growth in China net sales reflected continued healthy demand, which we believe was attributable to the execution of our marketplace strategies, including premium offerings and unique marketing activations.

The decline in Japan net sales was driven primarily by decreased Japan wholesale net sales, reflecting a shift of Fall 2025 shipments into the fourth quarter of 2025, partially offset by growth in Japan DTC net sales which we believe was attributable to the execution of our marketplace strategies, including localized product offerings.

The decline in Korea net sales was driven primarily by decreased Korea wholesale net sales, partially offset by modest growth in Korea DTC net sales.

LAAP segment gross margin contracted to 53.8% for the third quarter of 2025 from 54.5% for the comparable period in 2024, driven primarily by unfavorable region and channel net sales mix and lower channel profitability reflecting unfavorable input costs, partially offset by higher channel profitability reflecting favorable product mix.

LAAP segment SG&A expenses increased as a percentage of net sales to 35.1% for the third quarter of 2025, compared to 34.1% for the same period in 2024, driven primarily by higher personnel and DTC brick-and-mortar expenses associated with new stores.

In total, LAAP segment SG&A expenses increased 9.3% for the three months ended September 30, 2025, as compared to the same period in 2024.

EMEA segment operating income increased $5.0 million to $38.2 million, or 23.2% of net sales, for the third quarter of 2025 from $33.2 million, or 23.4% of net sales, for the comparable period in 2024.

EMEA net sales increased $22.7 million, or 16% (10% constant-currency), for the third quarter of 2025, compared to the same period in 2024, driven primarily by our Europe-direct business.

The growth in Europe-direct net sales was driven by robust demand across both wholesale and DTC channels, which we believe was attributable to the execution of our marketplace strategies, including marketing activations and partnership with strategic wholesale partners and brand authenticators.

EMEA distributor net sales decreased modestly, reflecting a shift of Fall 2025 shipments out of the third quarter of 2025 into the second quarter of 2025, partially offset by growth in Fall distributor orders, as compared to the same period in 2024.

EMEA segment gross margin expanded to 49.7% for the third quarter of 2025 from 49.6% for the comparable period in 2024, driven primarily by higher channel profitability from lower clearance and promotional activity, partially offset by unfavorable input costs.

EMEA segment SG&A expenses increased as a percentage of net sales to 24.2% for the third quarter of 2025, compared to 23.4% in 2024, driven primarily by higher personnel and demand creation expenses.

In total, EMEA segment SG&A expenses increased 20.1% for the three months ended September 30, 2025, as compared to the same period in 2024.

Canada segment operating income increased $0.5 million to $22.8 million, or 25.7% of net sales, for the third quarter of 2025 from $22.4 million, or 26.7% of net sales, for the comparable period in 2024.

Canada net sales increased $5.2 million, or 6% (7% constant-currency), for the third quarter of 2025, compared to the same period in 2024, driven primarily by our Canada wholesale business, partially offset by declines in our Canada DTC business.

The growth in our Canada wholesale business reflected a shift of Fall 2025 shipments into the third quarter of 2025 out of the fourth quarter of 2025 and modest growth of Fall orders.

Canada segment gross margin contracted to 47.4% for the third quarter of 2025 from 49.4% for the comparative period in 2024, driven primarily by lower channel profitability from unfavorable input costs and unfavorable effects from foreign exchange hedge rates, partially offset by higher channel profitability from lower clearance and promotional activity.

Canada segment SG&A expenses increased as a percentage of net sales to 17.2% for the third quarter of 2025, compared to 16.9% for the same period in 2024.

In total, Canada segment SG&A expenses increased 8.1% for the three months ended September 30, 2025, as compared to the same period in 2024.

Unallocated corporate expenses

Unallocated corporate expenses decreased by $0.1 million to $67.6 million in the second quarter of 2025, from $67.7 million for the same period in 2024.

Unallocated corporate expenses increased by $33.0 million to $111.8 million in the third quarter of 2025, from $78.9 million for the comparable period in 2024, driven primarily by $29.0 million of impairment charges related to Mountain Hardwear and prAna goodwill and the prAna trade name.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 33

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net sales by reportable segment are summarized in the following table:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands, except for percentage changes)

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Segment operating income for each reportable segment and unallocated corporate expenses are summarized in the following table:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands)

7 unchanged sentences

Operating income $ 90,303 $ 133,420 $ (43,117)

segment operating income decreased $13.2 million to $83.3 million, or 10.3% of net sales, for the six months ended June 30, 2025 from $96.5 million, or 11.8% of net sales, for the comparable period in 2024.

The decrease was driven primarily by decreased net sales and increased segment SG&A expenses, partially offset by increased gross profit.

net sales decreased $8.3 million, or 1%, for the six months ended June 30, 2025, compared to the same period in 2024, driven primarily by decreased net sales in our U.S.

DTC e-commerce and brick-and-mortar businesses, partially offset by net sales growth in our U.S.

wholesale business.

The decline in our U.S.

DTC business was attributable to a challenging e-commerce environment for outdoor brands and increased competition within the outdoor lifestyle category, coupled with a difficult macroeconomic environment weighing on consumer sentiment.

The decline in our U.S.

DTC brick-and-mortar business was attributable to the closure of our temporary clearance locations, partially offset by contributions from new stores.

As of June 30, 2025, our U.S.

segment operating income decreased $31.5 million to $180.3 million, or 13.3% of net sales, for the nine months ended September 30, 2025 from $211.8 million, or 15.3% of net sales, for the comparable period in 2024.

The decrease in U.S.

segment operating income was driven primarily by decreased net sales and increased segment SG&A expenses.

net sales decreased $33.0 million, or 2%, for the nine months ended September 30, 2025, compared to the same period in 2024, driven primarily by our U.S.

DTC brick-and-mortar and e-commerce businesses, partially offset by a modest increase in U.S.

wholesale net sales.

The decline in U.S.

DTC brick-and-mortar net sales was attributable to the closure of temporary clearance locations and decreased productivity from existing stores, partially offset by contributions from new stores.

As of September 30, 2025, our U.S.

business operated 172 retail stores and 8 temporary clearance locations, compared to 169 retail stores and 42 temporary clearance locations for the comparable period in 2024.

The increase in wholesale net sales reflected a shift of Fall 2025 shipments into the first half of 2025 and increased Spring 2025 orders, partially offset by lower closeout sales.

segment SG&A expenses increased as a percentage of net sales to 34.8% for the six months ended June 30, 2025, compared to 31.7% for the same period in 2024, driven primarily by fixed SG&A deleverage on decreased net sales.

The decline in U.S.

DTC e-commerce net sales was attributable to a challenging e-commerce environment for outdoor brands and increased competition within the outdoor lifestyle category, coupled with a difficult macroeconomic environment weighing on consumer sentiment.

DTC e-commerce business was also partially impacted by ongoing efforts to refine and evolve our online promotions and marketing strategies.

The modest increase in U.S.

wholesale net sales reflected a shift of Fall 2025 shipments into the first nine months of 2025, partially offset by lower closeout sales and lower Fall 2025 orders.

The underlying business trends within our U.S.

business remain under pressure.

segment gross margin expanded to 49.6% for the nine months ended September 30, 2025 from 48.9% for the comparable period in 2024, driven primarily by higher channel profitability from lower clearance and promotional activity, partially offset by unmitigated incremental tariffs.

segment SG&A expenses increased as a percentage of net sales to 32.4% for the nine months ended September 30, 2025, compared to 29.3% for the same period in 2024, driven primarily by fixed SG&A deleverage on decreased net sales.

In total, U.S.

segment SG&A expenses increased 8.6% for the six months ended June 30, 2025, as compared to the same period in 2024, driven primarily by our investment in demand creation in line with our ACCELERATE Growth Strategy.

LAAP segment operating income increased $5.4 million to $33.4 million, or 12.6% of net sales, for the six months ended June 30, 2025 from $27.9 million, or 11.7% of net sales, for the comparable period in 2024.

The increase was driven primarily by increased net sales and gross profit, partially offset by increased segment SG&A expenses.

LAAP net sales increased $26.4 million, or 11% (13% constant-currency), for the six months ended June 30, 2025, compared to the same period in 2024, primarily driven by our China, LAAP distributor and Japan

segment SG&A expenses increased 7.8% for the nine months ended September 30, 2025, as compared to the same period in 2024, driven primarily by our investment in demand creation in line with our ACCELERATE Growth Strategy.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 34

businesses, partially offset by a decline in our Korea business.

The growth in our China business reflected continued robust demand, which we believe was attributable to the execution of our marketplace strategies throughout the first half of 2025, including premium product offerings and unique marketing strategies.

LAAP segment operating income increased $6.1 million to $54.5 million, or 13.4% of net sales, for the nine months ended September 30, 2025 from $48.3 million, or 13.0% of net sales, for the comparable period in 2024.

LAAP net sales increased $34.8 million, or 9% (10% constant-currency), for the nine months ended September 30, 2025, compared to the same period in 2024, driven primarily by our China, LAAP distributor and Japan businesses, partially offset by a decline in our Korea business.

The growth in China net sales reflected continued strong demand, which we believe was attributable to the execution of our marketplace strategies throughout the first nine months of 2025, including premium product offerings and unique marketing strategies.

The growth was further aided by positive outdoor category trends, as compared to the same period in 2024.

The growth in our LAAP distributor business was driven by growth in our Spring 2025 and Fall 2025 distributor orders as compared to the same period in the prior year.

The growth in our Japan business was driven by strong demand across all channels, which we believe was attributable to the execution of our marketplace strategies, as well as the effect of increased inbound international tourism throughout the first half of 2025, as compared to the same period in 2024.

The decline in our Korea business reflected unfavorable effects from foreign currency fluctuation, which more than offset constant-currency net sales growth resulting from a shift of Fall 2025 shipments into the first half of 2025 and consumer demand for late season products within our Korea wholesale business, partially offset by a decline in our Korea DTC business.

LAAP segment SG&A expenses decreased as a percentage of net sales to 37.0% for the six months ended June 30, 2025, compared to 38.2% for the same period in 2024, primarily driven by fixed SG&A leverage on increased net sales.

In total, LAAP segment SG&A expenses increased 7.6% for the six months ended June 30, 2025, as compared to the same period in 2024.

EMEA segment operating income increased $7.0 million to $40.6 million, or 17.1% of net sales, for the six months ended June 30, 2025 from $33.6 million, or 16.1% of net sales, for the comparable period in 2024.

The increase was driven primarily by increased net sales and gross profit, partially offset by increased segment SG&A expenses.

EMEA net sales increased $29.6 million, or 14% (15% constant-currency), for the six months ended June 30, 2025, compared to the same period in 2024, primarily driven by our EMEA distributor and Europe-direct businesses.

The growth in our EMEA distributor business was primarily driven by growth in our Fall 2025 and Spring 2025 distributor orders as compared to the same period in the prior year.

The growth in our Europe-direct business was driven by robust demand across all channels, which we believe was attributable to the execution of our marketplace strategies so far this year, including marketing activations and elevating the online and in-store customer experience.

EMEA segment SG&A expenses increased as a percentage of net sales to 26.0% for the six months ended June 30, 2025, compared to 25.4% for the same period in 2024.

In total, EMEA segment SG&A expenses increased 16.9% for the six months ended June 30, 2025, as compared to the same period in 2024.

Canada segment operating income decreased $4.1 million to $7.0 million, or 9.4% of net sales, for the six months ended June 30, 2025 from $11.1 million, or 14.1% of net sales, for the comparable period in 2024.

The decrease was primarily driven by lower net sales and gross profit combined with increased segment SG&A expenses.

Canada net sales decreased $4.2 million, or 5% (0% constant-currency), for the six months ended June 30, 2025, compared to the same period in 2024, driven by decreased net sales in our Canada DTC and wholesale businesses.

Canada segment SG&A expenses increased as a percentage of net sales to 30.3% for the six months ended June 30, 2025, compared to 25.2% for the same period in 2024, primarily driven by fixed SG&A expense deleverage on decreased net sales.

In total, Canada segment SG&A expenses increased 14.1% for the six months ended June 30, 2025, as compared to the same period in 2024.

The growth in LAAP distributor net sales was driven by growth in our distributor orders as compared to the same period in the prior year.

The growth in Japan net sales was driven by healthy demand across all channels, which we believe was attributable to the execution of our marketplace strategies, as well as the effect of increased inbound international tourism through most of the first nine months of 2025, as compared to the same period in 2024.

The decline in Korea net sales reflected unfavorable effects from foreign currency fluctuation, which more than offset constant-currency net sales growth within our Korea wholesale business, partially offset by a decline in our Korea DTC business.

LAAP segment SG&A expenses decreased as a percentage of net sales to 36.3% for the nine months ended September 30, 2025, compared to 36.7% for the same period in 2024, primarily driven by fixed SG&A leverage on increased net sales.

In total, LAAP segment SG&A expenses increased 8.2% for the nine months ended September 30, 2025, as compared to the same period in 2024.

EMEA segment operating income increased $12.0 million to $78.8 million, or 19.6% of net sales, for the nine months ended September 30, 2025 from $66.8 million, or 19.1% of net sales, for the comparable period in 2024.

The increase in EMEA segment operating income was driven primarily by increased net sales and gross profit, partially offset by increased segment SG&A expenses.

EMEA net sales increased $52.3 million, or 15% (13% constant-currency), for the nine months ended September 30, 2025, compared to the same period in 2024, driven by our Europe-direct and EMEA distributor businesses.

The growth in Europe-direct net sales was driven by robust demand across all channels, which we believe was attributable to the execution of our marketplace strategies so far this year, including marketing activations, elevating the online and in-store customer experience, and partnership with strategic wholesale partners and brand authenticators.

The growth in EMEA distributor net sales was primarily driven by growth in our distributor orders as compared to the same period in the prior year.

EMEA segment gross margin expanded to 47.9% for the nine months ended September 30, 2025 from 47.3% for the comparable period in 2024, driven primarily by favorable region and channel mix and higher channel profitability from favorable product mix.

EMEA segment SG&A expenses increased as a percentage of net sales to 25.3% for the nine months ended September 30, 2025, compared to 24.6% for the same period in 2024, primarily driven by higher personnel and DTC brick-and-mortar expenses associated with new stores.

In total, EMEA segment SG&A expenses increased 18.1% for the nine months ended September 30, 2025, as compared to the same period in 2024.

Canada segment operating income decreased $3.7 million to $29.8 million, or 18.2% of net sales, for the nine months ended September 30, 2025 from $33.5 million, or 20.6% of net sales, for the comparable period in 2024.

Canada net sales increased $1.0 million, or 1% (4% constant-currency), for the nine months ended September 30, 2025, compared to the same period in 2024, driven primarily by our Canada wholesale business, partially offset by declines in our Canada DTC business.

Canada segment gross margin contracted to 48.6% for the nine months ended September 30, 2025 from 49.4% for the comparable period in 2024, driven primarily by unfavorable channel mix, partially offset by higher channel profitability from lower clearance and promotional activity.

Canada segment SG&A expenses increased as a percentage of net sales to 23.2% for the nine months ended September 30, 2025, compared to 20.9% for the same period in 2024.

In total, Canada segment SG&A expenses increased 11.6% for the nine months ended September 30, 2025, as compared to the same period in 2024.

Unallocated corporate expenses

Unallocated corporate expenses decreased by $6.9 million to $141.3 million for the six months ended June 30, 2025 from $148.2 million for the same period in 2024.

Unallocated corporate expenses increased by $26.1 million to $253.2 million for the nine months ended September 30, 2025 from $227.1 million for the comparable period in 2024, driven primarily by $29.0 million of impairment charges related to Mountain Hardwear and prAna goodwill and the prAna trade name.

LIQUIDITY AND CAPITAL RESOURCES

2 unchanged sentences

Our products are marketed on a seasonal basis and our sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed throughout the year.

Our cash and cash equivalents and short-term investments balances generally are at their lowest level just prior to the start of the U.S.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 35

cash equivalents and short-term investments balances generally are at their lowest level just prior to the start of the U.S.

holiday season and increase during the fourth quarter from collection of wholesale business receivables and fourth quarter DTC sales.

This trough cash position is impacted by the amount of product we order from our contract manufacturers in anticipation of customer demand and is more heavily impacted in advance of periods of expected high demand.

We expect that our cash position will be impacted by incremental tariff costs for U.S.

product in the third and fourth quarters of 2025.

While we currently project having adequate liquidity to meet our working capital needs in the third quarter, we have a $500.0 million committed credit facility on which we can draw, should it be needed, until we receive cash receipts in the fourth quarter.

COLUMBIA SPORTSWEAR COMPANY | Q2 2025 FORM 10-Q | 34

Our cash position is also impacted by incremental tariff costs for U.S.

While we currently project having adequate liquidity to meet our short-term and long-term working capital needs, we have a $500.0 million committed credit facility on which we can draw, should it be needed, until we receive cash receipts in the fourth quarter.

Cash Flow Activities

Cash flows are summarized in the following table:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands)

6 unchanged sentences

Net decrease in cash and cash equivalents $ (303,037) $ (43,639) $ (259,398)

The change in cash flows used in operating activities for the six months ended June 30, 2025 was primarily driven by a $181.2 million decrease in cash provided by changes in assets and liabilities.

The most significant comparative changes in assets and liabilities included Inventories, Accounts Payable, and Accounts receivable.

A $129.3 million increase in cash used in Inventories and $56.9 million increase in cash provided by Accounts payable were primarily driven by the strategic timing of inventory receipts and payments as we proactively seek to mitigate the impact of potential further incremental tariffs.

A $55.2 million decrease in cash provided by Accounts receivable reflected lower wholesale sales collected in the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024.

Net cash provided by investing activities was $110.6 million for the six months ended June 30, 2025, compared to $30.0 million of cash provided by investing activities for the six months ended June 30, 2024.

The increase in cash provided by investing was primarily driven by lower purchases of short-term investments for the six months ended June 30, 2025, as compared to the same period in 2024.

Net cash used in financing activities was $165.3 million for the six months ended June 30, 2025, compared to $139.0 million for the six months ended June 30, 2024.

The increase in cash used in financing was primarily driven by higher share repurchases of common stock for the six months ended June 30, 2025, as compared to the same period in 2024.

The change in cash flows used in operating activities for the nine months ended September 30, 2025 was primarily driven by a $256.3 million increase in cash used in changes in assets and liabilities.

The most significant comparative changes in assets and liabilities included Accounts payable , Inventories , and Prepaid expenses and other current assets.

A $129.9 million increase in cash used in Accounts payable and $43.9 million increase in cash used in Inventories were primarily driven by earlier timing of inventory receipts and payments, in part to proactively mitigate the impact of further incremental tariffs.

A $32.9 million decrease in cash provided by Prepaid expenses and other current assets was primarily driven by an increase in U.S.

prepaid income taxes.

Net cash provided by investing activities was $239.1 million for the nine months ended September 30, 2025, compared to $321.1 million for the nine months ended September 30, 2024.

The decrease in cash provided by investing was primarily driven by lower sales and maturities of short-term investments for the nine months ended September 30, 2025, as compared to the same period in 2024.

Net cash used in financing activities was $221.8 million for the nine months ended September 30, 2025, compared to $284.6 million for the nine months ended September 30, 2024.

The decrease in cash used in financing was primarily driven by lower share repurchases of common stock for the nine months ended September 30, 2025, as compared to the same period in 2024.

Sources of Liquidity

Cash and cash equivalents and short-term investments

As of June 30, 2025, we had cash and cash equivalents of $427.8 million and short-term investments of $151.2 million, compared to $531.9 million and $283.6 million, respectively, as of December 31, 2024 and $341.8 million and $369.3 million, respectively, as of June 30, 2024.

As of September 30, 2025, we had cash and cash equivalents of $228.8 million and short-term investments of $7.2 million, compared to $531.9 million and $283.6 million, respectively, as of December 31, 2024 and $306.7 million and $67.2 million, respectively, as of September 30, 2024.

Committed credit facilities

As of June 30, 2025, we had available an unsecured, committed revolving credit facility, which provides for borrowings up to $500.0 million.

As of September 30, 2025, we had available an unsecured, committed revolving credit facility, which provides for borrowings up to $500.0 million.

We were in compliance with all associated covenants and there was no balance outstanding under the facility.

Refer to Note 6 in Part II, Item 8 of our Annual Report on Form 10-K for further information regarding our domestic credit facility.

Further, as of June 30, 2025, our European subsidiary had available an unsecured, committed line of credit, which is guaranteed by the Company and provides for borrowings up to €5.0 million (approximately US$5.9 million).

Further, as of September 30, 2025, our European subsidiary had available an unsecured, committed line of credit, which is guaranteed by the Company and provides for borrowings up to €5.0 million (approximately US$5.9 million).

There was no balance outstanding under the facility.

Uncommitted credit facilities

As of June 30, 2025, collectively, our international subsidiaries had unsecured, uncommitted lines of credit, credit facilities and overdraft facilities, providing for borrowings up to approximately US$101.8 million.

There were no balances outstanding under these facilities.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 36

As of September 30, 2025, collectively, our international subsidiaries had unsecured, uncommitted lines of credit, credit facilities and overdraft facilities, providing for borrowings up to approximately US$101.2 million.

There were no balances outstanding under these facilities.

Capital Requirements

3 unchanged sentences

Inventory balances may be elevated in advance of periods of expected high demand.

As of June 30, 2025, our inventory balance increased to $926.9 million, compared to $823.6 million as of June 30, 2024, as we accelerated the production and receipt of Fall 2025 inventory, to the extent possible, to mitigate the impact of potential further incremental tariffs, as compared to the same period in 2024.

As of September 30, 2025, our inventory balance was relatively flat at $800.4 million, compared to $798.2 million as of September 30, 2024, as earlier timing of Fall 2025 inventory receipts, in part to proactively mitigate the impact of further incremental tariffs, was offset by earlier wholesale shipments.

We believe older season inventories represent a manageable portion of our total inventory mix.

13 unchanged sentences

Other cash commitments

Our inventory purchase obligations were $315.9 million as of June 30, 2025, compared to $473.0 million and $450.9 million as of December 31, 2024 and June 30, 2024, respectively.

Our inventory purchase obligations were $404.2 million as of September 30, 2025, compared to $473.0 million and $437.2 million as of December 31, 2024 and September 30, 2024, respectively.

There have been no other significant changes to our other cash commitments as described in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

CRITICAL ACCOUNTING ESTIMATES

Management's discussion and analysis of our financial condition and results of operations are based on our unaudited condensed consolidated financial statements, which have been prepared in accordance with GAAP.

The preparation of these financial statements requires us to make various estimates and judgments that affect reported amounts of assets, liabilities, sales, cost of sales, and expenses and related disclosure of contingent assets and liabilities.

We base our ongoing estimates on historical experience and other assumptions that we believe to be reasonable in the circumstances.

The business and economic uncertainty resulting from volatile geopolitical conditions, including expanded tariffs, have made such estimates and assumptions more difficult to calculate.

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

We believe that the estimates, assumptions and judgments involved in the accounting for sales reserves, allowance for uncollectible accounts receivable, excess, close-out and slow-moving inventory, impairment of long-lived assets, intangible assets and goodwill, and income taxes have the greatest potential effect on our financial statements, so we consider these to be our critical accounting policies and estimates.

Refer to Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding our critical accounting policies and estimates.

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.

Other than described below, there have been no significant changes in our significant accounting policies described in Note 2 in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Indefinite-Lived Intangible Assets and Goodwill

During the third quarter of 2025, the Company identified triggering events related to the prAna and Mountain Hardwear trade names and goodwill reporting units.

As a result, we performed interim quantitative impairment tests where the Company compared the estimated fair

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 37

Management regularly discusses with our audit committee our critical accounting estimates and the development and selection of these accounting estimates.

These discussions typically occur at our quarterly audit committee meetings and include the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation.

There have been no significant changes to the Company's significant accounting policies described in Note 2 in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2024.

values of the prAna and Mountain Hardwear trade names and goodwill reporting units to their carrying values.

Refer to Note 6 in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information regarding these impairments.

In our interim quantitative impairment test of the prAna trade name, the fair value of the prAna trade name was less than its carrying value of $51.8 million and, therefore, an impairment charge of $8.0 million was recorded.

In our interim quantitative impairment test of the Mountain Hardwear trade name, the fair value of the Mountain Hardwear trade name exceeded its carrying value of $15.0 million by approximately 75 percent and, therefore, no impairment charge was recorded.

As part of our evaluation, we performed a sensitivity analysis on the trade name impairment model.

A 300 basis point decline in the compound annual growth rate for net sales assumed over the first five years would reduce the excess of the fair value over the carrying value to approximately 51 percent.

Separately, a 100 basis point increase in the assumed discount rate would reduce the excess of the fair value over the carrying value to approximately 57 percent.

A separate 50 basis point decline in the assumed royalty rate would reduce the excess of the fair value over the carrying amount to approximately 31 percent.

In our interim quantitative impairment test of the prAna reporting unit, the fair value of the prAna reporting unit was less than its carrying value of $12.2 million and, therefore, an impairment charge of $8.8 million was recorded.

In our interim quantitative impairment test of the Mountain Hardwear reporting unit, the fair value of the Mountain Hardwear reporting unit was less than its carrying value and, therefore, an impairment charge of $12.2 million was recorded, comprising the full Mountain Hardwear goodwill balance.

Our impairment tests and related fair value estimates are based on a number of factors, including assumptions and estimates for projected net sales, income, cash flows, discount rates, market-based multiples, and other operating performance measures.

Changes in estimates or the application of alternative assumptions could produce significantly different results.

These assumptions and estimates may change in the future due to changes in economic conditions, changes in our ability to meet sales and profitability objectives, or changes in our business operations or strategic direction.

RECENT ACCOUNTING PRONOUNCEMENTS

Refer to Note 1 in Part I, Item 1 of this Quarterly Report on Form 10-Q.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has not been any material change in the market risk disclosure contained in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2024.

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 2. Management’s Discussion and Analysis