Columbia Sportswear (COLM) Margin Compression Reinforces Bearish Profitability Narratives

Columbia Sportswear (COLM) has wrapped up FY 2025 with fourth quarter revenue of US$1.1b and basic EPS of US$1.74, alongside net income excluding extra items of US$93.2 million. This set of results kept margins firmly in focus for the year. Over recent periods, the company has seen quarterly revenue move from US$931.8 million and EPS of US$1.56 in Q3 2024 to US$1.1b and EPS of US$1.74 in Q4 2025, while trailing twelve month EPS of US$3.24 sits against total revenue of about US$3.4b. With net profit margins lower than the prior year and only modest growth expected, this performance places profitability quality and future margin resilience at the center of the investment debate.

See our full analysis for Columbia Sportswear.

With the headline numbers on the table, the next step is to see how these results line up with the most common narratives around Columbia Sportswear, and where the fresh data starts to challenge those views.

Curious how numbers become stories that shape markets? Explore Community Narratives

TTM EPS Slips To US$3.24

• On a trailing twelve month basis, EPS is US$3.24, compared with US$3.83 a year earlier, while TTM net income sits at US$177.2 million versus US$223.3 million on roughly similar revenue of about US$3.4b.
• What stands out for a bullish view that focuses on brand strength and resilience is that TTM revenue has stayed close to US$3.4b even as TTM EPS moved from US$3.83 to US$3.24. This suggests the recent pressure is more about how efficiently that revenue turns into profit than about the top line itself.
  • Supporters of a more optimistic angle might point to the breadth of the business as a cushion, yet the earnings line shows that profitability has been more sensitive than sales to recent conditions.
  • For you as an investor, that mix means the story is less about chasing rapid growth and more about watching how well existing sales are converted into per share profits over time.

Over the past year, EPS drifted lower while revenue held around US$3.4b, and that gap between sales stability and earnings softness is exactly what market bulls and bears are still trying to explain. 📊 Read the full Columbia Sportswear Consensus Narrative.

Net Margin Eases To 5.2%

• Across the trailing twelve months, net profit margin is 5.2% compared with 6.6% in the prior year, alongside a five year earnings trend that declined about 4.5% per year.
• Critics highlight this thinner margin as a key bearish point, and the data backs up their focus because profit has softened even though TTM revenue moved only slightly from US$3.37b to US$3.40b.
  • That combination of a 5.2% margin and a five year earnings decline around 4.5% a year supports the cautious view that profitability has been under pressure for an extended period.
  • At the same time, the company is still producing positive net income of US$177.2 million on TTM revenue, so the concern is about how durable that profit level is, not about the business falling into losses.

P/E Of 20x Sits Between Peers And Industry

• The shares trade on a trailing P/E of 20x at a price of US$65.69, which is below the peer average of 37.3x but slightly above the US Luxury industry average of 18.9x, and very close to a DCF fair value of US$65.42 per share.
• What is interesting for a more optimistic take is that, even with modest forecast growth of about 2.3% for revenue and 4.44% for earnings and a margin of 5.2%, the market is valuing the company near that DCF fair value while still applying a discount to the broader peer group multiple.
  • Supporters of the bullish angle might argue that a 20x P/E with high assessed earnings quality gives some comfort that investors are not paying peer level prices for slower forecast growth.
  • On the other side, bears can point out that the multiple is still a bit higher than the wider luxury industry despite the five year earnings decline and an unstable dividend record, which keeps expectations on execution relatively tight at this valuation.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Columbia Sportswear's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Columbia Sportswear’s softer TTM EPS, thinner 5.2% net margin, and five year earnings decline highlight that profit quality has been under pressure even with steady revenue.

If you want companies where earnings and margins have held up more consistently, use our CTA_SCREENER_STABLE_GROWTH to focus on businesses with steadier performance and fewer profit surprises.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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