Columbia Sportswear withdraws annual forecast, citing tariff uncertainty

Outdoor apparel company Columbia Sportswear withdrew its sales forecast for the year Thursday, citing the uncertainty created by the Trump administration’s trade war.

The Washington County company also raised the possibility of layoffs later in the year to cope with rising costs.

Last month, President Donald Trump announced sweeping tariffs on products imported from numerous countries. A week later, he paused many of the tariffs for 90 days, but retained a 145% surcharge on products from China and a 10% tariff on most imports.

The tariffs are expected to have an outsized impact on footwear and apparel companies, many of which rely on supply chains in the countries targeted by tariffs.

On a call with Wall Street analysts Thursday afternoon, Columbia Sportswear CEO Tim Boyle said apparel brands are facing an “unprecedented level of public policy uncertainty.”

“Our industry has never faced an environment where rules and regulations around trade are more unknown and unknowable,” he said.

Boyle said he’s optimistic Columbia can navigate the uncertainty better than competitors, citing the company’s strong balance sheet, dispersed supply chain, experience at dealing with tariffs and moderately priced products, which could be more in demand if the economy weakens.

“I’m confident we can weather this storm,” he told analysts.

Boyle said Columbia is taking steps to reduce the impact of tariffs, including accelerating shipments from countries where tariffs are paused, cutting spending and pausing capital investments in the U.S.

He also said the “vast majority” of Columbia products made in China will either be sold in that country or redirected elsewhere in order to avoid hefty tariffs from importing them to the U.S.

At the product level, Boyle said Columbia is exploring everything from redesigning products to repricing them. He did not provide any specifics about price increases, noting the ongoing uncertainty.

“Companies are unable to confidently plan and invest in their U.S. business until there is clarity with respect to U.S. trade policy,” Boyle said.

Even with its mitigation steps, Boyle said Columbia expects $40 million to $45 million in additional costs for fall 2025 products because of the 10% universal tariff.

“Who knows?” Boyle said. “I may wake up tomorrow, and the whole world’s changed.”

Columbia previously announced plans to cut at least $150 million in annual costs. On the call with analysts, Columbia executives said they expect to cut additional costs given the tariff environment, possibly including layoffs.

“That’s on the table in terms of factors we need to be considering for the balance of this year,” Chief Financial Officer Jim Swanson told analysts.

Last year, Columbia had a round of layoffs focused on its corporate headquarters.

Columbia on Thursday also reported $778.5 million in quarterly sales and $0.75 in earnings per share, both above Wall Street expectations.

In February, the company said it expected sales would increase 1% to 3% this year. While the company withdrew its sales forecast, Boyle told analysts Columbia was on track to hit its 2025 financial targets before the tariffs were announced.

Columbia shares, which are down 26% this year, were down slightly in after-hours trading within two hours of the earnings report.