Columbia brand net sales increased 8%, SOREL net sales decreased 10%, prAna net sales decreased 6%, Mountain Hardwear net sales decreased 7%.
Gross margin expanded 120 basis points to 49.1%, and SG&A expenses increased 8%.
International markets showed strong growth: LAAP net sales up 12%, China high teens percent growth, Japan mid-single-digit percent growth, Korea low single-digit percent growth, EMEA net sales up 24%, Canada net sales up 5%.
Inventory dollars increased about 13% in the quarter, largely due to earlier production and tariff costs.
Loss per share was $0.19 compared to a loss per share of $0.20 in the prior year.
Net sales increased 6% year-over-year to $605 million, slightly ahead of outlook, driven by earlier fall wholesale shipments.
U.S. net sales decreased 2%, with U.S. wholesale up low single-digit percent and U.S. DTC down mid-single-digit percent.
Wholesale net sales increased 14%, while direct-to-consumer (DTC) was down 1%.
Adjusted EBITDA was $29 million or 17% of net sales, down from $32 million or 22% last year, mainly due to higher SG&A expenses.
Gross profit increased by $3 million to $61 million, but gross margins declined by approximately 450 basis points to 36% due to inflationary cost factors and tariffs.
Net income attributable to shareholders was $23 million or $0.38 per diluted share, up from $19 million or $0.32 per diluted share last year.
Net sales for Q2 2025 increased 17% year-over-year to $169 million, driven by a 25% growth in Vita Coco Coconut Water and a 102% growth in other products, primarily Vita Coco Treats.
Private label sales declined 25% overall, with a 37% decrease in the Americas and a 29% increase internationally.
SG&A expenses rose by $7 million to $36 million, driven by marketing, people-related costs, bad debt reserves, and double rent from office moves.
The balance sheet remains strong with $167 million cash on hand and no debt under the revolving credit facility.
Adjusted EBITDA was $67.7 million, slightly down from $67.9 million last year, with an adjusted EBITDA margin of 5.7%, up 110 basis points from Q1 2025 but down 30 basis points year-over-year.
Capital expenditures totaled $58.3 million, focused on new stores, supply chain projects, IT, and maintenance.
Grocery Outlet reported net sales of $1.18 billion in Q2 2025, a 4.5% increase year-over-year, driven by new store openings and a 1.1% comp store sales growth.
Gross margin was 30.6%, exceeding the high end of guidance despite a 30 basis point decline from last year, supported by improved inventory management.
Net cash provided by operating activities for the first half of 2025 was $132.6 million, significantly higher than $49.4 million in the prior year.
Net income was $5 million or $0.05 per diluted share, down from $14 million or $0.14 per share last year, while adjusted net income decreased 9.3% to $22.8 million or $0.23 per adjusted diluted share.
SG&A expenses increased 4.2% but leveraged 10 basis points as a percentage of net sales due to reduced commission support and cost discipline.
Total debt was $474 million with net leverage at 1.7x adjusted EBITDA.
Dafinchi
