Columbia Sportswear Company Reports Third Quarter 2026 Financial Results; Updates Full Year 2026 Financial Outlook

Columbia Sportswear Company Reports Third Quarter 2026 Financial Results; Updates Full Year 2026 Financial Outlook PORTLAND, Ore.--( BUSINESS WIRE)--Columbia Sportswear Company (NASDAQ: COLM, the “Company”), a multi-brand global leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment, today announced third quarter 2026 financial results for the period ended September 30, 2026.

Chairman and Chief Executive Officer Tim Boyle commented, “We’re pleased to have delivered net sales and EPS growth exceeding our guidance for the third quarter. These results primarily reflected a portion of delayed Fall ’26 wholesale orders shipping earlier-than-expected, improved trends in our U.S. DTC business, and the continued momentum of our international business, despite challenging global macroeconomic conditions.

“Our third quarter performance provides continued tangible signs of progress with our ACCELERATE Growth Strategy. We are particularly encouraged by the momentum building in our Columbia brand U.S. DTC E-Commerce business, which represents the pinnacle expression of our brand.

“While fourth quarter execution will be critical to our full year performance, better-than-expected third quarter performance combined with improving trends in our U.S. business and the shipment of remaining Fall ’26 global wholesale orders gives us the confidence to raise the low end of our full-year revenue and EPS guidance.

“The operating environment remains challenging and uncertain, and we will continue working to elevate the Columbia brand and improve consumer perceptions in the U.S. That said, we are increasingly confident that the Columbia brand ACCELERATE Growth Strategy is gaining traction and putting us on the right track to return to healthy, sustainable growth over the longer-term. We remain focused on what we can control, and will continue executing our strategy and vision to:

CFO’s Commentary and Financial Review Presentation Available Online

For a detailed review of the Company’s third quarter 2026 financial results, please refer to the CFO Commentary and Financial Review presentation furnished to the Securities and Exchange Commission (the “SEC”) on a Current Report on Form 8-K and published on the Investor Relations section of the Company’s website at http://investor.columbia.com/financial-results at approximately 4:15 p.m. ET today. Analysts and investors are encouraged to review this commentary prior to participating in our conference call.

ACCELERATE Growth Strategy

ACCELERATE is a growth strategy intended to elevate the Columbia brand to attract younger and more active consumers. It is a multi-year effort centered around several consumer-centric shifts to our brand, product and marketplace strategies, as well as enhanced ways of working. Last year, the Columbia brand launched its new brand platform “Engineered for Whatever” through a global brand campaign, released certain new products designed with a younger, more active consumer in mind, and re-launched the U.S. Columbia.com website, with enhanced features and photography. The foundational shifts of the ACCELERATE Growth Strategy are continuing to show tangible signs of traction with our target consumers. As the strategy evolves, the Columbia brand is sharpening its focus on strategic pillars, and building credibility, relevance and style in outdoor performance and lifestyle. For more information on the ACCELERATE Growth Strategy, please refer to the CFO Commentary and Financial Review presentation.

Third Quarter 2026 Financial Results

(All comparisons are between third quarter 2026 and third quarter 2025, unless otherwise noted.)

Net sales increased 2 percent (2 percent constant-currency) to $962.6 million from $943.4 million for the comparable period in 2025. Sales growth in most of our international markets was partially offset by lower U.S. net sales, which reflected later shipments of Fall 2026 wholesale orders, partially offset by growth in our direct-to-consumer (“DTC”) business.

Gross margin contracted 20 basis points to 49.8 percent of net sales from 50.0 percent of net sales for the comparable period in 2025. Gross margin contraction primarily reflected accommodations to our factory partners, partially offset by the current-period benefit of International Emergency Economic Powers Act (“IEEPA”) tariff refunds previously received.

SG&A expenses were $375.6 million, or 39.0 percent of net sales, compared to $380.9 million, or 40.4 percent of net sales, for the comparable period in 2025.

Impairment of goodwill and intangible assets of $29.0 million related to prAna and Mountain Hardwear in third quarter 2025, compared to no such charges in third quarter 2026.

Operating income of $109.6 million, or 11.4 percent of net sales, compared to operating income of $67.4 million, or 7.1 percent of net sales, for the comparable period in 2025.

Interest income, net of $2.8 million, compared to $2.9 million for the comparable period in 2025.

Income tax expense of $26.8 million resulted in an effective income tax rate of 24.0 percent, compared to income tax expense of $19.0 million, or an effective income tax rate of 26.7 percent, for the comparable period in 2025.

Net income of $84.7 million, or $1.66 per diluted share, compared to net income of $52.0 million, or $0.95 per diluted share, for the comparable period in 2025. Third quarter 2025 impairment charges negatively impacted diluted earnings per share by $0.46.

First Nine Months 2026 Financial Results

(All comparisons are between first nine months 2026 and first nine months 2025, unless otherwise noted.)

Net sales increased 1 percent (flat on a constant-currency basis) to $2,356.0 million from $2,327.1 million for the comparable period in 2025.

Gross margin expanded 220 basis points to 52.3 percent of net sales from 50.1 percent of net sales for the comparable period in 2025. Gross margin expansion primarily reflected an approximate 230 basis point current-period benefit of IEEPA tariff refunds previously received, net of accommodations to our factory partners.

SG&A expenses were $1,065.0 million, or 45.2 percent of net sales, compared to $1,061.0 million, or 45.6 percent of net sales, for the comparable period in 2025.

Impairment of goodwill and intangible assets of $29.0 million related to prAna and Mountain Hardwear in the first nine months of 2025, compared to no such charges in the first nine months of 2026.

Operating income of $182.5 million, or 7.7 percent of net sales, compared to $90.3 million, or 3.9 percent of net sales, for the comparable period in 2025.

Interest income, net of $13.9 million, compared to $14.5 million for the comparable period in 2025.

Income tax expense of $49.5 million resulted in an effective income tax rate of 25.4 percent, compared to $25.2 million, or an effective income tax rate of 23.1 percent, for the comparable period in 2025.

Net income of $145.6 million, or $2.82 per diluted share, compared to $84.1 million, or $1.53 per diluted share, for the comparable period in 2025. The current-period benefit of IEEPA tariff refunds previously received, net of accommodations to our factory partners, benefited diluted earnings per share by $0.85.

Balance Sheet as of September 30, 2026

Cash, cash equivalents, and short-term investments totaled $229.6 million, compared to $236.0 million as of September 30, 2025.

The Company had no borrowings as of either September 30, 2026 or September 30, 2025.

Inventories increased 11 percent to $889.2 million, compared to $800.4 million as of September 30, 2025. Inventory growth primarily reflected higher in-transit inventory from delayed Fall 2026 receipts and earlier production of Spring 2027 inventory. Inventory at quarter-end primarily consisted of current and future season product, with older season inventories representing a manageable portion of total inventory.

Cash Flow for the Nine Months Ended September 30, 2026

Net cash used in operating activities was $280.5 million, compared to $333.4 million for the comparable period in 2025.

Capital expenditures totaled $40.8 million, compared to $46.6 million for the comparable period in 2025.

Share Repurchases for the Nine Months Ended September 30, 2026

The Company repurchased 3,342,569 shares of common stock for an aggregate of $200.0 million, or an average price per share of $59.83.

At September 30, 2026, $226.5 million remained available under our stock 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.

Quarterly Cash Dividend

The Board of Directors approved a regular quarterly cash dividend of $0.30 per share, payable on December 3, 2026 to shareholders of record on November 19, 2026.

Full Year 2026 and Preliminary First Half 2027 Financial Outlooks

(Additional financial outlook details can be found in the CFO Commentary and Financial Review presentation.)

The Company’s full year 2026 and fourth quarter 2026 Financial Outlooks, and preliminary first half 2027 commentary are forward-looking in nature, and the following forward-looking statements reflect our expectations as of October 29, 2026, and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. These risks and uncertainties limit our ability to accurately forecast results. The Company’s Financial Outlook assumes that the current U.S. tariff rates remain in place through the end of this year.

Net sales are expected to increase 2.0 to 3.0 percent (prior 1.0 to 3.0 percent), resulting in net sales of $3.46 to $3.50 billion (prior $3.43 to $3.50 billion), compared to $3.40 billion in 2025. Foreign currency translation is expected to benefit net sales by approximately 50 to 70 basis points (prior 30 to 50 basis points).

Gross margin is expected to expand 160 to 180 basis points resulting in gross margin of 52.1 to 52.3 percent of net sales (unchanged), compared to 50.5 percent of net sales in 2025. Gross margin expectations include an approximate 180 basis-point benefit from IEEPA tariff refunds, net of accommodations to our factory partners.

SG&A expenses, as a percent of net sales, are expected to be 43.8 to 44.0 percent (prior 43.6 to 44.2 percent), compared to SG&A expense as a percent of net sales of 44.2 percent in 2025.

Operating margin is expected to be 8.7 to 9.1 percent of net sales (prior 8.5 to 9.3 percent), compared to operating margin of 6.1 percent of net sales in 2025.

Effective income tax rate is expected to be approximately 25.0 percent (unchanged).

Diluted earnings per share is expected to be $4.65 to $4.90 (prior $4.45 to $4.90), compared to $3.24 in 2025.

Operating cash flow is expected to be $230 to $250 million (prior $290 to $310 million). The change in projected operating cash flow is due to earlier production of Spring 2027 inventory, which is expected to increase our year-end inventory balance.

Capital expenditures are planned to be in the range of $60 to $70 million (prior $65 to $75 million).

Fourth Quarter 2026 Financial Outlook

Preliminary First Half 2027 Commentary

Conference Call

The Company will hold its third quarter 2026 conference call at 5:00 p.m. ET today. Dial (888) 506-0062 to participate. The call will also be webcast live on the Investor Relations section of the Company’s website at https://investor.columbia.com.

Supplemental Financial Information

Since Columbia Sportswear Company is a global company, the comparability of its operating results reported in United States dollars is affected by foreign currency exchange rate fluctuations because the underlying currencies in which it transacts change in value over time compared to the United States dollar. To supplement financial information reported in accordance with GAAP, the Company discloses constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in the exchange rates used to translate net sales generated in foreign currencies into United States dollars. The Company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into United States dollars at the average exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP financial measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical net sales results and comparisons to competitors’ net sales results.

The non-GAAP financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP. See the “Reconciliation of GAAP to Non-GAAP Financial Measures” table included herein. The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company’s expectations, anticipations or beliefs about the Company’s ability to realize growth opportunities and manage expenses; the Company’s ACCELERATE Growth Strategy and efforts to elevate its brand, inventory levels and composition; share repurchases; financial position; marketing strategies; timing and payment of dividends; the impact of foreign currency translation; the effect of, and any changes to, tariff rates and refunds; and the Company’s expectations regarding its financial results for full year 2026 net sales, gross margin, SG&A expenses, operating margin, effective income tax rate, diluted earnings per share, operating cash flow, and capital expenditures; fourth quarter 2026 net sales, operating margin, effective income tax rate, and diluted earnings per share; and first half 2027 wholesale net sales. Forward-looking statements often use words such as “will,” “anticipate,” “continue,” “estimate,” “expect,” “should,” “may,” “plan,” “intend,” and other words and terms of similar meaning or reference future dates. The Company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties that may affect our future revenues, earnings and performance and could cause the actual results of operations or financial condition of the Company to differ materially from the anticipated results expressed or implied by forward-looking statements in this document include: loss of key customer accounts; our ability to execute our ACCELERATE Growth Strategy; our ability to effectively execute our business strategies, including initiatives to upgrade our business processes and information technology (“IT”) systems and investments in our DTC businesses; our ability to maintain the strength and security of our IT systems; the effects of unseasonable weather, including global climate change; the seasonality of our business and timing of orders; trends affecting consumer spending, including changes in the level of consumer spending, and retail traffic patterns; unfavorable economic conditions generally; the financial health of our customers and retailer consolidation; higher than expected rates of order cancellations; changes affecting consumer demand and preferences and fashion trends; changes in international, federal or state tax, labor and other laws and regulations that affect our business, including changes in corporate tax rates, tariffs, international trade policy and geopolitical tensions, or increasing wage rates; our ability to attract and retain key personnel; risks inherent in doing business in foreign markets, including fluctuations in currency exchange rates, global credit market conditions, changes in global regulation and economic and political conditions and disease outbreaks; volatility in global production and transportation costs and capacity and timing; our ability to effectively manage our inventory and our wholesale customers’ ability to manage their inventories; our dependence on third-party manufacturers and suppliers and our ability to source at competitive prices from them or at all and our ability to import product; the effectiveness of our sales and marketing efforts; business disruptions and acts of terrorism, cyber-attacks or military activities around the globe; intense competition in the industry; our ability to establish and protect our intellectual property; and our ability to develop innovative products. The Company cautions that forward-looking statements are inherently less reliable than historical information. The Company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time, and it is not possible for the Company to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

About Columbia Sportswear Company

Columbia Sportswear Company connects active people with their passions and is a global multi-brand leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment. Founded in 1938 in Portland, Oregon, the Company’s brands are sold in 122 countries. In addition to the Columbia® brand, Columbia Sportswear Company also owns the Mountain Hard Wear®, SOREL® and prAna® brands. To learn more, please visit the Company’s websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, and www.prana.com.

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

As of September 30,

(in thousands)

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

216,924

228,832

Short-term investments

12,655

7,195

Accounts receivable, net

654,427

610,458

Inventories

889,242

800,350

Prepaid expenses and other current assets

82,862

99,494

Total current assets

1,856,110

1,746,329

Property, plant and equipment, net

270,898

282,394

Operating lease right-of-use assets

408,974

429,562

Intangible assets, net

71,221

Goodwill

5,694

Deferred income taxes

103,984

112,634

Other non-current assets

73,485

64,713

Total assets

2,790,366

2,712,547

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

359,609

244,365

Accrued liabilities

264,072

260,487

Operating lease liabilities

81,819

82,693

Income taxes payable

8,575

5,131

Total current liabilities

714,075

592,676

Non-current operating lease liabilities

376,316

397,618

Income taxes payable

11,771

14,399

Deferred income taxes

2,604

335

Other long-term liabilities

53,838

51,588

Total liabilities

1,158,604

1,056,616

Total shareholders' equity

1,631,762

1,655,931

Total liabilities and shareholders' equity

2,790,366

2,712,547

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands, except per share amounts)

2026

2025

2026

2025

Net sales

962,582

943,425

2,355,957

2,327,123

Cost of sales

483,563

471,607

1,123,544

1,162,140

Gross profit

479,019

471,818

1,232,413

1,164,983

Gross margin

49.8

50.0

52.3

50.1

Selling, general and administrative expenses

375,641

380,892

1,064,969

1,060,991

Impairment of goodwill and intangible assets

—

29,000

—

29,000

Net licensing income

6,231

5,460

15,042

15,311

Operating income

109,609

67,386

182,486

90,303

Interest income, net

2,795

2,870

13,894

14,525

Other non-operating income (expense), net

(837

)

732

(1,255

)

4,447

Income before income tax

111,567

70,988

195,125

109,275

Income tax expense

26,827

18,983

49,524

25,218

Net income

84,740

52,005

145,601

84,057

Earnings per share:

Basic

1.67

0.95

2.83

1.53

Diluted

1.66

0.95

2.82

1.53

Weighted average shares outstanding:

Basic

50,835

54,540

51,537

55,013

Diluted

50,946

54,558

51,631

55,114

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended September 30,

(in thousands)

2026

2025

Cash flows from operating activities:

Net income

145,601

84,057

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization expense

41,094

42,147

Non-cash lease expense

68,356

62,989

Provision for uncollectible accounts receivable

666

1,775

Deferred income taxes

3,693

(3,779

)

Share-based compensation

20,431

18,060

Loss on impairment of goodwill and intangible assets

—

29,000

Other, net

2,560

(2,463

)

Changes in operating assets and liabilities:

Accounts receivable

(251,413

)

(184,166

)

Inventories

(201,687

)

(94,237

)

Prepaid expenses and other current assets

11,551

(27,883

)

Other assets

(3,247

)

(441

)

Accounts payable

(26,118

)

(146,916

)

Accrued liabilities

(16,795

)

(28,433

)

Income taxes payable

(3,332

)

(25,302

)

Operating lease assets and liabilities

(71,678

)

(61,754

)

Other liabilities

(205

)

3,903

Net cash used in operating activities

(280,523

)

(333,443

)

Cash flows from investing activities:

Purchases of short-term investments

(89,095

)

(261,449

)

Sales and maturities of short-term investments

432,363

547,181

Capital expenditures

(40,789

)

(46,648

)

Net cash provided by investing activities

302,479

239,084

Cash flows from financing activities:

Payment of line of credit issuance fees

(843

)

—

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

2,523

5,264

Tax payments related to share-based compensation

(4,921

)

(5,964

)

Repurchase of common stock

(200,000

)

(171,687

)

Cash dividends paid

(46,325

)

(49,461

)

Net cash used in financing activities

(249,566

)

(221,848

)

Net effect of exchange rate changes on cash

2,506

13,170

Net decrease in cash and cash equivalents

(225,104

)

(303,037

)

Cash and cash equivalents, beginning of period

442,028

531,869

Cash and cash equivalents, end of period

216,924

228,832

Supplemental disclosures of cash flow information:

Cash paid during the period for income taxes

46,112

78,338

Supplemental disclosures of non-cash investing and financing activities:

Property, plant and equipment acquired through increase in liabilities

8,750

10,323

COLUMBIA SPORTSWEAR COMPANY

Reconciliation of GAAP to Non-GAAP Financial Measures

Net Sales Growth - Constant-currency Basis

(Unaudited)

Three Months Ended September 30,

Reported

Net Sales

Adjust for

Foreign

Currency

Constant-

currency

Net Sales

Reported

Net Sales

Reported

Net Sales

Constant-

currency

Net Sales

(in thousands, except percentage changes)

2026

Translation

2026 (1)

2025

% Change

% Change (1)

Geographical net sales:

United States

540,872

—

540,872

546,690

Latin America and Asia Pacific

159,453

(1,056

)

158,397

143,358

Europe, Middle East and Africa

175,285

964

176,249

164,461

Canada

86,972

1,560

88,532

88,916

—

Total

962,582

1,468

964,050

943,425

Brand net sales:

Columbia

826,242

1,005

827,247

803,973

SOREL

82,832

288

83,120

80,964

prAna

30,172

30,174

30,375

Mountain Hardwear

23,336

173

23,509

28,113

(17

(16

Total

962,582

1,468

964,050

943,425

Product category net sales:

Apparel, accessories and equipment

743,907

766

744,673

734,315

Footwear

218,675

702

219,377

209,110

Total

962,582

1,468

964,050

943,425

Channel net sales:

Wholesale

636,724

(116

)

636,608

634,171

—

DTC

325,858

1,584

327,442

309,254

Total

962,582

1,468

964,050

943,425

(1)

Constant-currency net sales is a non-GAAP financial measure. See “Supplemental Financial Information” above for further information.

COLUMBIA SPORTSWEAR COMPANY

Reconciliation of GAAP to Non-GAAP Financial Measures

Net Sales Growth - Constant-currency Basis

(Unaudited)

Nine Months Ended September 30,

Reported

Net Sales

Adjust for

Foreign

Currency

Constant-

currency

Net Sales

Reported

Net Sales

Reported

Net Sales

Constant-

currency

Net Sales

(in thousands, except percentage changes)

2026

Translation

2026 (1)

2025

% Change

% Change (1)

Geographical net sales:

United States

1,283,412

—

1,283,412

1,352,988

Latin America and Asia Pacific

445,629

(2,775

)

442,854

407,901

Europe, Middle East and Africa

463,749

(16,822

)

446,927

402,503

Canada

163,167

(1,532

)

161,635

163,731

—

Total

2,355,957

(21,129

)

2,334,828

2,327,123

—

Brand net sales:

Columbia

2,072,617

(20,698

)

2,051,919

2,035,439

SOREL

136,277

(567

)

135,710

141,995

prAna

80,158

)

80,152

79,026

Mountain Hardwear

66,905

142

67,047

70,663

Total

2,355,957

(21,129

)

2,334,828

2,327,123

—

Product category net sales:

Apparel, accessories and equipment

1,864,368

(15,436

)

1,848,932

1,857,437

—

Footwear

491,589

(5,693

)

485,896

469,686

Total

2,355,957

(21,129

)

2,334,828

2,327,123

—

Channel net sales:

Wholesale

1,356,149

(14,369

)

1,341,780

1,351,158

—

DTC

999,808

(6,760

)

993,048

975,965

Total

2,355,957

(21,129

)

2,334,828

2,327,123

—

(1)

Constant-currency net sales is a non-GAAP financial measure. See “Supplemental Financial Information” above for further information.