Columbia Sportswear Company Reports First Quarter 2026 Financial Results; Updates Full Year 2026 Financial Outlook
01/May/2026
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 first quarter 2026 financial results for the period ended March 31, 2026.
First Quarter 2026 Highlights
Net sales were relatively flat (decrease of 3 percent on a constant-currency basis) at $779.0 million, compared to first quarter 2025.
Gross margin contracted 20 basis points to 50.7 percent of net sales from 50.9 percent of net sales in first quarter 2025.
Operating income decreased 10 percent to $42.0 million, or 5.4 percent of net sales, compared to first quarter 2025 operating income of $46.5 million, or 6.0 percent of net sales.
Diluted earnings per share of $0.65, compared to first quarter 2025 diluted earnings per share of $0.75.
Exited the quarter with $535.4 million of cash, cash equivalents and short-term investments and no borrowings.
The Company repurchased $150.0 million of common stock during the quarter.
Full Year 2026 Financial Outlook
The following forward-looking statements reflect our expectations as of April 30, 2026 and are subject to significant risks and business uncertainties, including those factors described under “Forward-Looking Statements” below. Additional disclosures and financial outlook details can be found in the Full Year 2026 Financial Outlook section below and the CFO Commentary and Financial Review presentation.
Net sales of $3.43 to $3.50 billion (unchanged), representing net sales growth of 1.0 to 3.0 percent (unchanged) compared to 2025.
Gross margin of 50.3 percent to 50.5 percent (prior 49.8 percent to 50.0 percent), including an improvement resulting from lower-than-planned U.S. tariffs driven by the temporary tariffs that are in place through July 2026.
Operating income of $230 to $262 million (prior $211 to $243 million), representing operating margin of 6.7 to 7.5 percent of net sales (prior 6.2 to 6.9 percent).
Diluted earnings per share of $3.55 to $4.00 (prior $3.20 to $3.65).
Chairman and Chief Executive Officer Tim Boyle commented, “We’re pleased to have delivered net sales and profitability exceeding our guidance for the first quarter, driven by early Spring 2026 wholesale shipments and better-than-expected demand in Europe and the U.S. The strength of our international business continues to lead our growth. Our U.S. business declined, which was largely expected due to a lower Spring 2026 wholesale order book, and our decisions taken last year to reduce supply of winter season products as a precautionary measure in response to U.S. tariff announcements.
“Looking ahead, I’m encouraged by signs of growing momentum in the U.S., including an expected inflection back to wholesale growth in the second half based on our Fall 2026 order book. With our Engineered for Whatever campaign grabbing consumers’ attention and reminding them of our irreverent roots, coupled with new and innovative products that are resonating with consumers, it’s increasingly clear to me that the Columbia ACCELERATE Growth Strategy is gaining traction. We are updating our earnings guidance for 2026, based in part on a temporary improvement in U.S. tariff rates.
“The operating environment remains highly dynamic, with the conflict in the Middle East creating additional uncertainty for our business since last quarter. In this environment, we are fortunate to have a highly experienced leadership team, a resilient and flexible global supply chain, and a fortress balance sheet as key competitive advantages. We remain focused on what we can control, and will continue executing our strategy and vision to:
accelerate profitable growth;
create iconic products that are differentiated, functional and innovative;
drive brand engagement with increased, focused demand creation investments;
enhance consumer experiences by investing in capabilities to delight and retain consumers;
amplify marketplace excellence that is digitally-led, omni-channel, and global; and
empower talent that is driven by our core values."
CFO's Commentary and Financial Review Presentation Available Online
For a detailed review of the Company's first 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. 2025 was an important milestone in this journey. 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, and re-launched the U.S. Columbia.com website, with enhanced features and photography. We’re encouraged with early indicators, which signal that our differentiated marketing communications and enhanced products are resonating with consumers, providing us confidence as we plan for future seasons. For more information on the ACCELERATE Growth Strategy, please refer to the CFO Commentary and Financial Review presentation.
First Quarter 2026 Financial Results
(All comparisons are between first quarter 2026 and first quarter 2025, unless otherwise noted.)
Net sales were relatively flat (decrease of 3 percent on a constant-currency basis) at $779.0 million from $778.5 million for the comparable period in 2025. Sales growth in most of our international markets was offset by a decline in the U.S. due to a lower U.S. wholesale Spring 2026 orderbook and lack of inventory to fulfill first quarter demand due to our decision, in the prior year, to reduce supply of certain winter season products as a precautionary measure in response to U.S. tariff announcements.
Gross margin contracted 20 basis points to 50.7 percent of net sales from 50.9 percent of net sales for the comparable period in 2025. Gross margin contraction primarily reflected a 310 basis point impact of unmitigated incremental U.S. tariffs, partially offset by mitigation tactics, which primarily included targeted price increases.
SG&A expenses were $357.1 million, or 45.8 percent of net sales, compared to $354.5 million, or 45.5 percent of net sales, for the comparable period in 2025. The largest changes in SG&A expenses were driven by higher DTC expenses, partially offset by lower enterprise technology and supply chain expenses, resulting from prior-year actions taken as part of our Profit Improvement Program. SG&A included an unfavorable impact of $6.7 million from foreign currency translation.
Operating income decreased 10 percent to $42.0 million, or 5.4 percent of net sales, compared to operating income of $46.5 million, or 6.0 percent of net sales, for the comparable period in 2025. Operating margin included a favorable impact of $5.3 million from foreign currency translation.
Interest income, net of $4.9 million, compared to $6.8 million for the comparable period in 2025.
Income tax expense of $13.0 million resulted in an effective income tax rate of 27.4 percent, compared to income tax expense of $12.6 million, or an effective income tax rate of 23.0 percent, for the comparable period in 2025.
Net income was $34.3 million, or $0.65 per diluted share, compared to net income of $42.2 million, or $0.75 per diluted share, for the comparable period in 2025. Net income and diluted earnings per share included a favorable impact of $4.7 million and $0.09 per diluted share, respectively, from foreign currency translation.
Balance Sheet as of March 31, 2026
Cash, cash equivalents, and short-term investments totaled $535.4 million, compared to $658.4 million as of March 31, 2025.
The Company had no borrowings as of either March 31, 2026 or March 31, 2025.
Inventories were relatively flat at $624.0 million, compared to $623.7 million as of March 31, 2025.
Cash Flow for the Three Months Ended March 31, 2026
Net cash used in operating activities was $77.5 million, compared to $32.0 million in 2025.
Capital expenditures totaled $12.4 million, compared to $15.6 million in 2025.
Share Repurchases for the Three Months Ended March 31, 2026
The Company repurchased 2,498,685 shares of common stock for an aggregate of $150.0 million, or an average price per share of $60.03.
At March 31, 2026, $276.5 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 June 4, 2026 to shareholders of record on May 21, 2026.
Full Year 2026 Financial Outlook
(Additional financial outlook details can be found in the CFO Commentary and Financial Review presentation.)
The Company's full year 2026 and second quarter 2026 Financial Outlook is forward-looking in nature, and the following forward-looking statements reflect our expectations as of April 30, 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 current U.S. tariff rates continue through July 2026 before returning to rates approximate to levels that were in place prior to the Supreme Court's tariff ruling.
Net sales are expected to increase 1.0 to 3.0 percent (unchanged), resulting in net sales of $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 100 basis points (unchanged).
Gross margin is expected to contract up to 20 basis points resulting in gross margin of 50.3 to 50.5 percent of net sales (prior 49.8 to 50.0 percent), compared to 50.5 percent of net sales in 2025. Gross margin expectations include roughly 200 basis points (prior 300 basis points) of unfavorable impact from incremental tariffs prior to mitigation actions.
SG&A expenses, as a percent of net sales, are expected to be 43.6 to 44.2 percent (unchanged), compared to SG&A expense as a percent of net sales of 44.2 percent in 2025.
Operating margin is expected to be 6.7 to 7.5 percent of net sales (prior 6.2 to 6.9 percent), compared to operating margin of 6.1 percent of net sales in 2025.
Effective income tax rate is expected to be 24.0 to 25.0 percent (unchanged).
Diluted earnings per share is expected to be $3.55 to $4.00 (prior $3.20 to $3.65), compared to $3.23 in 2025.
Operating cash flow is expected to be $300 to $330 million.
Capital expenditures are planned to be in the range of $65 to $75 million (unchanged), roughly in-line with our run rate over the past several years.
Second Quarter 2026 Financial Outlook
Net sales are expected to be $600 to $610 million, representing a decrease of 1.0 percent to an increase of 1.0 percent from $605 million for the comparable period in 2025. Foreign currency translation is not expected to have a material impact on net sales.
Operating loss is expected to be 5.5 to 4.5 percent of net sales, compared to operating loss of 3.9 percent of net sales in the comparable period in 2025. Operating margin includes SG&A expense deleverage driven by low-single-digit percent SG&A growth and gross margin contraction primarily resulting from the impact of unmitigated incremental U.S. tariffs.
Diluted loss per share is expected to be $0.46 to $0.37, compared to $0.19 for the comparable period in 2025. This range reflects an estimated effective tax rate of approximately 20% for the second quarter.
