Columbia Sportswear Co. raised its guidance  earnings for the year as second-quarter sales topped expectations with strong sales in international regions offset continued declines in the U.S.  Sales declined 4 percent in the U.S. Among brands, sales increased 1 percent for Columbia, 14 percent for Prana and 6 percent at Mountain Hardwear while declining 14 percent at Sorel. Earnings were boosted by a 93-cents a share tariff refund credit.

Reported EPS of 52 cents a share significantly outperformed the analyst consensus estimate of a loss of roughly 41 cents per share with the quarter receiving a boost from a tariff refund of 93 cents a share. Sales $614.4 million topped analysts’ consensus estimate of $605.6 million.

Chairman and Chief Executive Officer Tim Boyle commented, “We’re pleased to have delivered net sales exceeding our guidance for the second quarter, driven by the resilience of our international business, which was partly offset by continued softness in the U.S., amid growing global macroeconomic headwinds.

“Our reported second quarter earnings and profit margins include the impact of U.S. tariff refunds recognized during the quarter. Excluding this impact, our underlying performance was largely in-line with our expectations.

“We continue to see encouraging signs of progress with our ACCELERATE Growth Strategy. We are particularly pleased with our strong second quarter performance in Columbia brand footwear, one of the brand’s strategic growth pillars.

“While our first half operating results have been in-line to slightly favorable overall as compared to our expectations at the start of the year, our outlook for the second half has incrementally moderated, largely due to external geopolitical and macroeconomic headwinds. That said, we continue to expect our full-year results to fall within the guidance ranges previously provided, excluding the impact of tariff refunds.

“Despite the more challenging environment, we remain confident that the Columbia brand ACCELERATE Growth Strategy is beginning to gain traction and is 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:

  • 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.”

Second Quarter 2026 Financial Results

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

  • Net sales increased 2 percent (1 percent constant-currency) to $614.4 million from $605.2 million for the comparable period in 2025. Sales growth in most of our international markets was partially offset by lower U.S. net sales, primarily reflecting lower Spring 2026 wholesale orders and, to a lesser extent, declines in our direct-to-consumer brick-and-mortar (“DTC B&M”) business.
  • Gross margin expanded 920 basis points to 58.3 percent of net sales from 49.1 percent of net sales for the comparable period in 2025. Gross margin expansion primarily reflected an approximate 980 basis point benefit from the recovery of IEEPA tariffs, partially offset by unfavorable channel profitability resulting from increased promotional activity within DTC B&M.
  • SG&A expenses were $332.2 million, or 54.1 percent of net sales, compared to $325.6 million, or 53.8 percent of net sales, for the comparable period in 2025. The largest changes in SG&A expenses were driven by higher DTC expenses, including store impairment charges and the impact of new stores, partially offset by lower enterprise technology expenses resulting from prior-year actions taken as part of our Profit Improvement Program.
  • Operating income of $30.9 million, or 5.0 percent of net sales, compared to operating loss of $23.6 million, or 3.9 percent of net sales, for the comparable period in 2025.
  • Interest income, net of $6.2 million, compared to $4.8 million for the comparable period in 2025.
  • Income tax expense of $9.7 million resulted in an effective income tax rate of 26.8 percent, compared to income tax benefit of $6.4 million, or an effective income tax rate of 38.5 percent, for the comparable period in 2025.
  • Net income of $26.6 million, or $0.52 per diluted share, compared to net loss of $10.2 million, or 19 cents per diluted share, for the comparable period in 2025. The recovery of IEEPA tariffs benefited diluted earnings per share by 93 cents.

Geography, Brand, Product, Channel Performance

First Half 2026 Financial Results

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

  • Net sales increased 1 percent (decreased 1 percent on a constant-currency basis) to $1,393.4 million from $1,383.7 million for the comparable period in 2025.
  • Gross margin expanded 400 basis points to 54.1 percent of net sales from 50.1 percent of net sales for the comparable period in 2025. Gross margin expansion primarily reflected an approximate 430 basis point benefit from the recovery of IEEPA tariffs, partially offset by unfavorable channel profitability resulting from increased promotional activity within DTC B&M.
  • SG&A expenses were $689.3 million, or 49.5 percent of net sales, compared to $680.1 million, or 49.2 percent of net sales, for the comparable period in 2025.
  • Operating income of $72.9 million, or 5.2 percent of net sales, compared to $22.9 million, or 1.7 percent of net sales, for the comparable period in 2025.
  • Interest income, net of $11.1 million, compared to $11.7 million for the comparable period in 2025.
  • Income tax expense of $22.7 million resulted in an effective income tax rate of 27.2 percent, compared to $6.2 million, or an effective income tax rate of 16.3 percent, for the comparable period in 2025.
  • Net income of $60.9 million, or $1.17 per diluted share, compared to $32.1 million, or 58 cents per diluted share, in 2025. The recovery of IEEPA tariffs benefited diluted earnings per share by 92 cents.

Balance Sheet as of June 30, 2026

  • Cash, cash equivalents, and short-term investments totaled $624.6 million, compared to $579.0 million as of June 30, 2025.
  • The company had no borrowings as of either June 30, 2026 or June 30, 2025.
  • Inventories decreased 6 percent to $874.8 million, compared to $926.9 million as of June 30, 2025.

Cash Flow for the Six Months Ended June 30, 2026

  • Net cash provided by operating activities was $37.5 million, compared to net cash used in operating activities of $62.9 million for the comparable period in 2025.
  • Capital expenditures totaled $25.8 million, compared to $30.0 million for the comparable period in 2025.

Share Repurchases for the Six Months Ended June 30, 2026

  • In first quarter 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. The company did not repurchase shares during second quarter 2026.
  • At June 30, 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, pacyable on September 3, 2026 to shareholders of record on August 20, 2026.

Full Year 2026 Financial Outlook

  • 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 30 to 50 basis points (prior 50 to 100 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 (prior 50.3 to 50.5 percent), compared to 50.5 percent of net sales in 2025. Gross margin expectations include an approximate 180 basis points benefit from IEEPA tariff refunds recognized in second quarter 2026.
  • 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 8.5 to 9.3 percent of net sales (prior 6.7 to 7.5 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 (prior 24.0 to 25.0 percent).
  • Diluted earnings per share is expected to be $4.45 to $4.90 (prior $3.55 to $4.00), compared to $3.24 in 2025.
  • Operating cash flow is expected to be $290 to $310 million (prior $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.

Third Quarter 2026 Financial Outlook

  • Net sales are expected to be $929 to $943 million, representing a decrease of 1.5 percent to flat from $943 million for the comparable period in 2025. Net sales guidance includes the impact of a higher proportion of Fall 2026 shipments occurring in fourth quarter 2026 in comparison to the timing of Fall 2025 shipments last year.
  • Operating income is expected to be 8.1 to 9.5 percent of net sales, compared to operating income of 7.1 percent of net sales in the comparable period in 2025. Operating margin includes SG&A expense deleverage driven by slight SG&A growth and gross margin contraction primarily resulting from the impact of anticipated accommodations to our factory partners, partially offset by the expected cost of sales benefit from IEEPA tariff refunds included in inventory.
  • Diluted earnings per share is expected to be $1.15 to $1.35, compared to $0.95 for the comparable period in 2025. This range reflects an estimated effective tax rate of approximately 25 percent for the third quarter.

Image courtesy Columbia Sportswear