Columbia Sportswear Co. reported that its Columbia brand had a strong response to its new “Engineered for Whatever” global brand platform as well as to several key launches, including the Amaze Puff jacket. However, management provided Q4 guidance below analyst targets and a subdued outlook for the first half of 2026 amid a continued sluggish U.S. business landscape and uncertainty over how consumers will react to tariff-driven higher prices.
During an analyst conference call, company Chairman, CEO, and President Tim Boyle said he remained confident that Columbia is taking the right steps to return to growth in the U.S.
“We have multiple topics in play here in the U.S., the least of which is the price increases that we’ve all seen and are passing along to consumers and the uncertainty about how that’s going to be accepted,” said Boyle. “So, we have much more confidence in our business outside the U.S. Our U.S. business is a significant component, and our expectation is that we’ve set the business up in the right way for spring. And our retailers are cautious. But we believe there are great opportunities for us as we get into the season.”
The company provided the guidance update as Columbia reported earnings and sales for the third quarter that topped guidance, largely due to earlier shipments of fall orders.
For the fourth quarter, Columbia forecasted sales to decline in the range of 5 percent to 8 percent, to between $1.01 billion and $1.04 billion. This decline is partly due to $30 million to $40 million in Fall 2025 shipments which the company intends to recognize in the third quarter of 2025, compared to the third quarter of 2024.
Fourth quarter EPS is expected in the range of $1.04 to $1.34, down 33.4 percent at the midpoint compared to $1.80 for the comparable period in 2024 and slightly under analysts’ consensus estimate of $1.38. The quarter includes $20 million to $25 million of incremental tariffs prior to mitigation actions.
For the first half of 2026, wholesale net sales are expected to be flat to up low-single-digit percent, contemplating sustained international growth across direct and distributor markets, partially offset by a decline in the U.S. Units are expected to be down with flat and slightly-up forecast supported by moves to increase U.S. pricing by a high single-digit percent for spring with similar price increases set for fall.
One positive, Boyle noted, was that while retailers in the outdoor space continue to order cautiously, their inventories appear to be in better shape.
“I think the channel inventories are actually pretty good right now,” said Boyle in the Q&A section of the call. “If they were building up, we would probably have seen some adjustment in our fall order book, which we have not seen. Retailers are anxious to get merchandise, which is part of why the inventory was shipped a bit earlier this year than in prior periods. But, I think, the inventories are in the right spot. And, certainly, we have a couple of items, including the Amaze Puff jacket, which is selling very well, as well as a newly designed and distributed pant program called the ROC pant. Those two areas are performing well, and we’ve had no pushback from retailers at all. I think the channels are quite good.”
Tariff Impact
Boyle said that applying the new tariff rates on an annualized basis, the unmitigated impact is expected to be approximately $160 million. Nonetheless, he expressed confidence that Columbia will be able to offset the dollar impact of higher tariffs through a combination of price increases, vendor negotiations, resourcing production and other tactics.
“If the company has one strength, it’s the ability to navigate tariff environments,” said Boyle on the analyst call. “So, just as some background, in 2024, the company was the 81st largest duty payer in the United States of all companies. And that’s because our commodities are so heavily tariffed, not only in the U.S. but globally. We have a large team that does nothing but help us make products in locations that can be advantaged from a duty standpoint, that can have the characteristics, that can allow for a reduced tariff to be built with characteristics, and that can help us navigate this stuff. We are quite good at it. I mean, this is a daunting task, but we think we’re up for it. And we think we’ll be able to navigate it.”
Boyle was less certain about Columbia’s ability to quickly revive its flagship Columbia brand’s sales in the U.S. through its Accelerate Growth Strategy.
Third-quarter results reflected sustained momentum in international markets, led by double-digit percent sales growth in the Europe direct business. Said Boyle, “Our strong financial performance in these markets demonstrates our ability to effectively reach younger and more active consumers and highlights the growth potential of the Columbia brand.”
Boyle also stated that the Columbia brand’s new global brand platform, Engineered for Whatever, has received a strong response. He said the campaign “celebrates the extremes of outdoor adventures and harkens back to the brand’s irreverent spirit of the 1980s and 1990s. It revives the humor and gritty gear testing that made Columbia a beloved brand around the world.”
He said the early response to the campaign “has been overwhelmingly positive” with more related activations planned in the months ahead, but also cautioned, “Revitalizing the brand in the U.S. will take time, but I’m encouraged by the brand energy that we’re just beginning to create.”
Q3 Results Exceed Guidance
In the quarter, sales increased 1 percent (flat on a constant-currency basis) to $943.4 million, topping company guidance in the range of $904 to $922 million. The beat was driven by earlier-than-planned shipments of fall ’25 wholesale orders. Overall, wholesale net sales increased by 5 percent, while direct-to-consumer sales decreased by 5 percent.
Gross margin declined 20 basis points to 50 percent as higher tariff expenses and foreign exchange headwinds were partially offset by lower clearance and promotional activity. SG&A expense increased 5 percent, including investments in demand creation to launch Columbia’s new brand platform.
Net income slumped 42.4 percent to $52.0 million, or 95 cents per share, reflecting impairment charges totaling 46 cents per share related to Prana and Mountain Hardwear. Boyle said, “The impairment was largely attributable to the impact of tariffs, and I remain confident in both brands’ growth strategies. We are committed to unlocking their full potential.”
Excluding the charge, EPS would have been $1.42, topping analysts’ consensus estimate of $1.17.
Q3 Performance by Geography
U.S. net sales decreased 4 percent to $546.7 million. The U.S. wholesale business was flat as the earlier timing of fall wholesale shipments offset the impact of lower fall wholesale orders. U.S. DTC sales declined by a high single-digit percent, dragged down by a high single-digit decline in brick-and-mortar sales, which reflected the closure of temporary clearance locations and lower sales productivity, partially offset by contributions from three new stores.
Columbia ended the quarter with eight temporary clearance locations, compared to 42 at the end of the third quarter last year. E-commerce was down in the low double-digit percent, primarily reflecting soft traffic and demand trends. Results were partially impacted by ongoing efforts to refine and evolve online promotions and marketing investments.
“Overall, U.S. Columbia brand Fall 2025 sell-through has started slowly as we await the arrival of cold weather,” said Boyle. “The sell-through challenges we are facing reinforce our focus on reenergizing the Columbia brand through the Accelerate Growth Strategy. While overall trends are tough, we are encouraged by initial sell-through of new product lines such as the Amaze Puff Jacket and ROC Pants.”
Internationally, Latin America and Asia Pacific (LAAP) sales were up 4 percent on both a reported and currency-neutral basis, to $143.3 million.
China’s sales increased by mid-single-digit percent, with growth impacted by a warm September, which reduced demand for fall season products. A pickup is expected in the fourth quarter, with the Columbia brand in the early stages of the Double 11 presale activity. Said Boyle, “Our team in China continues to do an exceptional job bringing young active consumers into the brand by celebrating iconic styles like the Interchange Jacket and premium localized product offerings like the Transit and Hike 365 collections.”
Japan’s sales decreased by a low single-digit percent as DTC growth was offset by later shipments of fall 2025 wholesale orders, which shifted into the fourth quarter. Korea’s net sales were flat year-over-year, while LAAP distributor markets delivered mid-teens percent growth.
EMEA (Europe, Middle East and Africa) sales jumped 16 percent on a reported basis (10 percent currency-neutral) to $164.5 million. Europe-direct net sales increased by a low double-digit percent with strength across both DTC and wholesale. The EMEA distributor business was down slightly due to earlier shipments. Boyle said, “We’re thrilled that our European team continues to deliver above-market performance, driven by the expansion of our DTC business and growing wholesale through strategic retail partners and brand authenticators. We have immense market share opportunities in Europe, and our team has been unlocking this potential each season.”
Canada sales increased 6 percent (7 percent currency-neutral) to $88.9 million, driven by earlier shipment of fall 2025 wholesale orders, partially offset by a decline in DTC sales, reflecting a soft consumer environment.
Columbia Brand Q3 Performance
Columbia brand’s sales were up 1 percent to $804.0 million while declining 1 percent on a currency-neutral basis.
Boyle noted that “elevating the style of Columbia’s product” is a core element of the Accelerate Growth Strategy, and the brand scored a breakthrough with the early success of the Amaze Puff women’s insulated jacket, which is priced at $200 and marks one of the most expensive items the brand has ever offered for sale. The company plans for a men’s version to arrive in 2026.
“The fact that we’re selling products like the Amaze Puff at prices which we’ve never been able to sell before is an indication that I think we’ve got the right equation to really get growing,” said Boyle. “The company offers a democratic level of product across multiple channels and categories of merchandise. We don’t get no respect for our expensive products, and I think this is going to help us in that area.”
Also notable was the healthy early sell-through of the men’s and women’s ROC Pants at launch.
In footwear, Columbia brought back its first footwear product, the Bugaboot 1, in an updated design, and it sold out within hours on the company’s website. The style was designed by Peter Moore, who created the original Nike Dunk and Jordan One silhouettes, with more Moore designs set to arrive from the Columbia brand in 2026.
Other highlights for the Columbia brand in the quarter included the launch of a redesigned columbia.com website, which features enhanced product discovery, upgraded product photography and a greater emphasis on the brand’s “irreverent voice” showcased in its Engineered for Whatever campaign. Said Boyle, “The feedback from our consumers has been very positive, and we are already witnessing early signs of increased engagement.”
The Columbia brand also announced a new partnership with Robert Irwin, the son of the legendary wildlife conservationist Steve Irwin, a TV presenter, producer, author, and photographer. Boyle said, “Robert aims to act as a global advocate for the natural world. We are also cheering him as he takes the stage in the current season of Dancing with the Stars.”
As part of the Engineered for Whatever launch, Columbia executed several brand activations this fall “that are getting people talking about Columbia again in the U.S.,” including one focused on Thursday Night Football on Amazon featuring “outlandish outdoor product tests and celebrity cameos in situations featuring crocodiles, human snowballs and even the grim reaper.”
Boyle said the Engineered for Whatever campaign is designed to “get us back to the historical irreverent way that we approached ourselves — not taking ourselves too seriously.” He adds, “Our products are made to have a good time outside, and our advertising should reflect how much fun it is to be outdoors.”
He also believes the positioning is a strong differentiator for the Columbia brand. “There’s really no other brand that can pull this off. There are many brands that are so serious and perhaps rightly so. But when we’re talking about being different and separating ourselves from others, it’s all about how we approach what we’re doing and how we want to be heard, said Boyle. “So, it’s been really gratifying that both our consumers and wholesale customers are talking about how different it is and how refreshing it is to see us sort of back to having a good time.”
Emerging Brands Q3 Performance
Sorel’s sales advanced 10 percent to $81.0 million, aided by earlier timing of fall 2025 wholesale shipments. Said Boyle, “This fall, the Sorel team is building product and brand momentum through new collections and refreshed marketing. The new Callsign Horizon and Daystrom Horizon collections infused the iconic Caribou boot design language into new categories and silhouettes. The team is also creating brand heat through highly successful collabs with London-based streetwear brand, Aries and Japanese streetwear brand, Neighborhood.”
Prana’s sales increased 6 percent in the quarter to $30.4 million, reflecting growth across both DTC and wholesale channels. Stated Boyle, “The Prana team’s brand refresh is well underway, and we’re seeing positive momentum. New customer acquisition trends are improving, and consumers are responding to the new marketing and product collections.”
Mountain Hardwear’s sales decreased 5 percent to $28.1 million, driven by lower clearance activity compared to elevated levels in the prior year. Said Boyle, “Healthy full price sales growth during the quarter reflects underlying business momentum. The brand is seeing a notable sell-through lift with specialty retailers where we’ve invested in brand in-store environments. On the product front, Mountain Hardwear introduced its most capable snow sport kit to date. The new Mythogen kit is the pinnacle of the brand snow sport line built for max durability, mobility and style in demanding Alpine environments.”
Boyle concluded in his formal remarks, “Overall, I’m excited to see our Accelerate Growth Strategy come to life. Consumers are responding to new product collections with more on the way. Engineered for Whatever has reenergized our unique brand voice, helping to set us apart in a competitive environment. I know that elevating consumers’ perception of the Columbia brand will take time, but I’m confident we have the right strategy in place to unlock the significant long-term growth opportunities ahead.
“We remain committed to investing in our strategic priorities to accelerate profitable growth; create iconic products that are differentiated, functional and innovative; drive brand engagement with increased focused demand creation investments, enhance our consumer experiences by investing in capabilities to delight and retain consumers, amplify marketplace excellence that’s digitally led omnichannel and global; and empower talent that is driven by our core values.”
Image courtesy Columbia Sportswear
