Key Highlights

  • Net sales climbed 2% to $962.6 million in the third quarter, from $943.4 million a year earlier.
  • Diluted EPS came to $1.66, versus $0.95 in the third quarter of 2025.
  • Operating income reached $109.6 million, or 11.4% of net sales, compared with 7.1% a year ago.
  • Cash, cash equivalents and short-term investments stood at $229.6 million with no borrowings.
  • Full year 2026 diluted EPS guidance sits at $4.65 to $4.90, with the low end lifted from $4.45.

Third-quarter sales inch higher as international growth offsets U.S. weakness

Columbia Sportswear (NASDAQ:COLM) is a multi-brand designer of outdoor, active and lifestyle apparel, footwear, accessories and equipment, sold in 122 countries. It reported results on October 29, 2026. Net sales rose 2% to $962.6 million from $943.4 million, also 2% in constant currency.

U.S. sales slipped 1% to $540.9 million, which the company linked to later shipments of Fall 2026 wholesale orders, partly offset by direct-to-consumer gains. Latin America and Asia Pacific grew 11%, Europe, Middle East and Africa rose 7%, and Canada declined 2%.

Wholesale was flat at $636.7 million, while direct-to-consumer climbed 5% to $325.9 million. The Columbia Brand produced $826.2 million, up 3%, and Mountain Hardwear fell 17% to $23.3 million.

Margins and a missing Impairment lift EPS from $0.95 to $1.66

Gross Margin narrowed 20 basis points to 49.8% of net sales. The company said this reflected accommodations to factory partners, partly offset by the benefit of IEEPA Tariff refunds received earlier.

SG&A expenses totaled $375.6 million, or 39.0% of net sales, versus 40.4% a year earlier. Operating Income was $109.6 million, against $67.4 million a year earlier, which included $29.0 million of impairment charges tied to prAna and Mountain Hardwear.

Net income was $84.7 million, or $1.66 per diluted share, compared with $52.0 million, or $0.95. The company said prior year impairments reduced diluted EPS by $0.46.

Nine-month figures show how much tariff refunds shaped the year

Net sales for the first nine months rose 1% to $2,356.0 million, flat in constant currency, while U.S. sales fell 5% to $1,283.4 million. Europe, Middle East and Africa grew 15%.

Gross margin expanded 220 basis points to 52.3%, including an approximate 230 basis point benefit from IEEPA tariff refunds, net of factory partner accommodations. Diluted EPS was $2.82 versus $1.53, and the company said the refund benefit added $0.85 to it.

Inventory rises 11% as Buybacks and a $0.30 Dividend continue

Inventories grew 11% to $889.2 million from $800.4 million, mainly on in-transit goods from delayed Fall 2026 receipts and earlier production of Spring 2027 product. Net cash used in operations for the nine months was $280.5 million, compared with $333.4 million a year earlier.

The company bought back 3,342,569 shares for $200.0 million in the nine months, leaving $226.5 million under its authorization. The board declared a quarterly dividend of $0.30 per share, payable on December 3, 2026 to holders of record on November 19, 2026.

Full-year guidance moves up, with fourth-quarter shipments the swing factor

The company now expects 2026 net sales of $3.46 billion to $3.50 billion, up 2.0% to 3.0%, versus a prior range of $3.43 billion to $3.50 billion. Operating Margin is projected at 8.7% to 9.1%, and diluted EPS at $4.65 to $4.90, compared with $3.24 in 2025.

Fourth quarter net sales are guided to $1,108 million to $1,145 million, with diluted EPS of $1.85 to $2.10 versus $1.73 a year earlier. Operating Cash Flow guidance was cut to $230 million to $250 million from $290 million to $310 million, and management expects first half 2027 wholesale sales to grow in the mid-single-digit range.