Highlights

  • Third-quarter net sales rose 2% to US$962.6 million, with Latin America and Asia Pacific up 11%.
  • Diluted EPS increased to US$1.66 from US$0.95, when a US$29.0 million Impairment weighed on prior-year results.
  • Full-year 2026 diluted EPS guidance now stands at US$4.65 to US$4.90, up from US$4.45 at the low end.
  • The board declared a US$0.30 quarterly Dividend payable on 3 December 2026 to holders of record on 19 November.

Columbia Sportswear Company (NASDAQ:COLM) tightened its 2026 outlook toward the upper part of its earlier range on 29 October 2026, after third-quarter Earnings rose sharply from a year-ago period that carried an impairment charge.

The outdoor and active lifestyle apparel and footwear company, which owns the Columbia, SOREL, prAna and Mountain Hardwear brands, also reported growth in its international markets and direct-to-consumer channel, while US sales slipped.

International Markets and DTC Drive Q3 Sales

Net sales for Q3 2026 increased 2% to US$962.6 million, both as reported and in constant currency. Latin America and Asia Pacific grew 11% to US$159.5 million and Europe, the Middle East and Africa rose 7% to US$175.3 million, while US sales fell 1% to US$540.9 million and Canada declined 2%.

By brand, Columbia grew 3% to US$826.2 million and SOREL rose 2%, while prAna dipped 1% and Mountain Hardwear fell 17%. Direct-to-consumer sales increased 5% to US$325.9 million, and wholesale was flat at US$636.7 million.

Profitability Improves on Lower Costs

Gross Margin eased 20 basis points to 49.8%, while selling, general and administrative expenses fell to 39.0% of sales from 40.4%. Operating Income rose to US$109.6 million, an 11.4% margin, from US$67.4 million, and Net Income reached US$84.7 million, or US$1.66 per diluted share, against US$52.0 million, or US$0.95. The prior-year quarter included a US$29.0 million impairment charge, equal to US$0.46 per share. Tariff refunds added about 230 basis points to gross margin for the first nine months, net of factory accommodations.

Chairman and Chief Executive Officer Tim Boyle pointed to tangible progress with the ACCELERATE Growth Strategy, a multi-year effort to attract younger, more active consumers to the Columbia brand, along with improved US direct-to-consumer trends and international momentum.

Balance Sheet, Buybacks and Dividend

Cash, cash equivalents and short-term investments totaled US$229.6 million on 30 September 2026, with no borrowings. Inventory rose 11% to US$889.2 million, reflecting delayed Fall 2026 goods in transit and earlier Spring 2027 production. Over the first nine months of 2026, the company repurchased 3,342,569 shares for US$200.0 million, leaving US$226.5 million of authorization. The quarterly dividend of US$0.30 per share is payable on 3 December 2026.

Updated Outlook for Q4 and Full-Year 2026

Management now expects 2026 net sales of US$3.46 billion to US$3.50 billion, or growth of 2% to 3%, an Operating Margin of 8.7% to 9.1%, and diluted EPS of US$4.65 to US$4.90. The outlook includes a gross margin benefit of about 180 basis points from tariff refunds and assumes current US tariff rates remain through year-end. Operating Cash Flow guidance was lowered to US$230 million to US$250 million because of earlier Spring 2027 production.

For Q4 2026, the company forecasts net sales of US$1,108 million to US$1,145 million and diluted EPS of US$1.85 to US$2.10, helped by delayed Fall 2026 shipments landing in the quarter. Boyle described the operating environment as challenging and uncertain. Shares closed at US$67.54 on 30 October 2026, up 6.04% on the day, giving a market Capitalization of about US$3.46 billion.