Columbia Sportswear Company Stock Earnings Reports

Columbia Sportswear reported Q1 FY2026 net sales of $779 million, roughly flat year-over-year, with profitability and EPS above guidance driven by earlier-than-planned spring wholesale shipments, strong international performance (+16% YoY) and disciplined expense management. International markets (EMEA, Korea, LAAP, China) led growth while the U.S. declined ~10% due to a smaller spring wholesale order book, constrained winter supply (tariff responses) and cleaner inventories reducing clearance. Management highlighted encouraging early momentum in the U.S. under the ACCELERATE Growth Strategy (strong fall '26 order book, double-digit growth in women's and footwear, traction for Amaze/ROC platforms and PFG momentum). Tariff developments (Supreme Court ruling and a temporary 10% Section 122 rate) reduced the company’s previously modeled tariff headwind; Columbia has paid ~ $80M in IEEPA tariffs and has filed for refunds but has not assumed any refund benefit in results or guidance. The company now expects an approximate 200 basis point unmitigated tariff headwind to full-year gross margin (vs. prior ~300 bps). Inventory dollars are roughly flat YoY while units are down ~11%; cash/short-term investments were $535M with no debt and $150M of share repurchases in Q1 (2.5M shares retired). Guidance: full-year net sales growth maintained at +1% to +3%; gross margin expected ~50.3%–50.5%; SG&A 43.6%–44.2% of sales; operating margin raised to 6.7%–7.5%; diluted EPS $3.55–$4. Q2 seasonal revenue expected down 1% to up 1% and loss per share of $0.46 to $0.37. Key risks include ongoing Middle East conflict (order cancellations, higher input/freight costs, consumer demand pressure) and macro/supply-chain volatility. Overall, international strength, a cleaner inventory base, earlier wholesale shipments and early product/marketing traction support management’s view that the ACCELERATE strategy is starting to work, but significant external risks remain.