Columbia Sportswear Company reported first‑quarter 2026 net sales of $779 million and diluted earnings per share of $0.65, both exceeding analyst expectations by roughly $0.30 per share and $20–$23 million in revenue. The beat was driven by a 16% year‑over‑year increase in international sales, which offset a 10% decline in U.S. wholesale demand, and by early Spring 2026 wholesale shipments that helped lift the quarter’s performance.
Gross margin contracted 20 basis points year‑over‑year to 50.7%, largely because a 310‑basis‑point tariff impact on U.S. imports reduced profitability. Columbia mitigated part of the headwind with targeted price increases, but the net effect was a modest margin squeeze. Operating income fell 10% year‑over‑year, reflecting the margin contraction and lower U.S. sales volume.
Management raised its full‑year 2026 outlook, keeping the net sales guidance at $3.43 billion to $3.50 billion but increasing the gross margin target to 50.3%–50.5% and the EPS guidance to $3.55–$4.00 from $3.20–$3.65. The higher margin and earnings guidance signals confidence that tariff mitigation will improve and that the ACCELERATE growth strategy will continue to generate profitability.
The company finished the quarter with $535 million in cash, no debt, and a quarterly dividend of $0.30 per share. “We continue to maintain our fortress balance sheet, exiting the quarter with $535 million in cash and short‑term investments and no debt,” said CEO Tim Boyle.
CEO Tim Boyle also noted that “We’re pleased to have delivered net sales and profitability exceeding our guidance for the first quarter, driven by early Spring 2026 wholesale shipments and better‑than‑expected demand in Europe and the U.S.” He added that “The strength of our international business continues to lead our growth. Our U.S. business declined, which was largely expected due to a lower Spring 2026 wholesale order book, and our decisions taken last year to reduce supply of winter season products as a precautionary measure in response to U.S. tariff announcements.” Boyle further explained that “We are now expecting a slight improvement… We now expect an approximate 200 basis point unmitigated headwind from tariffs to our full‑year gross margin outlook.”
After the release, the market reacted with a modest 0.15% decline in the company’s shares, reflecting a balance between the strong earnings beat and raised guidance and concerns about ongoing U.S. tariff headwinds and a challenging domestic market.
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