COLM · Columbia Sportswear Company

Columbia Sportswear's Q1 2026 results showed net sales nearly flat at $779.0 million, with a 3% constant-currency decline due to U.S. wholesale softness from lower Spring 2026 orders and reduced winter inventory in response to prior tariff concerns, offset by international strength particularly in Europe (up mid-30% reported) and Korea. Gross margin dipped 20 basis points to 50.7%, pressured by 310 basis points of unmitigated U.S. tariffs but mitigated through targeted price increases. SG&A rose 1% to 45.8% of sales, driven by higher DTC costs, though partially reduced by Profit Improvement Program actions in technology and supply chain. Operating income fell 10% to $42.0 million (5.4% margin), with EPS at $0.65 versus $0.75 last year. Balance sheet remains strong with $535.4 million in cash and no debt; inventories flat in dollars but down 11% in units. Share repurchases of $150 million (2.5 million shares at $60.03 average) signal confidence, with $276.5 million authorization remaining. CEO Tim Boyle highlighted exceeding Q1 guidance via early Spring shipments and Europe/U.S. demand, with U.S. wholesale poised for H2 inflection per Fall order book, crediting the ACCELERATE strategy's traction via 'Engineered for Whatever' campaign and innovative products amid dynamic environment including Middle East conflict. Raised FY2026 outlook reflects temporary tariff relief through July, boosting gross margin to 50.3-50.5% (from 49.8-50.0%), operating income to $230-262 million (6.7-7.5% margin), and EPS to $3.55-4.00, with Q2 expecting modest sales flatness but wider operating loss from tariff impacts and SG&A deleverage.