Columbia Raises Full-Year Sales Floor After Third-Quarter Beat

The Tip Desk · October 31, 2026 · 4 min read

Third-quarter net sales were $962.6 million and diluted earnings were $1.66 a share as the company lifted the low end of 2026 sales and EPS guidance.

Columbia Sportswear Company (COLM), a multi-brand maker of outdoor, active and lifestyle apparel, footwear and equipment, reported third-quarter net sales of $962.6 million, up 2 percent from a year earlier, and raised the low end of its full-year 2026 sales outlook to $3.46 billion from $3.43 billion.

Diluted earnings were $1.66 a share, compared with $0.95 a share in the year-ago quarter, when $29.0 million of impairment charges related to prAna and Mountain Hardwear reduced earnings by $0.46 a share. Operating income was $109.6 million, or 11.4 percent of net sales, versus $67.4 million, or 7.1 percent of net sales, in the third quarter of 2025.

Chairman and Chief Executive Officer Tim Boyle said the results exceeded third-quarter guidance and primarily reflected a portion of delayed Fall 2026 wholesale orders shipping earlier than expected, improved trends in the U.S. direct-to-consumer business, and continued momentum internationally. He said better-than-expected third-quarter performance, improving U.S. trends and the shipment of remaining Fall 2026 global wholesale orders gave the company confidence to raise the low end of full-year revenue and EPS guidance.

Sales growth in most international markets was partially offset by lower U.S. net sales, which the company said reflected later shipments of Fall 2026 wholesale orders, partially offset by growth in DTC. U.S. net sales were $540.9 million. Latin America and Asia Pacific rose 11 percent to $159.5 million, Europe, Middle East and Africa rose 7 percent to $175.3 million, and Canada fell 2 percent to $87.0 million.

Columbia brand net sales increased 3 percent to $826.2 million. SOREL increased 2 percent to $82.8 million, prAna decreased 1 percent to $30.2 million, and Mountain Hardwear decreased 17 percent to $23.3 million. Apparel, accessories and equipment net sales increased 1 percent to $743.9 million; footwear increased 5 percent to $218.7 million. Wholesale net sales were $636.7 million, unchanged from a year earlier; DTC net sales increased 5 percent to $325.9 million.

Gross margin contracted 20 basis points to 49.8 percent of net sales from 50.0 percent. The company said the contraction primarily reflected accommodations to factory partners, partially offset by the current-period benefit of International Emergency Economic Powers Act tariff refunds previously received. SG&A expenses were $375.6 million, or 39.0 percent of net sales, compared with $380.9 million, or 40.4 percent of net sales.

The company now expects full-year 2026 net sales of $3.46 billion to $3.50 billion, representing growth of 2.0 to 3.0 percent from 2025, versus a prior range of 1.0 to 3.0 percent. Gross margin is expected at 52.1 percent to 52.3 percent of net sales, unchanged, including an approximate 180 basis-point benefit from IEEPA tariff refunds, net of factory accommodations. Operating income is now expected at $300 million to $320 million, or an operating margin of 8.7 to 9.1 percent of net sales, versus a prior $290 million to $325 million, or 8.5 to 9.3 percent. Diluted earnings are expected at $4.65 to $4.90 a share, versus a prior $4.45 to $4.90.

Operating cash flow is now expected at $230 million to $250 million, down from a prior $290 million to $310 million. The company said the change is due to earlier production of Spring 2027 inventory, which is expected to increase the year-end inventory balance. Capital expenditures are planned at $60 million to $70 million.

For the fourth quarter, net sales are expected at $1.108 billion to $1.145 billion, growth of 3.5 to 7.0 percent from $1.070 billion a year earlier. The company said the range includes a higher proportion of Fall 2026 shipments occurring in the fourth quarter than the timing of Fall 2025 shipments last year. Operating income is expected at 10.8 to 12.0 percent of net sales. Diluted earnings are expected at $1.85 to $2.10 a share, compared with $1.73 a share a year earlier.

Inventories increased 11 percent to $889.2 million as of September 30, 2026, from $800.4 million a year earlier. The company said inventory growth primarily reflected higher in-transit inventory from delayed Fall 2026 receipts and earlier production of Spring 2027 inventory. Cash, cash equivalents and short-term investments totaled $229.6 million, with no borrowings. For the nine months ended September 30, the company repurchased 3,342,569 shares for $200.0 million, or an average $59.83 a share, leaving $226.5 million available under its authorization. The board approved a $0.30 a share quarterly dividend payable December 3, 2026.

Wholesale net sales are expected to grow in the mid-single-digit percent range for the first half of 2027, which the company said reflects an increase in the Spring 2027 wholesale order book and forecasted effects from reorders, replenishment orders and cancellations.