Companies

Columbia Sportswear beats first-quarter expectations

May 6, 2026 United States

The US-based outdoor company exceeded its own expectations in the first quarter, with strong international demand helping to offset weaker US sales and pressure related to tariffs

“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 US”, said Chairman and Chief Executive Officer Tim Boyle.

First-Quarter Results

In the first quarter of the 2026 financial year, the company’s net sales remained relatively stable at 779.0 million US dollars (decreasing by 3% on a constant-currency basis), compared to the same period last year.

During the quarter, net sales in the US totalled 422.5 million US dollars, which is a 10% decrease compared to the first quarter of 2025.

By contrast, first-quarter sales in Latin America and the Asia-Pacific region increased by 5% (or 3% on a constant-currency basis) to reach 160.2 million US dollars. Sales in Europe, the Middle East and Africa increased by 35% (or 21% on a constant-currency basis) to reach 145.3 million US dollars, and sales in Canada increased by 7% (or 1% on a constant-currency basis) to reach 50.9 million US dollars.

Boyle explained: “The strength of our international business continues to lead our growth. Our US 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 US tariff announcements”.

In the first quarter of the current financial year, the company’s gross margin fell by 20 basis points to 50.7%, down from 50.9% in the same period a year ago. This reflects the 310-basis-point impact of unmitigated incremental US tariffs, which was partially offset by mitigation tactics (mainly targeted price increases).

In the first quarter, Columbia Sportswear recorded an operating income of 42.0 million US dollars, equating to an operating margin of 5.4%. This is down from 46.5 million US dollars in the same period of 2025, which equated to an operating margin of 6.0%.

During the quarter, net income also decreased to 34.3 million US dollars, or 0.65 US dollars per diluted share, from 42.2 million US dollars, or 0.75 US dollars per diluted share, in the same period of 2025. This included a favourable impact of 4.7 million US dollars, or 0.09 US dollars per diluted share, from foreign currency translation.

Full-Year Outlook

Columbia Sportswear still expects net sales to increase by between 1.0% and 3.0% in 2026, resulting in net sales of between 3.43 and 3.50 billion US dollars, compared to 3.40 billion US dollars in 2025.

However, operating margin is expected to be between 6.7% and 7.5% of net sales (previously 6.2% to 6.9%), compared to an operating margin of 6.1% of net sales in 2025.

Diluted earnings per share guidance has also been updated to between 3.55 and 4.00 US dollars (previously 3.20 to 3.65 US dollars), compared to 3.23 US dollars in 2025.

Image Credits: finance.yahoo.com

United States Columbia Sportswear Companies Quarter Results Results