Columbia Sportswear Company (COLM) investor relations material

Executive summary

• Net sales rose 2% year-over-year to $614.4 million in Q2 2026, driven by strong international growth offsetting U.S. softness.

• Gross margin expanded 920 basis points to 58.3%, primarily due to a $78 million IEEPA tariff refund, with $62 million recognized in earnings.

• Operating income reached $30.9 million, reversing a prior-year loss, and diluted EPS was $0.52, up from a $0.19 loss per share in Q2 2025.

• The ACCELERATE strategy is showing early signs of success, with improved brand awareness, new customer acquisition, and strong traction in technical footwear and elevated product lines.

• Inventory declined 6% year-over-year; cash, cash equivalents, and short-term investments totaled $624.6 million with no debt.

Financial highlights

• Q2 2026 net sales: $614.4 million (+2% year-over-year); gross margin: 58.3% (up 920 bps), with $78 million in tariff refunds boosting results.

• Net income: $26.6 million ($0.52 per diluted share), compared to a $10.2 million loss ($0.19 per share) last year.

• SG&A expenses increased 2% year-over-year, mainly due to higher DTC expenses and new stores, partially offset by lower technology costs.

• Operating margin improved to 5.0% from -3.9% last year.

• Free cash flow for the first half was $11.6 million, compared to negative $92.9 million in the prior year.

Outlook and guidance

• Full-year 2026 net sales expected at $3.43–$3.50 billion (+1% to +3% year-over-year); gross margin guidance raised to 52.1%–52.3%.

• Operating margin outlook increased to 8.5%–9.3%; diluted EPS guidance raised to $4.45–$4.90.

• Q3 2026 net sales expected to be down 1.5% to flat year-over-year, with EPS of $1.15–$1.35.

• Tariff refunds to provide a $15 million benefit in H2, offset by factory accommodations; Q3 margin headwind, Q4 margin tailwind expected.

• Spring 2027 wholesale order book indicates low to mid-single-digit growth, with footwear outpacing apparel.