Columbia Sportswear Company (COLM) Q2 2026 earnings summary

Executive summary

• Net sales grew 2% year-over-year to $614–$614.4 million, driven by strong international performance, while U.S. sales declined 4% amid soft DTC traffic and higher promotional activity.

• Gross margin expanded 920 bps to 58.3%, primarily due to a $78 million IEEPA tariff refund, with $60–$62 million recognized in earnings.

• Operating margin improved to 5.0% from a prior-year loss, with diluted EPS rising to $0.52 from a $0.19 loss per share.

• The ACCELERATE strategy is showing early signs of success, especially in Columbia brand footwear, with improved brand awareness and new customer acquisition.

• Inventory declined 6% year-over-year, and the company exited the quarter with $624.6–$625 million in cash and no debt.

Financial highlights

• Net income was $26.6 million, up from a loss of $10.2 million in the prior year.

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

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

• Capital expenditures for the first half were $25.8 million, down from $30.0 million last year.

• Operating cash flow for the first half was $37.5 million, up from a $62.9 million outflow in 2025.

Outlook and guidance

• Full-year 2026 net sales expected at $3.43–$3.50 billion, up 1–3% year-over-year.

• Gross margin guidance raised to 52.1–52.3%, reflecting tariff refund benefits.

• 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 flat to down 1.5% 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.