Columbia Sportswear surpasses first quarter expectations despite tariff headwinds

The US outdoor and lifestyle group Columbia Sportswear Company has reported financial results for the first quarter ended May 1, 2026, exceeding internal guidance for both net sales and profitability. The performance was supported by early wholesale shipments for the spring/summer 2026 season and robust demand across the US and Europe.

Net sales remained relatively flat at 779 million dollars compared to 778.50 million dollars during the same period in 2025. While international markets showed growth, the group faced a decline in the US market. This was attributed to a lower wholesale order book for the SS26 season and a strategic decision made in 2025 to reduce the supply of winter products following US tariff announcements.

Margin pressure and operating performance

Gross margin experienced a slight contraction of 20 basis points, landing at 50.7 percent of net sales. This decline primarily reflected a 310 basis point impact from unmitigated incremental US tariffs. The company sought to counter these costs through mitigation tactics, including targeted price increases.

Operating income for the quarter decreased 10 percent to 42 million dollars, or 5.4 percent of net sales, down from 6 percent in the prior year. Net income reached 34.30 million dollars, or 0.65 dollars per diluted share, compared to 42.20 million dollars in 2025.

Strategic momentum and the Accelerate Growth Strategy

The group continues to implement its Accelerate Growth Strategy, a multi-year initiative designed to attract younger, more active consumers. Central to this is the 'Engineered for Whatever' brand platform, which recently launched via a global campaign across print and social media.

Columbia Sportswear chairman and chief executive officer, Tim Boyle, stated: “I’m encouraged by signs of growing momentum in the U.S., including an expected inflection back to wholesale growth in the second half based on our Fall 2026 order book.” Boyle noted that the Accelerate strategy is gaining traction through innovative products that resonate with the target demographic.

Outlook for the 2026 financial year

Following the first quarter performance, Columbia Sportswear has updated its full year 2026 guidance. The group now expects diluted earnings per share to range between 3.55 dollars and 4 dollars, an increase from the previous estimate of 3.20 dollars to 3.65 dollars.

Full year net sales are projected to increase by 1 percent to 3 percent, reaching between 3.43 billion dollars and 3.50 billion dollars. Operating margin is now forecast to be between 6.7 percent and 7.5 percent.

For the second quarter of 2026, the company anticipates net sales of between 600 million dollars and 610 million dollars. However, it expects a diluted loss per share between 0.46 dollars and 0.37 dollars, reflecting continued pressure from US tariffs and SG&A deleverage.