The US outdoor and lifestyle group Columbia Sportswear Company announced its financial results for the first quarter on Friday. The company exceeded internal forecasts for net sales and profitability. Performance was supported by early wholesale shipments for the Spring/Summer 2026 season and strong demand in the US and Europe.
Net sales remained relatively stable at $779 million (€663 million) compared to $778.50 million in the same period in 2025. While the international markets recorded growth, the group suffered a decline in the US market. This was attributed to lower wholesale order intake for the SS26 season. It was also a consequence of the strategic decision in 2025 to reduce the range of winter products following the announcement of US tariffs.
Margin pressure and operational performance
The gross margin decreased slightly by 20 basis points and reached 50.7 percent of net sales. This decline primarily reflected the impact of unremitting additional U.S. tariffs, which amounted to 310 basis points. The company tried to counteract these costs through countermeasures such as targeted price increases.
Operating income for the quarter fell 10 percent to $42 million. This corresponds to 5.4 percent of net sales, compared to six percent in the previous year. Net income reached $34.30 million, or $0.65 per diluted share, compared to $42.20 million in 2025.
Strategic dynamics and the ‘Accelerate Growth Strategy’
The group continues to implement its ‘Accelerate Growth Strategy’. This multi-year initiative is designed to appeal to younger, more active consumers. The focus is on the ‘Engineered for Whatever’ brand platform, which was recently launched through a global campaign across print and social media.
“I am encouraged by signs of growing momentum in the U.S., including an expected shift toward wholesale growth in the second half of the year based on our fall 2026 order book,” said Tim Boyle, Chairman and Chief Executive Officer (CEO) of Columbia Sportswear. He also noted that the ‘Accelerate’ strategy is gaining momentum through innovative products that resonate with the target audience.
Outlook for the 2026 financial year
Following its first-quarter performance, Columbia Sportswear updated its full-year 2026 guidance. The group now expects diluted earnings per share of between $3.55 and $4. This is an increase from the previous estimate of $3.20 to $3.65.
Full-year net sales are expected to increase one to three percent and be between $3.43 billion and $3.50 billion. The operating margin is now forecast between 6.7 percent and 7.5 percent.
For the second quarter of 2026, the company expects net sales to be between $600 million and $610 million. However, a diluted loss per share is expected to be between $0.46 and $0.37. This reflects continued pressure from US tariffs and negative leverage in selling, general and administrative expenses.
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