Columbia Raises 2026 Earnings Forecast Floor After Quarterly EPS Reaches $1.66
Key Facts
Columbia Sportswear reported net sales of $962.6 million in the third quarter of 2026, up 2% from the same period last year, and diluted earnings per share of $1.66, compared with $0.95. The company announced the results in a statement, beating analyst estimates of $943.8 million in revenue and $1.28 per share, according to Investing.com coverage attributed to Reuters. Sales rose from $943.4 million a year earlier, while growth remained 2% excluding the impact of currency. The stock rose 4.6% during the regular session on October 29 to $63.69, according to the same coverage. Results came in a quarter that saw improvement in some international and direct-to-consumer sales channels, while U.S. sales remained under pressure from the timing of wholesale order shipments.
The company said sales growth in most international markets was partly offset by lower net sales in the United States. It linked the U.S. decline to delayed shipments of wholesale orders for the Fall 2026 season, partly offset by direct-to-consumer growth. The company said the delayed arrival of fall shipments contributed to activity shifting between periods, making shipment timing an important factor in interpreting quarterly results. For the first nine months of the year, sales rose 1% to $2,356.0 million from $2,327.1 million, but were flat on a constant-currency basis. Over the same period, gross margin widened to 52.3% from 50.1%, an increase of 220 basis points.
In contrast with the margin improvement over the first nine months, gross margin contracted 20 basis points in the third quarter to 49.8% of sales, compared with 50.0% a year earlier. The company attributed the contraction mainly to concessions made to its factory partners, partly offset by tariff refunds under the International Emergency Economic Powers Act. It said tariff refunds provided a benefit of about 230 basis points during the first nine months, calculated after concessions made to factory partners. The company kept its full-year gross margin forecast at a range of 52.1% to 52.3%. The comparison between the two periods points to differing effects of tariffs and concessions on quarterly and year-to-date margins.
Columbia raised the floor of its 2026 sales forecast to $3.46 billion, from $3.43 billion previously, while keeping the upper end at $3.50 billion. It also raised the floor of its diluted earnings per share forecast to $4.65 from $4.45, with the upper end remaining at $4.90. It set expected operating income at $300 million to $320 million, compared with the previous range of $290 million to $325 million, narrowing the range at both ends. The revisions raise the lower end of the sales and earnings forecasts, while leaving the upper end of both unchanged. This comes alongside the company's expectation that a larger share of Fall 2026 shipments will be concentrated in the fourth quarter.
For the fourth quarter, the company expects sales of $1,108 million to $1,145 million, representing growth of 3.5% to 7.0% compared with sales of $1,070 million in the same period. It expects diluted earnings per share of $1.85 to $2.10. The company said the forecast includes a larger share of Fall 2026 shipments shifting into the fourth quarter, making shipment timing one factor in the quarterly comparison. For the first half of 2027, the company expects wholesale sales growth in the mid-single-digit range. This forecast is linked to spring-season orders, but remains an estimate of wholesale sales, not a guarantee of final sales levels.
The company cut its 2026 operating cash flow forecast to $230–250 million from $290–310 million previously. It attributed the revision to early production of Spring 2027 inventory, which is expected to raise year-end inventory. Inventory was $889.2 million on September 30, up 11% from $800.4 million on the same date last year. The company said the increase reflected higher inventory in transit because of delayed receipt of Fall 2026 shipments, as well as early production of Spring 2027 inventory. It also approved a quarterly cash dividend of $0.30 per share, payable on December 3 to shareholders of record on November 19, 2026.