Columbia Sportswear Raises 2026 Profit Forecast Floor After $1.66 EPS
Key Facts
Columbia Sportswear raised the low end of its annual profit and revenue forecasts after reporting diluted earnings per share of $1.66 and net revenue of $962.6 million in the third quarter of 2026. The company said revenue rose 2% year over year, from $943.4 million in the same period of 2025, while earnings per share increased from $0.95. Results topped analysts’ estimates of $1.28 per share and $943.8 million in revenue, according to coverage published by Investing.com, citing Reuters, on Oct. 29. The stock rose 4.6% during the regular session to $63.69, the closing price confirmed by EL7 data. The forecast increase came as U.S. business trends improved and delayed wholesale orders shipped, while gross margin remained under pressure.
The company set its 2026 diluted earnings-per-share forecast at $4.65 to $4.90, compared with the previous range of $4.45 to $4.90. It also raised its annual revenue forecast to $3.46–$3.50 billion, from $3.43–$3.50 billion previously. It forecast operating income of $300 million to $320 million, versus $290 million to $325 million. CEO Tim Boyle said better-than-expected third-quarter performance, together with improved U.S. business trends and the shipment of the remaining global fall 2026 wholesale orders, gave the company confidence to raise the low end of its forecast. He added that the operating environment remained "challenging and uncertain" and that the company continued working to strengthen the Columbia brand and improve consumer perceptions of it in the United States.
Boyle attributed the quarter’s results to some delayed wholesale orders for the fall 2026 season shipping ahead of expectations, improved U.S. direct-to-consumer selling trends and continued momentum in international business. The company said sales growth in most international markets was partly offset by lower U.S. sales. It linked the U.S. decline to delayed shipments of wholesale orders for the season, partly offset by direct-to-consumer sales growth. In the first nine months of 2026, net sales rose 1% to $2.356 billion from $2.3271 billion, but were flat on a constant-currency basis. The figures put the third quarter in the context of limited year-to-date sales growth, despite stronger international orders and improvement in some U.S. sales channels.
Third-quarter operating income rose to $109.6 million, or 11.4% of sales, compared with $67.4 million and an operating margin of 7.1% a year earlier. Third-quarter 2025 results included a $29 million impairment charge related to the prAna and Mountain Hardwear brands, forming part of the year-over-year comparison. By contrast, gross margin contracted 20 basis points to 49.8% of sales, from 50.0% in the same period. The company said the decline mainly reflected concessions made to factory partners, partly offset by tariff recoveries. In the first nine months of the year, gross margin expanded 220 basis points to 52.3% from 50.1%, including a benefit of about 230 basis points from tariff recoveries before concessions to factory partners.
Inventories totaled $889.2 million on Sept. 30, up 11% from $800.4 million on the same date a year earlier. The company attributed the increase to higher inventory in transit because of delayed receipt of fall 2026 shipments, and to early production of spring 2027 inventory. It lowered its 2026 operating cash flow forecast to $230–$250 million from $290–$310 million previously, attributing the change to early production of spring inventory. It ended the third quarter with $229.6 million in cash, cash equivalents and short-term investments, and no borrowings. It also repurchased 3,342,569 shares in the first nine months of the year for $200 million, at an average price of $59.83 per share.
The company expects fourth-quarter 2026 sales of $1,108 million to $1,145 million, equivalent to growth of 3.5% to 7.0%, and diluted earnings per share of $1.85 to $2.10. The forecast includes a greater share of fall 2026 shipments shifting into the fourth quarter. It also expects wholesale sales growth in the first half of 2027 in the mid-single-digit percentage range, based on an increase in the spring 2027 order book, reorder and replenishment orders, after accounting for expected cancellations. The company declared a quarterly cash dividend of $0.30 per share, payable on Dec. 3, 2026, to shareholders of record on Nov. 19. The guidance shows an improved low end for sales and profit forecasts, alongside a larger cash allocation for early production of the spring 2027 season.