Columbia Posts $1.66 a Share, Raises Low End of 2026 Forecast
Key Facts
Columbia Sportswear reported diluted earnings per share of $1.66 in the third quarter of 2026, compared with $0.95 in the year-earlier period, while net income rose to $84.7 million from $52.0 million. The announcement came at 4:05 p.m. Eastern time on October 29, after the market close. Net sales had risen 2% to $962.6 million from $943.4 million a year earlier. After the announcement, the stock rose 1.9% in after-hours trading to $64.90, according to Reuters coverage published via Investing.com. Its rise during the October 29 session, when it closed at $63.69 versus $60.90 in the previous session, preceded publication of the results and does not represent a reaction to them.
The company said sales growth in most international markets partly offset a decline in U.S. sales, which was linked to delayed shipments of wholesale orders for fall 2026. It added that growth in its direct-to-consumer business helped offset the decline. Chief Executive Tim Boyle said the results reflected shipments of some delayed fall orders earlier than expected, improved U.S. direct-selling trends and continued momentum in international business. Boyle described the operating environment as challenging and uncertain. The difference in order shipment timing indicates that quarterly sales performance was affected by delivery schedules as well as sales trends in different markets.
Operating income improved to $109.6 million, or 11.4% of sales, compared with $67.4 million and 7.1% a year earlier. Third-quarter 2025 results included impairment charges of $29.0 million related to the prAna and Mountain Hardwear brands. By contrast, gross margin contracted 20 basis points to 49.8% from 50.0% in the year-earlier period. The company attributed the contraction mainly to concessions offered to its factory partners, partly offset by the impact of tariff refunds. Operating income therefore rose alongside a slight decline in gross margin, while the year-over-year comparison was also affected by impairment charges recorded in 2025.
The company raised the low end of its 2026 annual sales growth forecast to a range of 2.0%–3.0%, from 1.0%–3.0% previously, and set sales at $3.46 billion to $3.50 billion, compared with a prior range of $3.43 billion to $3.50 billion. It also raised the low end of its diluted earnings-per-share forecast to $4.65 from $4.45, keeping the high end at $4.90. Boyle said a better-than-expected third quarter, improving U.S. business trends and shipments of the remaining global wholesale orders for fall 2026 gave the company confidence to raise the low end of its forecast. He added that fourth-quarter execution would be critical to annual performance. The updated outlook thus comes as results remain dependent on the timing of order fulfillment through the rest of the year.
For the fourth quarter, the company expects net sales of $1.108 billion to $1.145 billion, representing growth of 3.5% to 7.0% compared with $1.070 billion in the year-earlier period. It expects diluted earnings per share of $1.85 to $2.10, versus $1.73 a year earlier. For the first half of 2027, it expects wholesale sales growth in the mid-single-digit range, citing an increase in the spring order book, reorders, replenishment orders and anticipated cancellations. The company ended the third quarter on September 30 with cash and short-term investments of $229.6 million and no borrowings. Inventories rose 11% to $889.2 million from $800.4 million in September 2025; the company attributed the increase mainly to more goods in transit because of delayed fall 2026 receipts and early production of spring 2027 inventory.
The board approved a quarterly cash dividend of $0.30 per share, payable on December 3, 2026, to shareholders of record on November 19. The dividend accompanies the company’s updated quarterly and annual forecasts, as markets watch the execution of its fourth-quarter plan and shipments of the remaining fall orders. Estimates for the first half of 2027 are also tied to developments in the spring order book and reorders. The company said tariff refunds partly helped limit the impact of concessions to factory partners on gross margin. The stock’s after-hours move remains separate in timing from its gains during the October 29 session, which preceded the announcement.