Columbia Sportswear exceeds Q3 projections, raises outlook

US outdoor apparel group Columbia Sportswear Company reported an increase in third-quarter net sales, exceeding management projections as direct-to-consumer gains and international momentum offset domestic wholesale shipping shifts.

Net sales for the three months ended September 30, 2026, rose 2 percent to 962.60 million dollars, compared to 943.40 million dollars in the prior-year period. On a constant-currency basis, sales also increased 2 percent.

International performance drove top-line growth across most markets, counterbalancing lower net sales in the US where shipments of autumn/winter 2026 (AW26) wholesale orders were delayed.

Direct-to-consumer expansion bolsters quarterly profitability

Momentum in direct-to-consumer (D2C) channels provided operational support during the quarter. Columbia Sportswear chairman and chief executive officer Tim Boyle stated that performance was lifted by “improved trends in our U.S. DTC business, and the continued momentum of our international business, despite challenging global macroeconomic conditions.”

Operating income reached 109.60 million dollars, or 11.4 percent of net sales, up from 67.40 million dollars, or 7.1 percent of net sales, in third quarter 2025. The prior-year period included an impairment charge of 29.00 million dollars related to prAna and Mountain Hardwear. Gross margin contracted 20 basis points to 49.8% of net sales, impacted by partner factory accommodations.

Net income climbed to 84.70 million dollars, resulting in diluted earnings per share (EPS) of 1.66 dollars, compared to 52.00 million dollars, or 0.95 dollars per share, in third quarter 2025.

Boyle pointed to early milestones in the multi-year turnaround programme: “Our third quarter performance provides continued tangible signs of progress with our ACCELERATE Growth Strategy. We are particularly encouraged by the momentum building in our Columbia brand U.S. DTC E-Commerce business.”

For the first nine months of 2026, group net sales advanced 1 percent to 2.36 billion dollars. Operating profit climbed to 182.50 million dollars, while net income totaled 145.60 million dollars.

Columbia Sportswear approved a regular quarterly cash dividend of 0.30 dollars per share, scheduled for distribution on December 3, 2026.

Raised full-year outlook on wholesale delivery timing

Encouraged by execution and order timing, Columbia Sportswear lifted the lower boundary of its annual projections. Full-year net sales are now forecast between 3.46 billion and 3.50 billion dollars, representing growth of 2 percent to 3 percent.

Diluted EPS is expected to range from 4.65 to 4.90 dollars, up from prior guidance of 4.45 to 4.90 dollars. Operating margin is guided between 8.7 percent and 9.1 percent of net sales.

Fourth-quarter net sales are projected to reach between 1.11 billion and 1.15 billion dollars, bolstered by delayed AW26 wholesale order shipments falling into the final quarter. In early commentary for the first half of 2027, wholesale net sales are anticipated to expand in the mid-single-digit percentage range based on SS27 order intake.