Columbia Sportswear Company

Net sales increased 2% year over year to $614 million. Reported gross margin expanded 920 basis points to 58.3%, and EPS was $0.52. Excluding tariff refunds, gross margin would have contracted by 50 basis points versus last year, and loss per share would have been $0.41, roughly in line with the midpoint of Q2 guidance. Inventory dollars were down 6% year over year, units down 7%, and the company ended the quarter with $625 million in cash and short-term investments and no debt. For Q3 2026, Columbia expects sales to be down 1.5% to flat year over year and EPS of $1.15 to $1.35. For the full year, management kept sales guidance at 1% to 3% growth, raised reported gross margin guidance to 52.1% to 52.3%, raised operating margin guidance to 8.5% to 9.3%, and raised diluted EPS guidance to $4.45 to $4.90. Management also said its outlook assumes current 10% to 12.5% tariff rates remain in place through year-end.

Tim Boyle said the quarter showed progress under ACCELERATE, especially internationally and in footwear, but he emphasized that the U.S. consumer remains pressured and that it will take time to improve Columbia brand perception in the U.S. He framed ACCELERATE as a refined strategy built around five pillars, with more focused execution across hike, warmth, PFG, outdoor lifestyle, and footwear. His tone was upbeat about brand momentum, but measured about the work still needed to drive sustainable growth.

Jim Swanson walked through the tariff refund benefit in detail, saying about $60 million flowed through operating margin, $2 million through interest income, and $15 million remained on the balance sheet as a credit to inventory. He said inventories were healthy, cash and short-term investments were $625 million, and the company had no debt. On the outlook, he noted Q3 margin pressure from factory accommodations and promotions, while Q4 should see a tailwind from the remaining refund benefit; he also said spring 2027 order book pricing was broadly unchanged and input-cost pressure from higher oil looks modest for spring 2027 but more of a concern for fall 2027.

Analysts focused on the second-half shipment shift, the spring 2027 order book, China performance, promotions, and tariff-related pricing. Management said the shipment shift is more than $30 million, mostly North America-focused, and driven by logistics, Middle East disruption, and supply-chain capacity issues rather than cancellations. On China, management called it one of Columbia’s biggest opportunities and said they still expect double-digit growth for the year; on the spring 2027 book, they said roughly 90% of orders are in and it implies low-single-digit to mid-single-digit wholesale growth in the first half of next year.