Columbia Sportswear Raises Low End Of 2026 Sales And Earnings Outlook, Cuts Cash-Flow Target
Third-quarter earnings reached $1.66 a share, but operating cash flow guidance fell to $230 million to $250 million.
Columbia Sportswear, which sells outdoor, active and lifestyle apparel, footwear and gear, lifted the bottom of its full-year forecast after third-quarter net sales rose 2% to $962.6 million, and it cut its operating cash flow outlook in the same release on Thursday. Diluted earnings per share were $1.66, against $0.95 a year earlier.
Sales beat, profit lapped an impairment
Chairman and CEO Tim Boyle said sales and earnings topped the company's guidance, mainly because a portion of delayed Fall 2026 wholesale orders shipped earlier than expected, along with better U.S. direct-to-consumer trends and international momentum.
Operating income was $109.6 million, or 11.4% of sales, versus $67.4 million, or 7.1%, a year earlier. The prior-year quarter carried $29.0 million of prAna and Mountain Hardwear impairment charges, which cut that quarter's earnings per share by $0.46. Operating margin expansion primarily reflected the absence of those charges and lower SG&A as a share of sales.
Gross margin slipped to 49.8% from 50.0%, as accommodations to factory partners outweighed a benefit from tariff refunds the company had previously received. U.S. sales fell 1% to $540.9 million, while Latin America and Asia Pacific rose 11% and Europe, Middle East and Africa rose 7%.
A narrower range and weaker cash flow
Net sales are now forecast at $3.46 billion to $3.50 billion, from $3.43 billion to $3.50 billion, and earnings per share at $4.65 to $4.90, from $4.45 to $4.90. Operating income guidance is $300 million to $320 million, from $290 million to $325 million.
Operating cash flow is now expected at $230 million to $250 million, down from $290 million to $310 million. The company said earlier production of Spring 2027 inventory, which will raise year-end stock, drives the change.
Inventories rose 11% to $889.2 million, mainly from delayed Fall 2026 goods in transit and the earlier Spring 2027 production. Cash and short-term investments totaled $229.6 million with no borrowings. For the first nine months, the company repurchased 3,342,569 shares for $200.0 million, and $226.5 million remains under its buyback authorization.
Fourth quarter carries the year
Fourth-quarter sales are guided to $1,108 million to $1,145 million, up 3.5% to 7.0%, partly because more Fall 2026 shipments land in that quarter. Earnings are guided to $1.85 to $2.10 a share, against $1.73 a year earlier. Boyle said fourth-quarter execution "will be critical to our full year performance."
He also called the operating environment "challenging and uncertain," while saying the company's ACCELERATE Growth Strategy, aimed at drawing younger, more active consumers to the Columbia brand, is gaining traction. For the first half of 2027, the company expects wholesale sales growth in the mid-single-digit percent range.
The board declared a quarterly dividend of $0.30 per share, payable December 3 to holders of record on November 19. The company holds its conference call at 5:00 p.m. ET Thursday.
The fourth quarter now has to deliver the guided sales range, with $1,108 million at the low end.
Sources
- 8-K Filing — COLUMBIA SPORTSWEAR CO (COLM) — SEC EDGAR
- Exhibit colmfy26q3exhibit991.htm — COLUMBIA SPORTSWEAR CO 8-K exhibit — SEC EDGAR
- Exhibit cfocommentaryq32026_vf.htm — COLUMBIA SPORTSWEAR CO 8-K exhibit — SEC EDGAR
- Columbia Sportswear Company (COLM) Stock Forecasts — Yahoo Finance
- Columbia Sportswear Company Reports Third Quarter 2026 Financial Results; Updates Full Year 2026 Financial Outlook — businesswire.com
