The company expects FY26 net sales of $3.43-3.5 billion, representing growth of 1 to 3 per cent. Gross margin guidance has been improved to 50.3-50.5 per cent, while operating income is projected at $230-262 million, with operating margin of 6.7 to 7.5 per cent. Diluted earnings per share (EPS) are forecast at $3.55-4, supported in part by temporary tariff relief.
Columbia Sportswear Company has raised its FY26 outlook, projecting $3.43-3.5 billion in sales and EPS of $3.55-4, aided by tariff relief.
Q1 sales were flat at $779 million, with profit declining due to US weakness and tariffs.
International growth remained strong.
The company expects wholesale recovery in H2.
Q2 sales are seen at $600-610 million, with a wider operating loss anticipated.
“We are updating our earnings guidance for 2026, based in part on a temporary improvement in US tariff rates,” said Tim Boyle, chairman and CEO.
He added that the company expects an inflection back to wholesale growth in the second half, supported by its Fall 2026 order book, noting that the ‘Engineered for Whatever’ campaign and product innovation are driving traction for its ACCELERATE Growth Strategy.
Q1 performance hit by US weakness, tariff pressures
Meanwhile, in the first quarter (Q1) ended March 31, 2026, net sales were largely flat at $779 million, down 3 per cent. International growth was offset by a US decline due to a weaker Spring 2026 wholesale order book and reduced inventory.
Operating income fell 10 per cent year-on-year (YoY) to $42 million, while operating margin declined to 5.4 per cent from 6 per cent. Net income dropped to $34.3 million, with EPS at $0.65 versus $0.75 last year. Gross margin contracted 20 basis points to 50.7 per cent due to tariff impact, the company said in a press release.
Boyle said the company still exceeded internal expectations, driven by early spring shipments and stronger demand in Europe and the US, with international markets leading growth. He added that the US slowdown was anticipated due to prior inventory and tariff-related decisions.
Columbia Sportswear ended Q1 with $535.4 million in cash and no debt.
Q2 outlook signals near-term pressure
For the second quarter (Q2), net sales are expected at $600-610 million, broadly flat YoY. The company anticipates an operating loss of 4.5 to 5.5 per cent of net sales, compared to 3.9 per cent last year, while diluted loss per share is projected at $0.37-0.46, based on an effective tax rate of around 20 per cent.
Fibre2Fashion News Desk (SG)
