Net sales increased 2 per cent year on year (YoY) to $962.6 million in Q3 ended September 30, 2026, and were also up 2 per cent on a constant-currency basis.
Columbia Sportswear has raised the low end of its FY26 sales and diluted earnings per share outlook after a stronger-than-expected third quarter, supported by earlier wholesale shipments, improving US DTC trends and international momentum.
Q3 net sales rose 2 per cent to $962.6 million and net income increased to $84.7 million from $52 million.
Operating margin reached 11.4 per cent.
The gross profit rose to $479 million from $471.8 million, while net income increased to $84.7 million, or $1.66 per diluted share, from $52 million, or $0.95 per diluted share. Operating income climbed to $109.6 million from $67.4 million, lifting operating margin to 11.4 per cent from 7.1 per cent; the prior-year result included $29 million in impairment charges for prAna and Mountain Hardwear.
“We’re pleased to have delivered net sales and EPS growth exceeding our guidance for the third quarter. These results primarily reflected a portion of delayed Fall ’26 wholesale orders shipping earlier-than-expected, improved trends in our US DTC business, and the continued momentum of our international business, despite challenging global macroeconomic conditions,” said Tim Boyle, chairman and chief executive officer, Columbia Sportswear Company.
International markets and DTC support sales
International growth partly offset a 1 per cent decline in US net sales to $540.9 million, which reflected the timing of fall wholesale shipments. Sales in Latin America and Asia Pacific rose 11 per cent to $159.5 million, while Europe, Middle East and Africa revenue increased 7 per cent to $175.3 million. Canadian sales fell 2 per cent to $87 million.
By brand, Columbia sales increased 3 per cent to $826.2 million and SOREL revenue rose 2 per cent to $82.8 million. prAna sales slipped 1 per cent to $30.2 million, while Mountain Hardwear revenue declined 17 per cent to $23.3 million. Apparel, accessories and equipment sales rose 1 per cent to $743.9 million, while footwear revenue grew 5 per cent to $218.7 million.
Wholesale sales were broadly flat at $636.7 million. DTC revenue increased 5 per cent to $325.9 million, or 6 per cent on a constant-currency basis, led by momentum in Columbia brand US e-commerce, Columbia Sportswear said in its earnings release.
Margins improve as expenses decline
Gross margin contracted 20 basis points to 49.8 per cent, as factory-partner accommodations more than offset the benefit from International Emergency Economic Powers Act (IEEPA) tariff refunds previously received. Selling, general and administrative expenses declined to $375.6 million from $380.9 million and represented 39 per cent of sales, compared with 40.4 per cent a year earlier.
The company ended the quarter with $229.6 million in cash, cash equivalents and short-term investments, down from $236 million a year earlier, and no borrowings. Inventories rose 11 per cent to $889.2 million, reflecting higher in-transit stock from delayed fall receipts and earlier production of spring 2027 inventory.
Columbia lifts lower end of FY26 outlook
Columbia now expects FY26 net sales of $3.46-$3.50 billion, representing growth of 2-3 per cent, compared with its previous outlook of $3.43-$3.50 billion and growth of 1-3 per cent. It raised the lower end of diluted earnings per share guidance to $4.65-$4.90 from $4.45-$4.90.
The company maintained its gross-margin forecast of 52.1-52.3 per cent, implying expansion of 160-180 basis points, and expects an operating margin of 8.7-9.1 per cent. Operating cash flow is projected at $230-$250 million, below the prior $290-$310 million outlook due to earlier spring 2027 inventory production, while capital expenditure is planned at $60-$70 million.
For the fourth quarter (Q4), Columbia expects sales of $1.108-$1.145 billion, up 3.5-7 per cent year on year, and diluted earnings per share of $1.85-$2.10.
Preliminary commentary indicated that wholesale net sales should grow at a mid-single-digit rate in the first half of 2027, supported by a larger spring order book and anticipated reorders and replenishment demand.
Fibre2Fashion News Desk (SG)
