Columbia Sportswear reports second quarter net sales growth supported by tariff refunds

US outdoor apparel and footwear manufacturer Columbia Sportswear Company (Columbia Sportswear) announced its financial results for the second quarter ended June 30, 2026.

Net sales for the Portland, Oregon-based group increased 2 percent to 614.4 million dollars compared to 605.2 million dollars in the prior-year period. On a constant-currency basis, net sales rose 1 percent. Growth across international markets helped offset lower net sales in the US, where performance was impacted by reduced spring 2026 wholesale orders and lower direct-to-consumer (D2C) brick and mortar demand.

The company achieved net income of 26.6 million dollars, or 0.52 dollars per diluted share, rebounding from a net loss of 10.2 million dollars, or 0.19 dollars per diluted share, in the second quarter of 2025. Diluted earnings per share included a 0.93 dollars benefit stemming from the recovery of International Emergency Economic Powers Act (IEEPA) tariffs.

Columbia Sportswear chairman and chief executive officer Tim Boyle stated: “We’re pleased to have delivered net sales exceeding our guidance for the second quarter, driven by the resilience of our international business, which was partly offset by continued softness in the U.S., amid growing global macroeconomic headwinds.”

Margin expansion and operational expenditure

Gross margin for the quarter expanded 920 basis points to 58.3 percent of net sales, compared to 49.1 percent in the corresponding period of 2025. The expansion was primarily driven by an approximate 980 basis point benefit from IEEPA tariff refunds, which was partially offset by promotional activity within D2C brick and mortar channels.

Operating income reached 30.9 million dollars, or 5 percent of net sales, compared to an operating loss of 23.6 million dollars, or 3.9 percent of net sales, in the second quarter of 2025.

First half performance and capital allocation

For the first half ended June 30, 2026, net sales increased 1 percent to 1.39 billion dollars compared to 1.38 billion dollars in the first half of 2025. Gross margin expanded 400 basis points to 54.1 percent, benefitting from a 430 basis point contribution from tariff recoveries.

Net income for the six-month period stood at 60.9 million dollars, or 1.17 dollars per diluted share, compared to 32.1 million dollars, or 0.58 dollars per diluted share, in the year-ago period.

During the first quarter of 2026, the business repurchased 2,498,685 shares of common stock for an aggregate total of 150 million dollars, at an average price of 60.03 dollars per share. No shares were repurchased during the second quarter, leaving 276.5 million dollars available under its current stock repurchase authorization. The board approved a regular quarterly cash dividend of 0.30 dollars per share, payable on September 3, 2026.

Full year 2026 outlook and strategic strategy

Despite moderating its outlook for the second half of the year due to geopolitical and macroeconomic friction, Columbia Sportswear updated its full year 2026 financial guidance:

Net sales: Expected to increase 1 percent to 3 percent to between 3.43 billion dollars and 3.50 billion dollars, compared to 3.40 billion dollars in 2025.

Gross margin: Projected to expand 160 to 180 basis points to between 52.1 percent and 52.3 percent of net sales, reflecting an approximate 180 basis point benefit from IEEPA tariff refunds.

Operating margin: Expected to range between 8.5 percent and 9.3 percent of net sales, up from 6.1 percent in 2025.

Diluted earnings per share: Projected between 4.45 dollars and 4.90 dollars, compared to 3.24 dollars in 2025.

For the third quarter of 2026, net sales are expected to range between 929 million dollars and 943 million dollars, representing a decrease of 1.5 percent to flat performance compared to the prior-year period. Diluted earnings per share for the third quarter are projected to reach 1.15 dollars to 1.35 dollars.

Boyle concluded that the business remains focused on its multi-year Accelerate strategy, which targets younger and more active consumers through differentiated product lines, elevated demand creation, and enhanced e-commerce platforms.