Columbia Sportswear Company (COLM) investor relations material

Executive summary

• Q1 2026 net sales were $779 million, flat year-over-year, with international growth offsetting a 10% decline in the U.S.; favorable FX impact of 280 bps.

• Gross margin contracted 20 basis points to 50.7%, mainly due to incremental U.S. tariffs, partially offset by price increases.

• Operating income declined 10% to $42 million, with net income down 19% to $34.3 million and diluted EPS at $0.65, down from $0.75.

• Inventory units declined 11% year-over-year, with dollar value flat at $624 million.

• Ended the quarter with $535.4 million in cash and short-term investments, no debt.

Financial highlights

• SG&A expenses rose nearly 1% to $357.1 million (45.8% of sales), mainly due to higher DTC costs and unfavorable FX.

• Operating margin for Q1 was 5.4%, down from 6.0% year-over-year.

• Free cash flow for Q1 was negative $89.9 million, with operating cash flow at negative $77.5 million.

• $150 million in share repurchases completed in Q1 2026.

• Quarterly dividend of $0.30 per share declared.

Outlook and guidance

• FY2026 net sales expected at $3.43–$3.50 billion, up 1%–3% year-over-year.

• Gross margin outlook improved to 50.3%–50.5%, reflecting a 20 bps contraction to flat year-over-year.

• Operating margin guidance raised to 6.7%–7.5%; diluted EPS forecasted at $3.55–$4.00.

• Q2 2026 net sales expected between $600M–$610M (down 1% to up 1% year-over-year); projected loss per share of $0.46 to $0.37.

• FY2026 capex planned at $65–$75 million, focused on DTC and digital.