Columbia Sportswear Company delivered a stronger second quarter in 2026, returning to profitability and expanding margins on modest sales growth helped by a large U.S. tariff refund. The company also raised its full year profitability outlook while keeping its sales guidance unchanged, balancing macroeconomic and geopolitical headwinds with early traction from its ACCELERATE Growth Strategy.
In the second quarter ended June 30, 2026, net sales increased 2 percent (1 percent in constant currency) to 614.4 million, driven by growth in most international markets and partially offset by continued softness in the United States tied to lower Spring 2026 wholesale orders and weaker direct to consumer brick and mortar trends. During the quarter, the company received a refund of approximately 78 million in previously paid IEEPA tariffs, including interest. Of this, 62 million was recognized in earnings, with 60 million flowing through cost of sales and 2 million booked as interest…
income, while 15 million was recorded as a reduction to inventory that will benefit cost of sales as those goods are sold in future periods. The tariff refund was a major driver of profitability.
Gross margin expanded 920 basis points to 58.3 percent of net sales from 49.1 percent a year earlier, with roughly 980 basis points of that benefit tied to the recovery of IEEPA tariffs and partially offset by lower channel profitability due to increased promotions in direct to consumer stores.
Operating income swung to 30.9 million, or 5.0 percent of net sales, compared with an operating loss of 23.6 million, or 3.9 percent, in the prior year period.
Diluted earnings per share rose to 0.52, versus a net loss per diluted share of 0.19 in second quarter 2025, with management noting that the tariff recovery alone added 0.93 to diluted EPS…
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