Columbia Sportswear Company Lifts 2026 Profit Outlook as Tariff Refunds Kicks In

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…