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COLM Q3 Earnings Beat Estimates on International Growth, DTC Gains
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Key Takeaways
COLM's Q3 EPS of $1.66 beat estimates, while sales rose 2% to $962.6 million, surpassing expectations.
International growth lifted COLM's results, with EMEA sales up 7% and Latin America/Asia Pacific up 11%.
COLM raised its 2026 sales outlook to $3.46-$3.50 billion and lifted the lower end of EPS guidance to $4.65.
Columbia Sportswear Company (COLM - Free Report) reported third-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. Net sales increased year over year.
This designer, marketer and distributor of outdoor and active lifestyle apparel, footwear and accessories reported earnings of $1.66 per share, surpassing the consensus estimate of $1.25.
Columbia Sportswear Company Price, Consensus and EPS Surprise
Net sales increased 2% year over year to $962.6 million, exceeding the Zacks Consensus Estimate of $938 million. Growth across international markets, improved U.S. direct-to-consumer (“DTC”) trends and favorable wholesale shipment timing supported performance.
Gross margin contracted 20 basis points (bps) year over year to 49.8%. The decline primarily reflected accommodations to factory partners, partially offset by benefits from previously received International Emergency Economic Powers Act tariff refunds.
Selling, general and administrative expenses declined 1% to $375.6 million.
Operating income increased 62.7% to $109.6 million from $67.4 million. Operating margin expanded 430 bps to 11.4%.
COLM’s Sales by Channels & Regional Segments
In the United States, net sales declined 1% year over year to $540.9 million, which also missed our estimate of $553.6 million. Net sales surged 7% to $175.3 million in Europe, the Middle East and Africa, beating our estimate of $168 million. Latin America and Asia Pacific net sales grew 11% year over year to $159.5 million, beating our estimate of $147.4 million. In Canada, net sales decreased 2% to $87 million, which beat our estimate of $73.6 million.
During the quarter, Wholesale channel sales were flat year over year at $636.7 million, which beat our estimate of $604.1 million. DTC sales went up 5% to $325.9 million. Our model expected total DTC sales of $338.5 million for the quarter.
COLM’s Sales by Product Category & Brand
Net sales in the Apparel, Accessories and Equipment category inched up 1% year over year to $743.9 million, which beat our estimate of $738.8 million. Footwear's net sales increased 5% to $218.7 million, which beat our estimate of $203.8 million.
Sales for the Columbia and SOREL brands increased 3% and 2% year over year, respectively. prAna and Mountain Hardwear brands registered a sales decline of 1% and 17% year over year.
Other Financial Updates of COLM
This Zacks Rank #4 (Sell) company ended September 2026 with cash, cash equivalents and short-term investments of $229.6 million, compared with $236 million a year earlier. It had no outstanding borrowings.
Inventories increased 11% to $889.2 million, reflecting higher in-transit inventory and earlier Spring 2027 production.
For the first nine months, net cash used in operating activities totaled $280.5 million and capital expenditures were $40.8 million.
Columbia repurchased shares worth $200 million during the first nine months. Management also declared a quarterly dividend of 30 cents per share, payable Dec. 3, 2026, to its shareholders of record on Nov. 19.
What to Expect From COLM Ahead
For 2026, Columbia now expects net sales of $3.46-$3.50 billion, indicating 2-3% growth. The previous guidance was $3.43-$3.50 billion. Gross margin guidance remains unchanged at 52.1-52.3%.
Operating margin is projected at 8.7-9.1%, compared with the earlier expectation of 8.5-9.3%. Management now expects EPS of $4.65 to $4.90. The previous guidance was $4.45 to $4.90 per share.
For the fourth quarter of 2026, sales are expected to reach $1,108 million to $1,145 million, reflecting growth of 3.5-7%. Management anticipates a fourth-quarter operating margin of 10.8-12%. Earnings are projected at $1.85-$2.10 per share, compared with $1.73 a year earlier.
The company has gained 7.3% in the past three months against the industry’s 1.7% decline.
The Zacks Consensus Estimate for Vince Holding’s current fiscal-year sales and earnings indicates growth of 14% and 175%, respectively, from the year-ago figures. VNCE delivered a trailing four-quarter earnings surprise of 561.4%, on average.
Ralph Lauren Corporation (RL - Free Report) designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. It currently holds a Zacks Rank #2 (Buy). Ralph Lauren delivered a trailing four-quarter average earnings surprise of 8.7%.
The Zacks Consensus Estimate for RL’s current fiscal-year sales and earnings indicates growth of 7.6% and 13.6%, respectively, from the year-ago reported figures.
Crocs, Inc. (CROX - Free Report) designs, develops, manufactures, markets, distributes and sells casual lifestyle footwear and accessories for men, women and kids under the Crocs and HEYDUDE Brands in the United States and internationally. It currently carries a Zacks Rank #2. CROX delivered a trailing four-quarter earnings surprise of 13.6%, on average.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS indicates a rise of 1.7% and 11.7%, respectively, from the year-ago number.
View the Zacks #1 Rank List
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COLM Q3 Earnings Beat Estimates on International Growth, DTC Gains
Key Takeaways
Columbia Sportswear Company (COLM - Free Report) reported third-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. Net sales increased year over year.
COLM’s Quarterly Performance: Key Metrics & Insights
This designer, marketer and distributor of outdoor and active lifestyle apparel, footwear and accessories reported earnings of $1.66 per share, surpassing the consensus estimate of $1.25.
Columbia Sportswear Company Price, Consensus and EPS Surprise
Columbia Sportswear Company price-consensus-eps-surprise-chart | Columbia Sportswear Company Quote
Net sales increased 2% year over year to $962.6 million, exceeding the Zacks Consensus Estimate of $938 million. Growth across international markets, improved U.S. direct-to-consumer (“DTC”) trends and favorable wholesale shipment timing supported performance.
Gross margin contracted 20 basis points (bps) year over year to 49.8%. The decline primarily reflected accommodations to factory partners, partially offset by benefits from previously received International Emergency Economic Powers Act tariff refunds.
Selling, general and administrative expenses declined 1% to $375.6 million.
Operating income increased 62.7% to $109.6 million from $67.4 million. Operating margin expanded 430 bps to 11.4%.
COLM’s Sales by Channels & Regional Segments
In the United States, net sales declined 1% year over year to $540.9 million, which also missed our estimate of $553.6 million. Net sales surged 7% to $175.3 million in Europe, the Middle East and Africa, beating our estimate of $168 million. Latin America and Asia Pacific net sales grew 11% year over year to $159.5 million, beating our estimate of $147.4 million. In Canada, net sales decreased 2% to $87 million, which beat our estimate of $73.6 million.
During the quarter, Wholesale channel sales were flat year over year at $636.7 million, which beat our estimate of $604.1 million. DTC sales went up 5% to $325.9 million. Our model expected total DTC sales of $338.5 million for the quarter.
COLM’s Sales by Product Category & Brand
Net sales in the Apparel, Accessories and Equipment category inched up 1% year over year to $743.9 million, which beat our estimate of $738.8 million. Footwear's net sales increased 5% to $218.7 million, which beat our estimate of $203.8 million.
Sales for the Columbia and SOREL brands increased 3% and 2% year over year, respectively. prAna and Mountain Hardwear brands registered a sales decline of 1% and 17% year over year.
Other Financial Updates of COLM
This Zacks Rank #4 (Sell) company ended September 2026 with cash, cash equivalents and short-term investments of $229.6 million, compared with $236 million a year earlier. It had no outstanding borrowings.
Inventories increased 11% to $889.2 million, reflecting higher in-transit inventory and earlier Spring 2027 production.
For the first nine months, net cash used in operating activities totaled $280.5 million and capital expenditures were $40.8 million.
Columbia repurchased shares worth $200 million during the first nine months. Management also declared a quarterly dividend of 30 cents per share, payable Dec. 3, 2026, to its shareholders of record on Nov. 19.
What to Expect From COLM Ahead
For 2026, Columbia now expects net sales of $3.46-$3.50 billion, indicating 2-3% growth. The previous guidance was $3.43-$3.50 billion. Gross margin guidance remains unchanged at 52.1-52.3%.
Operating margin is projected at 8.7-9.1%, compared with the earlier expectation of 8.5-9.3%. Management now expects EPS of $4.65 to $4.90. The previous guidance was $4.45 to $4.90 per share.
For the fourth quarter of 2026, sales are expected to reach $1,108 million to $1,145 million, reflecting growth of 3.5-7%. Management anticipates a fourth-quarter operating margin of 10.8-12%. Earnings are projected at $1.85-$2.10 per share, compared with $1.73 a year earlier.
The company has gained 7.3% in the past three months against the industry’s 1.7% decline.
Image Source: Zacks Investment Research
Key Picks
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. At present, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Vince Holding’s current fiscal-year sales and earnings indicates growth of 14% and 175%, respectively, from the year-ago figures. VNCE delivered a trailing four-quarter earnings surprise of 561.4%, on average.
Ralph Lauren Corporation (RL - Free Report) designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. It currently holds a Zacks Rank #2 (Buy). Ralph Lauren delivered a trailing four-quarter average earnings surprise of 8.7%.
The Zacks Consensus Estimate for RL’s current fiscal-year sales and earnings indicates growth of 7.6% and 13.6%, respectively, from the year-ago reported figures.
Crocs, Inc. (CROX - Free Report) designs, develops, manufactures, markets, distributes and sells casual lifestyle footwear and accessories for men, women and kids under the Crocs and HEYDUDE Brands in the United States and internationally. It currently carries a Zacks Rank #2. CROX delivered a trailing four-quarter earnings surprise of 13.6%, on average.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS indicates a rise of 1.7% and 11.7%, respectively, from the year-ago number.