Columbia Sportswear Company Q1 FY2026 earnings call

Tim noted first quarter net sales and profitability exceeded quarterly guidance driven by early spring 2026 wholesale shipments, better demand in Europe and U.S., and disciplined expense management. International business led growth. U.S. business had challenges but fall 26 order book shows momentum. Columbia brand highlights include Winter Olympics participation, big game tailgate party, Engineered for Whatever campaign winning awards, product awards. PFG performance fishing gear showing momentum. Fall 26 order book trends positive with mid-single digit percent wholesale growth globally expected in second half, growth in women's business and footwear, outsized growth in premium and innovative products.

Net sales were roughly flat year over year at $779 million. International business, representing over 40% of sales, was up 16% year over year. U.S. business declined 10% this quarter. Columbia net sales increased 1%. Sorrel net sales decreased 12%, Prana net sales decreased 5%, Mountain hardware net sales were flat. International geographies: LIAP net sales increased 3%, China net sales increased mid-single-digit percent, Japan net sales declined mid single digit percent, Korea net sales increased high single digit percent, LAAP distributor markets delivered low double-digit percent growth, EMA net sales increased low 20%, Canada net sales increased low single digits.

Maintaining full year net sales growth outlook in range of 1 to 3%. Expect gross margins of 50.3 to 50.5% or down 20 basis points to flat vs prior year. Raising operating margin guidance to 6.7 to 7.5% for the year, leading to diluted earnings per share in range of $3.55 to $4. Second quarter anticipated sales in range of down 1% to up 1% vs prior year, resulting in loss per share of 46 cents to 37 cents.

U.S. tariff situation with 10% universal tariff set to expire in July and potential new tariffs, Middle East conflict triggering order cancellations and forecast reductions, macroeconomic and supply chain risks from Middle East conflict including inflationary pressures, oil price increase impacting product input costs starting from spring 27 season.

Q: Bob Durbel asked about order book, Europe trends, and tariffs refunds plan.

A: Tim said order book was strong, Europe was good despite early winter, and plans to follow historical capital allocation for tariffs refunds.

Q: Peter McGoldrick asked about younger consumer engagement KPIs and price increases.

A: Tim mentioned activations focused on younger consumers and price increases were high single-digit percent in U.S.

Q: Jonathan Komp asked about Columbia brand momentum in U.S. and Amaze product at Dick's.

A: Tim said AMAZE product was well distributed and extended into spring 26 product.

Q: Tom Nickick asked about U.S. direct-to-consumer channel.

A: Tim said brick-and-mortar was affected by temporary stores and liquidation inventory, digital expected to be primary.

Q: Laurent Vasilescu asked about revenue shift and Middle East cancellations.

A: Jim said revenue beat was due to timing shift mostly in Europe and Middle East cancellations were low single-digit percent.

Q: Mauricio Cerna asked about U.S. DTC business and China DTC.

A: Tim said U.S. DTC was affected by inventory shortage and China DTC was healthy.

Q: Paul Lejeuze asked about U.S. sales hurt and fall order book.

A: Tim said shortage was about $30 million, fall order book was north of expected.

Q: Mitch Cummets asked about second quarter timing shift and channel inventory.

A: Tim said timing shift was relative to Q1 forecast and retailers were clean.