COLUMBIA SPORTSWEAR CO

Previous wording

As a global leader in designing, developing, marketing, and distributing outdoor, active and lifestyle products, our mission is to connect active people with their passions. We provide our products through our four brands: Columbia, SOREL, Mountain Hardwear, and prAna; and two major product categories consisting of apparel, accessories and equipment products, and footwear products. Apparel, accessories and equipment products are provided by our Columbia, Mountain Hardwear and prAna brands. Footwear products are provided by our Columbia and SOREL brands. We sell our products in 115 countries and operate in four geographic segments: U.S., LAAP, EMEA, and Canada.

Current wording

As a global leader in designing, developing, marketing, and distributing outdoor, active and lifestyle products, our mission is to connect active people with their passions. We provide our products through our four brands: Columbia, SOREL, Mountain Hardwear, and prAna; and two major product categories consisting of apparel, accessories and equipment products, and footwear products. Apparel, accessories and equipment products are provided by our Columbia, Mountain Hardwear and prAna brands. Footwear products are provided by our Columbia and SOREL brands. We sell our products in 122 countries and operate in four geographic segments: U.S., LAAP, EMEA, and Canada.

Previous wording

In addition, we are committed to investing in our company-wide strategic priorities to:

Current wording

We are committed to investing in our company wide strategic priorities to:

Previous wording

In 2024, we announced the Columbia brand (the "Brand") ACCELERATE Growth Strategy. At its core, the ACCELERATE Growth Strategy is intended to elevate the Brand to target a younger and more active consumer while maintaining those consumers that have known and trusted Columbia to offer high quality products at an exceptional value. It is a multi-year effort centered around several consumer-centric shifts to the Brand, product and marketplace strategies, as well as enhanced ways of working. We believe successful operationalization of the ACCELERATE Growth Strategy can elevate the Brand and drive profitable growth.

Current wording

ACCELERATE is a growth strategy intended to elevate the Columbia brand (the "Brand") by targeting a younger and more active consumer while maintaining those consumers that have known and trusted Columbia to offer high quality products at an exceptional value. It is a multi-year effort centered around several consumer-centric shifts to the Brand, product and marketplace strategies, as well as enhanced ways of working.

Previous wording

The Columbia brand in the U.S. |The Columbia brand in the U.S. has been under pressure due to numerous factors, including brand perception, changes in consumer trends, and an increasingly competitive environment. While product functionality, quality and value remain important elements for consideration for some consumers, other consumers have increasingly shifted their preferences to also incorporate versatility and style for everyday wear. Athletic, athleisure, emerging outdoor, and other brands have capitalized on this casualization and style trend in the historical outdoor space. The Columbia brand's ACCELERATE Growth Strategy is intended to overcome certain of these headwinds and elevate the consumers' perception of the Brand to bring younger and more active consumers into the Brand, all while continuing to serve historical value-oriented consumers and to fuel future revenue growth.

Current wording

The Columbia brand in the U.S. |The Columbia brand in the U.S. has been under pressure due to numerous factors, including brand perception, changes in consumer trends, and an increasingly competitive environment. While product functionality, quality and value remain important elements for consideration for some consumers, other consumers have increasingly shifted their preferences to also incorporate versatility and style for everyday wear. Athletic, athleisure, emerging outdoor, and other brands have capitalized on this casualization and style trend in the historical outdoor space. The Columbia brand's ACCELERATE Growth Strategy is intended to overcome certain of these headwinds and elevate the consumers' perception of the Brand to bring younger and more active consumers into the Brand, all while continuing to serve historical value-oriented consumers and to fuel sustainable long-term growth.

Previous wording

To elevate consumers’ perception of the Columbia brand, beginning in 2024, the Brand began to refresh portions of its product line to appeal to target consumers and, in Fall 2025, launched a new Brand marketing campaign, Engineered for Whatever, coupled with increased investment in demand creation, which we expect to maintain in seasons to come. These improvements, among others, are expected to elevate consumers' perception of the Columbia brand over time with the focus on younger and more active consumers becoming more pervasive and sustained within the Brand. We have already begun to see proof points of the ACCELERATE Growth Strategy, including in products such as the Amaze Puff, which is bringing new younger consumers into the Brand.

Current wording

To elevate consumers’ perception of the Columbia brand, in 2025, the Brand launched a new Brand marketing campaign, Engineered for Whatever, coupled with increased investment in demand creation, which we expect to maintain in seasons to come. Additionally, the Brand released new products designed with a younger, more active consumer in mind, and re-launched the U.S. Columbia.com website. These improvements, among others, are expected to elevate consumers' perception of the Columbia brand over time with the focus on younger and more active consumers becoming more pervasive and sustained within the Brand. The foundational shifts of the ACCELERATE Growth Strategy are starting to show tangible signs of traction with our target consumers. That said, we know it will take more time and work to bring the newness, innovation and elevated style to our product portfolio, marketing and distribution at the level we need in order to continue shifting consumers' perception of the Columbia brand in the U.S.

Previous wording

In addition to the potential recovery of IEEPA tariffs previously paid, we are also facing uncertainly surrounding any future incremental tariffs. In response to the decision on IEEPA tariffs, the U.S. President issued an executive order imposing incremental 10% tariffs pursuant to Section 122 of the Trade Act of 1974 for 150 days, effective on February 24, 2026 (“Section 122 Tariffs”). Our financial outlook assumes Section 122 Tariffs continue through July 2026 before returning to rates approximate to levels that were in place prior to the U.S. Supreme Court’s tariff ruling on IEEPA. However, further trade policy actions are very uncertain and volatile. We continue to closely monitor and evaluate the changing tariff and trade restrictions and the potential impacts of these decisions on our business plans for 2026 and any potential impacts on consumer demand.

Current wording

We continue to closely monitor and evaluate the changing tariff rates and trade restrictions and the potential impacts of these decisions on our business plans for 2026 and 2027 and any potential impacts on consumer demand.

Previous wording

Geopolitical Uncertainty | We sell our products in 115 countries, and our ability to sell, import into and produce in certain markets is impacted by ongoing geopolitical tensions. The current domestic and international political environment, including volatile trade relations and heightened military action and diplomacy in the Middle East, have contributed to uncertainty surrounding the future state of the global economy.

Current wording

Geopolitical Uncertainty | We sell our products in 122 countries, and our ability to sell, import into and produce in certain markets is impacted by ongoing geopolitical tensions. The current domestic and international political environment, including volatile trade relations and heightened military action and diplomacy in the Middle East, have contributed to uncertainty surrounding the future state of the global economy.

Previous wording

Macroeconomic Pressures |The current global macroeconomic environment is creating a complex and challenging retail environment and has had, and may continue to have, a negative impact on consumer and customer behavior and demand for our products. These pressures may result in moderation of or a slowdown in our international businesses. In the U.S., targeted price increases for the U.S. Spring 2026 and

Current wording

Macroeconomic Headwinds and Supply Chain Disruptions |The current global macroeconomic and geopolitical environment is creating a complex and challenging retail environment, which has, and may continue to have a negative impact on consumer and customer behavior and demand for our products.

Previous wording

Our global net sales were relatively flat, reflecting strength of the Columbia brand across most of our international markets and channels within those markets, offset by underlying weakness in the U.S., primarily in the Columbia and SOREL brands across channels. Net sales included a favorable 280 basis point impact from foreign currency translation.

Current wording

Our global net sales increased, reflecting growth of the Columbia brand across most of our international markets, led by our international distributor and Europe-direct businesses, partially offset by continued softness in the U.S., primarily in the Columbia and SOREL brands across channels within those brands. Net sales included a favorable 160 basis point impact from foreign currency translation.

Previous wording

Interest income, net, decreased, primarily reflecting lower yields on decreased levels of cash, cash equivalents and short-term investments.

Current wording

Interest income, net, decreased, primarily reflecting lower yields on decreased levels of cash, cash equivalents and short-term investments in the U.S., partially offset by interest received from the recovery of IEEPA tariffs previously paid.

Previous wording

U.S. segment operating income decreased $16.9 million to $49.0 million, or 11.6% of net sales, for the first quarter of 2026 from $66.0 million, or 13.9% of net sales, for the comparable period in 2025. The decrease in U.S. segment operating income was driven primarily by decreased net sales and gross profit, partially offset by decreased segment SG&A expenses.

Current wording

U.S. segment operating income increased $50.7 million to $68.0 million, or 21.3% of net sales, for the second quarter of 2026 from $17.3 million, or 5.2% of net sales, for the comparable period in 2025. The increase in U.S. segment operating income was driven primarily by the recovery of IEEPA tariffs previously paid, partially offset by decreased net sales.

Previous wording

EMEA segment gross margin expanded to 51.5% for the first quarter of 2026 from 50.8% for the comparable period in 2025, driven primarily by a favorable increase in channel profitability reflecting lower outbound shipping expenses and favorable sales mix, as well as a favorable increase in channel and regional net sales mix reflecting a higher portion of Europe-direct DTC sales, partially offset by higher Europe-direct DTC promotional activity. EMEA segment SG&A expenses decreased as a percentage of net sales to 28.9% for the first quarter of 2026, compared to 29.9% for the same period in 2025, primarily driven by fixed SG&A leverage on increased net sales. In total, EMEA segment SG&A expenses increased 30.9% for the first quarter of 2026, as compared to the same period in 2025, driven primarily by unfavorable impacts from foreign currency translation and higher DTC brick-and-mortar expenses, including personnel expenses and variable expenses from higher DTC sales.

Current wording

LAAP segment gross margin expanded to 52.7% for the second quarter of 2026 from 52.0% for the comparable period in 2025, driven primarily by a decrease in inventory reserve provisions, partially offset by unfavorable region and channel mix. LAAP segment SG&A expenses decreased as a percentage of net sales to 36.7% for the second quarter of 2026, compared to 39.8% for the same period in 2025, driven primarily by fixed SG&A leverage on increased net sales. In total, LAAP segment SG&A expenses increased 3% for the second quarter of 2026, as compared to the same period in 2025.

Previous wording

U.S. net sales decreased $48.7 million, or 10%, for the first quarter of 2026, compared to the same period in 2025, driven by decreased net sales in our U.S. wholesale and DTC businesses. We attribute the decline in our U.S. business to a combination of ongoing challenges as we seek to elevate the Columbia brand in the U.S. marketplace and external factors, including geopolitical uncertainty and a difficult macroeconomic environment weighing on consumer sentiment. In addition, results were impacted by inventory supply constraints resulting from our decision to curtail Fall 2025 inventory purchases as a precautionary measure following prior-year U.S. tariff announcements. The decline in our U.S. DTC business was broad-based across the U.S. DTC e-commerce and brick-and-mortar businesses. The decline in our U.S. DTC brick-and-mortar business was further impacted by lower clearance sales, primarily reflecting cleaner inventories and the closure of temporary clearance locations, as well as decreased productivity from existing stores. As of March 31, 2026, our U.S. DTC brick-and-mortar business operated 170 retail stores, compared to 169 retail stores for the comparable period in 2025.

Current wording

U.S. net sales decreased $63.8 million, or 8%, for the six months ended June 30, 2026, compared to the same period in 2025, driven by declines in our U.S. wholesale and DTC businesses. We attribute the decline in our U.S. business to a combination of ongoing challenges as we seek to elevate the Columbia brand in the U.S. marketplace and external factors, including geopolitical uncertainty and a difficult macroeconomic environment weighing on consumer sentiment. In addition, results were impacted by inventory supply constraints during the first quarter 2026 resulting from our decision to curtail Fall 2025 inventory purchases as a precautionary measure following prior-year U.S. tariff announcements. Decreased U.S. wholesale net sales primarily reflected lower Spring 2026 wholesale orders in response to weak sell-through performance during the Spring 2025 season. The decline in our U.S. DTC business included decreases within our U.S. DTC e-commerce and brick-and-mortar businesses. The decline in our U.S. DTC brick-and-mortar business was impacted by store closures and decreased productivity from existing stores, including the impact of decreased traffic. As of June 30, 2026, our U.S. business operated 169 retail stores, compared to 171 retail stores for the comparable period in 2025. The underlying business trends within our U.S. business remain under pressure.

Previous wording

LAAP net sales increased $8.0 million, or 5% (3% constant-currency), for the first quarter of 2026, compared to the same period in 2025, driven primarily by growth in our China, LAAP distributor and Korea businesses, partially offset by a decline in our Japan business. The growth in China net sales was driven primarily by our China wholesale business, partially aided by earlier wholesale shipment timing. We believe the China net sales growth was further aided by the execution of our unique marketplace strategies, as well as favorable market conditions driving outdoor category growth in China. The growth in LAAP distributor net sales was driven by strong growth in our distributor orders as compared to the same period in the prior year. The growth in Korea net sales was broad-based across all channels, which we believe was attributable to the execution of our marketplace strategies, including unique marketing activations, and improving outdoor category trends, compared to the same period in 2025. The decline in Japan net sales primarily reflected the impact of decreased inbound international tourism and later wholesale shipment timing, compared to the same period in 2025.

Current wording

LAAP net sales increased $21.6 million, or 8% (8% constant-currency), for the six months ended June 30, 2026, compared to the same period in 2025, driven primarily by growth in our China, LAAP distributor and Korea businesses, partially offset by a decline in our Japan business. The growth in China net sales was driven by our China wholesale and DTC e-commerce businesses, as well as favorable effects from foreign currency fluctuations, which more than offset constant-currency softness in our DTC B&M business amid a weakening macroeconomic environment and increased marketplace competition. We believe the growth in our China wholesale and DTC e-commerce businesses was aided by the execution of our marketplace strategies. The growth in LAAP distributor net sales was driven by strong growth of Spring and Fall 2026 distributor orders and, to a lesser extent, a shift in timing of shipments into the first six months of 2026, as compared to the same period in 2025. The growth in Korea was led by the wholesale business, which we believe was attributable to the execution of our marketplace strategies and resilient outdoor category trends, despite a weakening macroeconomic environment, as compared to the same period in 2025. The decline in Japan net sales reflected unfavorable effects from foreign currency fluctuations, which more than offset constant-currency net sales growth within our wholesale and DTC e-commerce businesses, partially offset by declines in our DTC B&M business, compared to the same period in 2025.

Previous wording

LAAP segment gross margin expanded to 56.9% for the first quarter of 2026 from 56.5% for the comparable period in 2025. LAAP segment SG&A expenses increased as a percentage of net sales to 35.4% for the first quarter of 2026, compared to 34.9% for the same period in 2025, primarily driven by unfavorable impacts from foreign currency translation. In total, LAAP segment SG&A expenses increased 6.9% for the first quarter of 2026, as compared to the same period in 2025.

Current wording

LAAP segment gross margin expanded to 55.1% for the six months ended June 30, 2026 from 54.5% for the comparable period in 2025, driven primarily by a decrease in inventory reserve provisions, partially offset by unfavorable region and channel mix. LAAP segment SG&A expenses decreased as a percentage of net sales to 36.0% for the six months ended June 30, 2026, compared to 37.0% for the same period in 2025, primarily driven by fixed SG&A leverage on increased net sales. In total, LAAP segment SG&A expenses increased 5% for the six months ended June 30, 2026, as compared to the same period in 2025.

Previous wording

LAAP segment operating income increased $0.6 million to $26.9 million, or 16.8% of net sales, for the first quarter of 2026 from $26.3 million, or 17.3% of net sales, for the comparable period in 2025.

Current wording

EMEA segment operating income increased $8.0 million to $48.6 million, or 16.8% of net sales, for the six months ended June 30, 2026 from $40.6 million, or 17.1% of net sales, for the comparable period in 2025.

Previous wording

EMEA net sales increased $37.9 million, or 35% (21% constant-currency), for the first quarter of 2026, compared to the same period in 2025, driven by growth in our Europe-direct and EMEA distributor businesses. The growth in Europe-direct net sales was fueled by strong Europe-direct DTC performance, partially reflecting promotional activity, and healthy Europe-direct wholesale sales, partially reflecting earlier wholesale shipment timing. Europe-direct's DTC brick-and-mortar business drove particularly strong growth for the first quarter of 2026, reflecting increased productivity from existing stores, as well as contributions from new stores. Results across all channels reflected robust demand for winter season products and ample inventory availability. We believe Europe-direct net sales growth across channels was also attributable to the execution of our marketplace strategies, including marketing activations. The growth in EMEA distributor net sales was driven primarily by earlier wholesale shipment timing and healthy growth in our distributor orders, as compared to the same period in 2025.

Current wording

EMEA net sales increased $50.4 million, or 21% (14% constant-currency), for the six months ended June 30, 2026, compared to the same period in 2025, with growth across our Europe-direct and EMEA distributor businesses. The growth in Europe-direct net sales was fueled by strong wholesale and DTC B&M performance, which we believe was attributable to the execution of our marketplace strategies. The growth in Europe-direct's DTC B&M business was driven by increased productivity from existing stores, partially reflecting strategic promotional activity amid second quarter traffic headwinds, as well as contributions from new stores, as compared to the same period in 2025. The growth in EMEA distributor net sales was driven by healthy growth of Spring and Fall 2026 distributor orders, which more than offset a shift in timing of shipments out of the second quarter of 2026, as compared to the same period in 2025.

Previous wording

Unallocated corporate expenses decreased by $3.4 million to $70.3 million for the first quarter of 2026 from $73.7 million for the comparable period in 2025.

Current wording

Unallocated corporate expenses decreased by $3.2 million to $138.1 million for the six months ended June 30, 2026 from $141.3 million for the comparable period in 2025.

Previous wording

The change in cash flows provided by investing activities was primarily driven by lower purchases of short-term investments for the three months ended March 31, 2026, as compared to the same period in 2025.

Current wording

The change in cash flows provided by investing activities for the six months ended June 30, 2026 was primarily driven by lower purchases of short-term investments, as compared to the same period in 2025.

Previous wording

The change in cash flows used in financing activities was primarily driven by higher share repurchases of common stock for the three months ended March 31, 2026, as compared to the same period in 2025.

Current wording

The change in cash flows used in financing activities for the six months ended June 30, 2026 was primarily driven by higher share repurchases of common stock, as compared to the same period in 2025.

Previous wording

As of March 31, 2026, we had cash and cash equivalents of $319.3 million and short-term investments of $216.0 million, compared to $442.0 million and $348.8 million, respectively, as of December 31, 2025.

Current wording

As of June 30, 2026, we had cash and cash equivalents of $532.3 million and short-term investments of $92.3 million, compared to $442.0 million and $348.8 million, respectively, as of December 31, 2025.

Previous wording

As of March 31, 2026, collectively, our international subsidiaries had unsecured, uncommitted lines of credit, credit facilities and overdraft facilities, providing for borrowings up to approximately US$78.3 million. There were no balances outstanding under these facilities.

Current wording

As of June 30, 2026, collectively, our international subsidiaries had unsecured, uncommitted lines of credit, credit facilities and overdraft facilities, providing for borrowings up to approximately US$78.1 million. There were no balances outstanding under these facilities.

Previous wording

the purchase of inventory from our suppliers to the collection of accounts receivable balances from our customers. Inventory balances may be elevated in advance of periods of expected high demand. As of March 31, 2026, our inventory balance decreased to $624.0 million, from $689.5 million as of December 31, 2025, primarily resulting from our decision to curtail Fall 2025 inventory purchases as a precautionary measure following prior-year U.S. tariff announcements and to better align inventory supply with anticipated seasonal demand. The decrease was partially offset by approximately $25 million of incremental tariff costs. We believe older season inventories represent a manageable portion of our total inventory mix.

Current wording

Our working capital management goals include maintaining an optimal level of inventory necessary to deliver goods on time to our customers and to satisfy end consumer demand, alleviating manufacturing capacity constraints, and driving efficiencies to minimize the cycle time from the purchase of inventory from our suppliers to the collection of accounts receivable balances from our customers. Inventory balances may be elevated in advance of periods of expected high demand. As of June 30, 2026, our inventory balance increased to $874.8 million, compared to $689.5 million as of December 31, 2025, primarily reflecting the alignment of inventory supply with anticipated seasonal demand. Our inventory balance as of December 31, 2025 also reflected prior-year decisions to proactively mitigate the impact of incremental tariffs, including accelerating the production, receipt and shipment of Fall 2025 inventory and curtailing Fall 2025 inventory purchases. We believe older season inventories represent a manageable portion of our total inventory mix.

Previous wording

Our inventory purchase obligations were $618.3 million as of March 31, 2026, compared to $523.8 million as of December 31, 2025.

Current wording

Our inventory purchase obligations were $534.6 million as of June 30, 2026, compared to $523.8 million as of December 31, 2025.