COLM

Over the past six months, Columbia Sportswear’s stock price fell to $57.00. Shareholders have lost 5.3% of their capital, which is disappointing considering the S&P 500 has climbed by 11.8%. This might have investors contemplating their next move. Is now the time to buy Columbia Sportswear, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. Even though the stock has become cheaper, we’re cautious about Columbia Sportswear. Here are three reasons we avoid COLM, plus one stock we’d rather own. A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Columbia Sportswear grew its sales at a weak 3.9% compounded annual growth rate. This was below our standard for the consumer discretionary sector. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Columbia Sportswear has shown poor cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 8.5%, below what we’d expect for a consumer discretionary business. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Over the last few years, Columbia Sportswear’s ROIC has unfortunately decreased. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. Columbia Sportswear falls short of our quality standards. After the recent drawdown, the stock trades at 14.8× forward P/E (or $57.00 per share). While this valuation is reasonable, we don’t see a big opportunity at the moment. There are superior stocks to buy right now. We’d recommend looking at one of our all-time favorite software stocks. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET Investor Relations - Matt Tucker Chairman and Chief Executive Officer - Tim Boyle Co-President - Joe Boyle Co-President - Peter Bragdon Executive Vice President and Chief Financial Officer - Jim Swanson Executive Vice President, Chief Administrative Officer and General Counsel - Richelle Luther Operator: Greetings. Welcome to the Columbia Sportswear second quarter 2026 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Matt Tucker. You may begin. Matt Tucker: Good afternoon. Thanks for joining us to discuss Columbia Sportswear Company's second quarter results. In addition to the earnings release, we furnished an 8-K containing a detailed CFO commentary and financial review presentation explaining our results. This document is also available on our investor relations website, investor.columbia.com. With me today on the call are Chairman and Chief Executive Officer, Tim Boyle, Co-Presidents Joe Boyle and Peter Bragdon, Executive Vice President and Chief Financial Officer, Jim Swanson, and Executive Vice President, Chief Administrative Officer and General Counsel, Richelle Luther. This conference call will contain forward-looking statements regarding Columbia's expectations, anticipations, or beliefs about the future. These statements are expressed in good faith and are believed to have a reasonable basis. Each forward-looking statement is subject to many risks and uncertainties, and actual results may differ materially from what is projected. Many of these risks and uncertainties are described in Columbia's SEC filings. We caution that forward-looking statements are inherently less reliable than historical information. We do not undertake any duty to update any of the forward-looking statements after the date of this conference call to conform the forward-looking statements to actual results or to changes in our expectations. I'd also like to point out that during the call, we may reference certain non-GAAP financial measures, including constant currency net sales. For further information about non-GAAP financial measures and results, including reconciliation of GAAP to non-GAAP measures and an explanation of management's rationale for referencing these non-GAAP measures, please refer to the supplemental financial information section and financial tables included in our earnings release and the appendix of our CFO commentary and financial review. Following our prepared remarks, we will host a Q&A period, during which we will limit each caller to two questions so we can get to everyone by the end of the hour. Now I'll turn the call over to Tim. Tim Boyle: Thanks, Matt, and good afternoon. In the second quarter, we're pleased to have again delivered net sales growth exceeding our quarterly guidance, driven by strong growth in international markets, partly offset by continued headwinds in the U.S. Our reported earnings and profit margins include the impact of U.S. tariff refunds recognized during the quarter. Without this one-time item, our underlying performance was largely in line with our expectations, with sales beating the high end of our guidance and gross margins slightly below plan on higher promotional activity, while operating margins and loss per share landed roughly at the midpoints of our guidance range. International business, which represents over 40% of our sales, continues to lead our growth, up 9% year-over-year. While our U.S. business remained challenged this quarter and declined 4%, we saw sequential improvement despite consumer discretionary spending coming in under mounting inflationary pressure. We saw this pressure translate into soft traffic in our U.S. DTC brick-and-mortar business during the quarter, resulting in higher discounts and lower sales than planned. Despite these headwinds, we were pleased to see positive and better-than-expected growth in our U.S. DTC e-commerce business, driven by our emerging brands. We're also encouraged by improving metrics in Columbia brand U.S. e-commerce, including new customer acquisition, which we view as indicators of progress on the ACCELERATE strategy. Additionally, we're seeing encouraging signs of the traction the Columbia brand is making with target consumers, including improvements in unaided awareness and purchase intent among professional elite and dynamic active consumers in North America. We're also realizing stronger growth rates with newer and more elevated products and collections aimed at these target consumer groups. That said, we know it will take more time and work to bring the newness, innovation, and elevated style to our product portfolio at the level we need in order to continue shifting consumers' perceptions of the brand in the U.S. and put us back on a path of sustainable long-term growth. As a reminder, ACCELERATE is a multi-year strategy that we launched into the marketplace nearly one year ago based on key shifts about consumer, brand, product, marketplace, and marketing. While the foundational shifts of ACCELERATE are starting to show tangible signs of paying off, we have continued to refine the strategy. The Columbia brand is now focused on five strategic pillars. One, own the trail with a focus on both hike and trail run. Two, dominate warmth. Our on-mountain warmth and innovation story, including but not limited to ski and snowboard. Three, power PFG, expanding our leadership in both fishing performance and lifestyle. Four, fuel outdoor lifestyle with product that has outdoor DNA but is designed for everyday wear with elevated style. Five, accelerate footwear, which is an opportunity embedded across each of the previous four pillars and a standalone growth priority in its own right. These five pillars are nested in the original shifts of the ACCELERATE strategy, providing a clickdown for more focused execution with our consumers. These pillars leverage our authenticity and heritage in the outdoors. The reputation for quality and durability that consumers have long known us for. They also incorporate many aspects of the playbooks that have already been driving the healthy and sustainable growth of our international businesses. We also know that today's consumers are expecting even more in terms of credibility, style, and relevance. Performance credibility in their favorite outdoor activities, style in their everyday wear with an outdoor function and aesthetic, and relevance within the outdoor culture and communities to which they belong. In support of these five brand pillars, we're also sharpening our approach to segmenting our product construct with performance and innovation-led product designed for end-use activities, specifically hike, trail run, ski and snowboard, and fish, and with style-led product designed for consumers looking to incorporate versatile outdoor function and elevated aesthetic into their everyday life. Executing across our five brand pillar means executing an offense that encompasses all seasons, climates, and geographies where Columbia is present and where people can enjoy the outdoors with footwear and apparel that both fulfill their performance needs and make them look and feel great. I'm excited to see these strategies continue to come to life in the marketplace over the coming seasons as we execute against these strategic pillars and the broader ACCELERATE work. I can feel the energy and excitement from our teams to focus on these strategic priorities that are both clear and aligned across the Columbia Brand organization, both here and around the world. I'm also excited to share that in addition to the positive consumer response to the Engineered for Whatever brand platform, our marketing team continues to gain recognition and accumulate awards for our Expedition Impossible campaign. Following the Gold Clio award we highlighted last quarter, in late June, Expedition Impossible racked up an incredible 10 awards at the Cannes Lions Awards Festival, which is widely considered to be one of the most competitive and prestigious award events in the marketing and communications industry globally, with competition against some of the world's largest and most famous brands. Columbia's awards spanned across social media, public relations, brand strategy, and direct marketing, making us the single most awarded company at this year's event. Of particular note, Expedition Impossible won the Grand Prix award in brand experience and activation, and we also won the Dan Wieden Titanium Lions, the culmination of the festival and its marquee award, which has been compared to winning the Best Picture at the Oscars. I want to congratulate our team once again for this well-deserved recognition and for the continued impact this work is creating for our brand. Since launching late last year, Expedition Impossible has garnered an incredible amount of media coverage and thousands of creative submissions from consumers or flat Earthers from around the globe. We're excited for the fun and adventure to continue through next week. On August the fourth, we will reveal who, if anyone, reached the edge of the Earth. Another major marketing highlight for Columbia Brand in Q2 was our campaign that pitted Columbia global brand ambassador Robert Irwin against 100 crocodiles. The crocs proved to be no match for Robert, thanks to the vastly superior traction, cushioning, and dryness provided by his footwear, the Columbia Tellurax Titanium Outdry trail shoe. The campaign was both authentic to the Columbia brand and resonated with Robert's large and loyal following, attracting more than 3.7 million views and over 300,000 likes across digital platforms. The Tellurax, one of our most technical and premium footwear offerings in the hike category, sold out during the quarter and is poised to scale in future seasons on strong consumer demand. We also saw strong sell-through of additional items featured on the Rob's Look page of columbia.com during the quarter and look forward to more fun and creative moments from our partnership with Robert in the future. The success of Tellurax was part of another key ingredient this quarter for the Columbia brand, which is the momentum we're seeing in footwear, including high single-digit % growth globally in Q2. This growth was driven by several styles, with particular strength in more technical footwear, featuring our proprietary Omni-Max technology, including the Tellurax and Peakfreak franchises in Hike, the Konos in Trail Running, and the Dry Tortuga in Fish. The growing strength of our footwear business was also reflected in the media recognition that our products received this quarter. Among several product awards received by Columbia, some of the most notable including the Tellurax being featured among the best lightweight hiking boots by Wired and among the best outdoor sneakers of 2026 by Women's Health. Additionally, within PFG, the Whipray and Cast Back TC shoes were included in best summer gear lists by Outdoor Life and Salt Water Sportsman, respectively. Columbia Footwear also recently took first place on a different type of podium. Earlier this month, Columbia-sponsored athlete Gabriel Rusu took first place overall at the prestigious Val d'Aran by UTMB ultra trail race in Spain, besting an elite field of competitors over 163 km and 10,000 m of elevation gain. In a sport where elite runners often change shoes multiple times during an event, Gabriel not only started the race in a pair of Columbia Konos Speed Trail ATR, our highest performance trail running shoe, but he completed the entire race and crossed the finish line in exactly the same pair. Originally hailing from a small village in Argentina, Gabriel's path to becoming an elite trail runner is truly inspirational, and his success is equally inspiring to us as it validates Columbia as an emerging force on the trail running scene, including at the sport's highest levels. Big congrats to Gabriel and look forward to seeing him on many future podiums. I'll provide an update on our spring 2027 wholesale order book, which provides encouraging indicators of the progress we're making under the ACCELERATE strategy. Although we are still taking orders, the book is nearly complete and current indications point to a load of mid-single-digit % growth with broad-based contributions to this growth across our brands, including the Columbia brand in the U.S. Additionally, we're seeing growth across account types and tiers, including our higher priority brand-enhancing partners. From a product perspective, we're pleased to see footwear growth outpacing apparel with solid growth in both categories. It's also particularly encouraging to see strong adoption of newer apparel and footwear styles, including growth in key styles targeting younger, dynamic, active consumers consistent with our ACCELERATE strategy. Turning back to the second quarter financial performance, I'd like to remind everyone that the second quarter is our lowest volume sales quarter and small year-over-year changes in sales and expense timing can have a material impact on reported results. Net sales increased 2% versus the prior year to $614 million, driven by growth in international distributors and global e-commerce, partially offset by an expected decline in wholesale, primarily due to a lower U.S. '26 order book versus the prior year. During Q2, we began receiving refunds of the U.S. IEEPA tariffs with the majority of cash owed received in June. As such, during the quarter, we recognized approximately $78 million in refunds and interest in our financial statements based on IEEPA tariffs previously paid. From an accounting perspective, we recognized $60 million in Q2 operating margin, primarily as a reduction to cost of sales and $2 million of interest income, with $15 million as a reduction to inventory. As a reminder, we absorbed the impact of IEEPA tariffs on our gross margins last year. Including the impact of tariff refunds, second quarter gross margin expanded 920 basis points on a reported basis to 58.3%. Excluding tariff refunds, gross margin contracted by 50 basis points versus the prior year, driven by continued headwinds from incremental U.S. tariffs and increased discounting. SG&A expense increased 2%, reflecting higher DTC expenses, including some unplanned store impairment charges, partly offset by lower personnel costs resulting from our prior year actions taken as a part of the profit improvement program. This overall performance resulted in EPS of $0.52. Excluding the impact of tariff refunds, our loss per share of $0.41 would have fallen roughly in line with the midpoint of our Q2 guidance range. Inventories remain healthy and are down 6% versus the prior year in dollar terms, with units down 7%. We continue to maintain our fortress balance sheet, exiting the quarter with $625 million in cash and short-term investments and no debt. Looking at net sales by geography, U.S. net sales decreased 4%, declining slightly more than expected due to soft traffic within our DTC stores. Relative to the prior year, the lower sales were primarily driven by a high single-digit percent decline in U.S. wholesale, resulting from a lower spring '26 wholesale order book. All this performance was slightly ahead of plan due to stronger than expected order conversion. U.S. DTC net sales were down slightly in the quarter, primarily reflecting the impact of store closures as well as softer traffic, which was largely offset by improved conversion. E-commerce grew low single-digit percent and exceeded plan driven by our emerging brands. While Columbia brand U.S. e-commerce was down low single-digit percent for the quarter, we're encouraged with improving underlying metrics as we reposition e-com as the pinnacle expression of the brand. For my review of second quarter year-over-year net sales growth in international geographies, I will reference constant currency growth to illustrate underlying performance in each market. LAAP net sales increased 13%. China net sales increased mid-single-digit percent driven by solid growth in DTC e-com. This was partly offset by single-digit percent declines in wholesale due to shipment timing and in DTC stores, reflecting soft traffic amid a more challenging macro environment. A key highlight in the quarter was our strong performance during China's 618 Shopping Festival, with robust growth versus the prior year, coupled with an improved markdown rate. Our China team executed a successful spring brand campaign titled "It's Nature's Fault," which encouraged consumers to embrace nature and its imperfect perfection, creating significantly higher social media engagement and impressions versus the prior year. We also continued to create energy through grassroots events with our Hike Society, including events that combine the increasingly popular activities of hiking and fishing, which we believe only Columbia can authentically do. Japan net sales increased low double-digit %, rebounding nicely from a challenging first quarter. This reflected growth in both wholesale and DTC, despite weak outlet store traffic amid a softening macro environment. In addition to adverse weather in the month of June due to heavy rains. Key growth drivers included our Thrive Revive Sandal on the footwear side, which sold out in the quarter, as well as cooling apparel, including our Omni-Freeze ZERO technology. Korea net sales increased low double-digit %, reflecting double-digit % growth in both wholesale and DTC e-com. DTC brick-and-mortar grew low single-digit % and beat plan, but with higher promotional activity due to lower traffic and increased consumer price sensitivity amid rising inflation. Product highlights included robust growth in cooling apparel, Sandal footwear styles, and our PFG Bahama shirt, which was supported by a well-executed retail activation celebrating the style's 30th anniversary. Our LAAP distributor markets delivered mid-20% growth, driven by the fall 2026 order book and earlier fall shipments, reflecting continued momentum in these diverse global markets, driven by robust growth in Columbia brand apparel. EMEA net sales increased high single-digit % overall. Europe direct net sales increased low double-digit %, showing continued momentum in both wholesale and DTC, albeit with a higher promotional activity in DTC amid weaker traffic. Due to macro headwinds and unfavorable weather, the Europe team drove energy for the Columbia brand through a successful spring marketing campaign, leveraging the Engineered for Whatever platform across digital, social, and out-of-home media, delivering more than 650 million impressions on digital and social channels alone. We also continue to build strong connections with local outdoor communities through our Hike Society. In Q2, we hosted Hike Fest events in France and the U.K. that sold out within minutes, creating considerable buzz and user-generated content for our brand among target consumers. Our EMEA distributor business increased mid-single digit % versus the prior year, driven by increased spring and fall 2026 orders, partially offset by later fall shipments. Canada net sales decreased high single-digit % in the quarter, primarily reflecting declines in wholesale due to unfavorable shipment timing and lower spring 2026 orders. This was partly offset by growth in DTC, with higher e-commerce sales partly offset by lower brick-and-mortar results due to worker traffic and softening consumer environment. Looking at second quarter performance by brand, Columbia net sales increased 1% with international growth more than offsetting declines in the U.S. Turning now to our emerging brands, all of which are expected to grow in 2026. As a reminder, each of these brands derive a significant majority of their revenue from the U.S. marketplace. SOREL net sales decreased 14%, driven largely by later wholesale shipment timing versus the prior year, which was partly offset by growth in DTC e-com. As a reminder, Q2 typically represents less than 10% of SOREL's annual business. We continue to anticipate a stronger fall 2026 season for SOREL, with growth expected in both wholesale and DTC for the second half. As announced last month, we're also thrilled to welcome Joe Vernachio back to Columbia Sportswear Company's family as a President of SOREL brand. We know Joe well from his prior tenure as President of Mountain Hardwear. He brings extensive industry experience as a proven consumer-focused and collaborative leader. I'm confident that Joe is the right leader at the right time to drive the next phase of SOREL's growth and further unlock the brand's tremendous potential. prAna net sales increased 14%, reflecting double-digit percent growth in wholesale and high single-digit percent growth in DTC e-commerce, with flattish growth in DTC brick-and-mortar on lower traffic, which was offset by better conversion. We remain encouraged by the momentum building in prAna brand with healthy growth in both new and retained customers, particularly among its target younger consumer. A key highlight during the quarter was the opening of prAna's third full-price store in La Jolla, California, which has gotten off to a great start enhanced by a steady stream of elevated in-store experiences. Mountain Hardwear net sales grew 6% year-over-year, driven by double-digit percent growth in DTC channels. This was partly offset by low double-digit percent decline in wholesale due to substantially lower closeout sales versus the prior year, which more than offset low single-digit percent full price growth. A major highlight in the quarter was Mountain Hardwear's fourth collaboration with Stüssy, which surpassed each of the prior collections in sales with remarkably strong sell-through. We were also excited to see the new Kazam ultralight trail backpack launch in Q2 and immediately become a top 10 style in terms of sell-through. We'll now discuss our financial outlook for the third quarter of 2026 and the full year. This outlook and commentary include forward-looking statements. Please see our CFO commentary and financial review presentation for additional details and disclosures relating to those statements. While we remain focused on execution and what we can control, the operating environment remains highly dynamic, particularly around the major external factors affecting our business that we spoke about three months ago, involving tariffs in the U.S. and the conflict in the Middle East. The outlook for U.S. tariffs policy remains highly uncertain. While the administration continues to signal its intention to bring tariffs back to rates similar to the IEEPA levels, if and when that will happen remains unclear. As such, our financial outlook now assumes that the current 10%-12.5% tariff rates remain in place through the end of this year. Additionally, our second half outlook contemplates a $15 million benefit to our cost of sales from the IEEPA tariff refunds previously received. However, we expect this tailwind of gross margin will be largely offset by accommodations to our factory partners that have navigated this period of uncertainty with us. That said, from a timing perspective, we expect to incur a net headwind to our gross margins related to these accommodations in Q3 and a net tailwind to our gross margin in Q4 related to the remaining refunds. Turning now to the ongoing conflict in the Middle East. While the direct measurable impacts to our business have remained relatively contained, including the order cancellations from our distributor in that region that we spoke about last quarter, the macroeconomic headwinds and supply chain disruptions related to the conflict are of greater concern and have begun to materialize. The prolonged period of elevated global gasoline prices stemming from the conflict is putting pressure on discretionary spending and consumer sentiment, particularly among lower and middle-income consumers, which could impact consumer demand in the second half. Additionally, we now anticipate meaningful shifts in the timing of fall 2026 shipments from the third quarter to the fourth due to longer logistics lead time resulting from supply chain disruptions, as well as discrete delays stemming from capacity constraints within a node of our global supply chain. These delays are expected to shift all of our anticipated second half growth to the fourth quarter, creating greater risk to our outlook given the macroeconomic headwinds impacting operating environment. For the third quarter, we anticipate sales in the range of down 1.5% to flat versus the prior year. This will result in slight SG&A deleverage and, when combined with our anticipated decline in gross margin, result in earnings per share of $1.15 to $1.35. Turning to our full-year outlook. We are increasing our full-year margin and earnings guidance ranges to pass through the impact of second quarter tariff refunds. We continue to expect underlying results to land within the ranges we previously provided, including some benefit from our revised tariff rate assumptions. That said, our underlying sales and margin outlook for the second half has incrementally moderated versus 90 days ago based on the macroeconomic and supply chain headwinds we have discussed. For full-year net sales, we're maintaining our prior guidance of 1% to 3% growth versus the prior year. We now expect reported gross margins of 52.1% to 52.3%, or up 160 to 180 basis points versus the prior year. We continue to expect that SG&A will represent 43.6% to 44.2% of net sales, increasing slightly year-over-year, but at a slower rate than the net sales growth. Based on these assumptions, we're raising our reported operating margin guidance to 8.5% to 9.3% for the year. We're also raising our reported diluted earnings per share guidance to the range of $4.45 to $4.90. In addition to the factors already discussed, this reflects an incrementally higher full-year tax rate assumption of approximately 25%. In closing, we're pleased to have delivered first half results that were in line to slightly better than our planned overall, despite navigating external headwinds and other impacts to our business that were unforeseen when we started the year. While the operating environment has become more challenging since our last call, I remain encouraged by the strength and resilience of our international business. The signs of progress we are seeing with our ACCELERATE strategy and the stability provided by our fortress balance sheet. Thank you again to our global workforce, who are instrumental in the execution of our strategies and our business success. That concludes my prepared remarks. Operator, could you help us facilitate the questions? Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Once again, please press star one if you have a question or a comment. The first question comes from Bob Drbul with BTIG. Please proceed. Bob Drbul: Thank you. Good afternoon, Tim. Tim Boyle: Hello. Bob Drbul: I was wondering if we could just unpack a little bit, the commentary around the second half outlook, some of the supply chain disruptions and better clarity or visibility on your delivery schedules with the product. Can you just talk about, has there been any change around the order book with your better visibility? When you look at the wholesale plans and the acceleration that you had talked about previously, has that changed much? Could you quantify that a little bit, the North American piece specifically? I guess the second piece of this is, the spring 2026 order book firmed up, probably earlier than I can remember, right? That's pretty encouraging. The guidance that you gave or the expectations around the order book, is that primarily is it broad-based? Is North America in that sort of mid-single-digit range as well? If you could maybe give a little more color around that would be helpful. Thanks. Tim Boyle: Sure. Absolutely. First of all, related to the change in the Q3, Q4 shipping numbers, we're basically talking about a percent one way or the other. It's not a function of any cancellations or any adjustments. These are both known and expected logistic issues which are impacted both by the conflict in the Middle East and the disruption to shipping, as well as a certain topic from our consolidation nodes, as we discussed. We're confident that the numbers are going to be coming through as we've got planned. Then you've mentioned the spring 2026 order book, but you're talking about spring 2027, right? Bob Drbul: Yeah, 2027. Sorry. Yep. Tim Boyle: Yeah. No problem. Yes, basically it's growth across all the brands and all the geographies, including the North America and U.S.A. business. We're starting to see the results of ACCELERATE and really exciting good stuff happening in that way. Jim Swanson: Bob, given Tim's comments and that we've not seen any changes in our order book for fall 2026, we would still contemplate growth for U.S. and North America in the back half of the year for the wholesale business. Of course, with the shift that we're seeing, that's going to be much more back-end weighted, where we'll probably see a decline in Q3 and an increase or growth in Q4. Bob Drbul: Okay, great. Just, Jim, on the second piece of the IEEPA tariff refunds, how does that go into play? How and when will that play out in the gross margin line? Is that second half 2026? Does that flow into 2027? Jim Swanson: Well, we received the refund, as Tim touched on in the prepared remarks. Bob Drbul: Yeah. Jim Swanson: Having said that, what we realized in the P&L was about a $60 million benefit to operating margin. That left about $15 million of what we received in refunds on the balance sheet, as a credit to inventory. That will be realized over the balance of this year, relatively ratably between Q3 and Q4. Of course, as we've indicated, there is an offset related to factory accommodations that'll likely take place in Q3. You'd expect a Q3 margin headwind and a Q4 margin tailwind related to all that. Bob Drbul: Great. Thank you very much. Jim Swanson: Yeah. Thanks, Bob. Operator: Our next question comes from Laurent Vasilescu with BNP Paribas. Please proceed. Laurent Vasilescu: Good afternoon. Thank you very much for taking my question. I wanted to follow up on Bob's question about the shift. Is it fair to assume, should we assume last quarter, you talked about a $10 million shift. This quarter, should we assume it's a $30 million shift from 3Q into 4Q? If that's the case, what region would be impacted? Is it Europe because of the Middle East? I'm just trying to better understand what's the supply chain bottleneck that is leading to this shift. Thanks so much. Jim Swanson: Yeah, sure. Thanks for the question, Laurent. As it relates to the size of the shift, it's north of the $30 million that you referred to. In fact, if we were to adjust for the timing shift that we're seeing, Q3 and Q4 in growth terms would be relatively equivalent in the 4%-5% range. Q3 being a little bit slower growth than Q4 within that. As it pertains to the regions, this is a global impact, but I would say that the predominant set of it is more North America focused, and certainly the Middle East is a contributing factor to this. I think the other element of it is upon the invalidation of the IEEPA tariffs by the Supreme Court. We did see a bit of a rush on the supply chain and capacities. That's part of what's contributing this is importers are trying to get product into the U.S. at that lower 10% rate relative to the risk of a higher rate longer term. The other thing I might mention, as it relates to just the timing and flow of wholesale shipments, is we were a bit earlier in our shipment last year for fall 2025, weighted to the third quarter. Some of this is effective, fall 2025 being early, fall 2026 certainly being later as we see it today. Also keep in mind, when you think about the higher rate of growth in the fourth quarter, we did have a shortage of inventory as we curtailed some production for fall 2025 last year. That's going to provide a bit of a favorable comp as you think about the rate of growth in the fourth quarter. Laurent Vasilescu: Super helpful. Thank you very much. As a follow-up, my second question is on China. On a constant currency basis, it grew mid-single digits. I think in your CFO prepared commentary, it talks about 3Q driven by China, but also Europe direct. Maybe for the audience, can you share what you're seeing in China? I think it's been a little bit rougher, tougher for a lot of names out there. Curious to know, is it due to typhoons, warm weather? Just curious to know what you're seeing, and how do we think about China overall growth rate for this fiscal year? Thank you so much. Tim Boyle: China for us, as you know, we've talked a lot about it being the biggest opportunity for us in growth. We have the typical weather and other disruptions that happen seemingly every year. We still think it's an enormous opportunity for us. We're still quite small there by comparison to others. That's why we're so confident that our business is going to get bigger there, especially when you consider the growth rates in our e-commerce businesses across multiple platforms. I'm still very bullish on China and looking forward to greater things there. Jim Swanson: I'd just add, Laurent, the 618 sales event that we just came through in Q2 that Tim touched on. We saw robust growth as a part of the selling in on that from a dotcom or online perspective. As it relates to growth on the year, we still anticipate China being one of our fastest-growing markets. I think I commented on it last quarter, we anticipated double-digit growth on the year, and I think we're more or less tracking to that same level. Obviously, that's some of the strength of the order book that we've got for the wholesale business in the back half. Laurent Vasilescu: Great. Thank you very much, best of luck. Operator: The next question comes from Paul Lejuez with Citigroup. Please proceed, Paul. Tracy Kogan: Thank you. It's Tracy Kogan filling in for Paul. I was hoping you guys could talk about how your U.S. store business trended by months in 2Q and what you're seeing quarter to date. Was wondering if your gross margin guidance for 3Q also assumes you're more promotional. Thanks. Jim Swanson: That was most notable beginning in the mid to latter part of April, and I think largely coincided with the inflationary pressure that the consumer's under from the fuel and food price standpoint. We really saw that decline in traffic happen and then hold relatively steady throughout the quarter, Tracy. I wouldn't describe it as if there was increasing deterioration as we went through the quarter as much as it was a step function down at a point in time and then kind of holding relatively constant from that point forward. As it relates to how we're thinking about gross margin in Q3, and frankly for the balance of the year, you'll note that we did pass through the benefit of the refund. The other thing that we've done in our outlook on the full year is we had reduced our assumptions in the latter part of the year. We've previously assumed that IEEPA's equivalent tariffs would be in place. We're now assuming that the current tariffs, as we know them, in the 10%-12.5% range, would be there. The offset to that is essentially an assumption around the consumer environment, a bit more pressure, and the continuation of some of these promotions. Not to mention with fuel prices going up and the anticipation of some incremental freight charges from predominantly an outbound standpoint. Tracy Kogan: Got it. Thank you very much. Operator: The next question comes from Mitch Kummetz with Seaport Global. Please proceed. Mitch Kummetz: Yes, thanks for taking my questions. Can you talk a little bit about what DTC and at-once assumptions are embedded in your back-half outlook? Jim Swanson: Yeah. Mitch, I presume you're talking about the U.S. business. By and large, I would just describe, we've cautioned a bit more risk here today with what we're seeing from a macro standpoint in addition to the supply side of things. For the most part, they're consistent with the more recent trend that we've seen in the business. The cancellation side of things, like we've touched on, we've not seen anything meaningful in the form of cancellations. We just note the risk with what we're seeing with the consumer, and that's the reason why we're a bit more cautionary today with regard to the range and where we might fall within that range. Mitch Kummetz: Tim, in your prepared remarks, you talked a little bit about new customer acquisition on the Columbia brand side. Could you just maybe elaborate on that? I think you said that you're picking up younger consumers, which I think is part of your strategy with ACCELERATE. Can you talk a little bit about maybe who you're bringing in? What are these new consumers buying? Are they buying the newer elevated products? What are you learning from this, and is this, to some extent, a proof point that the strategy's working? Tim Boyle: Yeah, certainly. Well, we can see the age of these consumers and sort of in general, it's really encouraging to see the results of their purchases as it relates to our more expensive product, especially as it relates to footwear. We think this is a definite result of the promotional activities, not dollar promotional, but marketing promotional activities as it relates to the impact of the ACCELERATE marketing efforts we've been focusing on, including the Expedition Impossible, that's been so highly lauded by the various groups that measure advertising, as well as what we've done with Robert Irwin. We just see some great results there, and it's very encouraging in terms of how we're promoting the younger products that we're offering. Mitch Kummetz: maybe lastly, just on the strength of the spring order book. Do you at this point sort of anticipate that will translate into low to mid-single digit sales growth in the first half of-- I know you're not guiding the next year, but is that how we should think about it, that should be driving that type of growth rate through the first half of next year? Jim Swanson: Yeah, the audio's a little bit weak for us, Mitch, but I think your question was related to the spring 2027 order book. Based on the visibility that we have today, we've got roughly 90% of the orders are in, that gives us the indication of the low single to mid-single digit rate of growth in the first half of next year from a wholesale standpoint. We're hopeful that we'll continue to take that order book over the course of the next couple of months and the potential to be on the upper end of that. We'll look forward to providing an update in October. Tim Boyle: Yeah, I guess I would also point out that the category that's most encouraging in our spring order book is footwear. We've been talking for a long time about the opportunities there. It's great to see the business moving forward there, especially in more expensive products. Mitch Kummetz: Great. Thanks very much. Operator: The next question comes from Jonathan Komp with Baird. Please proceed. Jonathan Komp: Yeah. Hi, good afternoon. I wanted to ask about the percentage of newness for the Columbia brand. If you think about the DTC business and also your wholesale partners, how that might look into the fall and spring of next year. Maybe related to the spring commentary, have you shared what units and pricing look like within the order book that you referenced? Tim Boyle: Well, as it relates to newness, probably the most exciting item that we have for fall 2026 is our Amaze Puff collection, which literally is not new. It was debuted last year, but it doubled in terms of revenue for fall 2026. That's just an example of how when we move forward with a really interesting product and market it properly, that we can be incredibly successful. I guess it's also important to point out one of our very really basic items, the Bahama shirt, which celebrated its 30th anniversary this year. When we promoted it and told stories about its heritage, the volumes spiked, and that's going to be a really big part of the future of our business is re-energizing some of our more important classic heritage items. That would include the Tamiami shirt, which is a 20-year anniversary this year, and we'll be promoting that as well. When we talk about the percentage of newness, we really talk about both reinvigorating established products as well as adding new. The new, I would say, is going to be a smaller percentage of the total, but important. Jim Swanson: John, as it relates to the latter part of your question on dollars in units for the spring 2027 order book, there are no meaningful changes that I would describe in terms of pricing. That low to mid-single digit %, think about that both relatively on an equivalent basis, both in dollars and in units. Jonathan Komp: Okay, that's really helpful. Maybe just a broader question, Jim, as you think about the multi-year potential to build back to a double-digit operating margin. There's obviously a lot of moving parts currently with the tariff uncertainty and some of the accommodations to your factory partners. I'm wondering, as you think about that multi-year build back or recovery, is that any more clear to you today, or do you have any broader perspective on appropriate timelines to think about that? Thank you. Jim Swanson: There's nothing new to provide in terms of the timeline. I think the way we would describe this and the way I certainly think about it is there's been a lot of groundwork laid over the better part of the last few years. We've touched on the profit improvement program and some of the cost savings and efficiency that we're building in the business from that vantage point, importantly, the ACCELERATE strategy that we've been working on for quite some time as well. Our ability to get back to and achieve double digit and % Or in above operating margins is really dependent upon getting that top line turning the right direction on a more consistent basis. Certainly, we're encouraged with what we're seeing from an order book standpoint for both fall 2026 and spring 2027, that gives us that confidence as we look forward. I can't today pinpoint the timeline that we're necessarily seeking to get back to that. Just a lot of great work being done across the company. Jonathan Komp: Okay, great. Appreciate the color. Thanks. Operator: Up next is Mauricio Serna with UBS. Please proceed. Mauricio Serna: Great. Good afternoon. Thanks for taking our questions. A couple questions on sales. Just to confirm, for U.S. wholesale in the back half, is the expectation still to be low to mid-single digit growth? How should we think about that in Q3 versus Q4? Maybe could you talk a little bit more about what you're seeing in sell-through of the core Columbia product over the last quarter? Thank you. Jim Swanson: I can start out, Mauricio, then I'll have Tim jump in here a bit as well. As it pertains to the fall 2026 order book and last quarter, we'd indicated directionally the order book both globally and in the U.S. and from a U.S. standpoint across the brand portfolio, this holds true for the Columbia brand as well, that we still contemplated low single digit to mid-single digit % growth. As we sit here today, we've not taken anything different than we ordinarily would expect at this point in time of the season from a cancellation standpoint. Of course, this is all dependent upon our in-season execution, getting things into the marketplace, the consumer, and so forth. That would be the overarching caveat. As it pertains to the Q3, Q4 flow of that, we're going to anticipate Q3 is going to be down due to the later shipments, you'd expect growth in the fourth quarter. I'll shift it over to Tim as it relates to your question on, I think, sell-through that we're currently seeing in the marketplace. Tim Boyle: Yeah. As you might remember, our spring 2026 order book was disappointing. It was down from prior periods. We shipped in a smaller quantity of merchandise. As it relates to sell-through, I would say the newest products that we have were very high sell-through, as well as I mentioned, the Bahama shirt, which is a classic that we remarketed and reinvigorated as a great new product. Its sales were terrific. Our order book conversion actually was stronger than we had thought it was going to be. That having been said, it's never as good as we'd like it to be, but we're pleased with the results, and it bodes well when you have a growing spring 2027 order book after being down in 2026. Mauricio Serna: Got it. Very helpful. Just a quick follow-up on gross margin. Trying to understand the commentary of slightly higher promotions. Is that across all regions or U.S. only? Just trying to understand that part of both in stores and e-commerce, how to try to figure out that part. Just as you think about 2027 order books and the spring order book, anything that you can tell us about the input cost, just given the elevated oil prices? How are you thinking about that part of the puts and takes for next year? Jim Swanson: Yeah. As it relates to gross margin and promotion discount activity in the third and fourth quarter, it's too difficult to probably parse that down by geography, Mauricio, what I would say is I would anticipate to the degree we do have that, and of course, we're trying to maximize the revenue and profitability, so we'll only do that which is needed to stimulate demand and velocity of sales. With that said, to the degree that occurs, it's more likely in the brick-and-mortar channel and within the outlet side of that, which is for us more of a U.S. concentration in terms of where the outlets are located. Certainly, we're continuing our efforts in terms of being less promotional and making sure that columbia.com is the best representation of the brand and really elevating it through the ACCELERATE strategy. I think that answers the first part of your question. To come back to the second part, as it relates to input costs and what we've seen, particularly from an oil standpoint, looking out to next year, as we've taken the vast majority of the spring 2027 order book that we're discussing here today, most of the input cost to that had been staged or procured prior to oil price increases. Only modestly would we expect to see input cost pressure in spring 2027. Of course, as we get into the fall 2027 season and seeing oil prices continue to hover in the $90-$100 range as of late, that's certainly going to be a headwind that we're going to need to address. We're still in the midst of finalizing the product line and going to market here for fall 2027 in the next couple of months, so it'd be premature for me to get ahead of that in terms of describing what impact that might have and the mitigations and actions we're taking due to make sure that we're maintaining product margin. Mauricio Serna: Understood. Thank you so much. Operator: Up next is Peter McGoldrick with Stifel. Please proceed. Peter McGoldrick: Yeah, thanks for taking my question. Just there you mentioned promotions only to what is needed to stimulate demand. As we think of things becoming more promotional in DTC, should we contemplate that as a reaction to in-season lower traffic? Is there any level of channel inventory imbalance or any pushback from the consumer representing some sensitivity to paying full price? Jim Swanson: I think it's a combination of things. The inventory side of it, I would not emphasize. I think inventory is, generally speaking, at least for us and across the channel from everything we've seen, is pretty darn clean at this point in time. To the degree there's that need to stimulate the demand, I think it's a combination of what you saw in Q2 with traffic declines and making sure we're capitalizing on those consumers that are coming through the doors. To some degree, Peter, we are seeing a lot more pressure on the consumer. I don't think that's any surprise with just seeing where fuel and food prices and everything else are, and apparel and footwear is generally viewed as a discretionary good. There's more elasticity with that. We're dynamically adjusting price to ensure that we keep the volume moving. Tim Boyle: Yeah, Peter, I just would point out that the weather tends to be much more impactful than almost any economic indicator. Peter McGoldrick: Appreciate that. Yeah, I guess following up on the pricing aspect and bigger picture, now that we have some better visibility to input costs on the tariff side, can you help us think about the go-forward philosophy on marching the price range higher as you balance Columbia's value proposition against the cost reality? Should we expect any change to how you're approaching price in future seasons? Tim Boyle: Well, I would hope that we have more solid information on tariffs, but we're never really 100% sure how that will play out. The focus for us has been on markets where tariffs are less impactful, i.e., the international markets. Jim Swanson: Yeah, I think with that, Peter, certainly as we're developing product for the dynamic, active consumer. I think looking at opportunities where from an overall mix of product with good, better, and best, and particularly on the better/best side of the equation, and that's where we're looking to grow with the dynamic, active, and professional lead. Those are areas where we think there's opportunity to take some price in the mix of our overall business over time. Peter McGoldrick: All right. Thank you very much. Operator: The next question comes from Tom Nikic with Needham. Please proceed, Tom. Tom Nikic: Hey, guys. Thanks for taking my question. Just wanted to follow up on some of the questions around pricing and promos, et cetera. Have you seen any kind of downward pressure on pricing across the competitive landscape? Like are competitors kind of reinvesting tariff refunds back into pricing or anything like that? Or has some of your expectations around promo activity more just a function of what you're seeing in your own business? Tim Boyle: No, I would say based on the seasonal nature of products, we're really talking about natural, normal liquidation of spring product that happens at this time of the year and new product coming in at which are seasonally correct outerwear, insulated products. There's been no activity that we've seen that would be outside of the normal. Again, the tariff rates are not that unusually low. We hope that they stay that way. Tom Nikic: Understood. All right. Thanks very much. Best of luck the rest of the year. Tim Boyle: Thank you, Tom. Operator: We have reached the end of the question and answer session. I will now turn the call over to Tim Boyle for closing remarks. Tim Boyle: Thanks, operator, thanks everybody who joined the call today. While we're facing increasing external headwinds impacting the business, as we head into the second half, I really believe that Columbia Sportswear Company, like our products, are Engineered for Whatever. With the momentum and resilience we're seeing in our international businesses and the signs of progress we're seeing with the ACCELERATE strategy, combined with our fortress balance sheet, I'm confident that we have the right strategies and competitive advantages to navigate these headwinds and continue on our path back to sustainable long-term growth. Look forward to updating you all on progress again in a few months. Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Columbia Sportswear (COLM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. International markets, representing over 40% of sales, drove growth with a 9% increase, offsetting a 4% decline in the U.S. where inflationary pressures softened brick-and-mortar traffic. The 'ACCELERATE' strategy is being refined into five strategic pillars: owning the trail, dominating warmth, powering PFG (fishing), fueling outdoor lifestyle, and accelerating footwear across all categories. Footwear momentum is a key growth driver, with high single-digit global growth in Q2 led by technical innovations like Omni-Max technology and the Tellurax franchise. Management is repositioning U.S. e-commerce as the 'pinnacle expression' of the brand, focusing on new customer acquisition and higher-margin technical products rather than promotional volume. The company recognized $78 million in U.S. tariff refunds and interest during the quarter, which significantly boosted reported margins but masked underlying gross margin contraction of 50 basis points due to increased discounting. Marketing efforts like 'Expedition Impossible' and partnerships with Robert Irwin are successfully shifting brand perception toward younger, 'dynamic active' consumers, evidenced by improved purchase intent metrics. The Spring 2027 wholesale order book indicates low to mid-single-digit growth, with footwear expected to outpace apparel as the ACCELERATE strategy gains traction with brand-enhancing partners. Management anticipates a significant shift in shipment timing from Q3 to Q4 due to Red Sea conflict disruptions and capacity constraints at global supply chain nodes. Full-year guidance assumes current U.S. tariff rates of 10%-12.5% remain in place through year-end, despite administration signals of potential further reductions. Second-half gross margins will face a net headwind in Q3 from factory accommodations made during tariff uncertainty, followed by a net tailwind in Q4 from remaining refund realizations. The company expects China to remain one of its fastest-growing markets in 2026, targeting double-digit growth despite a challenging macro environment and soft physical store traffic. Prolonged elevated global gasoline prices are cited as a primary risk to discretionary spending among lower and middle-income consumers in the second half of 2026. The company is navigating a 'step function' decline in U.S. store traffic that began in late April, attributed to mounting inflationary pressure on food and fuel. Joe Vernachio has been appointed as President of SOREL to lead the brand's next growth phase following a 14% sales decline in Q2 due to wholesale shipment timing. Inventory levels remain healthy, down 6% in dollar terms, providing flexibility to manage promotional activity without the pressure of excess stock liquidation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The shift is estimated to be north of $30 million, primarily impacting North America due to logistics delays and a rush to import goods before potential tariff changes. If adjusted for this timing, Q3 and Q4 growth rates would be relatively equivalent in the 4%-5% range. The low to mid-single-digit growth in the order book is balanced across dollars and units, with no meaningful changes in base pricing. Footwear is the most encouraging category within the book, specifically in more technical, higher-priced offerings. Management stated that achieving 10% or higher margins is entirely dependent on consistent top-line growth rather than just cost-cutting. While a specific timeline was not provided, the 'ACCELERATE' strategy and profit improvement programs are the primary vehicles for this recovery.

Columbia Sportswear Company COLM reported second-quarter 2026 results, with the top line beating the Zacks Consensus Estimate and the bottom line matching the same. Net sales increased year over year. Management raised 2026 profit guidance. This designer, marketer and distributor of outdoor and active lifestyle apparel, footwear and accessories reported earnings of 52 cents per share. IEEPA tariff refunds boosted earnings per share by 93 cents. On an adjusted basis, it posted a loss of 41 cents per share, in line with the Zacks Consensus Estimate. This compares with an adjusted loss of 19 cents per share in the year-ago quarter. Columbia Sportswear Company price-consensus-eps-surprise-chart | Columbia Sportswear Company Quote The company generated net sales of $614.4 million, which beat the Zacks Consensus Estimate of $606 million. The metric increased 2% from the year-ago period. The growth across most international markets was offset by a decline in the United States, caused by a lower Spring 2026 wholesale order book and a modest decline in the direct-to-consumer brick-and-mortar business. Net sales decreased 1% at constant currency.Selling, general and administrative expenses increased 2% to $332.2 million. As a percentage of sales, SG&A expanded 30 basis points to 54.1%. Higher DTC costs reflected store impairment charges and the impact of new locations worldwide. These increases were partly offset by lower enterprise technology personnel expenses following prior-year Profit Improvement Program actions.The company reported an operating income of $30.9 million against an operating loss of $23.6 million a year earlier. In the United States, net sales declined 4% year over year to $320.1 million, which beat our estimate of $317.7 million. Net sales surged 10% to $145.1 million in Europe, the Middle East and Africa, beating our estimate of $129.7 million. Latin America and Asia Pacific net sales grew 12% year over year to $125.9 million, beating our estimate of $110.9 million. In Canada, net sales decreased 7% to $25.2 million, which lagged our estimate of $47.8 million.During the quarter, Wholesale channel sales were flat year over year at $318.4 million, which beat our estimate of $312.8 million. DTC sales went up 3% to $296 million. Our model expected total DTC sales of $293.2 million for the quarter. Net sales in the Apparel, Accessories and Equipment category inched up 1% year over year to $497.4 million, which beat our estimate of $494 million. Footwear's net sales increased 5% to $117 million, which beat our estimate of $112 million. Sales for the Columbia, prAna and Mountain Hardwear brands increased 1%, 14% and 6% year over year, respectively. SOREL brand registered a sales decline of 14% year over year. The company ended the quarter with cash and cash equivalents of $532.3 million, short-term investments of $92.3 million and shareholders’ equity of $1,601.6 million. COLM had no debt on its balance sheet as of June, 2026. Inventories declined 6% to $874.8 million.For the six months ended June 30, 2026, Columbia Sportswear’s cash provided by operating activities was $37.5 million and capital expenditures were $25.8 million. The company did not repurchase shares in the second quarter. As of June 30, 2026, $276.5 million remained available under its stock repurchase authorization. Management announced a regular quarterly cash dividend of 30 cents per share, payable on Sept. 3, 2026, to its shareholders of record as of Aug. 20. For 2026, the company still expects net sales to grow 1-3%, implying revenues of $3.43-$3.50 billion, up from $3.40 billion in 2025. Favorable foreign exchange movements are anticipated to contribute roughly 30-50 bps to reported sales growth compared with the prior expectation of 50-100 basis points.The company now expects gross margin to expand 160-180 basis points to 52.1-52.3%, up from the previous guidance of 50.3-50.5% and compared with 50.5% in fiscal 2025. The outlook includes an approximately 180-basis-point benefit from IEEPA tariff refunds recognized in the second quarter.The company raised its operating margin outlook to 8.5-9.3%, from the earlier forecast of 6.7-7.5% compared with 6.1% last year.Earnings per share are guided in the range of $4.45-$4.90 compared with the $3.24 reported in 2025, representing an upward revision from the prior outlook of $3.55-$4.00. The company expects third-quarter 2026 net sales of $929-$943 million, implying a decrease of 1.5% to flat from $943 million in the prior-year period. The company expects an operating margin of 8.1-9.5% compared with 7.1% in the year-ago quarter. Earnings per share are projected in the range of $1.15-$1.35 compared with 95 cents in the prior-year quarter.This Zacks Rank #3 (Hold) company has gained 0.7% in the past three months compared with the industry’s 11.4% growth. Image Source: Zacks Investment Research Duluth Holdings DLTH sells casual wear, workwear, outdoor apparel and accessories for men and women in the United States. DLTH presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Duluth Holdings’ current fiscal-year earnings implies growth of 39.5% from the year-ago figure. DLTH delivered a trailing four-quarter earnings surprise of 107.5%, on average. Vince Holding Corp. VNCE provides luxury apparel and accessories in the United States and internationally. At present, the company carries a Zacks Rank #2 (Buy). VNCE delivered a trailing four-quarter earnings surprise of 635.7%, on average. The Zacks Consensus Estimate for Vince Holding’s current fiscal-year sales and earnings indicates growth of 7.2% and 34.1%, respectively, from the year-ago figures. Revolve Group, Inc. RVLV operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. It currently carries a Zacks Rank of 2. RVLV delivered a trailing four-quarter average earnings surprise of 52.1%.The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales implies growth of 10.6%, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Sportswear Company (COLM) : Free Stock Analysis Report Vince Holding Corp. (VNCE) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET Investor Relations - Matt Tucker Chairman and Chief Executive Officer - Tim Boyle Co-President - Joe Boyle Co-President - Peter Bragdon Executive Vice President and Chief Financial Officer - Jim Swanson Executive Vice President, Chief Administrative Officer and General Counsel - Richelle Luther Operator: Greetings. Welcome to the Columbia Sportswear second quarter 2026 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Matt Tucker. You may begin. Matt Tucker: Good afternoon. Thanks for joining us to discuss Columbia Sportswear Company's second quarter results. In addition to the earnings release, we furnished an 8-K containing a detailed CFO commentary and financial review presentation explaining our results. This document is also available on our investor relations website, investor.columbia.com. With me today on the call are Chairman and Chief Executive Officer, Tim Boyle, Co-Presidents Joe Boyle and Peter Bragdon, Executive Vice President and Chief Financial Officer, Jim Swanson, and Executive Vice President, Chief Administrative Officer and General Counsel, Richelle Luther. This conference call will contain forward-looking statements regarding Columbia's expectations, anticipations, or beliefs about the future. These statements are expressed in good faith and are believed to have a reasonable basis. Each forward-looking statement is subject to many risks and uncertainties, and actual results may differ materially from what is projected. Many of these risks and uncertainties are described in Columbia's SEC filings. We caution that forward-looking statements are inherently less reliable than historical information. We do not undertake any duty to update any of the forward-looking statements after the date of this conference call to conform the forward-looking statements to actual results or to changes in our expectations. I'd also like to point out that during the call, we may reference certain non-GAAP financial measures, including constant currency net sales. For further information about non-GAAP financial measures and results, including reconciliation of GAAP to non-GAAP measures and an explanation of management's rationale for referencing these non-GAAP measures, please refer to the supplemental financial information section and financial tables included in our earnings release and the appendix of our CFO commentary and financial review. Following our prepared remarks, we will host a Q&A period, during which we will limit each caller to two questions so we can get to everyone by the end of the hour. Now I'll turn the call over to Tim. Tim Boyle: Thanks, Matt, and good afternoon. In the second quarter, we're pleased to have again delivered net sales growth exceeding our quarterly guidance, driven by strong growth in international markets, partly offset by continued headwinds in the U.S. Our reported earnings and profit margins include the impact of U.S. tariff refunds recognized during the quarter. Without this one-time item, our underlying performance was largely in line with our expectations, with sales beating the high end of our guidance and gross margins slightly below plan on higher promotional activity, while operating margins and loss per share landed roughly at the midpoints of our guidance range. International business, which represents over 40% of our sales, continues to lead our growth, up 9% year-over-year. While our U.S. business remained challenged this quarter and declined 4%, we saw sequential improvement despite consumer discretionary spending coming in under mounting inflationary pressure. We saw this pressure translate into soft traffic in our U.S. DTC brick-and-mortar business during the quarter, resulting in higher discounts and lower sales than planned. Despite these headwinds, we were pleased to see positive and better-than-expected growth in our U.S. DTC e-commerce business, driven by our emerging brands. We're also encouraged by improving metrics in Columbia brand U.S. e-commerce, including new customer acquisition, which we view as indicators of progress on the ACCELERATE strategy. Additionally, we're seeing encouraging signs of the traction the Columbia brand is making with target consumers, including improvements in unaided awareness and purchase intent among professional elite and dynamic active consumers in North America. We're also realizing stronger growth rates with newer and more elevated products and collections aimed at these target consumer groups. That said, we know it will take more time and work to bring the newness, innovation, and elevated style to our product portfolio at the level we need in order to continue shifting consumers' perceptions of the brand in the U.S. and put us back on a path of sustainable long-term growth. As a reminder, ACCELERATE is a multi-year strategy that we launched into the marketplace nearly one year ago based on key shifts about consumer, brand, product, marketplace, and marketing. While the foundational shifts of ACCELERATE are starting to show tangible signs of paying off, we have continued to refine the strategy. The Columbia brand is now focused on five strategic pillars. One, own the trail with a focus on both hike and trail run. Two, dominate warmth. Our on-mountain warmth and innovation story, including but not limited to ski and snowboard. Three, power PFG, expanding our leadership in both fishing performance and lifestyle. Four, fuel outdoor lifestyle with product that has outdoor DNA but is designed for everyday wear with elevated style. Five, accelerate footwear, which is an opportunity embedded across each of the previous four pillars and a standalone growth priority in its own right. These five pillars are nested in the original shifts of the ACCELERATE strategy, providing a clickdown for more focused execution with our consumers. These pillars leverage our authenticity and heritage in the outdoors. The reputation for quality and durability that consumers have long known us for. They also incorporate many aspects of the playbooks that have already been driving the healthy and sustainable growth of our international businesses. We also know that today's consumers are expecting even more in terms of credibility, style, and relevance. Performance credibility in their favorite outdoor activities, style in their everyday wear with an outdoor function and aesthetic, and relevance within the outdoor culture and communities to which they belong. In support of these five brand pillars, we're also sharpening our approach to segmenting our product construct with performance and innovation-led product designed for end-use activities, specifically hike, trail run, ski and snowboard, and fish, and with style-led product designed for consumers looking to incorporate versatile outdoor function and elevated aesthetic into their everyday life. Executing across our five brand pillar means executing an offense that encompasses all seasons, climates, and geographies where Columbia is present and where people can enjoy the outdoors with footwear and apparel that both fulfill their performance needs and make them look and feel great. I'm excited to see these strategies continue to come to life in the marketplace over the coming seasons as we execute against these strategic pillars and the broader ACCELERATE work. I can feel the energy and excitement from our teams to focus on these strategic priorities that are both clear and aligned across the Columbia Brand organization, both here and around the world. I'm also excited to share that in addition to the positive consumer response to the Engineered for Whatever brand platform, our marketing team continues to gain recognition and accumulate awards for our Expedition Impossible campaign. Following the Gold Clio award we highlighted last quarter, in late June, Expedition Impossible racked up an incredible 10 awards at the Cannes Lions Awards Festival, which is widely considered to be one of the most competitive and prestigious award events in the marketing and communications industry globally, with competition against some of the world's largest and most famous brands. Columbia's awards spanned across social media, public relations, brand strategy, and direct marketing, making us the single most awarded company at this year's event. Of particular note, Expedition Impossible won the Grand Prix award in brand experience and activation, and we also won the Dan Wieden Titanium Lions, the culmination of the festival and its marquee award, which has been compared to winning the Best Picture at the Oscars. I want to congratulate our team once again for this well-deserved recognition and for the continued impact this work is creating for our brand. Since launching late last year, Expedition Impossible has garnered an incredible amount of media coverage and thousands of creative submissions from consumers or flat Earthers from around the globe. We're excited for the fun and adventure to continue through next week. On August the fourth, we will reveal who, if anyone, reached the edge of the Earth. Another major marketing highlight for Columbia Brand in Q2 was our campaign that pitted Columbia global brand ambassador Robert Irwin against 100 crocodiles. The crocs proved to be no match for Robert, thanks to the vastly superior traction, cushioning, and dryness provided by his footwear, the Columbia Tellurax Titanium Outdry trail shoe. The campaign was both authentic to the Columbia brand and resonated with Robert's large and loyal following, attracting more than 3.7 million views and over 300,000 likes across digital platforms. The Tellurax, one of our most technical and premium footwear offerings in the hike category, sold out during the quarter and is poised to scale in future seasons on strong consumer demand. We also saw strong sell-through of additional items featured on the Rob's Look page of columbia.com during the quarter and look forward to more fun and creative moments from our partnership with Robert in the future. The success of Tellurax was part of another key ingredient this quarter for the Columbia brand, which is the momentum we're seeing in footwear, including high single-digit % growth globally in Q2. This growth was driven by several styles, with particular strength in more technical footwear, featuring our proprietary Omni-Max technology, including the Tellurax and Peakfreak franchises in Hike, the Konos in Trail Running, and the Dry Tortuga in Fish. The growing strength of our footwear business was also reflected in the media recognition that our products received this quarter. Among several product awards received by Columbia, some of the most notable including the Tellurax being featured among the best lightweight hiking boots by Wired and among the best outdoor sneakers of 2026 by Women's Health. Additionally, within PFG, the Whipray and Cast Back TC shoes were included in best summer gear lists by Outdoor Life and Salt Water Sportsman, respectively. Columbia Footwear also recently took first place on a different type of podium. Earlier this month, Columbia-sponsored athlete Gabriel Rusu took first place overall at the prestigious Val d'Aran by UTMB ultra trail race in Spain, besting an elite field of competitors over 163 km and 10,000 m of elevation gain. In a sport where elite runners often change shoes multiple times during an event, Gabriel not only started the race in a pair of Columbia Konos Speed Trail ATR, our highest performance trail running shoe, but he completed the entire race and crossed the finish line in exactly the same pair. Originally hailing from a small village in Argentina, Gabriel's path to becoming an elite trail runner is truly inspirational, and his success is equally inspiring to us as it validates Columbia as an emerging force on the trail running scene, including at the sport's highest levels. Big congrats to Gabriel and look forward to seeing him on many future podiums. I'll provide an update on our spring 2027 wholesale order book, which provides encouraging indicators of the progress we're making under the ACCELERATE strategy. Although we are still taking orders, the book is nearly complete and current indications point to a load of mid-single-digit % growth with broad-based contributions to this growth across our brands, including the Columbia brand in the U.S. Additionally, we're seeing growth across account types and tiers, including our higher priority brand-enhancing partners. From a product perspective, we're pleased to see footwear growth outpacing apparel with solid growth in both categories. It's also particularly encouraging to see strong adoption of newer apparel and footwear styles, including growth in key styles targeting younger, dynamic, active consumers consistent with our ACCELERATE strategy. Turning back to the second quarter financial performance, I'd like to remind everyone that the second quarter is our lowest volume sales quarter and small year-over-year changes in sales and expense timing can have a material impact on reported results. Net sales increased 2% versus the prior year to $614 million, driven by growth in international distributors and global e-commerce, partially offset by an expected decline in wholesale, primarily due to a lower U.S. '26 order book versus the prior year. During Q2, we began receiving refunds of the U.S. IEEPA tariffs with the majority of cash owed received in June. As such, during the quarter, we recognized approximately $78 million in refunds and interest in our financial statements based on IEEPA tariffs previously paid. From an accounting perspective, we recognized $60 million in Q2 operating margin, primarily as a reduction to cost of sales and $2 million of interest income, with $15 million as a reduction to inventory. As a reminder, we absorbed the impact of IEEPA tariffs on our gross margins last year. Including the impact of tariff refunds, second quarter gross margin expanded 920 basis points on a reported basis to 58.3%. Excluding tariff refunds, gross margin contracted by 50 basis points versus the prior year, driven by continued headwinds from incremental U.S. tariffs and increased discounting. SG&A expense increased 2%, reflecting higher DTC expenses, including some unplanned store impairment charges, partly offset by lower personnel costs resulting from our prior year actions taken as a part of the profit improvement program. This overall performance resulted in EPS of $0.52. Excluding the impact of tariff refunds, our loss per share of $0.41 would have fallen roughly in line with the midpoint of our Q2 guidance range. Inventories remain healthy and are down 6% versus the prior year in dollar terms, with units down 7%. We continue to maintain our fortress balance sheet, exiting the quarter with $625 million in cash and short-term investments and no debt. Looking at net sales by geography, U.S. net sales decreased 4%, declining slightly more than expected due to soft traffic within our DTC stores. Relative to the prior year, the lower sales were primarily driven by a high single-digit percent decline in U.S. wholesale, resulting from a lower spring '26 wholesale order book. All this performance was slightly ahead of plan due to stronger than expected order conversion. U.S. DTC net sales were down slightly in the quarter, primarily reflecting the impact of store closures as well as softer traffic, which was largely offset by improved conversion. E-commerce grew low single-digit percent and exceeded plan driven by our emerging brands. While Columbia brand U.S. e-commerce was down low single-digit percent for the quarter, we're encouraged with improving underlying metrics as we reposition e-com as the pinnacle expression of the brand. For my review of second quarter year-over-year net sales growth in international geographies, I will reference constant currency growth to illustrate underlying performance in each market. LAAP net sales increased 13%. China net sales increased mid-single-digit percent driven by solid growth in DTC e-com. This was partly offset by single-digit percent declines in wholesale due to shipment timing and in DTC stores, reflecting soft traffic amid a more challenging macro environment. A key highlight in the quarter was our strong performance during China's 618 Shopping Festival, with robust growth versus the prior year, coupled with an improved markdown rate. Our China team executed a successful spring brand campaign titled "It's Nature's Fault," which encouraged consumers to embrace nature and its imperfect perfection, creating significantly higher social media engagement and impressions versus the prior year. We also continued to create energy through grassroots events with our Hike Society, including events that combine the increasingly popular activities of hiking and fishing, which we believe only Columbia can authentically do. Japan net sales increased low double-digit %, rebounding nicely from a challenging first quarter. This reflected growth in both wholesale and DTC, despite weak outlet store traffic amid a softening macro environment. In addition to adverse weather in the month of June due to heavy rains. Key growth drivers included our Thrive Revive Sandal on the footwear side, which sold out in the quarter, as well as cooling apparel, including our Omni-Freeze ZERO technology. Korea net sales increased low double-digit %, reflecting double-digit % growth in both wholesale and DTC e-com. DTC brick-and-mortar grew low single-digit % and beat plan, but with higher promotional activity due to lower traffic and increased consumer price sensitivity amid rising inflation. Product highlights included robust growth in cooling apparel, Sandal footwear styles, and our PFG Bahama shirt, which was supported by a well-executed retail activation celebrating the style's 30th anniversary. Our LAAP distributor markets delivered mid-20% growth, driven by the fall 2026 order book and earlier fall shipments, reflecting continued momentum in these diverse global markets, driven by robust growth in Columbia brand apparel. EMEA net sales increased high single-digit % overall. Europe direct net sales increased low double-digit %, showing continued momentum in both wholesale and DTC, albeit with a higher promotional activity in DTC amid weaker traffic. Due to macro headwinds and unfavorable weather, the Europe team drove energy for the Columbia brand through a successful spring marketing campaign, leveraging the Engineered for Whatever platform across digital, social, and out-of-home media, delivering more than 650 million impressions on digital and social channels alone. We also continue to build strong connections with local outdoor communities through our Hike Society. In Q2, we hosted Hike Fest events in France and the U.K. that sold out within minutes, creating considerable buzz and user-generated content for our brand among target consumers. Our EMEA distributor business increased mid-single digit % versus the prior year, driven by increased spring and fall 2026 orders, partially offset by later fall shipments. Canada net sales decreased high single-digit % in the quarter, primarily reflecting declines in wholesale due to unfavorable shipment timing and lower spring 2026 orders. This was partly offset by growth in DTC, with higher e-commerce sales partly offset by lower brick-and-mortar results due to worker traffic and softening consumer environment. Looking at second quarter performance by brand, Columbia net sales increased 1% with international growth more than offsetting declines in the U.S. Turning now to our emerging brands, all of which are expected to grow in 2026. As a reminder, each of these brands derive a significant majority of their revenue from the U.S. marketplace. SOREL net sales decreased 14%, driven largely by later wholesale shipment timing versus the prior year, which was partly offset by growth in DTC e-com. As a reminder, Q2 typically represents less than 10% of SOREL's annual business. We continue to anticipate a stronger fall 2026 season for SOREL, with growth expected in both wholesale and DTC for the second half. As announced last month, we're also thrilled to welcome Joe Vernachio back to Columbia Sportswear Company's family as a President of SOREL brand. We know Joe well from his prior tenure as President of Mountain Hardwear. He brings extensive industry experience as a proven consumer-focused and collaborative leader. I'm confident that Joe is the right leader at the right time to drive the next phase of SOREL's growth and further unlock the brand's tremendous potential. prAna net sales increased 14%, reflecting double-digit percent growth in wholesale and high single-digit percent growth in DTC e-commerce, with flattish growth in DTC brick-and-mortar on lower traffic, which was offset by better conversion. We remain encouraged by the momentum building in prAna brand with healthy growth in both new and retained customers, particularly among its target younger consumer. A key highlight during the quarter was the opening of prAna's third full-price store in La Jolla, California, which has gotten off to a great start enhanced by a steady stream of elevated in-store experiences. Mountain Hardwear net sales grew 6% year-over-year, driven by double-digit percent growth in DTC channels. This was partly offset by low double-digit percent decline in wholesale due to substantially lower closeout sales versus the prior year, which more than offset low single-digit percent full price growth. A major highlight in the quarter was Mountain Hardwear's fourth collaboration with Stüssy, which surpassed each of the prior collections in sales with remarkably strong sell-through. We were also excited to see the new Kazam ultralight trail backpack launch in Q2 and immediately become a top 10 style in terms of sell-through. We'll now discuss our financial outlook for the third quarter of 2026 and the full year. This outlook and commentary include forward-looking statements. Please see our CFO commentary and financial review presentation for additional details and disclosures relating to those statements. While we remain focused on execution and what we can control, the operating environment remains highly dynamic, particularly around the major external factors affecting our business that we spoke about three months ago, involving tariffs in the U.S. and the conflict in the Middle East. The outlook for U.S. tariffs policy remains highly uncertain. While the administration continues to signal its intention to bring tariffs back to rates similar to the IEEPA levels, if and when that will happen remains unclear. As such, our financial outlook now assumes that the current 10%-12.5% tariff rates remain in place through the end of this year. Additionally, our second half outlook contemplates a $15 million benefit to our cost of sales from the IEEPA tariff refunds previously received. However, we expect this tailwind of gross margin will be largely offset by accommodations to our factory partners that have navigated this period of uncertainty with us. That said, from a timing perspective, we expect to incur a net headwind to our gross margins related to these accommodations in Q3 and a net tailwind to our gross margin in Q4 related to the remaining refunds. Turning now to the ongoing conflict in the Middle East. While the direct measurable impacts to our business have remained relatively contained, including the order cancellations from our distributor in that region that we spoke about last quarter, the macroeconomic headwinds and supply chain disruptions related to the conflict are of greater concern and have begun to materialize. The prolonged period of elevated global gasoline prices stemming from the conflict is putting pressure on discretionary spending and consumer sentiment, particularly among lower and middle-income consumers, which could impact consumer demand in the second half. Additionally, we now anticipate meaningful shifts in the timing of fall 2026 shipments from the third quarter to the fourth due to longer logistics lead time resulting from supply chain disruptions, as well as discrete delays stemming from capacity constraints within a node of our global supply chain. These delays are expected to shift all of our anticipated second half growth to the fourth quarter, creating greater risk to our outlook given the macroeconomic headwinds impacting operating environment. For the third quarter, we anticipate sales in the range of down 1.5% to flat versus the prior year. This will result in slight SG&A deleverage and, when combined with our anticipated decline in gross margin, result in earnings per share of $1.15 to $1.35. Turning to our full-year outlook. We are increasing our full-year margin and earnings guidance ranges to pass through the impact of second quarter tariff refunds. We continue to expect underlying results to land within the ranges we previously provided, including some benefit from our revised tariff rate assumptions. That said, our underlying sales and margin outlook for the second half has incrementally moderated versus 90 days ago based on the macroeconomic and supply chain headwinds we have discussed. For full-year net sales, we're maintaining our prior guidance of 1% to 3% growth versus the prior year. We now expect reported gross margins of 52.1% to 52.3%, or up 160 to 180 basis points versus the prior year. We continue to expect that SG&A will represent 43.6% to 44.2% of net sales, increasing slightly year-over-year, but at a slower rate than the net sales growth. Based on these assumptions, we're raising our reported operating margin guidance to 8.5% to 9.3% for the year. We're also raising our reported diluted earnings per share guidance to the range of $4.45 to $4.90. In addition to the factors already discussed, this reflects an incrementally higher full-year tax rate assumption of approximately 25%. In closing, we're pleased to have delivered first half results that were in line to slightly better than our planned overall, despite navigating external headwinds and other impacts to our business that were unforeseen when we started the year. While the operating environment has become more challenging since our last call, I remain encouraged by the strength and resilience of our international business. The signs of progress we are seeing with our ACCELERATE strategy and the stability provided by our fortress balance sheet. Thank you again to our global workforce, who are instrumental in the execution of our strategies and our business success. That concludes my prepared remarks. Operator, could you help us facilitate the questions? Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Once again, please press star one if you have a question or a comment. The first question comes from Bob Drbul with BTIG. Please proceed. Bob Drbul: Thank you. Good afternoon, Tim. Tim Boyle: Hello. Bob Drbul: I was wondering if we could just unpack a little bit, the commentary around the second half outlook, some of the supply chain disruptions and better clarity or visibility on your delivery schedules with the product. Can you just talk about, has there been any change around the order book with your better visibility? When you look at the wholesale plans and the acceleration that you had talked about previously, has that changed much? Could you quantify that a little bit, the North American piece specifically? I guess the second piece of this is, the spring 2026 order book firmed up, probably earlier than I can remember, right? That's pretty encouraging. The guidance that you gave or the expectations around the order book, is that primarily is it broad-based? Is North America in that sort of mid-single-digit range as well? If you could maybe give a little more color around that would be helpful. Thanks. Tim Boyle: Sure. Absolutely. First of all, related to the change in the Q3, Q4 shipping numbers, we're basically talking about a percent one way or the other. It's not a function of any cancellations or any adjustments. These are both known and expected logistic issues which are impacted both by the conflict in the Middle East and the disruption to shipping, as well as a certain topic from our consolidation nodes, as we discussed. We're confident that the numbers are going to be coming through as we've got planned. Then you've mentioned the spring 2026 order book, but you're talking about spring 2027, right? Bob Drbul: Yeah, 2027. Sorry. Yep. Tim Boyle: Yeah. No problem. Yes, basically it's growth across all the brands and all the geographies, including the North America and U.S.A. business. We're starting to see the results of ACCELERATE and really exciting good stuff happening in that way. Jim Swanson: Bob, given Tim's comments and that we've not seen any changes in our order book for fall 2026, we would still contemplate growth for U.S. and North America in the back half of the year for the wholesale business. Of course, with the shift that we're seeing, that's going to be much more back-end weighted, where we'll probably see a decline in Q3 and an increase or growth in Q4. Bob Drbul: Okay, great. Just, Jim, on the second piece of the IEEPA tariff refunds, how does that go into play? How and when will that play out in the gross margin line? Is that second half 2026? Does that flow into 2027? Jim Swanson: Well, we received the refund, as Tim touched on in the prepared remarks. Bob Drbul: Yeah. Jim Swanson: Having said that, what we realized in the P&L was about a $60 million benefit to operating margin. That left about $15 million of what we received in refunds on the balance sheet, as a credit to inventory. That will be realized over the balance of this year, relatively ratably between Q3 and Q4. Of course, as we've indicated, there is an offset related to factory accommodations that'll likely take place in Q3. You'd expect a Q3 margin headwind and a Q4 margin tailwind related to all that. Bob Drbul: Great. Thank you very much. Jim Swanson: Yeah. Thanks, Bob. Operator: Our next question comes from Laurent Vasilescu with BNP Paribas. Please proceed. Laurent Vasilescu: Good afternoon. Thank you very much for taking my question. I wanted to follow up on Bob's question about the shift. Is it fair to assume, should we assume last quarter, you talked about a $10 million shift. This quarter, should we assume it's a $30 million shift from 3Q into 4Q? If that's the case, what region would be impacted? Is it Europe because of the Middle East? I'm just trying to better understand what's the supply chain bottleneck that is leading to this shift. Thanks so much. Jim Swanson: Yeah, sure. Thanks for the question, Laurent. As it relates to the size of the shift, it's north of the $30 million that you referred to. In fact, if we were to adjust for the timing shift that we're seeing, Q3 and Q4 in growth terms would be relatively equivalent in the 4%-5% range. Q3 being a little bit slower growth than Q4 within that. As it pertains to the regions, this is a global impact, but I would say that the predominant set of it is more North America focused, and certainly the Middle East is a contributing factor to this. I think the other element of it is upon the invalidation of the IEEPA tariffs by the Supreme Court. We did see a bit of a rush on the supply chain and capacities. That's part of what's contributing this is importers are trying to get product into the U.S. at that lower 10% rate relative to the risk of a higher rate longer term. The other thing I might mention, as it relates to just the timing and flow of wholesale shipments, is we were a bit earlier in our shipment last year for fall 2025, weighted to the third quarter. Some of this is effective, fall 2025 being early, fall 2026 certainly being later as we see it today. Also keep in mind, when you think about the higher rate of growth in the fourth quarter, we did have a shortage of inventory as we curtailed some production for fall 2025 last year. That's going to provide a bit of a favorable comp as you think about the rate of growth in the fourth quarter. Laurent Vasilescu: Super helpful. Thank you very much. As a follow-up, my second question is on China. On a constant currency basis, it grew mid-single digits. I think in your CFO prepared commentary, it talks about 3Q driven by China, but also Europe direct. Maybe for the audience, can you share what you're seeing in China? I think it's been a little bit rougher, tougher for a lot of names out there. Curious to know, is it due to typhoons, warm weather? Just curious to know what you're seeing, and how do we think about China overall growth rate for this fiscal year? Thank you so much. Tim Boyle: China for us, as you know, we've talked a lot about it being the biggest opportunity for us in growth. We have the typical weather and other disruptions that happen seemingly every year. We still think it's an enormous opportunity for us. We're still quite small there by comparison to others. That's why we're so confident that our business is going to get bigger there, especially when you consider the growth rates in our e-commerce businesses across multiple platforms. I'm still very bullish on China and looking forward to greater things there. Jim Swanson: I'd just add, Laurent, the 618 sales event that we just came through in Q2 that Tim touched on. We saw robust growth as a part of the selling in on that from a dotcom or online perspective. As it relates to growth on the year, we still anticipate China being one of our fastest-growing markets. I think I commented on it last quarter, we anticipated double-digit growth on the year, and I think we're more or less tracking to that same level. Obviously, that's some of the strength of the order book that we've got for the wholesale business in the back half. Laurent Vasilescu: Great. Thank you very much, best of luck. Operator: The next question comes from Paul Lejuez with Citigroup. Please proceed, Paul. Tracy Kogan: Thank you. It's Tracy Kogan filling in for Paul. I was hoping you guys could talk about how your U.S. store business trended by months in 2Q and what you're seeing quarter to date. Was wondering if your gross margin guidance for 3Q also assumes you're more promotional. Thanks. Jim Swanson: That was most notable beginning in the mid to latter part of April, and I think largely coincided with the inflationary pressure that the consumer's under from the fuel and food price standpoint. We really saw that decline in traffic happen and then hold relatively steady throughout the quarter, Tracy. I wouldn't describe it as if there was increasing deterioration as we went through the quarter as much as it was a step function down at a point in time and then kind of holding relatively constant from that point forward. As it relates to how we're thinking about gross margin in Q3, and frankly for the balance of the year, you'll note that we did pass through the benefit of the refund. The other thing that we've done in our outlook on the full year is we had reduced our assumptions in the latter part of the year. We've previously assumed that IEEPA's equivalent tariffs would be in place. We're now assuming that the current tariffs, as we know them, in the 10%-12.5% range, would be there. The offset to that is essentially an assumption around the consumer environment, a bit more pressure, and the continuation of some of these promotions. Not to mention with fuel prices going up and the anticipation of some incremental freight charges from predominantly an outbound standpoint. Tracy Kogan: Got it. Thank you very much. Operator: The next question comes from Mitch Kummetz with Seaport Global. Please proceed. Mitch Kummetz: Yes, thanks for taking my questions. Can you talk a little bit about what DTC and at-once assumptions are embedded in your back-half outlook? Jim Swanson: Yeah. Mitch, I presume you're talking about the U.S. business. By and large, I would just describe, we've cautioned a bit more risk here today with what we're seeing from a macro standpoint in addition to the supply side of things. For the most part, they're consistent with the more recent trend that we've seen in the business. The cancellation side of things, like we've touched on, we've not seen anything meaningful in the form of cancellations. We just note the risk with what we're seeing with the consumer, and that's the reason why we're a bit more cautionary today with regard to the range and where we might fall within that range. Mitch Kummetz: Tim, in your prepared remarks, you talked a little bit about new customer acquisition on the Columbia brand side. Could you just maybe elaborate on that? I think you said that you're picking up younger consumers, which I think is part of your strategy with ACCELERATE. Can you talk a little bit about maybe who you're bringing in? What are these new consumers buying? Are they buying the newer elevated products? What are you learning from this, and is this, to some extent, a proof point that the strategy's working? Tim Boyle: Yeah, certainly. Well, we can see the age of these consumers and sort of in general, it's really encouraging to see the results of their purchases as it relates to our more expensive product, especially as it relates to footwear. We think this is a definite result of the promotional activities, not dollar promotional, but marketing promotional activities as it relates to the impact of the ACCELERATE marketing efforts we've been focusing on, including the Expedition Impossible, that's been so highly lauded by the various groups that measure advertising, as well as what we've done with Robert Irwin. We just see some great results there, and it's very encouraging in terms of how we're promoting the younger products that we're offering. Mitch Kummetz: maybe lastly, just on the strength of the spring order book. Do you at this point sort of anticipate that will translate into low to mid-single digit sales growth in the first half of-- I know you're not guiding the next year, but is that how we should think about it, that should be driving that type of growth rate through the first half of next year? Jim Swanson: Yeah, the audio's a little bit weak for us, Mitch, but I think your question was related to the spring 2027 order book. Based on the visibility that we have today, we've got roughly 90% of the orders are in, that gives us the indication of the low single to mid-single digit rate of growth in the first half of next year from a wholesale standpoint. We're hopeful that we'll continue to take that order book over the course of the next couple of months and the potential to be on the upper end of that. We'll look forward to providing an update in October. Tim Boyle: Yeah, I guess I would also point out that the category that's most encouraging in our spring order book is footwear. We've been talking for a long time about the opportunities there. It's great to see the business moving forward there, especially in more expensive products. Mitch Kummetz: Great. Thanks very much. Operator: The next question comes from Jonathan Komp with Baird. Please proceed. Jonathan Komp: Yeah. Hi, good afternoon. I wanted to ask about the percentage of newness for the Columbia brand. If you think about the DTC business and also your wholesale partners, how that might look into the fall and spring of next year. Maybe related to the spring commentary, have you shared what units and pricing look like within the order book that you referenced? Tim Boyle: Well, as it relates to newness, probably the most exciting item that we have for fall 2026 is our Amaze Puff collection, which literally is not new. It was debuted last year, but it doubled in terms of revenue for fall 2026. That's just an example of how when we move forward with a really interesting product and market it properly, that we can be incredibly successful. I guess it's also important to point out one of our very really basic items, the Bahama shirt, which celebrated its 30th anniversary this year. When we promoted it and told stories about its heritage, the volumes spiked, and that's going to be a really big part of the future of our business is re-energizing some of our more important classic heritage items. That would include the Tamiami shirt, which is a 20-year anniversary this year, and we'll be promoting that as well. When we talk about the percentage of newness, we really talk about both reinvigorating established products as well as adding new. The new, I would say, is going to be a smaller percentage of the total, but important. Jim Swanson: John, as it relates to the latter part of your question on dollars in units for the spring 2027 order book, there are no meaningful changes that I would describe in terms of pricing. That low to mid-single digit %, think about that both relatively on an equivalent basis, both in dollars and in units. Jonathan Komp: Okay, that's really helpful. Maybe just a broader question, Jim, as you think about the multi-year potential to build back to a double-digit operating margin. There's obviously a lot of moving parts currently with the tariff uncertainty and some of the accommodations to your factory partners. I'm wondering, as you think about that multi-year build back or recovery, is that any more clear to you today, or do you have any broader perspective on appropriate timelines to think about that? Thank you. Jim Swanson: There's nothing new to provide in terms of the timeline. I think the way we would describe this and the way I certainly think about it is there's been a lot of groundwork laid over the better part of the last few years. We've touched on the profit improvement program and some of the cost savings and efficiency that we're building in the business from that vantage point, importantly, the ACCELERATE strategy that we've been working on for quite some time as well. Our ability to get back to and achieve double digit and % Or in above operating margins is really dependent upon getting that top line turning the right direction on a more consistent basis. Certainly, we're encouraged with what we're seeing from an order book standpoint for both fall 2026 and spring 2027, that gives us that confidence as we look forward. I can't today pinpoint the timeline that we're necessarily seeking to get back to that. Just a lot of great work being done across the company. Jonathan Komp: Okay, great. Appreciate the color. Thanks. Operator: Up next is Mauricio Serna with UBS. Please proceed. Mauricio Serna: Great. Good afternoon. Thanks for taking our questions. A couple questions on sales. Just to confirm, for U.S. wholesale in the back half, is the expectation still to be low to mid-single digit growth? How should we think about that in Q3 versus Q4? Maybe could you talk a little bit more about what you're seeing in sell-through of the core Columbia product over the last quarter? Thank you. Jim Swanson: I can start out, Mauricio, then I'll have Tim jump in here a bit as well. As it pertains to the fall 2026 order book and last quarter, we'd indicated directionally the order book both globally and in the U.S. and from a U.S. standpoint across the brand portfolio, this holds true for the Columbia brand as well, that we still contemplated low single digit to mid-single digit % growth. As we sit here today, we've not taken anything different than we ordinarily would expect at this point in time of the season from a cancellation standpoint. Of course, this is all dependent upon our in-season execution, getting things into the marketplace, the consumer, and so forth. That would be the overarching caveat. As it pertains to the Q3, Q4 flow of that, we're going to anticipate Q3 is going to be down due to the later shipments, you'd expect growth in the fourth quarter. I'll shift it over to Tim as it relates to your question on, I think, sell-through that we're currently seeing in the marketplace. Tim Boyle: Yeah. As you might remember, our spring 2026 order book was disappointing. It was down from prior periods. We shipped in a smaller quantity of merchandise. As it relates to sell-through, I would say the newest products that we have were very high sell-through, as well as I mentioned, the Bahama shirt, which is a classic that we remarketed and reinvigorated as a great new product. Its sales were terrific. Our order book conversion actually was stronger than we had thought it was going to be. That having been said, it's never as good as we'd like it to be, but we're pleased with the results, and it bodes well when you have a growing spring 2027 order book after being down in 2026. Mauricio Serna: Got it. Very helpful. Just a quick follow-up on gross margin. Trying to understand the commentary of slightly higher promotions. Is that across all regions or U.S. only? Just trying to understand that part of both in stores and e-commerce, how to try to figure out that part. Just as you think about 2027 order books and the spring order book, anything that you can tell us about the input cost, just given the elevated oil prices? How are you thinking about that part of the puts and takes for next year? Jim Swanson: Yeah. As it relates to gross margin and promotion discount activity in the third and fourth quarter, it's too difficult to probably parse that down by geography, Mauricio, what I would say is I would anticipate to the degree we do have that, and of course, we're trying to maximize the revenue and profitability, so we'll only do that which is needed to stimulate demand and velocity of sales. With that said, to the degree that occurs, it's more likely in the brick-and-mortar channel and within the outlet side of that, which is for us more of a U.S. concentration in terms of where the outlets are located. Certainly, we're continuing our efforts in terms of being less promotional and making sure that columbia.com is the best representation of the brand and really elevating it through the ACCELERATE strategy. I think that answers the first part of your question. To come back to the second part, as it relates to input costs and what we've seen, particularly from an oil standpoint, looking out to next year, as we've taken the vast majority of the spring 2027 order book that we're discussing here today, most of the input cost to that had been staged or procured prior to oil price increases. Only modestly would we expect to see input cost pressure in spring 2027. Of course, as we get into the fall 2027 season and seeing oil prices continue to hover in the $90-$100 range as of late, that's certainly going to be a headwind that we're going to need to address. We're still in the midst of finalizing the product line and going to market here for fall 2027 in the next couple of months, so it'd be premature for me to get ahead of that in terms of describing what impact that might have and the mitigations and actions we're taking due to make sure that we're maintaining product margin. Mauricio Serna: Understood. Thank you so much. Operator: Up next is Peter McGoldrick with Stifel. Please proceed. Peter McGoldrick: Yeah, thanks for taking my question. Just there you mentioned promotions only to what is needed to stimulate demand. As we think of things becoming more promotional in DTC, should we contemplate that as a reaction to in-season lower traffic? Is there any level of channel inventory imbalance or any pushback from the consumer representing some sensitivity to paying full price? Jim Swanson: I think it's a combination of things. The inventory side of it, I would not emphasize. I think inventory is, generally speaking, at least for us and across the channel from everything we've seen, is pretty darn clean at this point in time. To the degree there's that need to stimulate the demand, I think it's a combination of what you saw in Q2 with traffic declines and making sure we're capitalizing on those consumers that are coming through the doors. To some degree, Peter, we are seeing a lot more pressure on the consumer. I don't think that's any surprise with just seeing where fuel and food prices and everything else are, and apparel and footwear is generally viewed as a discretionary good. There's more elasticity with that. We're dynamically adjusting price to ensure that we keep the volume moving. Tim Boyle: Yeah, Peter, I just would point out that the weather tends to be much more impactful than almost any economic indicator. Peter McGoldrick: Appreciate that. Yeah, I guess following up on the pricing aspect and bigger picture, now that we have some better visibility to input costs on the tariff side, can you help us think about the go-forward philosophy on marching the price range higher as you balance Columbia's value proposition against the cost reality? Should we expect any change to how you're approaching price in future seasons? Tim Boyle: Well, I would hope that we have more solid information on tariffs, but we're never really 100% sure how that will play out. The focus for us has been on markets where tariffs are less impactful, i.e., the international markets. Jim Swanson: Yeah, I think with that, Peter, certainly as we're developing product for the dynamic, active consumer. I think looking at opportunities where from an overall mix of product with good, better, and best, and particularly on the better/best side of the equation, and that's where we're looking to grow with the dynamic, active, and professional lead. Those are areas where we think there's opportunity to take some price in the mix of our overall business over time. Peter McGoldrick: All right. Thank you very much. Operator: The next question comes from Tom Nikic with Needham. Please proceed, Tom. Tom Nikic: Hey, guys. Thanks for taking my question. Just wanted to follow up on some of the questions around pricing and promos, et cetera. Have you seen any kind of downward pressure on pricing across the competitive landscape? Like are competitors kind of reinvesting tariff refunds back into pricing or anything like that? Or has some of your expectations around promo activity more just a function of what you're seeing in your own business? Tim Boyle: No, I would say based on the seasonal nature of products, we're really talking about natural, normal liquidation of spring product that happens at this time of the year and new product coming in at which are seasonally correct outerwear, insulated products. There's been no activity that we've seen that would be outside of the normal. Again, the tariff rates are not that unusually low. We hope that they stay that way. Tom Nikic: Understood. All right. Thanks very much. Best of luck the rest of the year. Tim Boyle: Thank you, Tom. Operator: We have reached the end of the question and answer session. I will now turn the call over to Tim Boyle for closing remarks. Tim Boyle: Thanks, operator, thanks everybody who joined the call today. While we're facing increasing external headwinds impacting the business, as we head into the second half, I really believe that Columbia Sportswear Company, like our products, are Engineered for Whatever. With the momentum and resilience we're seeing in our international businesses and the signs of progress we're seeing with the ACCELERATE strategy, combined with our fortress balance sheet, I'm confident that we have the right strategies and competitive advantages to navigate these headwinds and continue on our path back to sustainable long-term growth. Look forward to updating you all on progress again in a few months. Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Columbia Sportswear (COLM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

For the quarter ended June 2026, Columbia Sportswear (COLM) reported revenue of $614.36 million, up 1.5% over the same period last year. EPS came in at -$0.41, compared to -$0.19 in the year-ago quarter. The reported revenue represents a surprise of +1.45% over the Zacks Consensus Estimate of $605.57 million. With the consensus EPS estimate being -$0.41, the company has not delivered EPS surprise. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Columbia Sportswear performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Net sales to unrelated entities- United States: $320.09 million versus $323.73 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -4.5% change. Geographic Net sales to unrelated entities- Canada: $25.23 million compared to the $34.72 million average estimate based on three analysts. The reported number represents a change of -7.4% year over year. Geographic Net sales to unrelated entities- Europe, Middle East and Africa (EMEA): $143.12 million compared to the $130.04 million average estimate based on three analysts. The reported number represents a change of +9.6% year over year. Geographic Net sales to unrelated entities- Latin America and Asia Pacific (LAAP): $125.93 million versus the three-analyst average estimate of $115.59 million. The reported number represents a year-over-year change of +12.1%. Net sales- Channel- Direct-to-consumer: $296.01 million compared to the $289.27 million average estimate based on two analysts. The reported number represents a change of +2.8% year over year. Net sales- Channel- Wholesale: $318.35 million compared to the $316.6 million average estimate based on two analysts. The reported number represents a change of +0.4% year over year. View all Key Company Metrics for Columbia Sportswear here>>> Shares of Columbia Sportswear have returned -0.2% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Sportswear Company (COLM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Columbia Sportswear Company? Here are five stocks we like better. Second-quarter sales rose 2% to $614 million, exceeding guidance as international revenue grew 9% and e-commerce improved, offsetting a 4% decline in U.S. sales. U.S. store traffic, discretionary spending pressures and wholesale weakness remained challenges. Results benefited materially from $78 million in U.S. tariff refunds and interest, lifting reported gross margin to 58.3% and EPS to $0.52; excluding the refunds, the company would have posted an EPS loss of $0.41 and lower gross margin. Columbia maintained its full-year sales-growth outlook of 1% to 3% and raised reported EPS guidance to $4.45–$4.90. Spring 2027 orders indicate low- to mid-single-digit growth, although supply-chain disruptions will shift more than $30 million of shipments from the third quarter into the fourth. 4 Cold-Weather Stocks to Buy as Winter Spending Heats Up Columbia Sportswear (NASDAQ:COLM) reported second-quarter net sales growth that exceeded its guidance, supported by international markets and e-commerce, while U.S. store traffic and consumer spending pressures continued to weigh on domestic results. Net sales increased 2% from a year earlier to $614 million. Chairman and Chief Executive Officer Tim Boyle said international sales, which account for more than 40% of company revenue, rose 9% year over year, while U.S. sales declined 4%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Tariff Troubles: 3 Stocks Planning Higher Prices Reported profitability was materially affected by refunds of previously paid U.S. IEEPA tariffs. Columbia recognized about $78 million in tariff refunds and interest during the quarter, including a $60 million benefit to operating margin, primarily through lower cost of sales, and $2 million of interest income. Another $15 million was recorded as a reduction to inventory. Including the refunds, gross margin expanded 920 basis points to 58.3% and earnings per share were $0.52. Excluding the tariff-refund impact, the company said it would have reported a loss per share of $0.41, roughly in line with the midpoint of its guidance range. Excluding refunds, gross margin declined 50 basis points, reflecting incremental tariffs and increased discounting. → 3 Value ETFs to Consider as Growth Stocks Lag Behind VF Corp's Comeback Story: Supreme Sale and Cost Cuts Boost Stock Boyle said U.S. direct-to-consumer brick-and-mortar traffic softened during the quarter as inflationary pressure affected discretionary spending. The weaker traffic led to higher discounts and lower-than-expected store sales. U.S. direct-to-consumer sales declined slightly, with store closures and softer traffic largely offset by improved conversion. U.S. wholesale sales declined by a high-single-digit percentage, primarily because of a lower spring 2026 wholesale order book. However, Chief Financial Officer Jim Swanson said order conversion was stronger than anticipated. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? U.S. e-commerce rose by a low-single-digit percentage and exceeded plan, driven by the company’s emerging brands. Columbia-brand e-commerce in the U.S. declined by a low-single-digit percentage, though Boyle cited improving measures including new-customer acquisition. Swanson said the U.S. store-traffic decline became most pronounced in the middle to latter part of April and then remained relatively stable through the quarter. The company expects continued consumer pressure, promotional activity and higher outbound freight costs in the second half. International performance was stronger across several markets. On a constant-currency basis, LAAP sales rose 13%, including mid-single-digit growth in China, low-double-digit growth in Japan and Korea, and mid-20% growth in distributor markets. EMEA sales increased by a high-single-digit percentage, while Canada sales declined by a high-single-digit percentage, largely due to wholesale shipment timing and lower spring orders. Boyle said China remains a major growth opportunity for the company, despite weather and macroeconomic disruptions. Swanson said Columbia still expects China to be among its fastest-growing markets for the year and is tracking toward double-digit growth, aided by e-commerce and the second-half wholesale order book. Columbia-brand sales increased 1%, as international growth more than offset U.S. declines. Footwear was a notable area of strength, with global sales up by a high-single-digit percentage. Boyle said technical footwear styles featuring Omni-Max technology performed particularly well, including the Tellurax and Peakfreak hiking lines, Konos trail-running products and Dry Tortuga fishing footwear. The Tellurax Titanium Outdry trail shoe sold out during the quarter after being featured in a campaign with brand ambassador Robert Irwin, according to Boyle. He said the campaign generated more than 3.7 million views and more than 300,000 likes across digital platforms. Among emerging brands, prAna sales rose 14%, aided by double-digit wholesale growth and high-single-digit e-commerce growth. Mountain Hardwear sales increased 6%, driven by double-digit direct-to-consumer growth, partly offset by lower wholesale closeout sales. SOREL sales declined 14%, largely due to later wholesale shipment timing, though the company expects a stronger second half for the brand. The company also announced that Joe Vernachio had returned to lead SOREL as president. Boyle said Columbia expects growth in both SOREL wholesale and direct-to-consumer channels during the second half. Columbia said its spring 2027 wholesale order book is nearly complete, with about 90% of orders received. Current indications point to low- to mid-single-digit percentage growth, with contributions across brands and geographies, including the U.S. Columbia brand. Footwear growth is expected to outpace apparel growth, and Swanson said growth appears similar in both dollar and unit terms, with no meaningful pricing change embedded in the order book. The company continues to expect low- to mid-single-digit growth in U.S. wholesale for the fall 2026 season. However, supply-chain disruptions are expected to shift a meaningful amount of fall shipments from the third quarter into the fourth quarter. Swanson said the shift is greater than $30 million and is global in nature, though predominantly North America-focused. He cited longer logistics lead times related to the Middle East conflict, capacity constraints in a supply-chain node and a rush by importers to move goods into the U.S. under current tariff rates. Adjusted for timing, the company expects third- and fourth-quarter sales growth rates to be relatively similar, in the 4% to 5% range, with the fourth quarter somewhat stronger. For the third quarter, Columbia expects sales to range from down 1.5% to flat compared with the prior year and diluted earnings per share of $1.15 to $1.35. The outlook assumes a gross-margin decline and slight SG&A deleverage. For the full year, the company maintained its net-sales outlook for growth of 1% to 3%. It raised reported gross-margin guidance to 52.1% to 52.3%, representing an increase of 160 to 180 basis points, and raised operating-margin guidance to 8.5% to 9.3%. Reported diluted earnings-per-share guidance was raised to $4.45 to $4.90. The revised outlook assumes current U.S. tariff rates of 10% to 12.5% remain in effect through year-end. Columbia expects the remaining $15 million inventory-related tariff-refund benefit to be recognized relatively evenly in the third and fourth quarters, though factory-partner accommodations are expected to create a net gross-margin headwind in the third quarter and a tailwind in the fourth quarter. Columbia ended the quarter with inventories down 6% in dollars and 7% in units from a year earlier, $625 million in cash and short-term investments, and no debt. Columbia Sportswear Company develops, sources, markets and distributes a wide range of outdoor apparel, footwear and accessories designed for activities such as hiking, skiing, snowboarding and trail running. Its product portfolio includes weatherproof jackets and pants featuring proprietary technologies like Omni-Tech® waterproofing and Omni-Heat® thermal reflective lining, as well as activewear, footwear, hats, gloves and accessories under the Columbia® brand and complementary brands. Founded in 1938 as the Columbia Hat Company in Portland, Oregon, the company initially focused on headwear before expanding into outerwear in the 1970s with the introduction of the Bugaboo® interchange jacket. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Columbia Sportswear Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Second Quarter 2026 Highlights Net sales increased 2 percent (1 percent constant-currency) to $614.4 million, compared to second quarter 2025. In second quarter 2026, the Company received a refund of approximately $78 million of the International Emergency Economic Powers Act ("IEEPA") tariffs previously paid, including interest. Of this amount, $62 million was recognized in earnings, including a benefit of $60 million recognized in cost of sales and $2 million recognized as interest income, and $15 million was recognized as a reduction to inventory, which will benefit cost of sales as the associated inventory is sold in future periods. Gross margin expanded 920 basis points to 58.3 percent of net sales from 49.1 percent of net sales in second quarter 2025. Second quarter 2026 gross margin includes approximately a 980 basis point benefit from the recovery of IEEPA tariffs. Operating income of $30.9 million, or 5.0 percent of net sales, compared to second quarter 2025 operating loss of $23.6 million, or 3.9 percent of net sales. Diluted earnings per share of $0.52, compared to second quarter 2025 net loss per diluted share of $0.19. The recovery of IEEPA tariffs referred to above benefited diluted earnings per share by $0.93. Exited the quarter with $624.6 million of cash, cash equivalents and short-term investments and no borrowings. Full Year 2026 Financial Outlook The following forward-looking statements reflect our expectations as of July 30, 2026 and are subject to significant risks and business uncertainties, including those factors described under "Forward-Looking Statements" below. Additional disclosures and financial outlook details can be found in the Full Year 2026 Financial Outlook section below and the CFO Commentary and Financial Review presentation. Net sales of $3.43 to $3.50 billion (unchanged), representing net sales growth of 1.0 to 3.0 percent (unchanged) compared to 2025. Gross margin of 52.1 percent to 52.3 percent (prior 50.3 percent to 50.5 percent), including the impact of IEEPA tariff refunds. Operating income of $290 to $325 million (prior $230 to $262 million), representing operating margin of 8.5 to 9.3 percent of net sales (prior 6.7 to 7.5 percent). Diluted earnings per share of $4.45 to $4.90 (prior $3.55 to $4.00). PORTLAND, Ore., July 30, 2026--(BUSINESS WIRE)--Columbia Sportswear Company (NASDAQ: COLM, the "Company"), a multi-brand global leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment, today announced second quarter 2026 financial results for the period ended June 30, 2026. Chairman and Chief Executive Officer Tim Boyle commented, "We’re pleased to have delivered net sales exceeding our guidance for the second quarter, driven by the resilience of our international business, which was partly offset by continued softness in the U.S., amid growing global macroeconomic headwinds. "Our reported second quarter earnings and profit margins include the impact of U.S. tariff refunds recognized during the quarter. Excluding this impact, our underlying performance was largely in-line with our expectations. "We continue to see encouraging signs of progress with our ACCELERATE Growth Strategy. We are particularly pleased with our strong second quarter performance in Columbia brand footwear, one of the brand's strategic growth pillars. "While our first half operating results have been in-line to slightly favorable overall as compared to our expectations at the start of the year, our outlook for the second half has incrementally moderated, largely due to external geopolitical and macroeconomic headwinds. That said, we continue to expect our full-year results to fall within the guidance ranges previously provided, excluding the impact of tariff refunds. "Despite the more challenging environment, we remain confident that the Columbia brand ACCELERATE Growth Strategy is beginning to gain traction and is putting us on the right track to return to healthy, sustainable growth over the longer-term. We remain focused on what we can control, and will continue executing our strategy and vision to: accelerate profitable growth; create iconic products that are differentiated, functional and innovative; drive brand engagement with increased, focused demand creation investments; enhance consumer experiences by investing in capabilities to delight and retain consumers; amplify marketplace excellence that is digitally-led, omni-channel, and global; and empower talent that is driven by our core values." CFO's Commentary and Financial Review Presentation Available Online For a detailed review of the Company's second quarter 2026 financial results, please refer to the CFO Commentary and Financial Review presentation furnished to the Securities and Exchange Commission (the "SEC") on a Current Report on Form 8-K and published on the Investor Relations section of the Company's website at http://investor.columbia.com/financial-results at approximately 4:15 p.m. ET today. Analysts and investors are encouraged to review this commentary prior to participating in our conference call. ACCELERATE Growth Strategy ACCELERATE is a growth strategy intended to elevate the Columbia brand to attract younger and more active consumers. It is a multi-year effort centered around several consumer-centric shifts to our brand, product and marketplace strategies, as well as enhanced ways of working. Last year, the Columbia brand launched its new brand platform "Engineered for Whatever" through a global brand campaign, released certain new products designed with a younger, more active consumer in mind, and re-launched the U.S. Columbia.com website, with enhanced features and photography. The foundational shifts of the ACCELERATE Growth Strategy are starting to show tangible signs of traction with our target consumers. As the strategy evolves, the Columbia brand is sharpening its focus on strategic pillars, which leverage our authenticity and heritage in outdoor performance and lifestyle. For more information on the ACCELERATE Growth Strategy, please refer to the CFO Commentary and Financial Review presentation. Second Quarter 2026 Financial Results (All comparisons are between second quarter 2026 and second quarter 2025, unless otherwise noted.) Net sales increased 2 percent (1 percent constant-currency) to $614.4 million from $605.2 million for the comparable period in 2025. Sales growth in most of our international markets was partially offset by lower U.S. net sales, primarily reflecting lower Spring 2026 wholesale orders and, to a lesser extent, declines in our direct-to-consumer brick-and-mortar ("DTC B&M") business. Gross margin expanded 920 basis points to 58.3 percent of net sales from 49.1 percent of net sales for the comparable period in 2025. Gross margin expansion primarily reflected an approximate 980 basis point benefit from the recovery of IEEPA tariffs, partially offset by unfavorable channel profitability resulting from increased promotional activity within DTC B&M. SG&A expenses were $332.2 million, or 54.1 percent of net sales, compared to $325.6 million, or 53.8 percent of net sales, for the comparable period in 2025. The largest changes in SG&A expenses were driven by higher DTC expenses, including store impairment charges and the impact of new stores, partially offset by lower enterprise technology expenses resulting from prior-year actions taken as part of our Profit Improvement Program. Operating income of $30.9 million, or 5.0 percent of net sales, compared to operating loss of $23.6 million, or 3.9 percent of net sales, for the comparable period in 2025. Interest income, net of $6.2 million, compared to $4.8 million for the comparable period in 2025. Income tax expense of $9.7 million resulted in an effective income tax rate of 26.8 percent, compared to income tax benefit of $6.4 million, or an effective income tax rate of 38.5 percent, for the comparable period in 2025. Net income of $26.6 million, or $0.52 per diluted share, compared to net loss of $10.2 million, or $0.19 per diluted share, for the comparable period in 2025. The recovery of IEEPA tariffs benefited diluted earnings per share by $0.93. First Half 2026 Financial Results (All comparisons are between first half 2026 and first half 2025, unless otherwise noted.) Net sales increased 1 percent (decreased 1 percent on a constant-currency basis) to $1,393.4 million from $1,383.7 million for the comparable period in 2025. Gross margin expanded 400 basis points to 54.1 percent of net sales from 50.1 percent of net sales for the comparable period in 2025. Gross margin expansion primarily reflected an approximate 430 basis point benefit from the recovery of IEEPA tariffs, partially offset by unfavorable channel profitability resulting from increased promotional activity within DTC B&M. SG&A expenses were $689.3 million, or 49.5 percent of net sales, compared to $680.1 million, or 49.2 percent of net sales, for the comparable period in 2025. Operating income of $72.9 million, or 5.2 percent of net sales, compared to $22.9 million, or 1.7 percent of net sales, for the comparable period in 2025. Interest income, net of $11.1 million, compared to $11.7 million for the comparable period in 2025. Income tax expense of $22.7 million resulted in an effective income tax rate of 27.2 percent, compared to $6.2 million, or an effective income tax rate of 16.3 percent, for the comparable period in 2025. Net income of $60.9 million, or $1.17 per diluted share, compared to $32.1 million, or $0.58 per diluted share, in 2025. The recovery of IEEPA tariffs benefited diluted earnings per share by $0.92. Balance Sheet as of June 30, 2026 Cash, cash equivalents, and short-term investments totaled $624.6 million, compared to $579.0 million as of June 30, 2025. The Company had no borrowings as of either June 30, 2026 or June 30, 2025. Inventories decreased 6 percent to $874.8 million, compared to $926.9 million as of June 30, 2025. Cash Flow for the Six Months Ended June 30, 2026 Net cash provided by operating activities was $37.5 million, compared to net cash used in operating activities of $62.9 million for the comparable period in 2025. Capital expenditures totaled $25.8 million, compared to $30.0 million for the comparable period in 2025. Share Repurchases for the Six Months Ended June 30, 2026 In first quarter 2026, the Company repurchased 2,498,685 shares of common stock for an aggregate of $150.0 million, or an average price per share of $60.03. The Company did not repurchase shares during second quarter 2026. At June 30, 2026, $276.5 million remained available under our stock repurchase authorization, which does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time. Quarterly Cash Dividend The Board of Directors approved a regular quarterly cash dividend of $0.30 per share, payable on September 3, 2026 to shareholders of record on August 20, 2026. Full Year 2026 Financial Outlook (Additional financial outlook details can be found in the CFO Commentary and Financial Review presentation.) The Company's full year 2026 and third quarter 2026 Financial Outlooks are forward-looking in nature, and the following forward-looking statements reflect our expectations as of July 30, 2026 and are subject to significant risks and business uncertainties, including those factors described under "Forward-Looking Statements" below. These risks and uncertainties limit our ability to accurately forecast results. The Company's Financial Outlook assumes that the current U.S. tariff rates remain in place through the end of this year. Net sales are expected to increase 1.0 to 3.0 percent (unchanged), resulting in net sales of $3.43 to $3.50 billion, compared to $3.40 billion in 2025. Foreign currency translation is expected to benefit net sales by approximately 30 to 50 basis points (prior 50 to 100 basis points). Gross margin is expected to expand 160 to 180 basis points resulting in gross margin of 52.1 to 52.3 percent of net sales (prior 50.3 to 50.5 percent), compared to 50.5 percent of net sales in 2025. Gross margin expectations include an approximate 180 basis points benefit from IEEPA tariff refunds recognized in second quarter 2026. SG&A expenses, as a percent of net sales, are expected to be 43.6 to 44.2 percent (unchanged), compared to SG&A expense as a percent of net sales of 44.2 percent in 2025. Operating margin is expected to be 8.5 to 9.3 percent of net sales (prior 6.7 to 7.5 percent), compared to operating margin of 6.1 percent of net sales in 2025. Effective income tax rate is expected to be approximately 25.0 percent (prior 24.0 to 25.0 percent). Diluted earnings per share is expected to be $4.45 to $4.90 (prior $3.55 to $4.00), compared to $3.24 in 2025. Operating cash flow is expected to be $290 to $310 million (prior $300 to $330 million). Capital expenditures are planned to be in the range of $65 to $75 million (unchanged), roughly in-line with our run rate over the past several years. Third Quarter 2026 Financial Outlook Net sales are expected to be $929 to $943 million, representing a decrease of 1.5 percent to flat from $943 million for the comparable period in 2025. Net sales guidance includes the impact of a higher proportion of Fall 2026 shipments occurring in fourth quarter 2026 in comparison to the timing of Fall 2025 shipments last year. Operating income is expected to be 8.1 to 9.5 percent of net sales, compared to operating income of 7.1 percent of net sales in the comparable period in 2025. Operating margin includes SG&A expense deleverage driven by slight SG&A growth and gross margin contraction primarily resulting from the impact of anticipated accommodations to our factory partners, partially offset by the expected cost of sales benefit from IEEPA tariff refunds included in inventory. Diluted earnings per share is expected to be $1.15 to $1.35, compared to $0.95 for the comparable period in 2025. This range reflects an estimated effective tax rate of approximately 25% for the third quarter. Conference Call The Company will hold its second quarter 2026 conference call at 5:00 p.m. ET today. Dial (888) 506-0062 to participate. The call will also be webcast live on the Investor Relations section of the Company's website at https://investor.columbia.com. Third Quarter 2026 Reporting Date The Company plans to report third quarter 2026 financial results on Thursday, October 29, 2026 at approximately 4:05 p.m. ET. Supplemental Financial Information Since Columbia Sportswear Company is a global company, the comparability of its operating results reported in United States dollars is affected by foreign currency exchange rate fluctuations because the underlying currencies in which it transacts change in value over time compared to the United States dollar. To supplement financial information reported in accordance with GAAP, the Company discloses constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in the exchange rates used to translate net sales generated in foreign currencies into United States dollars. The Company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into United States dollars at the average exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP financial measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results. The non-GAAP financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" table included herein. The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies. Forward-Looking Statements This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Company’s expectations, anticipations or beliefs about the Company's ability to realize growth opportunities, drive long-term market share gains and manage expenses, financial position, marketing strategies, timing and payment of dividends, the impact of foreign currency translation, the effect of, and any changes to, tariff rates and refunds, and the Company’s expectations regarding its financial results for full year 2026 net sales, gross margin, SG&A expenses, operating margin, effective income tax rate, diluted earnings per share, operating cash flow, and capital expenditures, as well as third quarter 2026 net sales, operating margin, and diluted earnings per share. Forward-looking statements often use words such as "will," "anticipate," "estimate," "expect," "should," "may," "plan", "intend", and other words and terms of similar meaning or reference future dates. The Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the Company, including reports on Form 8-K. Potential risks and uncertainties that may affect our future revenues, earnings and performance and could cause the actual results of operations or financial condition of the Company to differ materially from the anticipated results expressed or implied by forward-looking statements in this document include: loss of key customer accounts; our ability to execute our ACCELERATE Growth Strategy; our ability to execute and realize cost savings related to our Profit Improvement Plan; our ability to effectively execute our business strategies, including initiatives to upgrade our business processes and information technology ("IT") systems and investments in our DTC businesses; our ability to maintain the strength and security of our IT systems; the effects of unseasonable weather, including global climate change; the seasonality of our business and timing of orders; trends affecting consumer spending, including changes in the level of consumer spending, and retail traffic patterns; unfavorable economic conditions generally; the financial health of our customers and retailer consolidation; higher than expected rates of order cancellations; changes affecting consumer demand and preferences and fashion trends; changes in international, federal or state tax, labor and other laws and regulations that affect our business, including changes in corporate tax rates, tariffs, international trade policy and geopolitical tensions, or increasing wage rates; our ability to attract and retain key personnel; risks inherent in doing business in foreign markets, including fluctuations in currency exchange rates, global credit market conditions, changes in global regulation and economic and political conditions and disease outbreaks; volatility in global production and transportation costs and capacity and timing; our ability to effectively manage our inventory and our wholesale customers' to manage their inventories; our dependence on third-party manufacturers and suppliers and our ability to source at competitive prices from them or at all and our ability to import product; the effectiveness of our sales and marketing efforts; business disruptions and acts of terrorism, cyber-attacks or military activities around the globe; intense competition in the industry; our ability to establish and protect our intellectual property; and our ability to develop innovative products. The Company cautions that forward-looking statements are inherently less reliable than historical information. The Company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time and it is not possible for the Company to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. About Columbia Sportswear Company Columbia Sportswear Company connects active people with their passions and is a global multi-brand leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment. Founded in 1938 in Portland, Oregon, the Company's brands are sold in 122 countries. In addition to the Columbia® brand, Columbia Sportswear Company also owns the Mountain Hard Wear®, SOREL® and prAna® brands. To learn more, please visit the Company's websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, and www.prana.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730738266/en/ Contacts Investor Relations Contact: Matt Tucker(503) [email protected]

Columbia Sportswear Company COLM is set to report second-quarter fiscal 2026 results on July 30, after market close. The Zacks Consensus Estimate for revenues is pegged at $605.6 million, implying roughly 0.1% growth from the prior year. Meanwhile, the consensus mark for earnings has remained unchanged at a loss of 41 cents per share in the past seven days, wider than the loss of 19 cents reported in the year-ago period. COLM has a trailing four-quarter earnings surprise of 44.1%, on average. Columbia Sportswear Company price-consensus-eps-surprise-chart | Columbia Sportswear Company Quote Columbia Sportswear’s quarterly performance is likely to have benefited from continued strength in its international business, which has remained a key growth driver in recent quarters. In the first quarter of fiscal 2026 earnings call, the company highlighted robust growth across international markets, underscoring the segment’s increasing contribution to total revenues. The sustained momentum in international operations is likely to have supported overall performance during the quarter. Our model predicts 6.8% year-over-year growth in international sales for the second quarter of fiscal 2026. Product innovation and marketing initiatives are likely to have contributed to results. Management noted that newer product collections introduced under the ACCELERATE Growth Strategy, together with the Engineered for Whatever campaign, have been gaining traction with consumers. These initiatives are likely to have supported brand momentum and overall sales performance during the quarter. Additionally, the Columbia brand’s Performance Fishing Gear (PFG) business entered the second quarter with encouraging momentum. In the first quarter, management highlighted strong product performance and continued investments in sales and marketing, including an always-on social media strategy and grassroots initiatives. These efforts are likely to have supported PFG’s momentum and the Columbia brand’s overall performance during the to-be-reported quarter. However, the Middle East conflict remained a concern during the second quarter. Management had earlier reported order cancellations and lower expected orders from certain distributor markets in the region. These challenges are likely to have affected the second-quarter performance. Our proven model does not conclusively predict an earnings beat for COLM. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. COLM has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season: Cintas Corporation CTAS currently has an Earnings ESP of +0.09% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter fiscal 2027 earnings per share is pegged at $1.35, which implies 12.5% year-over-year growth. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for quarterly revenues is pegged at nearly $3 billion, implying 9.2% year-over-year growth. CTAS has a trailing four-quarter earnings surprise of 1.84%, on average. Urban Outfitters, Inc. URBN currently has an Earnings ESP of +1.98% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings per share is pegged at $1.72, which implies 8.9% year-over-year growth. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.7 billion, implying 9.5% year-over-year growth. URBN has a trailing four-quarter earnings surprise of 12.2%, on average. Tapestry, Inc. TPR currently has an Earnings ESP of +2.67% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings per share is pegged at $1.25, which implies 20.2% year-over-year growth. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.9 billion, implying 8.6% year-over-year growth. TPR has a trailing four-quarter negative earnings surprise of 15.6%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Sportswear Company (COLM) : Free Stock Analysis Report Cintas Corporation (CTAS) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research