International and DTC sales support quarterly growth
For the third quarter ended 30 September 2026, net sales increased 2% year on year to $962.6 million. International markets recorded growth, while lower US revenue reflected delayed shipments of Fall 2026 wholesale orders. Improved performance in the US DTC business provided a partial offset.
The shift towards DTC is strategically important for apparel and outdoor brands. Direct online and retail channels give companies greater control over consumer engagement, product presentation and customer data, while reducing reliance on wholesale distribution partners.
Gross margin declined 20 basis points to 49.8%, mainly due to support provided to factory partners, partly offset by tariff refund benefits. Operating income rose to $109.6 million from $67.4 million a year earlier. Net income reached $84.7 million, equivalent to $1.66 per diluted share, compared with $52 million and $0.95 per share in Q3 2025. The prior-year quarter included $29 million in impairment charges related to prAna and Mountain Hardwear.
Nine-month performance and tariff impact
During the first nine months of 2026, net sales increased 1% to $2.36 billion. Gross margin expanded 220 basis points to 52.3%, largely reflecting an approximately 230-basis-point benefit from previously received International Emergency Economic Powers Act (IEEPA) tariff refunds, net of support extended to factory partners.
The refunds also contributed $0.85 to diluted earnings per share over the nine-month period. This means the improvement in reported profitability should be viewed alongside the temporary benefit of tariff recoveries.
Regional performance remained uneven. For the nine-month period, sales declined 5% in the US, while Latin America and Asia Pacific grew 9% and Europe, the Middle East and Africa advanced 15%.
ACCELERATE strategy and the road ahead
Columbia’s ACCELERATE Growth Strategy aims to strengthen brand relevance, attract younger and more active consumers, improve product innovation and enhance digital and omnichannel experiences. The company has highlighted improving momentum in its US DTC e-commerce business as an encouraging development.
Chairman and CEO Tim Boyle said the operating environment remained challenging but added that the strategy was gaining traction and putting the business on course for sustainable long-term growth.
The company expects fourth-quarter net sales of $1.108 billion to $1.145 billion. It also anticipates higher year-end inventory due to earlier production of Spring 2027 products. For the textile and apparel supply chain, the results underline the importance of balancing regional demand, wholesale order timing, inventory planning and cost management as brands navigate changing trade conditions.
