Columbia Sportswear's Profits Double on the Back of Its Own Shipping Delays

Columbia Sportswear just posted one of its stronger quarters in a while, with net income rising to $84.7 million, or $1.66 per diluted share, up from $52 million a year earlier. Net sales grew a modest 2% to $962.6 million, but operating income jumped 63% to $109.6 million as the company's international business and US direct-to-consumer channel both picked up momentum.

The twist: some of that strength came from a problem. Delayed shipments of the company's autumn and winter 2026 wholesale line pushed US sales lower in the quarter than they otherwise would have been, but Columbia says that inventory is now set to land in the fourth quarter instead, effectively moving revenue forward rather than losing it. Chief executive Tim Boyle pointed to "improved trends in our U.S. DTC business" and "continued momentum of our international business" as evidence the company's ACCELERATE Growth Strategy is working, a claim backed by the prior year's quarter having included a $29 million impairment tied to the prAna and Mountain Hardwear brands that did not recur this time.

Columbia raised the low end of its full-year sales guidance to $3.46 to $3.50 billion and lifted its earnings outlook to $4.65 to $4.90 per share, up from $4.45 to $4.90. The board also approved a $0.30-per-share quarterly dividend, payable December 3.

Source: FashionUnited

Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →