What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-07 compared with 2025-11-06 · 150 added, 327 removed, 187 unchanged (72% of the section changed)

4 unchanged sentences

Columbia, SOREL, Mountain Hardwear, and prAna;

and two major product categories:

apparel, accessories and equipment products and footwear products.

and two major product categories consisting of apparel, accessories and equipment products, and footwear products.

Apparel, accessories and equipment products are provided by our Columbia, Mountain Hardwear and prAna brands.

Footwear products are provided by our Columbia and SOREL brands.

We sell our products in more than 110 countries and operate in four geographic segments:

We sell our products in 115 countries and operate in four geographic segments:

U.S., LAAP, EMEA, and Canada.

2 unchanged sentences

ACCELERATE Growth Strategy

Last year, we announced the Columbia brand (the "Brand") ACCELERATE Growth Strategy.

In 2024, we announced the Columbia brand (the "Brand") ACCELERATE Growth Strategy.

At its core, the ACCELERATE Growth Strategy is intended to elevate the Brand to target a younger and more active consumer while maintaining those consumers that have known and trusted Columbia to offer high quality products at an exceptional value.

It is a multi-year initiative centered around several consumer-centric shifts to the Brand, product and marketplace strategies, as well as enhanced ways of working.

We believe successful execution of the ACCELERATE Growth Strategy can elevate the Brand and drive profitable growth.

The third quarter of 2025 was an important milestone in this journey.

In August 2025, the Columbia brand launched its new brand platform "Engineered for Whatever" through a global brand campaign in print, on social and in-person.

The Columbia brand also released certain new products designed with a younger, more active consumer in mind, such as the Amaze Puff.

Additionally, the Columbia brand re-launched the U.S.

It is a multi-year effort centered around several consumer-centric shifts to the Brand, product and marketplace strategies, as well as enhanced ways of working.

We believe successful operationalization of the ACCELERATE Growth Strategy can elevate the Brand and drive profitable growth.

2025 was an important milestone in this journey.

The Columbia brand launched its new brand platform "Engineered for Whatever" through a global Brand campaign in print, on social and in-person.

The Columbia brand also 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.

We're encouraged with early indicators, which signal that our differentiated marketing communications and enhanced products are resonating with consumers, providing us confidence as we plan for future seasons.

Through the ACCELERATE Growth Strategy, we are focused on achieving the following objectives:

4 unchanged sentences

• deliver integrated full-funnel marketing.

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

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

• accelerate profitable growth;

6 unchanged sentences

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 19

Profit Improvement Program

Concurrent with the ACCELERATE Growth Strategy, we continue to make progress on our multi-year Profit Improvement Program to accelerate profitable growth and improve the efficiency of our operations.

The Profit Improvement Program focuses on four areas of cost reduction and realignment, including:

• operational cost savings;

• organizational cost savings;

• operating model improvements;

• indirect, or non-inventory, spending.

In 2024, our Profit Improvement Program resulted in approximately $90 million of annualized cost savings.

In early 2025, in response to ongoing SG&A expense and operating profit pressures, we initiated a review of our cost structure to pursue additional cost savings, beyond the previously stated $125 to $150 million target.

On a cumulative basis, actions executed in 2024 and through the third quarter of 2025 yield annualized cost savings exceeding $150 million.

Despite achieving our target, we continue to pursue profit improvement opportunities.

Our Profit Improvement Program is intended to lower the Company's SG&A expenses as a percentage of consolidated net sales and to increase the Company's operating margin, over time.

Business Environment and Trends

1 unchanged sentence

| The Columbia brand in the U.S.

has been under pressure due to numerous factors.

The Columbia brand's ACCELERATE Growth Strategy is intended to overcome certain of these headwinds, elevate the consumers' perception of the Brand, and to fuel future growth.

Wholesale sales for the Columbia brand in the U.S.

are expected to be down for full year 2025 and extending into first half 2026.

The Columbia brand's U.S.

direct-to-consumer ("DTC") e-commerce channel has also experienced reduced sales year-over-year as we strategically positioned the site to represent a more premium expression of the Brand.

The Columbia brand’s U.S.

DTC brick-and-mortar business primarily consists of outlet stores, and was supplemented in 2024 by temporary clearance stores to clear excess inventory.

To help change consumers’ perception of the Columbia brand from a solely value-oriented proposition at physical retail, the Brand is investing in in-store marketing at key wholesale partners, enhancing our channel segmentation strategies and opening a small number of premium stores in high-traffic shopping malls in North America.

Elevating consumers’ perception of the Columbia brand will take time.

The Brand’s product refresh is still underway, with different segments of the Brand’s global line being updated over time to resonate more with younger and more active consumers while still serving our value-oriented consumers.

The Columbia brand’s ACCELERATE Growth Strategy and increased investment in demand creation began in the second half of this year and we expect will continue in seasons to come.

Over time, we expect these investments and improvements to elevate the Brand in the marketplace and eventually stimulate consumer demand in the U.S.

Tariffs Uncertainty | We are headquartered in the U.S.

and are subject to the laws and regulations governing companies operating in the U.S.

Incremental tariffs on products imported into the U.S.

from most countries are now in place, in addition to the product-based tariffs the Company has historically paid for its imported goods into the U.S.

Certain of these incremental tariff levels have changed with little notice, making it difficult to predict product costs and market impacts.

We expect Vietnam, Bangladesh, Indonesia, and India to represent approximately 42 percent, 23 percent, 11 percent, and 9 percent, respectively, of our finished goods imports into the U.S.

Additionally, we expect for China to represent a minimal percentage of our finished goods imports into the U.S.

Higher tariffs on U.S.

imports are already adversely impacting our U.S.

product input costs.

We estimate that the 2025 unmitigated financial impact of the incremental tariffs will be approximately $35 to $40 million.

On an annualized basis utilizing an approximation of our 2024 imports of finished goods inventory, we estimate that the unmitigated financial impact of the incremental tariffs will be approxim ately $160 million.

For Fall 2025, in an effort to mitigate the impact of further potential tariff increases, we have partnered with our finished goods vendors and logistics providers to accelerate the timing of inventory receipts.

Additionally, we have worked with our wholesale customers to ship Fall 2025 orders earlier than initially planned, which has helped alleviate storage capacity constraints within our distribution center network.

We also continue to be focused on maximizing our marketplace opportunity.

We are working with our wholesale partners to deliver value to consumers and keep inventory and wholesale partner margins healthy.

We are absorbing the incremental tariff cost related to Fall 2025 as the underlying inventory is sold.

has been under pressure due to numerous factors, including brand perception, changes in consumer trends, and an increasingly competitive environment.

While product functionality, quality and value remain important elements for consideration for some consumers, other consumers have increasingly shifted their preferences to also incorporate versatility and style for everyday wear.

Athletic, athleisure, emerging outdoor, and other brands have capitalized on this casualization and style trend in the historical outdoor space.

The Columbia brand's ACCELERATE Growth Strategy is intended to overcome certain of these headwinds and elevate the consumers' perception of the Brand to bring younger and more active consumers into the Brand, all while continuing to serve historical value-oriented consumers and to fuel future revenue growth.

To elevate consumers’ perception of the Columbia brand, beginning in 2024, the Brand began to refresh portions of its product line to appeal to target consumers and, in Fall 2025, launched a new Brand marketing campaign, Engineered for Whatever, coupled with increased investment in demand creation, which we expect to maintain in seasons to come.

These improvements, among others, are expected to elevate consumers' perception of the Columbia brand over time with the focus on younger and more active consumers becoming more pervasive and sustained within the Brand.

We have already begun to see proof points of the ACCELERATE Growth Strategy, including in products such as the Amaze Puff, which is bringing new younger consumers into the Brand.

Tariffs | On February 20, 2026, the U.S.

Supreme Court ruled that U.S.

tariffs imposed under IEEPA were unconstitutional.

Subsequently, the CIT ruled that the collected tariffs in question shall be refunded in accordance with the law.

The CBP has issued an official notice and launched a special tariff refund program to facilitate such refunds.

We have begun the process of requesting refunds of IEEPA tariffs paid.

However, as of March 31, 2026, we did not recognize any tariff refunds in our unaudited condensed consolidated financial statements as we were unable to assert loss recovery is probable due to the uncertainty surrounding the tariff refund program.

To the extent more clarity comes from the tariff refund program which changes the evaluation of probability, we could recognize a receivable for the amount of the IEEPA tariffs paid.

If recognized, the receivable/refunds will benefit cost of sales to the extent the associated inventory has been sold.

At the time the IEEPA tariffs were ruled unconstitutional, we had already paid approximately $80 million of IEEPA tariffs.

As of March 31, 2026, approximately $55 million of that amount had been realized through cost of sales, with the remainder in inventory.

The ultimate benefit to gross margin from any tariff refunds is subject to variability due to a number of factors, including accommodations to certain third-party vendors.

Further, outstanding amounts to be recovered are also subject to interest payable to us.

We absorbed much of the incremental tariff cost related to Fall 2025 as the costs were realized and did not raise prices on our products in 2025.

As of the date of this filing, we have not received any portion of the IEEPA tariff refunds which we requested.

In addition to the potential recovery of IEEPA tariffs previously paid, we are also facing uncertainly surrounding any future incremental tariffs.

In response to the decision on IEEPA tariffs, the U.S.

President issued an executive order imposing incremental 10% tariffs pursuant to Section 122 of the Trade Act of 1974 for 150 days, effective on February 24, 2026 (“Section 122 Tariffs”).

Our financial outlook assumes Section 122 Tariffs continue through July 2026 before returning to rates approximate to levels that were in place prior to the U.S.

Supreme Court’s tariff ruling on IEEPA.

However, further trade policy actions are very uncertain and volatile.

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

Geopolitical Uncertainty | We sell our products in 115 countries, and our ability to sell, import into and produce in certain markets is impacted by ongoing geopolitical tensions.

The current domestic and international political environment, including volatile trade relations and heightened military action and diplomacy in the Middle East, have contributed to uncertainty surrounding the future state of the global economy.

The conflict in the Middle East, which broke out in late February 2026, has resulted in volatility in energy and transportation costs and heightened risk across international supply chains.

These conditions have already resulted in cancellations of orders as well as reductions of forecasted orders for our Middle East distributor markets.

Further potential impacts include softening of global consumer confidence and spending levels, increases to product input costs with exposure beginning in our Spring 2027 season, as well as disruptions to our supply chain, which may result in increased lead times, increased freight and logistics costs, order cancellations, customer accommodations for inventory that may be delivered late, and factory production disruptions, including potential energy availability issues and potential input bottlenecks.

We continue to closely monitor the situation.

The duration, scope and our ability to effectively respond to the impacts of the conflict could significantly impact our business plans for 2026.

Macroeconomic Pressures | The current global macroeconomic environment is creating a complex and challenging retail environment and has had, and may continue to have, a negative impact on consumer and customer behavior and demand for our products.

These pressures may result in moderation of or a slowdown in our international businesses.

In the U.S., targeted price increases for the U.S.

Spring 2026 and

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 20

For 2026, we intend to continue to take actions to offset the impact of higher U.S.

tariffs on our business.

For Spring 2026, we increased U.S.

pricing by a high-single digit percent, and we are maintaining similar price increases for the Fall 2026 season.

When combined with other mitigation tactics, our goal in 2026 is to offset the dollar impact of higher tariffs.

Longer-term, our goal is to restore our product margin percentage to historical levels through a combination of actions, including price increases, vendor negotiations, re-sourcing product, and other mitigation tactics.

We intend to balance these actions with our overall growth strategy, seeking to minimize the impact to consumer demand and maximize our market share potential.

We expect these incremental tariffs may also impact demand for our products as end consumers weigh discretionary spending and wholesale customers rationalize their open to buy budgets.

We expect our inventories to also be impacted by a reduction in consumer and customer demand, and have rationalized Fall 2025 inventory buys and Spring 2026 inventory plans, while seeking to preserve our strategic sourcing relationships, in order to reduce the risk of holding excess inventory.

Heightened Geopolitical Risk | We sell our products in more than 110 countries and our ability to sell, import into and produce in certain markets may be impacted by ongoing geopolitical tensions.

We believe these tensions will remain elevated and will continue to manifest themselves in certain regions where we operate.

International Trends | We have not seen a meaningful change in trends in the majority of our international businesses, which were quite healthy for the first nine months of 2025.

Across our EMEA and LAAP markets, our product offerings, marketing activations and marketplace strategies are working to create a more premium Columbia brand experience.

However, it is not possible to predict the extent to which U.S.

tariff actions will impact international economic growth and consumer demand for our products globally.

Fall 2026 seasons may further impact demand for our products as end consumers weigh discretionary spending and wholesale customers rationalize their open-to-buy budgets.

RESULTS OF OPERATIONS

11 unchanged sentences

The following discussion includes references to constant-currency net sales, and we provide a reconciliation of this non-GAAP measure to the most directly comparable financial measure calculated in accordance with GAAP below.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 26

Results of Operations — Consolidated

The following table presents the items in our unaudited Condensed Consolidated Statements of Operations, both in dollars and as a percentage of net sales:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except for percentage of net sales and per share amounts)

2025 2024 2025 2024

Net sales $ 779,013 100.0 % $ 778,452 100.0 %

2 unchanged sentences

Selling, general and administrative expenses 357,137 45.8 % 354,471 45.5 %

Impairment of goodwill and intangible assets

29,000 3.1 % — — % 29,000 1.2 % — — %

Net licensing income 4,168 0.5 % 4,922 0.6 %

12 unchanged sentences

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 21

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Net sales by brand, product category and channel are summarized in the following table:

Three Months Ended September 30,

(in thousands, except for percentages) Reported

Adjust for Foreign Currency Translation Constant-currency

% Change Constant-currency

Brand net sales:

Columbia $ 803,973 $ (8,673) $ 795,300 $ 799,653 1% (1)%

SOREL 80,964 (635) 80,329 73,903 10% 9%

prAna 30,375 1 30,376 28,566 6% 6%

Mountain Hardwear 28,113 (4) 28,109 29,646 (5)% (5)%

Total $ 943,425 $ (9,311) $ 934,114 $ 931,768 1% —%

Product category net sales:

Apparel, accessories and equipment $ 734,315 $ (6,275) $ 728,040 $ 735,356 —% (1)%

Footwear 209,110 (3,036) 206,074 196,412 6% 5%

Total $ 943,425 $ (9,311) $ 934,114 $ 931,768 1% —%

Channel net sales:

Wholesale $ 634,171 $ (6,845) $ 627,326 $ 605,217 5% 4%

Direct-to-consumer 309,254 (2,466) 306,788 326,551 (5)% (6)%

Total $ 943,425 $ (9,311) $ 934,114 $ 931,768 1% —%

(1) Constant-currency net sales is a non-GAAP financial measure.

See "Non-GAAP Financial Measure" above for further information.

Our global net sales increase was driven by growth within our EMEA, LAAP and Canada regions, partially offset by declines in the U.S., as compared to the same period in 2024.

The growth in EMEA and LAAP net sales was largely driven by the strength of the Columbia brand within our wholesale business across many markets.

We attribute the international strength of the Columbia brand to the execution of our business strategies and brand positioning, as well as to the benefit of certain trends and/or factors favorably impacting the outdoor apparel and footwear sector.

The growth in Canada net sales reflects the impact of favorable timing of wholesale shipments and modest growth in our Fall 2025 orders, partially offset by declines in our Canada DTC business.

The decline in U.S.

net sales was driven primarily by our U.S.

DTC brick-and-mortar and e-commerce businesses.

wholesale net sales were relatively flat reflecting earlier shipments of Fall 2025 orders, offset by decreased wholesale customer demand and lower closeout sales.

The underlying business trends within our U.S.

business remain under pressure.

Gross Profit.

Gross profit is summarized in the following table:

Three Months Ended September 30,

(in thousands, except for percentages and basis points) 2025 2024 Change

Gross profit $ 471,818 $ 467,559 $ 4,259 1 %

Gross margin 50.0 % 50.2 % -20 bps

Gross margin contracted primarily due to an approximate 160 bps decrease in channel profitability resulting from unmitigated incremental tariffs, which more than offset higher channel profitability from lower clearance and promotional activity.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 28

Selling, General and Administrative Expenses.

SG&A expenses are summarized in the following table:

Three Months Ended September 30,

(in thousands, except for percentages and basis points) 2025 2024 Change

Selling, general and administrative expenses $ 380,892 $ 361,243 $ 19,649 5 %

Selling, general and administrative expenses as percent of net sales 40.4 % 38.8 % 160 bps

SG&A expenses increased primarily due to the following factors:

• higher demand creation expenses of $11.6 million, reflecting increased investment in demand creation in line with our ACCELERATE Growth Strategy;

• higher omni-channel expenses, reflecting higher DTC brick-and-mortar expenses associated with new stores, partially offset by temporary clearance location closures;

• higher other expenses, reflecting higher supply chain costs, partially offset by lower technology expenses.

Impairment of Goodwill and Intangible Assets.

During the third quarter of 2025, we recognized $29.0 million of impairment charges as a result of our interim quantitative impairment tests for the prAna and Mountain Hardwear indefinite-lived intangible assets (which consists of trade names and trademarks) (collectively, "trade names") and goodwill reporting units.

These charges consisted of a $12.2 million impairment charge related to the Mountain Hardwear goodwill reporting unit, comprising the full Mountain Hardwear goodwill balance, an $8.8 million impairment charge related to the prAna goodwill reporting unit, and an $8.0 million impairment charge related to the prAna trade name.

Refer to Note 6 in Part I, Item 1 and our Critical Accounting Estimates in Part I, Item 2 of this Quarterly Report on Form 10-Q for further information regarding these impairments.

Interest Income, Net.

Interest income, net is summarized in the following table:

Three Months Ended September 30,

(in thousands, except for percentages) 2025 2024 Change

Interest income, net $ 2,870 $ 5,364 $ (2,494) (46) %

Interest income, net as a percent of net sales 0.3 % 0.6 %

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

Income Tax Expense.

Income tax expense and the related effective income tax rate are summarized in the following table:

Three Months Ended September 30,

(in thousands, except for percentages) 2025 2024 Change

Income tax expense

$ 18,983 $ 29,031 $ (10,048) (35) %

Effective income tax rate 26.7 % 24.4 %

Our effective income tax rate increased primarily due to the impact of non-deductible impairment charges.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 29

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

Net sales by brand, product category and channel are summarized in the following table:

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except for percentages)

18 unchanged sentences

See "Non-GAAP Financial Measure" above for further information.

Our global net sales increase was driven by growth within our EMEA, LAAP and Canada regions, partially offset by declines in the U.S., as compared to the same period in 2024.

The growth in EMEA and LAAP net sales was largely driven by the strength of the Columbia brand across both wholesale and DTC channels across many markets.

The growth in Canada net sales reflects the impact of favorable timing of wholesale shipments, partially offset by declines in our Canada DTC business.

The decline in U.S.

net sales was driven primarily by our U.S.

DTC brick-and-mortar and e-commerce businesses, partially offset by a modest increase in our U.S.

wholesale business, which benefitted from earlier shipments of Fall 2025 orders, partially offset by lower closeout sales and decreased wholesale customer demand.

The underlying business trends within our U.S.

business remain under pressure.

Our global net sales were relatively flat, reflecting strength of the Columbia brand across most of our international markets and channels within those markets, offset by underlying weakness in the U.S., primarily in the Columbia and SOREL brands across channels.

Net sales included a favorable 280 basis point impact from foreign currency translation.

Gross Profit.

Gross profit is summarized in the following table:

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except for percentages and basis points)

2 unchanged sentences

Gross margin 50.7 % 50.9 % -20 bps

Gross margin expanded primarily due to a favorable increase in channel profitability resulting from healthier overall inventory composition which enabled higher product margins across our wholesale and DTC channels, partially offset by unmitigated incremental tariffs.

Higher wholesale margins were driven by lower closeout sales with higher margins.

Higher DTC margins were driven by less promotional activity and lower outbound freight costs.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 30

Gross margin contracted primarily due to an unfavorable decrease in channel profitability driven by a 310 basis point unmitigated impact of incremental U.S.

tariffs, partially offset by mitigation tactics, which primarily included targeted price increases for our Spring 2026 product lines.

Selling, General and Administrative Expenses.

SG&A expenses are summarized in the following table:

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except for percentages and basis points)

2 unchanged sentences

Selling, general and administrative expenses as percent of net sales 45.8 % 45.5 % 30 bps

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 22

SG&A expenses increased primarily due to the following factors:

• higher omni-channel expenses of $25.4 million, reflecting higher DTC brick-and-mortar expenses associated with new stores, partially offset by temporary clearance location closures;

• higher demand creation expenses of $22.4 million, reflecting our increased investment in demand creation in line with our ACCELERATE Growth Strategy.

Impairment of Goodwill and Intangible Assets.

During the third quarter of 2025, we recognized $29.0 million of impairment charges as a result of our interim quantitative impairment tests for the prAna and Mountain Hardwear trade names and goodwill reporting units.

Refer to Note 6 in Part I, Item 1 and our Critical Accounting Estimates in Part I, Item 2 of this Quarterly Report on Form 10-Q for further information regarding these impairments.

• higher omni-channel expenses, reflecting higher DTC brick-and-mortar expenses, including the impact of new stores and variable expenses;

• an unfavorable impact from foreign currency translation;

partially offset by

• lower expenses in targeted areas of the business resulting from our Profit Improvement Program actions taken last year.

Interest Income, Net.

Interest income, net is summarized in the following table:

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except for percentages)

5 unchanged sentences

Income tax expense and the related effective income tax rate are summarized in the following table:

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except for percentages)

2 unchanged sentences

Effective income tax rate 27.4 % 23.0 %

Our effective income tax rate decreased primarily due to a tax benefit associated with foreign currency losses, partially offset by the impact of non-deductible impairment charges.

Our effective income tax rate increased primarily due to an expense related to share-based compensation for the three months ended March 31, 2026, compared to a benefit related to a decrease in accrued foreign withholding taxes included in the three months ended March 31, 2025.

Results of Operations — Segment

2 unchanged sentences

Refer to Note 3 in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 31

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Net sales by geographic segment are summarized in the following table:

Three Months Ended September 30,

(in thousands, except for percentage changes) Reported

Adjust for Foreign Currency Translation Constant-currency

% Change Constant-currency

$ 546,690 $ — $ 546,690 $ 571,306 (4)% (4)%

LAAP 143,358 (837) 142,521 134,985 6% 6%

EMEA 164,461 (9,080) 155,381 141,785 16% 10%

Canada 88,916 606 89,522 83,692 6% 7%

$ 943,425 $ (9,311) $ 934,114 $ 931,768 1% —%

(1) Constant-currency net sales is a non-GAAP financial measure.

See "Non-GAAP Financial Measure" above for further information.

Segment operating income for each reportable segment and unallocated corporate expenses are summarized in the following table:

Three Months Ended September 30,

(in thousands) 2025 2024 Change

$ 97,054 $ 115,356 $ (18,302)

LAAP 21,118 20,435 683

EMEA 38,221 33,238 4,983

Canada 22,821 22,369 452

Total segment operating income 179,214 191,398 (12,184)

Unallocated corporate expenses 111,828 78,857 32,971

Operating income

$ 67,386 $ 112,541 $ (45,155)

segment operating income decreased $18.3 million to $97.1 million, or 17.8% of net sales, for the third quarter of 2025 from $115.4 million, or 20.2% of net sales, for the comparable period in 2024.

The decrease in U.S.

segment operating income was driven primarily by decreased net sales and increased segment SG&A expenses.

net sales decreased $24.6 million, or 4%, for the third quarter of 2025, compared to the same period in 2024, driven primarily by our U.S.

DTC brick-and-mortar and e-commerce businesses.

The decline in U.S.

DTC brick-and-mortar net sales was primarily attributable to the closure of temporary clearance locations and, to a lesser degree, decreased productivity from existing stores, partially offset by contributions from new stores.

As of September 30, 2025, our U.S.

business operated 172 retail stores and 8 temporary clearance locations, compared to 169 retail stores and 42 temporary clearance locations for the comparable period in 2024.

The decline in U.S.

DTC e-commerce net sales was attributable to a challenging e-commerce environment for outdoor brands and increased competition within the outdoor lifestyle category, coupled partially with ongoing efforts to refine and evolve our online promotions and marketing strategies.

wholesale net sales were relatively flat, reflecting a shift of Fall 2025 shipments into the third quarter of 2025 out of the fourth quarter of 2025, partially offset by lower Fall 2025 orders and lower closeout sales.

The underlying business trends within our U.S.

business remain under pressure.

segment gross margin expanded to 49.5% for the third quarter of 2025 from 49.4% for the comparable period in 2024, driven primarily by higher channel profitability from lower clearance and promotional activity, partially offset by an approximate 160 bps decrease in channel profitability resulting from unmitigated incremental tariffs.

segment SG&A expenses increased as a percentage of net sales to 28.7% for the third quarter of 2025, compared to 25.8% for the same period in 2024, driven primarily by fixed SG&A expense deleverage on decreased net sales.

In total, U.S.

segment SG&A expenses increased 6.4% for the three months ended September 30, 2025, as compared to the same period in 2024, driven primarily by our investment in demand creation in line with our ACCELERATE Growth Strategy.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 32

LAAP segment operating income increased $0.7 million to $21.1 million, or 14.7% of net sales, for the third quarter of 2025 from $20.4 million, or 15.1% of net sales, for the comparable period in 2024.

LAAP net sales increased $8.4 million, or 6% (6% constant-currency), for the third quarter of 2025, compared to the same period in 2024, driven primarily by our LAAP distributor and China businesses, partially offset by declines in our Japan and Korea businesses.

The growth in LAAP distributor net sales was driven by growth in our Fall distributor orders as compared to the same period in the prior year.

The growth in China net sales reflected continued healthy demand, which we believe was attributable to the execution of our marketplace strategies, including premium offerings and unique marketing activations.

The decline in Japan net sales was driven primarily by decreased Japan wholesale net sales, reflecting a shift of Fall 2025 shipments into the fourth quarter of 2025, partially offset by growth in Japan DTC net sales which we believe was attributable to the execution of our marketplace strategies, including localized product offerings.

The decline in Korea net sales was driven primarily by decreased Korea wholesale net sales, partially offset by modest growth in Korea DTC net sales.

LAAP segment gross margin contracted to 53.8% for the third quarter of 2025 from 54.5% for the comparable period in 2024, driven primarily by unfavorable region and channel net sales mix and lower channel profitability reflecting unfavorable input costs, partially offset by higher channel profitability reflecting favorable product mix.

LAAP segment SG&A expenses increased as a percentage of net sales to 35.1% for the third quarter of 2025, compared to 34.1% for the same period in 2024, driven primarily by higher personnel and DTC brick-and-mortar expenses associated with new stores.

In total, LAAP segment SG&A expenses increased 9.3% for the three months ended September 30, 2025, as compared to the same period in 2024.

EMEA segment operating income increased $5.0 million to $38.2 million, or 23.2% of net sales, for the third quarter of 2025 from $33.2 million, or 23.4% of net sales, for the comparable period in 2024.

EMEA net sales increased $22.7 million, or 16% (10% constant-currency), for the third quarter of 2025, compared to the same period in 2024, driven primarily by our Europe-direct business.

The growth in Europe-direct net sales was driven by robust demand across both wholesale and DTC channels, which we believe was attributable to the execution of our marketplace strategies, including marketing activations and partnership with strategic wholesale partners and brand authenticators.

EMEA distributor net sales decreased modestly, reflecting a shift of Fall 2025 shipments out of the third quarter of 2025 into the second quarter of 2025, partially offset by growth in Fall distributor orders, as compared to the same period in 2024.

EMEA segment gross margin expanded to 49.7% for the third quarter of 2025 from 49.6% for the comparable period in 2024, driven primarily by higher channel profitability from lower clearance and promotional activity, partially offset by unfavorable input costs.

EMEA segment SG&A expenses increased as a percentage of net sales to 24.2% for the third quarter of 2025, compared to 23.4% in 2024, driven primarily by higher personnel and demand creation expenses.

In total, EMEA segment SG&A expenses increased 20.1% for the three months ended September 30, 2025, as compared to the same period in 2024.

Canada segment operating income increased $0.5 million to $22.8 million, or 25.7% of net sales, for the third quarter of 2025 from $22.4 million, or 26.7% of net sales, for the comparable period in 2024.

Canada net sales increased $5.2 million, or 6% (7% constant-currency), for the third quarter of 2025, compared to the same period in 2024, driven primarily by our Canada wholesale business, partially offset by declines in our Canada DTC business.

The growth in our Canada wholesale business reflected a shift of Fall 2025 shipments into the third quarter of 2025 out of the fourth quarter of 2025 and modest growth of Fall orders.

Canada segment gross margin contracted to 47.4% for the third quarter of 2025 from 49.4% for the comparative period in 2024, driven primarily by lower channel profitability from unfavorable input costs and unfavorable effects from foreign exchange hedge rates, partially offset by higher channel profitability from lower clearance and promotional activity.

Canada segment SG&A expenses increased as a percentage of net sales to 17.2% for the third quarter of 2025, compared to 16.9% for the same period in 2024.

In total, Canada segment SG&A expenses increased 8.1% for the three months ended September 30, 2025, as compared to the same period in 2024.

Unallocated corporate expenses

Unallocated corporate expenses increased by $33.0 million to $111.8 million in the third quarter of 2025, from $78.9 million for the comparable period in 2024, driven primarily by $29.0 million of impairment charges related to Mountain Hardwear and prAna goodwill and the prAna trade name.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 33

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

Net sales by reportable segment are summarized in the following table:

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except for percentage changes)

8 unchanged sentences

See "Non-GAAP Financial Measure" above for further information.

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 23

Segment operating income for each reportable segment and unallocated corporate expenses are summarized in the following table:

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands)

7 unchanged sentences

Operating income $ 41,993 $ 46,508 $ (4,515)

segment operating income decreased $31.5 million to $180.3 million, or 13.3% of net sales, for the nine months ended September 30, 2025 from $211.8 million, or 15.3% of net sales, for the comparable period in 2024.

segment operating income decreased $16.9 million to $49.0 million, or 11.6% of net sales, for the first quarter of 2026 from $66.0 million, or 13.9% of net sales, for the comparable period in 2025.

The decrease in U.S.

segment operating income was driven primarily by decreased net sales and increased segment SG&A expenses.

net sales decreased $33.0 million, or 2%, for the nine months ended September 30, 2025, compared to the same period in 2024, driven primarily by our U.S.

DTC brick-and-mortar and e-commerce businesses, partially offset by a modest increase in U.S.

wholesale net sales.

The decline in U.S.

DTC brick-and-mortar net sales was attributable to the closure of temporary clearance locations and decreased productivity from existing stores, partially offset by contributions from new stores.

As of September 30, 2025, our U.S.

business operated 172 retail stores and 8 temporary clearance locations, compared to 169 retail stores and 42 temporary clearance locations for the comparable period in 2024.

The decline in U.S.

DTC e-commerce net sales was attributable to a challenging e-commerce environment for outdoor brands and increased competition within the outdoor lifestyle category, coupled with a difficult macroeconomic environment weighing on consumer sentiment.

DTC e-commerce business was also partially impacted by ongoing efforts to refine and evolve our online promotions and marketing strategies.

The modest increase in U.S.

wholesale net sales reflected a shift of Fall 2025 shipments into the first nine months of 2025, partially offset by lower closeout sales and lower Fall 2025 orders.

The underlying business trends within our U.S.

business remain under pressure.

segment gross margin expanded to 49.6% for the nine months ended September 30, 2025 from 48.9% for the comparable period in 2024, driven primarily by higher channel profitability from lower clearance and promotional activity, partially offset by unmitigated incremental tariffs.

segment SG&A expenses increased as a percentage of net sales to 32.4% for the nine months ended September 30, 2025, compared to 29.3% for the same period in 2024, driven primarily by fixed SG&A deleverage on decreased net sales.

segment operating income was driven primarily by decreased net sales and gross profit, partially offset by decreased segment SG&A expenses.

net sales decreased $48.7 million, or 10%, for the first quarter of 2026, compared to the same period in 2025, driven by decreased net sales in our U.S.

wholesale and DTC businesses.

We attribute the decline in our U.S.

business to a combination of ongoing challenges as we seek to elevate the Columbia brand in the U.S.

marketplace and external factors, including geopolitical uncertainty and a difficult macroeconomic environment weighing on consumer sentiment.

In addition, results were impacted by inventory supply constraints resulting from our decision to curtail Fall 2025 inventory purchases as a precautionary measure following prior-year U.S.

tariff announcements.

The decline in our U.S.

DTC business was broad-based across the U.S.

DTC e-commerce and brick-and-mortar businesses.

The decline in our U.S.

DTC brick-and-mortar business was further impacted by lower clearance sales, primarily reflecting cleaner inventories and the closure of temporary clearance locations, as well as decreased productivity from existing stores.

As of March 31, 2026, our U.S.

DTC brick-and-mortar business operated 170 retail stores, compared to 169 retail stores for the comparable period in 2025.

segment gross margin contracted to 48.4% for the first quarter of 2026 from 49.1% for the comparable period in 2025 due to an unfavorable decrease in channel profitability driven by a 580 basis point unmitigated impact of incremental U.S.

tariffs, partially offset by mitigation tactics, which primarily included targeted price increases for our Spring 2026 product lines.

segment SG&A expenses increased as a percentage of net sales to 32.5% for the first quarter of 2026, compared to 31.1% for the same period in 2025, driven primarily by fixed SG&A deleverage on decreased net sales.

In total, U.S.

segment SG&A expenses increased 7.8% for the nine months ended September 30, 2025, as compared to the same period in 2024, driven primarily by our investment in demand creation in line with our ACCELERATE Growth Strategy.

segment SG&A expenses decreased 6.3% for the first quarter of 2026, as compared to the same period in 2025.

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

LAAP net sales increased $8.0 million, or 5% (3% constant-currency), for the first quarter of 2026, compared to the same period in 2025, driven primarily by growth in our China, LAAP distributor and Korea businesses, partially offset by a decline in our Japan business.

The growth in China net sales was driven primarily by our China wholesale business, partially aided by earlier wholesale shipment timing.

We believe the China net sales growth was further aided by the execution of our unique marketplace strategies, as well as favorable market conditions driving outdoor category growth in China.

The growth in LAAP distributor net sales was driven by strong growth in our distributor orders as compared to the same period in the prior year.

The growth in Korea net sales was broad-based across all channels, which we believe was attributable to the execution of our marketplace strategies, including unique marketing activations, and improving outdoor category trends, compared to the same period in 2025.

The decline in Japan net sales primarily reflected the impact of decreased inbound international tourism and later wholesale shipment timing, compared to the same period in 2025.

LAAP segment gross margin expanded to 56.9% for the first quarter of 2026 from 56.5% for the comparable period in 2025.

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

In total, LAAP segment SG&A expenses increased 6.9% for the first quarter of 2026, as compared to the same period in 2025.

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 24

LAAP segment operating income increased $6.1 million to $54.5 million, or 13.4% of net sales, for the nine months ended September 30, 2025 from $48.3 million, or 13.0% of net sales, for the comparable period in 2024.

LAAP net sales increased $34.8 million, or 9% (10% constant-currency), for the nine months ended September 30, 2025, compared to the same period in 2024, driven primarily by our China, LAAP distributor and Japan businesses, partially offset by a decline in our Korea business.

The growth in China net sales reflected continued strong demand, which we believe was attributable to the execution of our marketplace strategies throughout the first nine months of 2025, including premium product offerings and unique marketing strategies.

The growth was further aided by positive outdoor category trends, as compared to the same period in 2024.

The growth in LAAP distributor net sales was driven by growth in our distributor orders as compared to the same period in the prior year.

The growth in Japan net sales was driven by healthy demand across all channels, which we believe was attributable to the execution of our marketplace strategies, as well as the effect of increased inbound international tourism through most of the first nine months of 2025, as compared to the same period in 2024.

The decline in Korea net sales reflected unfavorable effects from foreign currency fluctuation, which more than offset constant-currency net sales growth within our Korea wholesale business, partially offset by a decline in our Korea DTC business.

LAAP segment SG&A expenses decreased as a percentage of net sales to 36.3% for the nine months ended September 30, 2025, compared to 36.7% for the same period in 2024, primarily driven by fixed SG&A leverage on increased net sales.

In total, LAAP segment SG&A expenses increased 8.2% for the nine months ended September 30, 2025, as compared to the same period in 2024.

EMEA segment operating income increased $12.0 million to $78.8 million, or 19.6% of net sales, for the nine months ended September 30, 2025 from $66.8 million, or 19.1% of net sales, for the comparable period in 2024.

EMEA segment operating income increased $9.2 million to $28.2 million, or 19.4% of net sales, for the first quarter of 2026 from $19.0 million, or 17.7% of net sales, for the comparable period in 2025.

The increase in EMEA segment operating income was driven primarily by increased net sales and gross profit, partially offset by increased segment SG&A expenses.

EMEA net sales increased $52.3 million, or 15% (13% constant-currency), for the nine months ended September 30, 2025, compared to the same period in 2024, driven by our Europe-direct and EMEA distributor businesses.

The growth in Europe-direct net sales was driven by robust demand across all channels, which we believe was attributable to the execution of our marketplace strategies so far this year, including marketing activations, elevating the online and in-store customer experience, and partnership with strategic wholesale partners and brand authenticators.

The growth in EMEA distributor net sales was primarily driven by growth in our distributor orders as compared to the same period in the prior year.

EMEA segment gross margin expanded to 47.9% for the nine months ended September 30, 2025 from 47.3% for the comparable period in 2024, driven primarily by favorable region and channel mix and higher channel profitability from favorable product mix.

EMEA segment SG&A expenses increased as a percentage of net sales to 25.3% for the nine months ended September 30, 2025, compared to 24.6% for the same period in 2024, primarily driven by higher personnel and DTC brick-and-mortar expenses associated with new stores.

In total, EMEA segment SG&A expenses increased 18.1% for the nine months ended September 30, 2025, as compared to the same period in 2024.

Canada segment operating income decreased $3.7 million to $29.8 million, or 18.2% of net sales, for the nine months ended September 30, 2025 from $33.5 million, or 20.6% of net sales, for the comparable period in 2024.

Canada net sales increased $1.0 million, or 1% (4% constant-currency), for the nine months ended September 30, 2025, compared to the same period in 2024, driven primarily by our Canada wholesale business, partially offset by declines in our Canada DTC business.

Canada segment gross margin contracted to 48.6% for the nine months ended September 30, 2025 from 49.4% for the comparable period in 2024, driven primarily by unfavorable channel mix, partially offset by higher channel profitability from lower clearance and promotional activity.

Canada segment SG&A expenses increased as a percentage of net sales to 23.2% for the nine months ended September 30, 2025, compared to 20.9% for the same period in 2024.

In total, Canada segment SG&A expenses increased 11.6% for the nine months ended September 30, 2025, as compared to the same period in 2024.

EMEA net sales increased $37.9 million, or 35% (21% constant-currency), for the first quarter of 2026, compared to the same period in 2025, driven by growth in our Europe-direct and EMEA distributor businesses.

The growth in Europe-direct net sales was fueled by strong Europe-direct DTC performance, partially reflecting promotional activity, and healthy Europe-direct wholesale sales, partially reflecting earlier wholesale shipment timing.

Europe-direct's DTC brick-and-mortar business drove particularly strong growth for the first quarter of 2026, reflecting increased productivity from existing stores, as well as contributions from new stores.

Results across all channels reflected robust demand for winter season products and ample inventory availability.

We believe Europe-direct net sales growth across channels was also attributable to the execution of our marketplace strategies, including marketing activations.

The growth in EMEA distributor net sales was driven primarily by earlier wholesale shipment timing and healthy growth in our distributor orders, as compared to the same period in 2025.

EMEA segment gross margin expanded to 51.5% for the first quarter of 2026 from 50.8% for the comparable period in 2025, driven primarily by a favorable increase in channel profitability reflecting lower outbound shipping expenses and favorable sales mix, as well as a favorable increase in channel and regional net sales mix reflecting a higher portion of Europe-direct DTC sales, partially offset by higher Europe-direct DTC promotional activity.

EMEA segment SG&A expenses decreased as a percentage of net sales to 28.9% for the first quarter of 2026, compared to 29.9% for the same period in 2025, primarily driven by fixed SG&A leverage on increased net sales.

In total, EMEA segment SG&A expenses increased 30.9% for the first quarter of 2026, as compared to the same period in 2025, driven primarily by unfavorable impacts from foreign currency translation and higher DTC brick-and-mortar expenses, including personnel expenses and variable expenses from higher DTC sales.

Canada segment operating income decreased $0.7 million to $8.2 million, or 16.1% of net sales, for the first quarter of 2026 from $9.0 million, or 18.8% of net sales, for the comparable period in 2025.

Canada net sales increased $3.4 million, or 7% (1% constant-currency), for the first quarter of 2026, compared to the same period in 2025, driven by our Canada DTC brick-and-mortar business, reflecting increased productivity from existing stores and strong demand for winter season products, partially aided by promotional activity in the first quarter of 2026, compared to the same period in 2025.

Canada segment gross margin contracted to 48.1% for the first quarter of 2026 from 50.9% for the comparable period in 2025, driven primarily by an unfavorable decrease in channel profitability reflecting higher closeout sales at lower margins.

Canada segment SG&A expenses increased as a percentage of net sales to 24.4% for the first quarter of 2026, compared to 24.3% for the same period in 2025.

In total, Canada segment SG&A expenses increased 7.7% for the first quarter of 2026, as compared to the same period in 2025.

Unallocated corporate expenses

Unallocated corporate expenses increased by $26.1 million to $253.2 million for the nine months ended September 30, 2025 from $227.1 million for the comparable period in 2024, driven primarily by $29.0 million of impairment charges related to Mountain Hardwear and prAna goodwill and the prAna trade name.

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

LIQUIDITY AND CAPITAL RESOURCES

2 unchanged sentences

Our products are marketed on a seasonal basis and our sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed throughout the year.

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 35

cash equivalents and short-term investments balances generally are at their lowest level just prior to the start of the U.S.

Our cash and cash equivalents and short-term investments balances generally are at their lowest level just prior to the start of the U.S.

holiday season and increase during the fourth quarter from collection of wholesale business receivables and fourth quarter DTC sales.

This trough cash position is impacted by the amount of product we order from our contract manufacturers in anticipation of customer demand and is more heavily impacted in advance of periods of expected high demand.

Our cash position is also impacted by incremental tariff costs for U.S.

Our cash position is also impacted by our capital allocation approach.

In addition, our cash position is impacted by incremental tariff costs for U.S.

product, which may fluctuate based on changes in trade policies.

While we currently project having adequate liquidity to meet our short-term and long-term working capital needs, we have a $500.0 million committed credit facility on which we can draw, should it be needed, until we receive cash receipts in the fourth quarter.

Refer to "Sources of Liquidity" below for further information regarding our domestic credit facility.

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 25

Cash Flow Activities

Cash flows are summarized in the following table:

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands)

6 unchanged sentences

Net decrease in cash and cash equivalents

The change in cash flows used in operating activities for the nine months ended September 30, 2025 was primarily driven by a $256.3 million increase in cash used in changes in assets and liabilities.

The most significant comparative changes in assets and liabilities included Accounts payable , Inventories , and Prepaid expenses and other current assets.

A $129.9 million increase in cash used in Accounts payable and $43.9 million increase in cash used in Inventories were primarily driven by earlier timing of inventory receipts and payments, in part to proactively mitigate the impact of further incremental tariffs.

A $32.9 million decrease in cash provided by Prepaid expenses and other current assets was primarily driven by an increase in U.S.

prepaid income taxes.

Net cash provided by investing activities was $239.1 million for the nine months ended September 30, 2025, compared to $321.1 million for the nine months ended September 30, 2024.

The decrease in cash provided by investing was primarily driven by lower sales and maturities of short-term investments for the nine months ended September 30, 2025, as compared to the same period in 2024.

Net cash used in financing activities was $221.8 million for the nine months ended September 30, 2025, compared to $284.6 million for the nine months ended September 30, 2024.

The decrease in cash used in financing was primarily driven by lower share repurchases of common stock for the nine months ended September 30, 2025, as compared to the same period in 2024.

$ (122,687) $ (208,530) $ 85,843

The change in cash flows used in operating activities for the three months ended March 31, 2026 was primarily driven by a $42.9 million increase in cash used in changes in assets and liabilities.

The most significant comparative change in assets and liabilities was driven by changes in Accounts payable.

The $30.3 million increase in cash used in Accounts payable was driven primarily by the timing of receipt and payment of invoices.

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

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

Sources of Liquidity

Cash and cash equivalents and short-term investments

As of September 30, 2025, we had cash and cash equivalents of $228.8 million and short-term investments of $7.2 million, compared to $531.9 million and $283.6 million, respectively, as of December 31, 2024 and $306.7 million and $67.2 million, respectively, as of September 30, 2024.

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

Committed credit facilities

As of September 30, 2025, we had available an unsecured, committed revolving credit facility, which provides for borrowings up to $500.0 million.

We were in compliance with all associated covenants and there was no balance outstanding under the facility.

Refer to Note 6 in Part II, Item 8 of our Annual Report on Form 10-K for further information regarding our domestic credit facility.

Further, as of September 30, 2025, our European subsidiary had available an unsecured, committed line of credit, which is guaranteed by the Company and provides for borrowings up to €5.0 million (approximately US$5.9 million).

In March 2026, we terminated our prior domestic credit agreement and, simultaneously, entered into a new Domestic Credit Agreement which provides for up to $500.0 million of borrowings pursuant to an unsecured, committed revolving credit facility.

As of March 31, 2026, we were in compliance with all associated covenants and there was no balance outstanding under the facility.

Refer to Note 7 in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.

Further, as of March 31, 2026, our European subsidiary had available an unsecured, committed overdraft facility, which provides for borrowings up to €3.0 million (approximately US$3.4 million).

There was no balance outstanding under the facility.

Uncommitted credit facilities

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 36

As of September 30, 2025, collectively, our international subsidiaries had unsecured, uncommitted lines of credit, credit facilities and overdraft facilities, providing for borrowings up to approximately US$101.2 million.

As of March 31, 2026, collectively, our international subsidiaries had unsecured, uncommitted lines of credit, credit facilities and overdraft facilities, providing for borrowings up to approximately US$78.3 million.

There were no balances outstanding under these facilities.

1 unchanged sentence

Our expected short-term and long-term cash needs are primarily for working capital and capital expenditures.

We expect to meet these short-term and long-term cash needs primarily with cash and cash equivalents, short-term investments, cash flows from operations and, if needed, borrowings from our existing credit facilities.

Our working capital management goals include maintaining an optimal level of inventory necessary to deliver goods on time to our customers and to satisfy end consumer demand, alleviating manufacturing capacity constraints, and driving efficiencies to minimize the cycle time from the purchase of inventory from our suppliers to the collection of accounts receivable balances from our customers.

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 26

the purchase of inventory from our suppliers to the collection of accounts receivable balances from our customers.

Inventory balances may be elevated in advance of periods of expected high demand.

As of September 30, 2025, our inventory balance was relatively flat at $800.4 million, compared to $798.2 million as of September 30, 2024, as earlier timing of Fall 2025 inventory receipts, in part to proactively mitigate the impact of further incremental tariffs, was offset by earlier wholesale shipments.

As of March 31, 2026, our inventory balance decreased to $624.0 million, from $689.5 million as of December 31, 2025, primarily resulting from our decision to curtail Fall 2025 inventory purchases as a precautionary measure following prior-year U.S.

tariff announcements and to better align inventory supply with anticipated seasonal demand.

The decrease was partially offset by approximately $25 million of incremental tariff costs.

We believe older season inventories represent a manageable portion of our total inventory mix.

13 unchanged sentences

Other cash commitments

Our inventory purchase obligations were $404.2 million as of September 30, 2025, compared to $473.0 million and $437.2 million as of December 31, 2024 and September 30, 2024, respectively.

There have been no other significant changes to our other cash commitments as described in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

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

There have been no other significant changes to our other cash commitments as described in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025.

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Other than described below, there have been no significant changes in our significant accounting policies described in Note 2 in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Indefinite-Lived Intangible Assets and Goodwill

During the third quarter of 2025, the Company identified triggering events related to the prAna and Mountain Hardwear trade names and goodwill reporting units.

As a result, we performed interim quantitative impairment tests where the Company compared the estimated fair

COLUMBIA SPORTSWEAR COMPANY | Q3 2025 FORM 10-Q | 37

values of the prAna and Mountain Hardwear trade names and goodwill reporting units to their carrying values.

Refer to Note 6 in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information regarding these impairments.

In our interim quantitative impairment test of the prAna trade name, the fair value of the prAna trade name was less than its carrying value of $51.8 million and, therefore, an impairment charge of $8.0 million was recorded.

In our interim quantitative impairment test of the Mountain Hardwear trade name, the fair value of the Mountain Hardwear trade name exceeded its carrying value of $15.0 million by approximately 75 percent and, therefore, no impairment charge was recorded.

As part of our evaluation, we performed a sensitivity analysis on the trade name impairment model.

A 300 basis point decline in the compound annual growth rate for net sales assumed over the first five years would reduce the excess of the fair value over the carrying value to approximately 51 percent.

Separately, a 100 basis point increase in the assumed discount rate would reduce the excess of the fair value over the carrying value to approximately 57 percent.

A separate 50 basis point decline in the assumed royalty rate would reduce the excess of the fair value over the carrying amount to approximately 31 percent.

In our interim quantitative impairment test of the prAna reporting unit, the fair value of the prAna reporting unit was less than its carrying value of $12.2 million and, therefore, an impairment charge of $8.8 million was recorded.

In our interim quantitative impairment test of the Mountain Hardwear reporting unit, the fair value of the Mountain Hardwear reporting unit was less than its carrying value and, therefore, an impairment charge of $12.2 million was recorded, comprising the full Mountain Hardwear goodwill balance.

Our impairment tests and related fair value estimates are based on a number of factors, including assumptions and estimates for projected net sales, income, cash flows, discount rates, market-based multiples, and other operating performance measures.

Changes in estimates or the application of alternative assumptions could produce significantly different results.

These assumptions and estimates may change in the future due to changes in economic conditions, changes in our ability to meet sales and profitability objectives, or changes in our business operations or strategic direction.

There have been no significant changes in our significant accounting policies described in Note 2 in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025.

RECENT ACCOUNTING PRONOUNCEMENTS

Refer to Note 1 in Part I, Item 1 of this Quarterly Report on Form 10-Q.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has not been any material change in the market risk disclosure contained in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025.

COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 27

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis