COLUMBIA SPORTSWEAR CO 10-Q

ITEM 1. FINANCIAL STATEMENTS CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) As of (in thousands) March 31, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 319,341 $ 442,028 Short-term investments 216,013 348,766 Accounts receivable, net of allowance of $ 4,618 , and $ 4,665 , respectively 368,311 403,168 Inventories 623,971 689,456 Prepaid expenses and other current assets 90,538 89,080 Total current assets 1,618,174 1,972,498 Property, plant and equipment, net of accumulated depreciation of $ 766,711 , and $ 764,024 , respectively 273,207 279,131 Operating lease right-of-use assets 422,833 425,492 Intangible assets, net 71,221 71,221 Goodwill 5,694 5,694 Deferred income taxes 101,696 108,127 Other non-current assets 70,761 66,330 Total assets $ 2,563,586 $ 2,928,493 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 233,661 $ 385,599 Accrued liabilities 201,840 278,421 Operating lease liabilities 84,704 88,501 Income taxes payable 6,884 8,293 Total current liabilities 527,089 760,814 Non-current operating lease liabilities 387,864 389,188 Income taxes payable 15,620 15,076 Deferred income taxes 1,579 1,033 Other long-term liabilities 49,464 52,239 Total liabilities 981,616 1,218,350 Commitments and contingencies (Note 9) Shareholders' equity: Preferred stock; 10,000 shares authorized; none issued and outstanding — — Common stock (no par value); 250,000 shares authorized; 51,141 , and 53,495 issued and outstanding, respectively — — Retained earnings 1,646,555 1,775,796 Accumulated other comprehensive loss ( 64,585 ) ( 65,653 ) Total shareholders' equity 1,581,970 1,710,143 Total liabilities and shareholders' equity $ 2,563,586 $ 2,928,493 See accompanying notes to unaudited condensed consolidated financial statements. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 1 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, (in thousands, except per share amounts) 2026 2025 Net sales $ 779,013 $ 778,452 Cost of sales 384,051 382,395 Gross profit 394,962 396,057 Selling, general and administrative expenses 357,137 354,471 Net licensing income 4,168 4,922 Operating income 41,993 46,508 Interest income, net 4,883 6,817 Other non-operating income, net 397 1,551 Income before income tax 47,273 54,876 Income tax expense 12,965 12,628 Net income $ 34,308 $ 42,248 Earnings per share: Basic $ 0.65 $ 0.76 Diluted $ 0.65 $ 0.75 Weighted average shares outstanding: Basic 52,627 55,734 Diluted 52,703 55,983 See accompanying notes to unaudited condensed consolidated financial statements. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 2 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31, (in thousands) 2026 2025 Net income $ 34,308 $ 42,248 Other comprehensive income: Change in available-for-sale securities (net of tax effect of $ 31 and $ 26 , respectively) ( 95 ) ( 84 ) Change in derivative transactions (net of tax effects of $( 3,014 ) and $ 2,983 , respectively) 10,165 ( 7,958 ) Foreign currency translation adjustments (net of tax effects of $ 1,119 and $( 223 ), respectively) ( 9,002 ) 9,813 Other comprehensive income 1,068 1,771 Comprehensive income $ 35,376 $ 44,019 See accompanying notes to unaudited condensed consolidated financial statements. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 3 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, (in thousands) 2026 2025 Cash flows from operating activities: Net income $ 34,308 $ 42,248 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 13,691 13,465 Non-cash lease expense 23,038 20,921 Provision for uncollectible accounts receivable 225 763 Deferred income taxes 4,975 2,658 Share-based compensation 6,660 5,224 Other, net ( 2,562 ) ( 2,385 ) Changes in operating assets and liabilities: Accounts receivable 31,648 33,254 Inventories 61,584 71,634 Prepaid expenses and other current assets 1,342 7,868 Other assets ( 133 ) 4,252 Accounts payable ( 147,676 ) ( 117,346 ) Accrued liabilities ( 73,795 ) ( 71,010 ) Income taxes payable ( 936 ) ( 22,227 ) Operating lease assets and liabilities ( 25,472 ) ( 21,609 ) Other liabilities ( 4,439 ) 252 Net cash used in operating activities ( 77,542 ) ( 32,038 ) Cash flows from investing activities: Purchases of short-term investments ( 4,955 ) ( 152,779 ) Sales and maturities of short-term investments 141,975 106,913 Capital expenditures ( 12,447 ) ( 15,565 ) Net cash provided by (used in) investing activities 124,573 ( 61,431 ) Cash flows from financing activities: Payment of line of credit issuance fees ( 843 ) — Proceeds from issuance of common stock related to share-based compensation 1,213 4,931 Tax payments related to share-based compensation ( 4,394 ) ( 5,550 ) Repurchase of common stock ( 150,000 ) ( 101,430 ) Cash dividends paid ( 15,615 ) ( 16,600 ) Net cash used in financing activities ( 169,639 ) ( 118,649 ) Net effect of exchange rate changes on cash ( 79 ) 3,588 Net decrease in cash and cash equivalents ( 122,687 ) ( 208,530 ) Cash and cash equivalents, beginning of period 442,028 531,869 Cash and cash equivalents, end of period $ 319,341 $ 323,339 Supplemental disclosures of cash flow information: Cash paid during the period for income taxes $ 19,515 $ 35,832 Supplemental disclosures of non-cash investing and financing activities: Property, plant and equipment acquired through increase in liabilities $ 5,240 $ 8,712 See accompanying notes to unaudited condensed consolidated financial statements. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 4 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Loss Total Shares Outstanding Amount Balance, December 31, 2025 53,495 $ — $ 1,775,796 $ ( 65,653 ) $ 1,710,143 Net income — — 34,308 — 34,308 Other comprehensive income — — — 1,068 1,068 Cash dividends ($ 0.30 per share) — — ( 15,615 ) — ( 15,615 ) Issuance of common stock related to share-based compensation, net 145 ( 3,181 ) — — ( 3,181 ) Share-based compensation — 6,660 — — 6,660 Repurchase of common stock ( 2,499 ) ( 2,066 ) ( 147,934 ) — ( 150,000 ) Excise taxes related to repurchase of common stock — ( 1,413 ) — — ( 1,413 ) Balance, March 31, 2026 51,141 $ — $ 1,646,555 $ ( 64,585 ) $ 1,581,970 (in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Loss Total Shares Outstanding Amount Balance, December 31, 2024 56,245 $ — $ 1,843,261 $ ( 63,222 ) $ 1,780,039 Net income — — 42,248 — 42,248 Other comprehensive income — — — 1,771 1,771 Cash dividends ($ 0.30 per share) — — ( 16,600 ) — ( 16,600 ) Issuance of common stock related to share-based compensation, net 176 ( 619 ) — — ( 619 ) Share-based compensation — 5,224 — — 5,224 Repurchase of common stock ( 1,252 ) ( 3,747 ) ( 97,691 ) — ( 101,438 ) Excise taxes related to repurchase of common stock — ( 858 ) — — ( 858 ) Balance, March 31, 2025 55,169 $ — $ 1,771,218 $ ( 61,451 ) $ 1,709,767 See accompanying notes to unaudited condensed consolidated financial statements. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 5 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE PAGE Note 1 Basis of Presentation and Organization 7 Note 2 Revenues 8 Note 3 Segment Information 8 Note 4 Share-Based Compensation 10 Note 5 Earnings Per Share 11 Note 6 Intangible Assets, Net and Goodwill 12 Note 7 Short-Term Borrowings and Credit Lines 13 Note 8 Supply Chain Financing 13 Note 9 Commitments and Contingencies 13 Note 10 Shareholders' Equity 14 Note 11 Accumulated Other Comprehensive Loss 14 Note 12 Financial Instruments and Risk Management 15 Note 13 Fair Value Measures 17 COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 6 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of March 31, 2026 and December 31, 2025, the results of operations for the three months ended March 31, 2026 and 2025, and cash flows for the three months ended March 31, 2026 and 2025. The December 31, 2025 financial information was derived from the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. A significant part of the Company's business is of a seasonal nature; therefore, results of operations for the three months ended March 31, 2026 are not necessarily indicative of results to be expected for other quarterly periods or for the full year. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company, however, believes that the disclosures contained in this report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. PRINCIPLES OF CONSOLIDATION The unaudited condensed consolidated financial statements include the accounts of the Company. All significant intercompany balances and transactions have been eliminated in consolidation. ESTIMATES AND ASSUMPTIONS 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. Accordingly, actual results may differ from these estimates and assumptions. The Company's significant estimates relate to sales reserves, excess, close-out and slow-moving inventory, impairment of long-lived assets, impairment of indefinite-lived intangible assets and goodwill, and income taxes. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In November 2024, the FASB issued ASU No. 2024-03 ("ASU 2024-03"), Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which includes amendments intended to improve disclosures about a public business entity's expenses, primarily through additional disaggregation of income statement expenses. The amendments are effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The amendments may be applied prospectively or retrospectively. The Company is currently evaluating the ASU to determine the impact on the Company's disclosures. In September 2025, the FASB issued ASU No. 2025-06 ("ASU 2025-06"), Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which includes amendments intended to modernize the accounting for software costs by removing references to software development stages and clarifying the capitalization threshold. The amendments are effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments may be applied prospectively, retrospectively, or through a modified transition approach. The Company is currently evaluating the ASU to determine the impact on the Company's consolidated financial statements and related disclosures. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 7 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements NOTE 2 — REVENUES DISAGGREGATED REVENUE As disclosed below in Note 3, the Company has four geographic reportable segments: United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA"), and Canada. The following tables disaggregate the Company's reportable segment Net sales by product category and channel, which the Company believes provides a meaningful depiction of how the nature, timing and uncertainty of Net sales are affected by economic factors: Three Months Ended March 31, 2026 (in thousands) U.S. LAAP EMEA Canada Total Product category net sales: Apparel, accessories and equipment $ 352,705 $ 125,048 $ 106,491 $ 38,849 $ 623,093 Footwear 69,749 35,195 38,858 12,118 155,920 Total $ 422,454 $ 160,243 $ 145,349 $ 50,967 $ 779,013 Channel net sales: Wholesale $ 189,100 $ 86,007 $ 96,340 $ 29,625 $ 401,072 Direct-to-consumer 233,354 74,236 49,009 21,342 377,941 Total $ 422,454 $ 160,243 $ 145,349 $ 50,967 $ 779,013 Three Months Ended March 31, 2025 (in thousands) U.S. LAAP EMEA Canada Total Product category net sales: Apparel, accessories and equipment $ 393,633 $ 120,292 $ 76,983 $ 37,912 $ 628,820 Footwear 77,548 31,918 30,497 9,669 149,632 Total $ 471,181 $ 152,210 $ 107,480 $ 47,581 $ 778,452 Channel net sales: Wholesale $ 218,834 $ 78,560 $ 74,006 $ 28,369 $ 399,769 Direct-to-consumer 252,347 73,650 33,474 19,212 378,683 Total $ 471,181 $ 152,210 $ 107,480 $ 47,581 $ 778,452 CONTRACT BALANCES As of March 31, 2026 and December 31, 2025, the Company did not have any contract assets and had an immaterial amount of contract liabilities included in Accrued liabilities on the unaudited Condensed Consolidated Balance Sheets. NOTE 3 — SEGMENT INFORMATION The Company defines its operating segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker ("CODM") to analyze performance, make decisions, and allocate resources. The Company aggregates its operating segments with similar economic and operating characteristics into four reportable segments: U.S., LAAP, EMEA, and Canada. These reportable segments are organized by geographic location. Each geographic segment operates predominantly in one industry: the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 8 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements The Company’s CODM is the Company’s Chief Executive Officer. The Company’s CODM assesses the segments’ performance by using each segment's operating income. The CODM uses each segment's operating income to allocate resources predominantly in the annual budget and forecasting process. The CODM considers plan-to-actual variances on a quarterly basis for the segment operating income profit measure when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses this profit measure to assess the performance of each segment by comparing the results of each segment with one another, and in the overall strategic planning for each segment. Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material. Unallocated corporate expenses consist of expenses incurred by centrally-managed departmental functions, including certain information technology, supply chain, finance, human resources, and legal functions, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs. The following tables present segment financial information for the Company's reportable segments: Three Months Ended March 31, 2026 (in thousands) U.S. LAAP EMEA Canada Total Net sales $ 422,454 $ 160,243 $ 145,349 $ 50,967 $ 779,013 Cost of sales 217,989 69,116 70,496 26,450 384,051 Segment selling, general and administrative expenses 137,410 56,757 42,057 12,424 248,648 Other segment items (a) 18,043 7,475 4,645 3,873 34,036 Segment operating income 49,012 26,895 28,151 8,220 112,278 Reconciliation to income before income tax: Unallocated corporate expenses 70,285 Operating income 41,993 Interest income, net 4,883 Other non-operating income, net 397 Income before income tax $ 47,273 (a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments. Three Months Ended March 31, 2025 (in thousands) U.S. LAAP EMEA Canada Total Net sales $ 471,181 $ 152,210 $ 107,480 $ 47,581 $ 778,452 Cost of sales 239,908 66,278 52,855 23,354 382,395 Segment selling, general and administrative expenses 146,383 53,081 32,138 11,539 243,141 Other segment items (a) 18,936 6,521 3,509 3,725 32,691 Segment operating income 65,954 26,330 18,978 8,963 120,225 Reconciliation to income before income tax: Unallocated corporate expenses 73,717 Operating income 46,508 Interest income, net 6,817 Other non-operating income, net 1,551 Income before income tax $ 54,876 (a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments. The following table presents segment depreciation and amortization expense information: COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 9 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements Three Months Ended March 31, (in thousands) 2026 2025 Depreciation and amortization expense: U.S. $ 6,125 $ 6,101 LAAP 1,650 1,538 EMEA 1,289 1,054 Canada 758 710 Unallocated corporate expense 3,869 4,062 $ 13,691 $ 13,465 The following table presents segment asset information: As of (in thousands) March 31, 2026 December 31, 2025 Inventories: U.S. $ 402,376 $ 416,041 LAAP 92,212 118,633 EMEA 87,619 106,508 Canada 41,764 48,274 Total segment assets 623,971 689,456 All other assets 1,939,615 2,239,037 Total assets $ 2,563,586 $ 2,928,493 CONCENTRATIONS No single customer accounted for 10% or more of Net sales for the three months ended March 31, 2026 and 2025. NOTE 4 — SHARE-BASED COMPENSATION The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other share-based or cash-based awards to officers, executives, key employees and nonemployee members of the Company’s Board of Directors. The Company uses original issuance shares to satisfy share-based payments. SHARE-BASED COMPENSATION EXPENSE Share-based compensation expense, which is primarily recorded in Selling, general, and administrative ("SG&A") expenses , consisted of the following: Three Months Ended March 31, (in thousands) 2026 2025 Share-based compensation expense - equity awards 6,660 5,224 Share-based compensation expense - liability awards 190 283 Total 6,850 5,507 STOCK OPTIONS During the three months ended March 31, 2026, the Company granted a total of 252,530 stock options at a weighted average grant date fair COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 10 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements value of $ 12.95 per option. As of March 31, 2026, unrecognized costs related to outstanding stock options, which are net of estimated forfeitures, totaled $ 7.2 million, before any related tax benefit. These unrecognized costs related to stock options are expected to be recognized over a weighted average period of 2.93 years. RESTRICTED STOCK UNITS Time-Based Restricted Stock Units During the three months ended March 31, 2026, the Company granted 459,880 time-based restricted stock units ("time-based RSUs") at a weighted average grant date fair value of $ 57.27 per time-based RSU. As of March 31, 2026, unrecognized costs related to outstanding time-based RSUs, which are net of estimated forfeitures, totaled $ 49.8 million, before any related tax benefit. These unrecognized costs related to time-based RSUs are expected to be recognized over a weighted average period of 3.11 years. Performance-Based Restricted Stock Units During the three months ended March 31, 2026, the Company granted 41,856 performance-based restricted stock units (“performance-based RSUs”), 5,269 of which were granted at a weighted average grant date fair value of $ 56.95 per performance-based RSU. The remaining 36,587 performance-based RSUs were granted without defined performance targets and, accordingly, did not meet all criteria for grant date fair value to be established in accordance with GAAP. Grant date fair value for the 36,587 performance-based RSUs will not be determined until all grant date criteria are met. As of March 31, 2026, unrecognized costs related to outstanding performance-based RSUs, which are net of estimated forfeitures and reflect achievement of performance forecasted as of the balance sheet date, totaled $ 2.4 million, before any related tax benefit. These unrecognized costs related to performance-based RSUs are expected to be recognized over a weighted average period of 1.95 years. Market-Based Restricted Stock Units During the three months ended March 31, 2026, the Company granted 36,587 market-based restricted stock units (“market-based RSUs”) at a weighted average grant date fair value of $ 75.82 per market-based RSU. As of March 31, 2026, unrecognized costs related to outstanding market-based RSUs, which are net of estimated forfeitures, totaled $ 4.1 million, before any related tax benefit. These unrecognized costs related to market-based RSUs are expected to be recognized over a weighted average period of 1.95 years. Market-Based Long-Term Cash Awards During the three months ended March 31, 2026, the Company issued long-term cash awards to certain of its executive officers with a target value of $ 1.6 million that includes both a market and time-based vesting condition. As of March 31, 2026, the fair value of all outstanding market-based long-term cash awards was $ 3.3 million and the Company had unrecognized compensation costs of $ 2.3 million. These unrecognized costs are expected to be recognized over a weighted average period of 1.97 years. NOTE 5 — EARNINGS PER SHARE Earnings per share ("EPS") is presented on both a basic and diluted basis. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 11 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as follows: Three Months Ended March 31, (in thousands, except per share amounts) 2026 2025 Weighted average common shares outstanding, used in computing basic earnings per share 52,627 55,734 Effect of dilutive stock options and restricted stock units 76 249 Weighted average common shares outstanding, used in computing diluted earnings per share 52,703 55,983 Earnings per share: Basic $ 0.65 $ 0.76 Diluted $ 0.65 $ 0.75 Weighted average common shares excluded (1) 2,363 1,720 (1) Common stock related to stock options, time-based restricted stock units, market-based restricted stock units, and performance-based restricted stock units were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive under the treasury stock method or because the shares were subject to performance or market conditions that had not been met. NOTE 6 — INTANGIBLE ASSETS, NET AND GOODWILL INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following: As of (in thousands) March 31, 2026 December 31, 2025 Intangible assets with definite lives: Patents and purchased technology $ 14,198 $ 14,198 Customer relationships 23,000 23,000 Gross carrying amount 37,198 37,198 Accumulated amortization: Patents and purchased technology ( 14,198 ) ( 14,198 ) Customer relationships ( 23,000 ) ( 23,000 ) Accumulated amortization ( 37,198 ) ( 37,198 ) Net carrying amount — — Intangible assets with indefinite lives 71,221 71,221 Intangible assets, net $ 71,221 $ 71,221 Intangible assets subject to amortization were fully amortized as of March 31, 2026 and December 31, 2025. GOODWILL There have been no changes to the Company's goodwill as described in Note 9 in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 12 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements NOTE 7 — SHORT-TERM BORROWINGS AND CREDIT LINES Except as disclosed below, there have been no significant changes to the Company's short-term borrowings and credit lines as described in Note 11 in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. DOMESTIC CREDIT FACILITY In March 2026, the Company terminated its prior domestic credit agreement and, simultaneously, entered into a new credit agreement (the "Domestic Credit Agreement"). The Domestic Credit Agreement provides for up to $ 500.0 million of borrowings pursuant to an unsecured, committed revolving credit facility (the "Credit Facility") which is available for working capital and general corporate purposes, including a sublimit for the issuance of letters of credit. This Credit Facility matures on March 19, 2031. Interest, generally payable monthly, is based on the Company's option of either the secured overnight financing rate (“SOFR”) plus an applicable margin or a base rate. Base rate is defined as the highest of the following, plus an applicable margin: • the administrative agent's prime rate; • the higher of the federal funds rate or the overnight bank funding rate set by the Federal Reserve Bank of New York, plus 0.50 %; or • the one-month SOFR plus 1.00 %. The applicable margin for SOFR loans will range from 1.00 % to 1.50 % based on the Company’s funded debt ratio. The applicable margin for base rate loans will range from 0.00 % to 0.50 % based on the Company’s funded debt ratio. A commitment fee ranging from 0.10 % to 0.20 % based on the Company's funded debt ratio is paid quarterly on the average daily unused commitment amount of the Credit Facility. The Domestic Credit Agreement includes a financial covenant to maintain a funded debt ratio of not greater than 3.75 to 1.00. In addition, the Domestic Credit Agreement includes customary covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness and liens, engage in mergers, acquisitions and dispositions, and engage in transactions with affiliates, as well as restrict the amount of certain payments, including dividends and share buybacks in the event the Company's funded debt ratio is greater than a set amount. As of March 31, 2026, the Company was in compliance with all associated covenants. As of March 31, 2026 and December 31, 2025, there was no balance outstanding. NOTE 8 — SUPPLY CHAIN FINANCING The Company offers a voluntary supply chain financing (“SCF”) program facilitated through a third-party service provider. Under the program, participating suppliers may, at their sole discretion, elect to receive payment from a select number of third-party financial institutions for one or more of the Company’s valid payment obligations prior to their scheduled due dates. The Company is not a party to the agreements between the participating financial institutions and the suppliers in connection with the program. The Company’s payment terms, including the timing and amount of payments, are based on the original supplier invoices, irrespective of whether a supplier participates in the program. The Company does not have an economic interest in a supplier’s decision to participate in the program and has not pledged any assets as security or provided any guarantees as part of the program. The Company’s outstanding payables under the SCF program were $ 43.4 million and $ 71.9 million as of March 31, 2026 and December 31, 2025, respectively, and were recorded within Accounts payable on the unaudited Condensed Consolidated Balance Sheets. NOTE 9 — COMMITMENTS AND CONTINGENCIES LITIGATION The Company is involved in litigation and various legal matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, and various regulatory compliance activities. Management has considered facts related to legal and regulatory matters and opinions of counsel handling these matters, and does not believe the ultimate resolution of these proceedings will have a material adverse effect on the Company's financial position, results of operations or cash flows. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 13 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements TARIFFS On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unconstitutional. Subsequently, the U.S. Court of International Trade ("CIT") ruled that the collected tariffs in question shall be refunded in accordance with the law. The U.S. Customs and Border Protection ("CBP") has issued an official notice and launched a special tariff refund program to facilitate such refunds. The Company has begun the process of requesting refunds of IEEPA tariffs paid. At the time the IEEPA tariffs were ruled unconstitutional, the Company had already paid approximately $ 80 million of IEEPA tariffs. As of March 31, 2026, approximately $ 55 million of that amount has been realized through cost of sales, with the remainder in inventory. However, as of March 31, 2026, the Company did not recognize any tariff refunds in its unaudited condensed consolidated financial statements as it was unable to assert loss recovery is probable due to the uncertainty surrounding the tariff refund program. As of the date of this report, the Company has not received any portion of the IEEPA tariff refunds which it requested. The Company continues to monitor these developments and assess their potential impact on the Company's operations and unaudited condensed consolidated financial statements. NOTE 10 — SHAREHOLDERS' EQUITY Since the inception of the Company's stock repurchase plan in 2004 through March 31, 2026, the Company's Board of Directors has authorized the repurchase of $ 2.6 billion of the Company's common stock, excluding excise tax. Shares of the Company's common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date. The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time. Under this program as of March 31, 2026, the Company had repurchased 43.5 million shares for an aggregate purchase price of $ 2,323.5 million and had $ 276.5 million remaining available under the share repurchase program, excluding excise tax. During the three months ended March 31, 2026 and 2025, the Company repurchased an aggregate of $ 150.0 million and $ 101.4 million, respectively, of common stock under this program, excluding excise tax. NOTE 11 — ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss on the unaudited Condensed Consolidated Balance Sheets is net of applicable taxes, and consists of unrealized gains and losses on available-for-sale securities, unrealized gains and losses on certain derivative transactions and foreign currency translation adjustments. The following tables set forth the changes in Accumulated other comprehensive loss : (in thousands) Available-for- sale securities Derivative transactions Foreign currency translation adjustments Total Balance as of December 31, 2025 $ 95 $ ( 4,636 ) $ ( 61,112 ) $ ( 65,653 ) Other comprehensive income (loss) before reclassifications — 10,333 ( 9,002 ) 1,331 Amounts reclassified from accumulated other comprehensive loss (1) ( 95 ) ( 168 ) — ( 263 ) Net other comprehensive Income (loss) during the period ( 95 ) 10,165 ( 9,002 ) 1,068 Balance as of March 31, 2026 $ — $ 5,529 $ ( 70,114 ) $ ( 64,585 ) (1) Amounts reclassified are recorded in Net sales , Cost of sales , or Other non-operating income, net on the unaudited Condensed Consolidated Statements of Operations. Refer to Note 12 for further information regarding reclassifications . COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 14 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements (in thousands) Available-for- sale securities Derivative transactions Foreign currency translation adjustments Total Balance as of December 31, 2024 $ 84 $ 23,394 $ ( 86,700 ) $ ( 63,222 ) Other comprehensive income (loss) before reclassifications — ( 5,910 ) 9,813 3,903 Amounts reclassified from accumulated other comprehensive loss (1) ( 84 ) ( 2,048 ) — ( 2,132 ) Net other comprehensive income (loss) during the period ( 84 ) ( 7,958 ) 9,813 1,771 Balance as of March 31, 2025 $ — $ 15,436 $ ( 76,887 ) $ ( 61,451 ) (1) Amounts reclassified are recorded in Net sales , Cost of sales , or Other non-operating income, net on the unaudited Condensed Consolidated Statements of Operations. Refer to Note 12 for further information regarding reclassifications. NOTE 12 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT In the normal course of business, the Company's financial position, results of operations and cash flows are routinely subject to a variety of risks. These risks include risks associated with financial markets, primarily currency exchange rate risk and, to a lesser extent, interest rate risk and equity market risk. The Company regularly assesses these risks and has established policies and business practices designed to mitigate them. The Company does not engage in speculative trading in any financial market. The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales. Subsidiaries that use European euros, Canadian dollars, Japanese yen, Chinese renminbi, or Korean won as their functional currency are primarily exposed to changes in functional currency equivalent cash flows from anticipated U.S. dollar inventory purchases. Subsidiaries that use U.S. dollars and euros as their functional currency also have non-functional currency denominated sales for which the Company hedges the Canadian dollar and British pound sterling. The Company seeks to manage these risks by using currency forward contracts formally designated and effective as cash flow hedges. Hedge effectiveness is generally determined by evaluating the ability of a hedging instrument's cumulative change in fair value to offset the cumulative change in the present value of expected cash flows on the underlying exposures. Time value components ("forward points") for forward contracts are included in the fair value of the cash flow hedge. These costs or benefits are included in Accumulated other comprehensive loss until the underlying hedged transaction is recognized in either Net sales or Cost of sales , at which time, the forward points will also be recognized as a component of Net income . The Company also uses currency forward contracts not formally designated as hedges to manage the consolidated currency exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities by subsidiaries that use U.S. dollars, euros, Canadian dollars, yen, renminbi, or won as their functional currency. Non-functional currency denominated monetary assets and liabilities consists of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and intercompany loans and dividends. The gains and losses generated on these currency forward contracts not formally designated as hedges are expected to be largely offset in Other non-operating income, net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities. The following table presents the gross notional amount of outstanding derivative instruments: As of (in thousands) March 31, 2026 December 31, 2025 Derivative instruments designated as cash flow hedges: Currency forward contracts $ 810,181 $ 808,875 Derivative instruments not designated as hedges: Currency forward contracts $ 297,731 $ 261,805 As of March 31, 2026, $ 3.3 million of deferred net gains on both outstanding and matured derivatives recorded in Accumulated other comprehensive loss are expected to be reclassified to Net income during the next twelve months as a result of underlying hedged transactions also being recorded in Net sales or Cost of sales in the unaudited Condensed Consolidated Statements of Operations. When outstanding derivative contracts mature, actual amounts ultimately reclassified to Net sales or Cost of sales in the unaudited Condensed COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 15 Consolidated Statements of Operations are dependent on U.S. dollar exchange rates in effect against the euro, renminbi, Canadian dollar, won, and yen as well as the euro exchange rate in effect against the pound sterling. As of March 31, 2026, the Company's derivative contracts had a remaining maturity of less than 4 years. The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was $ 6.1 million as of March 31, 2026. All of the Company's derivative counterparties have credit ratings that are investment grade or higher. The Company is a party to master netting arrangements that contain features that allow counterparties to net settle amounts arising from multiple separate derivative transactions or net settle in the case of certain triggering events such as a bankruptcy or major default of one of the counterparties to the transaction. The Company has not pledged assets or posted collateral as a requirement for entering into or maintaining derivative positions. The following table presents the balance sheet classification and fair value of derivative instruments: As of (in thousands) Balance Sheet Classification March 31, 2026 December 31, 2025 Derivative instruments designated as cash flow hedges: Derivative instruments in asset positions: Currency forward contracts Prepaid expenses and other current assets $ 9,021 $ 5,895 Currency forward contracts Other non-current assets $ 8,444 $ 2,788 Derivative instruments in liability positions: Currency forward contracts Accrued liabilities $ 5,248 $ 9,119 Currency forward contracts Other long-term liabilities $ 3,771 $ 5,732 Derivative instruments not designated as cash flow hedges: Derivative instruments in asset positions: Currency forward contracts Prepaid expenses and other current assets $ 1,641 $ 1,144 Derivative instruments in liability positions: Currency forward contracts Accrued liabilities $ 1,655 $ 676 The following table presents the statement of operations effect and classification of derivative instruments: Statement Of Operations Classification Three Months Ended March 31, (in thousands) 2026 2025 Currency forward contracts: Derivative instruments designated as cash flow hedges: Gain (loss) recognized in other comprehensive loss, net of tax — $ 10,333 $ ( 5,910 ) Gain (loss) reclassified from accumulated other comprehensive loss to net income for the effective portion Net sales $ 32 $ ( 441 ) Gain reclassified from accumulated other comprehensive loss to net income for the effective portion Cost of sales $ 263 $ 3,131 Derivative instruments not designated as cash flow hedges: Loss recognized in net income Other non-operating income, net $ ( 6 ) $ ( 612 ) COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 16 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements NOTE 13 — FAIR VALUE MEASURES Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1 — observable inputs such as quoted prices for identical assets or liabilities in active liquid markets; Level 2 — inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and Level 3 — unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions. The Company's assets and liabilities measured at fair value are categorized as Level 1 or Level 2 instruments. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions. Assets and liabilities measured at fair value on a recurring basis are as follows: As of March 31, 2026 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 2,379 $ — $ — $ 2,379 U.S. government treasury bills — 5,000 — 5,000 Time deposits (1) — 27,570 — 27,570 Short-term investments: Available-for-sale short-term investments: (2) U.S. government treasury bills — 199,248 — 199,248 Commercial paper — 14,894 — 14,894 Other short-term investments: Money market funds 241 — — 241 Mutual fund shares 1,630 — — 1,630 Prepaid expenses and other current assets: Derivative financial instruments — 10,662 — 10,662 Other non-current assets: Money market funds 3,422 — — 3,422 Mutual fund shares 31,410 — — 31,410 Derivative financial instruments — 8,444 — 8,444 Total assets measured at fair value $ 39,082 $ 265,818 $ — $ 304,900 Liabilities: Accrued liabilities: Derivative financial instruments $ — $ 6,903 $ — $ 6,903 Other long-term liabilities: Derivative financial instruments — 3,771 — 3,771 Total liabilities measured at fair value $ — $ 10,674 $ — $ 10,674 (1) Time deposits are carried at amortized cost on the unaudited Condensed Consolidated Balance Sheets, which reasonably approximates fair value. (2) Available-for-sale short-term investments have remaining maturities of less than one year. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 17 Table of Contents Notes to unaudited Condensed Consolidated Financial Statements As of December 31, 2025 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 76,680 $ — $ — $ 76,680 U.S. government treasury bills — 50,050 — 50,050 Commercial paper — 24,856 — 24,856 Time deposits (1) — 10,456 — 10,456 Short-term investments: Available-for-sale short-term investments: (2) U.S. government treasury bills — 321,766 — 321,766 Commercial paper — 24,676 — 24,676 Other short-term investments: Money market funds 292 — — 292 Mutual fund shares 2,032 — — 2,032 Prepaid expenses and other current assets: Derivative financial instruments — 7,039 — 7,039 Other non-current assets: Money market funds 3,656 — — 3,656 Mutual fund shares 31,923 — — 31,923 Derivative financial instruments — 2,788 — 2,788 Total assets measured at fair value $ 114,583 $ 441,631 $ — $ 556,214 Liabilities: Accrued liabilities: Derivative financial instruments $ — $ 9,795 $ — $ 9,795 Other long-term liabilities: Derivative financial instruments — 5,732 — 5,732 Total liabilities measured at fair value $ — $ 15,527 $ — $ 15,527 (1) Time deposits are carried at amortized cost on the unaudited Condensed Consolidated Balance Sheets, which reasonably approximates fair value. (2) Available-for-sale short-term investments have remaining maturities of less than one year. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 18 Table of Contents