# COLUMBIA SPORTSWEAR CO (COLM) Informational only - not investment advice. CIK: 0001050797 SIC: 2300 Apparel & Other Finishd Prods of Fabrics & Similar Matl SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 23](/major-group/23/) > [SIC 2300 Apparel & Other Finishd Prods of Fabrics & Similar Matl](/industry/2300/) Latest 10-K filed: 2026-02-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=1050797 Filing source: https://www.sec.gov/Archives/edgar/data/1050797/000105079726000028/colm-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 3397351000 | USD | 2025 | 2026-02-25 | | Net income | 177224000 | USD | 2025 | 2026-02-25 | | Assets | 2928493000 | USD | 2025 | 2026-02-25 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001050797.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | 2,377,045,000 | 2,466,105,000 | 2,802,326,000 | 3,042,478,000 | 2,501,554,000 | 3,126,402,000 | 3,464,152,000 | 3,487,203,000 | 3,368,582,000 | 3,397,351,000 | | Net income | 137,173,000 | 174,337,000 | 191,898,000 | 105,123,000 | 268,256,000 | 330,489,000 | 108,013,000 | | | 251,400,000 | 223,273,000 | 177,224,000 | | Operating income | | | 256,508,000 | 262,969,000 | 350,982,000 | 394,971,000 | 137,049,000 | 450,504,000 | 393,104,000 | 310,284,000 | 270,741,000 | 207,039,000 | | Gross profit | | | 1,110,348,000 | 1,159,962,000 | 1,386,348,000 | 1,515,670,000 | 1,223,889,000 | 1,612,455,000 | 1,711,078,000 | 1,729,932,000 | 1,691,085,000 | 1,716,722,000 | | Diluted EPS | | | 2.72 | 1.49 | 3.81 | 4.83 | 1.62 | 5.33 | 4.95 | 4.09 | 3.82 | 3.24 | | Assets | | | 2,013,894,000 | 2,212,902,000 | 2,368,721,000 | 2,931,591,000 | 2,836,571,000 | 3,067,128,000 | 3,051,546,000 | 2,939,013,000 | 2,975,265,000 | 2,928,493,000 | | Liabilities | | | 432,383,000 | 560,643,000 | 678,408,000 | 1,082,144,000 | 1,003,800,000 | 1,077,876,000 | 1,115,757,000 | 1,000,403,000 | 1,195,226,000 | 1,218,350,000 | | Stockholders' equity | | | 1,560,820,000 | 1,621,951,000 | 1,673,857,000 | 1,849,447,000 | 1,832,771,000 | 1,989,252,000 | 1,935,789,000 | 1,938,610,000 | 1,780,039,000 | 1,710,143,000 | | Cash and cash equivalents | | | 551,389,000 | 673,166,000 | 451,795,000 | 686,009,000 | 790,725,000 | 763,404,000 | 430,241,000 | 350,319,000 | 531,869,000 | 442,028,000 | | Net margin | | | 8.07% | 4.26% | 9.57% | 10.86% | 4.32% | | | 7.21% | 6.63% | 5.22% | | Operating margin | | | 10.79% | 10.66% | 12.52% | 12.98% | 5.48% | 14.41% | 11.35% | 8.90% | 8.04% | 6.09% | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001050797.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2018-Q3 | 2018-09-30 | | 100,152,000 | | reported discrete quarter | | 2019-Q1 | 2019-03-31 | | 74,177,000 | | reported discrete quarter | | 2019-Q2 | 2019-06-30 | | 23,029,000 | | reported discrete quarter | | 2019-Q3 | 2019-09-30 | | 119,258,000 | | reported discrete quarter | | 2020-Q1 | 2020-03-31 | | 213,000 | | reported discrete quarter | | 2020-Q2 | 2020-06-30 | | -50,707,000 | | reported discrete quarter | | 2020-Q3 | 2020-09-30 | | 62,751,000 | | reported discrete quarter | | 2020-Q4 | 2020-12-31 | | 95,756,000 | | derived Q4 = FY annual - nine-month YTD | | 2022-Q2 | 2022-06-30 | | | 0.11 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 1.80 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.74 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 620,933,000 | | 0.14 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 985,683,000 | | 1.70 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 1,059,994,000 | | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 769,982,000 | | 0.71 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 570,244,000 | | -0.20 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 931,768,000 | | 1.56 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 1,096,588,000 | | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 778,452,000 | | 0.75 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 605,246,000 | -10,196,000 | -0.19 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 943,425,000 | 52,005,000 | 0.95 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 1,070,228,000 | 93,167,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 779,013,000 | 34,308,000 | 0.65 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1050797/000105079726000089/colm-20260331.htm Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high Filing date: 2026-05-07 Report date: 2026-03-31 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our financial condition and results of operations should be read in conjunction with "Special Note Regarding Forward-Looking Statements", Part I, Item 1 and Part II, Item 1A of this Quarterly Report on Form 10-Q. OVERVIEW As a global leader in designing, developing, marketing, and distributing outdoor, active and lifestyle products, our mission is to connect active people with their passions. We provide our products through our four brands: Columbia, SOREL, Mountain Hardwear, and prAna; 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 115 countries and operate in four geographic segments: U.S., LAAP, EMEA, and Canada. Our business is affected by the general seasonal trends common to the industry, including seasonal weather and discretionary consumer shopping and spending patterns. 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. 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 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: •steward existing consumer segments while focusing on bringing new younger and active consumers into the Brand; •elevate consumers' perception of the Brand; •create product based on a consumer-centric product construct; •enhance the positioning of the Brand globally, particularly in the U.S. marketplace; and •deliver integrated full-funnel marketing. In addition, we are committed to investing in our company-wide strategic priorities to: •accelerate profitable growth; •create iconic products that are differentiated, functional and innovative; •drive brand engagement through increased, focused demand creation investments; •enhance consumer experiences by investing in capabilities to delight and retain consumers; •amplify marketplace excellence, with digitally-led, omni-channel, global distribution; and •empower talent that is driven by our core values. Ultimately, we expect our investments to enable market share capture across our brand portfolio, expand gross margin, improve selling, general and administrative expense efficiency, and drive improved operating margin over the long-term. COLUMBIA SPORTSWEAR COMPANY | Q1 2026 FORM 10-Q | 19 Table of Contents Business Environment and Trends The Columbia brand in the U.S. | The Columbia brand in the U.S. 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. U.S. 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 Table of Contents 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 The following discussion of our results of operations and liquidity and capital resources should be read in conjunction with Part I, Item 1 of this Quarterly Report on Form 10-Q. Non-GAAP Financial Measure To supplement financial information reported in accordance with U.S. GAAP, we disclose constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in foreign currency exchange rates against the U.S. dollar between comparable reporting periods. We calculate constant-currency net sales by translating net sales in foreign currencies for the current period into U.S. dollars at the exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP measure useful by reviewing our net sales results without the volatility of foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results. Constant-currency financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The following discussion includes references to constant-currency net sales, and [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our financial condition and results of operations should be read in conjunction with "Special Note Regarding Forward-Looking Statements", Item 1, Item 1A, and Item 8 of this Annual Report on Form 10-K. In addition, refer to Item 7 in our Annual Report on Form 10-K for the year ended December 31, 2024 for our discussion and analysis comparing financial condition and results of operations from 2024 to 2023. OVERVIEW As a global leader in designing, developing, marketing, and distributing outdoor, active and lifestyle products, our mission is to connect active people with their passions. We provide our products through our four brands: Columbia, SOREL, Mountain Hardwear, and prAna; 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 115 countries and operate in four geographic segments: U.S., LAAP, EMEA, and Canada. Our business is affected by the general seasonal trends common to the industry, including seasonal weather and discretionary consumer shopping and spending patterns. 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. 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 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: •steward existing consumer segments while focusing on bringing new younger and active consumers into the Brand; •elevate consumers' perception of the Brand; •create product based on a consumer-centric product construct; •enhance the positioning of the Brand globally, particularly in the U.S. marketplace; and •deliver integrated full-funnel marketing. In addition, we are committed to investing in our company-wide strategic priorities with a renewed emphasis to: •accelerate profitable growth; •create iconic products that are differentiated, functional and innovative; •drive brand engagement through increased, focused demand creation investments; •enhance consumer experiences by investing in capabilities to delight and retain consumers; •amplify marketplace excellence, with digitally-led, omni-channel, global distribution; and •empower talent that is driven by our core values. Ultimately, we expect our investments to enable market share capture across our brand portfolio, expand gross margin, improve selling, general and administrative expense efficiency, and drive improved operating margin over the long-term. COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 23 Table of Contents Profit Improvement Program Concurrent with the ACCELERATE Growth Strategy, we successfully executed our multi-year Profit Improvement Program, achieving our objectives to position the Company to scale the business with profitable growth and improve the efficiency of our operations. The Profit Improvement Program focused on four areas of cost reduction and realignment, including: •operational cost savings; •organizational cost savings; •operating model improvements; and •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 2025 yielded annualized cost savings exceeding $150 million. These savings enabled the Company to slow the rate of SG&A growth while investing in the Columbia ACCELERATE Growth Strategy. Going forward, we remain committed to driving SG&A expense efficiency and achieving operating margin leverage, over time. Business Environment and Trends The Columbia brand in the U.S. | The Columbia brand in the U.S. has been under pressure due to numerous factors, including changes in consumer trends and competitive pressures. While product functionality, quality and value remain important elements for consideration, outdoor consumer preferences have increasingly shifted to also incorporate versatility and style for everyday wear. Athletic, athleisure, emerging outdoor, and other brands have capitalized on this casualization and style trend. The Columbia brand's ACCELERATE Growth Strategy is intended to overcome certain of these headwinds, elevate the consumers' perception of the Brand and 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, the Brand began to refresh portions of its product line to resonate more with target consumers and launched a new Brand marketing campaign, Engineered for Whatever, coupled with increased investment in demand creation. 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. While the increased investment in demand creation began in the second half of 2025, we expect such investment to continue in seasons to come. We have already seen proof points of the ACCELERATE Growth Strategy in products such as the Amaze Puff, which brought new younger consumers into the Brand. U.S. Trade Policy Uncertainty | The majority of our revenue is derived from products sold in the U.S. and we are subject to the laws and regulations governing companies operating in the U.S. On February 20, 2026, the U.S. Supreme Court held in Learning Resources that IEEPA does not authorize a U.S. President to impose tariffs during peacetime national emergencies and that the challenge to the legality of the incremental tariffs was within the exclusive jurisdiction of the CIT, thus affirming a prior decision of the CIT that the U.S. President lacked authority to impose incremental tariffs. As a result, on February 20, 2026, the U.S. President issued an executive order stating that the incremental tariffs were no longer in effect and ending the collection of the incremental tariffs. However, the U.S. President then issued an additional executive order imposing tariffs pursuant to Section 122 of the Trade Act of 1974 for 150 days, effective on February 24, 2026. We continue to monitor the changing tariff and trade restrictions and are evaluating the potential impacts of these decisions on our business plans for 2026 and any potential impacts on consumer demand and pricing expectations. We are also pursuing all avenues to recover the approximately $50 million in incremental tariffs that we paid in 2025, in addition to the incremental tariffs we have paid in 2026 (see Part I, Item 3 of this Annual Report on Form 10-K for additional information). Macro-economic Pressures | The impacts of the current U.S. economic environment, including constrained discretionary spending and an increased focus on value among the low-to-middle income consumer, is impacting consumer and customer behavior and demand for our products. In this environment, our tariff-induced price increases for the U.S. Spring 2026 and Fall 2026 seasons may further impact demand for our products as end consumers weight discretionary spending and wholesale customers rationalize their open to buy budgets. We believe these trends will persist in 2026 and that our efforts to elevate the Columbia brand to drive consumer consideration and affinity are intended to help offset macro-economic pressures. RESULTS OF OPERATIONS COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 24 Table of Contents The following discussion of our results of operations and liquidity and capital resources should be read in conjunction with Part II, Item 8 of this Annual Report on Form 10-K. Non-GAAP Financial Measure To supplement financial information reported in accordance with U.S. GAAP, we disclose constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in foreign currency exchange rates against the U.S. dollar between comparable reporting periods. We calculate constant-currency net sales by translating net sales in foreign currencies for the current period into U.S. dollars at the exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP measure useful by reviewing our net sales results without the volatility of foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results. Constant-currency financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The 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. Results of Operations — Consolidated The following table presents the items in our Consolidated Statements of Operations, both in dollars and as a percentage of net sales: Year Ended December 31, (in thousands, except for percentage of net sales and per share amounts) 2025 2024 Net sales $ 3,397,351  100.0  % $ 3,368,582  100.0  % Cost of sales 1,680,629  49.5  % 1,677,497  49.8  % Gross profit 1,716,722  50.5  % 1,691,085  50.2  % Selling, general and administrative expenses 1,502,506  44.2  % 1,443,906  42.9  % Impairment of goodwill and intangible assets 29,000  0.9  % —  —  % Net licensing income 21,823  0.6  % 23,562  0.7  % Operating income 207,039  6.1  % 270,741  8.0  % Interest income, net 17,867  0.5  % 27,703  0.8  % Other non-operating income (expense), net 4,718  0.1  % (257) —  % Income before income tax 229,624  6.8  % 298,187  8.9  % Income tax expense 52,400  1.5  % 74,914  2.2  % Net income $ 177,224  5.2  % $ 223,273  6.6  % Diluted earnings per share $ 3.24  $ 3.82  COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 25 Table of Contents Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Net Sales. Net sales by brand, product category and channel are summarized in the following table: Year Ended December 31, (in thousands, except for percentages) Reported Net Sales 2025 Adjust for Foreign Currency Translation Constant-currency Net Sales 2025 (1) Reported Net Sales 2024 Reported Net Sales % Change Constant-currency Net Sales % Change (1) Brand net sales: Columbia $ 2,972,615  $ (1,417) $ 2,971,198  $ 2,917,678  2% 2% SOREL 221,700  (559) 221,141  238,266  (7)% (7)% prAna 102,796  14  102,810  104,087  (1)% (1)% Mountain Hardwear 100,240  353  100,593  108,551  (8)% (7)% Total $ 3,397,351  $ (1,609) $ 3,395,742  $ 3,368,582  1% 1% Product category net sales: Apparel, accessories and equipment $ 2,712,390  $ 364  $ 2,712,754  $ 2,687,174  1% 1% Footwear 684,961  (1,973) 682,988  681,408  1% —% Total $ 3,397,351  $ (1,609) $ 3,395,742  $ 3,368,582  1% 1% Channel net sales: Wholesale $ 1,780,554  $ (3,461) $ 1,777,093  $ 1,734,358  3% 2% Direct-to-consumer 1,616,797  1,852  1,618,649  1,634,224  (1)% (1)% Total $ 3,397,351  $ (1,609) $ 3,395,742  $ 3,368,582  1% 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 reflected strength of the Columbia brand across most of our international markets and channels within those markets, partially offset by underlying weakness in the U.S. across channels and brands. Gross Profit. Gross profit is summarized in the following table: Year Ended December 31, (in thousands, except for percentages and basis points) 2025 2024 Change Gross profit $ 1,716,722 $ 1,691,085 $ 25,637  2  % Gross margin 50.5  % 50.2  % 30 bps Gross margin expanded primarily due to a favorable increase in channel profitability driven by healthier inventory composition resulting in less clearance and promotional activity, partially offset by the impact of unmitigated incremental U.S. tariffs. Selling, General and Administrative Expenses. SG&A expenses are summarized in the following table: Year Ended December 31, (in thousands, except for percentages and basis points) 2025 2024 Change Selling, general and administrative expenses $ 1,502,506 $ 1,443,906 $ 58,600  4  % Selling, general and administrative expenses as percent of net sales 44.2  % 42.9  % 130 bps COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 26 Table of Contents SG&A expenses increased primarily due to the following factors: •higher omni-channel expenses of $36.9 million, reflecting higher DTC brick-and-mortar expenses, including the impact of new stores and variable expenses, as well as impairment charges related to underperforming retail stores - particularly in the U.S., partially offset by temporary clearance location closures in the U.S.; •higher demand creation expenses of $24.1 million, primarily reflecting increased investment in demand creation to support the Columbia brand's ACCELERATE Growth Strategy; and •higher other expenses, reflecting certain SG&A expenses associated with our Profit Improvement Program; partially offset by •lower expenses in targeted areas of the business resulting from our Profit Improvement Program. Impairment of Goodwill and Intangible Assets. For the year ended December 31, 2025, we recognized $29.0 million of impairment charges for the prAna and Mountain Hardwear 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 9 in Part II, Item 8 and our Critical Accounting Estimates in Part II, Item 7 of this Annual Report on Form 10-K for further information regarding these impairments. Interest Income, Net. Interest income, net is summarized in the following table: Year Ended December 31, (in thousands, except for percentages) 2025 2024 Change Interest income, net $ 17,867 $ 27,703 $ (9,836) (36) % Interest income, net as a percent of net sales 0.5  % 0.8  % 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: Year Ended December 31, (in thousands, except for percentages) 2025 2024 Change Income tax expense $ 52,400 $ 74,914 $ (22,514) (30) % Effective income tax rate 22.8  % 25.1  % Our effective income tax rate decreased primarily due to a non-recurring expense related to a valuation allowance included in the year ended December 31, 2024, as well as a tax benefit associated with foreign currency losses and a revaluation of deferred tax assets included in the year ended December 31, 2025. Results of Operations — Segment Segment operating income includes net sales, cost of sales, segment SG&A expenses, and other segment items for each of our four reportable segments. 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. Refer to Note 4 in Part II, Item 8 of this Annual Report on Form 10-K for further information. COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 27 Table of Contents Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Net sales by reportable segment are summarized in the following table: Year Ended December 31, (in thousands, except for percentage changes) Reported Net Sales 2025 Adjust for Foreign Currency Translation Constant-currency Net Sales 2025 (1) Reported Net Sales 2024 Reported Net Sales % Change Constant-currency Net Sales % Change (1) U.S. $ 1,979,033  $ —  $ 1,979,033  $ 2,068,228  (4)% (4)% LAAP 611,149  7,012  618,161  560,706  9% 10% EMEA 576,920  (14,418) 562,502  511,778  13% 10% Canada 230,249  5,797  236,046  227,870  1% 4% $ 3,397,351  $ (1,609) $ 3,395,742  $ 3,368,582  1% 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: Year Ended December 31, (in thousands) 2025 2024 Change U.S. $ 297,143  $ 356,722  $ (59,579) LAAP 87,928  77,008  10,920  EMEA 121,367  103,486  17,881  Canada 44,428  47,797  (3,369) Total segment operating income 550,866  585,013  (34,147) Unallocated corporate expenses 343,827  314,272  29,555  Operating income $ 207,039  $ 270,741  $ (63,702) U.S. U.S. segment operating income decreased $59.6 million to $297.1 million, or 15.0% of net sales, in 2025 from $356.7 million, or 17.2% of net sales, in 2024. The decrease in U.S. segment operating income was driven primarily by decreased net sales and increased segment SG&A expenses. U.S. net sales decreased $89.2 million, or 4%, in 2025, compared to 2024, driven by decreased net sales in our U.S. DTC and wholesale businesses. We attribute the decline in our U.S. business to ongoing challenges as we seek to elevate the Columbia brand in the U.S. marketplace, as well as external factors, including a difficult macroeconomic environment weighing on consumer sentiment. The decline in our U.S. business is also partially attributable to lower promotional activity in comparison to elevated levels in the prior year as we sought to normalize inventories across the brand portfolio. The decline in our U.S. DTC business was broad-based across the U.S. DTC brick-and-mortar and e-commerce businesses. The decline in our U.S. DTC brick-and-mortar business was further impacted by the closure of temporary clearance locations, partially offset by increased productivity from existing stores and contributions from new stores. As of December 31, 2025, our U.S. DTC brick-and-mortar business operated 173 retail stores and 8 temporary clearance locations, compared to 172 retail stores and 28 temporary clearance locations for the comparable period in 2024. U.S. segment gross margin expanded to 49.6% for the twelve months ended December 31, 2025 from 49.1% for the comparable period in 2024 due to a favorable increase in channel profitability driven primarily by healthier inventory composition resulting in less clearance and promotional activity, partially offset by the impact of unmitigated incremental U.S. tariffs. U.S. segment SG&A expenses increased as a percentage of net sales to 30.9% in 2025, compared to 27.9% in 2024, driven primarily by fixed SG&A deleverage on decreased net sales. In total, U.S. segment SG&A expenses increased 6.0% for the twelve months ended December 31, 2025, as compared to the same period in 2024, driven primarily by our investment in demand creation to support the Columbia brand's ACCELERATE Growth Strategy and impairment charges related to underperforming DTC brick-and-mortar retail stores. COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 28 Table of Contents LAAP LAAP segment operating income increased $10.9 million to $87.9 million, or 14.4% of net sales, in 2025 from $77.0 million, or 13.7% of net sales, in 2024. The increase in LAAP segment operating income was driven primarily by increased net sales and gross profit, partially offset by increased SG&A expenses. LAAP net sales increased $50.4 million, or 9% (10% constant-currency), in 2025, compared to 2024, driven primarily by growth in 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 consumer demand, which we believe was attributable to the execution of our marketplace strategies, including premium product offerings and unique marketing strategies. The growth was further aided by continued positive outdoor category trends despite warm weather that dampened fourth quarter demand for cold weather merchandise. 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 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 which included growth in 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 36.4% in 2025, compared to 37.0% in 2024, primarily driven by fixed SG&A leverage on increased net sales. In total, LAAP segment SG&A expenses increased 7.3% in 2025, as compared to the same period in 2024, primarily driven by higher DTC expenses, including personnel and other variable expenses from higher DTC sales. EMEA EMEA segment operating income increased $17.9 million to $121.4 million, or 21.0% of net sales, in 2025 from $103.5 million, or 20.2% of net sales, in 2024. 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 $65.1 million, or 13% (10% constant-currency), in 2025, compared to 2024, driven by growth in our Europe-direct and EMEA distributor businesses. The growth in Europe-direct net sales was driven by increased demand across all channels. Europe-direct's DTC brick-and-mortar business drove particularly strong growth throughout the year, reflecting increased productivity from existing outlet stores, as well as contributions from new outlets. We believe Europe-direct sales growth across channels was also attributable to the execution of our marketplace strategies, including marketing activations, elevating the online and in-store customer experience, and partnering 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 49.3% for the twelve months ended December 31, 2025 from 48.3% for the comparable period in 2024, driven primarily by favorable channel mix, higher channel profitability reflecting lower outbound shipping expenses and favorable product mix. EMEA segment SG&A expenses increased as a percentage of net sales to 25.4% in 2025, compared to 24.6% in 2024, primarily driven by higher DTC brick-and-mortar expenses, including costs associated with new stores and variable expenses from higher DTC sales. In total, EMEA segment SG&A expenses increased 16.1% in 2025, as compared to the same period in 2024. Canada Canada segment operating income decreased $3.4 million to $44.4 million, or 19.3% of net sales, in 2025 from $47.8 million, or 21.0% of net sales, in 2024. Canada net sales increased $2.4 million, or 1% (4% constant-currency), in 2025, compared to 2024, driven primarily by our Canada wholesale business, partially offset by declines in our Canada DTC business, reflecting a decline in consumer demand for our Canada DTC e-commerce business. Canada segment SG&A expenses increased as a percentage of net sales to 23.4% in 2025, compared to 21.6% in 2024, driven primarily by fixed SG&A deleverage on decreased net sales. In total, Canada segment SG&A expenses increased 9.6% in 2025, as compared to the same period in 2024. Unallocated corporate expenses Unallocated corporate expenses increased by $29.6 million to $343.8 million in 2025 from $314.3 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 | 2025 FORM 10-K | 29 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Our primary sources of liquidity include cash, cash equivalents, short-term investments, and available committed credit lines. Our liquidity is affected by the general seasonal trends common to the industry. 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. 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. product. 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. Cash Flow Activities Cash flows are summarized in the following table: Year Ended December 31, (in thousands) 2025 2024 Change Net cash provided by (used in): Operating activities $ 282,903  $ 491,042  $ (208,139) Investing activities (120,723) 87,334  (208,057) Financing activities (267,115) (386,239) 119,124  Net effect of exchange rate changes on cash 15,094  (10,587) 25,681  Net increase (decrease) in cash and cash equivalents $ (89,841) $ 181,550  $ (271,391) The change in cash flows provided by operating activities for 2025 was primarily driven by a $221.1 million decrease in cash provided by changes in assets and liabilities. The most significant comparative change in assets and liabilities was driven by changes in Accounts payable. The $155.6 million decrease in cash provided by Accounts payable was driven primarily by a reduction in the use of early payments and extension of payment terms with certain vendors enacted at the end of 2024. The change in cash flows used in investing activities was primarily driven by lower sales and maturities of short-term investments for the twelve months ended December 31, 2025, as compared to the same period in 2024. The change in cash flows used in financing activities was primarily driven by lower share repurchases of common stock for the twelve months ended December 31, 2025, as compared to the same period in 2024. Sources of Liquidity Cash and cash equivalents and short-term investments As of December 31, 2025, we had cash and cash equivalents of $442.0 million and short-term investments of $348.8 million, compared to $531.9 million and $283.6 million, respectively, as of December 31, 2024. Committed credit facilities As of December 31, 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 11 in Part II, Item 8 of this Annual Report on Form 10-K for further information regarding our domestic credit facility. Further, as of December 31, 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). There was no balance outstanding under the facility. Uncommitted credit facilities COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 30 Table of Contents As of December 31, 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. There were no balances outstanding under these facilities. Capital Requirements 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. Inventory balances may be elevated in advance of periods of expected high demand. As of December 31, 2025, our inventory balance was relatively flat at $689.5 million, compared to $690.5 million as of December 31, 2024. While inventory dollars were flat, units were down by approximately 11% as of December 31, 2025, as compared to the same period in 2024. The 2025 inventory balance included approximately $23 million of incremental tariff costs. We believe older season inventories represent a manageable portion of our total inventory mix. We have planned full-year 2026 capital expenditures of approximately $65 to $75 million. This includes investments in our DTC operations, including new stores and supply chain and digital capabilities to support our strategic priorities. Our actual capital expenditures may differ from the planned amounts depending on factors such as the timing of system implementations and new store openings and related construction. Our long-term goal is to maintain a strong balance sheet and a disciplined approach to capital allocation. Dependent upon our financial position, market conditions and our strategic priorities, our capital allocation approach includes: •investing in organic growth opportunities to drive long-term profitable growth; •returning at least 40% of free cash flow to shareholders through dividends and share repurchases; and •considering opportunistic mergers and acquisitions. Free cash flow is a non-GAAP financial measure. Free cash flow is calculated by reducing net cash flow from operating activities by capital expenditures. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures since it excludes certain mandatory expenditures. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Other cash commitments The following table presents our estimated significant contractual commitments that will require use of funds: Year Ended December 31, (in thousands) 2026 2027 2028 2029 2030 Thereafter Total Inventory purchase obligations $ 523,796  $ —  $ —  $ —  $ —  $ —  $ 523,796  Operating lease obligations (1) $ 109,510  $ 97,462  $ 84,637  $ 66,055  $ 52,937  $ 152,395  $ 562,996  (1) Refer to Operating Leases in Note 8 in Part II, Item 8 of this Annual Report on Form 10-K. CRITICAL ACCOUNTING ESTIMATES Management's discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make various estimates and judgments that affect reported amounts of assets, liabilities, sales, cost of sales, and expenses and related disclosure of contingent assets and liabilities. Refer to Note 2 in Part II, Item 8 of this Annual Report on Form 10-K for additional information regarding the significant accounting policies and methods used in the preparation of our consolidated financial statements. We believe that the estimates, assumptions and judgments involved in the accounting policies described below have the greatest potential effect on our financial statements, so we consider these to be our critical accounting policies and estimates. Because of the uncertainty COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 31 Table of Contents inherent in these matters, actual results may differ from the estimates we use in applying these critical accounting policies and estimates. We base our ongoing estimates on historical experience and other assumptions that we believe to be reasonable in the circumstances. Our critical accounting policies and 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. Management regularly discusses with our Audit Committee each of our critical accounting estimates, the development and selection of these accounting estimates, and the disclosure about each estimate in this Annual Report on Form 10-K. These discussions typically occur at our quarterly Audit Committee meetings and include the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Sales Reserves The amount of consideration we receive and recognize as Net sales across both wholesale and DTC channels varies with changes in sales returns and other accommodations and incentives we offer to our customers. When we give our customers the right to return products or provide other accommodations such as chargebacks and markdowns, we estimate the expected sales returns and miscellaneous claims from customers and record sales reserves to reduce Net sales. As of December 31, 2025, our sales-related reserves were $98.7 million compared to $96.9 million as of December 31, 2024. The most significant variable affecting these reserve balances is sales levels. As a percentage of Net sales, the sales reserves balances were 2.9% as of December 31, 2025 compared to 2.9% as of December 31, 2024. The reserve for returns from customers or consumers is the component of our sales-related reserves most susceptible to estimation uncertainty. These estimates are based on historical rates of product returns and claims, as well as events and circumstances that indicate changes to such historical rates are warranted, such as our customers' inventory positions and their anticipated sell-through rates. However, actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates. As a result, we adjust our estimates of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the amount of consideration becomes fixed. If actual or expected future returns and claims are significantly different than the sales reserves established, we record an adjustment to Net sales in the period in which such determination was made. Excess, Close-Out and Slow-Moving Inventory We make ongoing estimates of potential excess, close-out or slow-moving inventory. We evaluate our inventory on hand to identify excess, close-out or slow-moving inventory by contemplating our purchasing plans, sales forecasts, historical liquidation experience, and the level and composition of inventory from current and prior seasons that remains unsold and establish provisions as necessary to properly reflect inventory value at the lower of cost or net realizable value. Provisions are established when necessary in the period in which we make such a determination. As of December 31, 2025, our inventory provisions reduced gross inventory by $18.7 million compared to $20.4 million as of December 31, 2024. The level of estimated excess inventory as of December 31, 2025 decreased, reflecting healthier inventory composition. Long-Lived Assets Long-lived assets, which include property, plant and equipment ("PP&E"), lease right-of-use ("ROU") assets, and capitalized implementation costs for cloud computing arrangements are evaluated for impairment only when events or circumstances indicate the carrying value may not be recoverable. Our retail store fleet long‐lived assets are generally evaluated at the retail location level. Events that result in an impairment review of a retail location include plans to close a retail location or a significant decrease in the operating results of the retail location. When such an indicator occurs, we evaluate the retail location long‐lived asset or asset group for impairment by comparing the undiscounted future cash flows expected to be generated by the location to the location long‐lived asset group’s carrying amount. If the carrying value of an asset or asset group exceeds the estimated undiscounted future cash flows, an analysis is performed to estimate the fair value of the asset or asset group. An impairment is recorded if the fair value of the asset or asset group is less than the carrying amount. During 2025, we tested certain long-lived assets for impairment at certain underperforming retail locations. Impairment charges for PP&E were $10.1 million for the year ended December 31, 2025 and were not material 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 values and the prAna and Mountain Hardwear trade names and goodwill reporting units to their carrying values. Refer to Note 2 and Note 9 in Part II, Item 8 of this Annual Report on Form 10-K for further information regarding these impairments. COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 32 Table of Contents 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. There were no triggering events or additional impairment charges recorded for trade names as part of our annual impairment test. 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. There were no triggering events or additional impairment charges recorded for goodwill as part of our annual impairment test. 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, royalty 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. Income Taxes We make assumptions, judgments and estimates to determine our current provision for income taxes, our deferred tax assets and liabilities and our uncertain tax positions. Our judgments, assumptions and estimates relative to the current provision for income tax take into account current tax laws, our interpretation of current tax laws and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. Changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly affect the amounts provided for Income tax expense in our Consolidated Statements of Operations. Our assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and category of future taxable income. Actual operating results and the underlying amount and category of income in future years could cause our current assumptions, judgments and estimates of recoverable net deferred tax assets to be inaccurate. Changes in any of the assumptions, judgments and estimates mentioned above could cause our actual income tax obligations to differ from our estimates, which could materially affect our financial position, results of operations or cash flows. Our assumptions, judgment and estimates relative to uncertain tax positions take into account whether a tax position is more likely than not to be sustained upon examination by the relevant taxing authority based on the technical merits of the position and the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. Changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly affect the amounts provided for Income tax expense in our Consolidated Statements of Operations. Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. As the calendar year progresses, we periodically refine our estimate based on actual events and earnings by jurisdiction. This ongoing estimation process can result in changes to our expected effective tax rate for the full calendar year. When this occurs, we adjust the income tax provision during the quarter in which the change in estimate occurs so that our year-to-date provision equals our expected annual effective tax rate. RECENT ACCOUNTING PRONOUNCEMENTS Refer to Note 2 in Part II, Item 8 of this Annual Report on Form 10-K.