Q1 2026 Columbia Sportswear Co Earnings Call

April 30, 2026

Operator: Greetings. Welcome to the Columbia Sportswear Q1 2026 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Matt Tucker. You may begin.

Speaker #2: Greetings. Welcome to the Columbia Sportswear First Quarter 2026 financial results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #2: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Matt Tucker.

Speaker #2: You may begin. Good afternoon, and thanks for joining us to discuss Columbia Sportswear Company's first quarter results. In addition to the earnings release, we furnished an 8-K containing a detailed CFO commentary and financial review presentation explaining our results.

Matt Tucker: Good afternoon. Thanks for joining us to discuss Columbia Sportswear Company's Q1 results. In addition to the earnings release, we furnished an 8-K containing a detailed CFO commentary and financial review presentation explaining our results. This document is also available on our investor relations website, investor.columbia.com. With me today on the call, our Chairman and Chief Executive Officer, Tim Boyle, Co-Presidents Joe Boyle and Peter Bragdon, Executive Vice President and Chief Financial Officer, Jim Swanson, and Executive Vice President, Chief Administrative Officer, and General Counsel, Richelle Luther. This conference call will contain forward-looking statements regarding Columbia's expectations, anticipations, or beliefs about the future. These statements are expressed in good faith and are believed to have reasonable basis. However, each forward-looking statement is subject to many risks and uncertainties, and actual results may differ materially from what is projected.

Speaker #2: This document is also available on our investor relations website investor.columbia.com. With me today on the call are Chairman and Chief Executive Officer Tim Boyle, Co-Presidents Joe Boyle and Peter Bragdon, Executive Vice President and Chief Financial Officer Jim Swanson, and Executive Vice President, Chief Administrative Officer and General Counsel Rochelle Luther.

Speaker #2: This conference call will contain forward-looking statements regarding Columbia's expectations, anticipations, or beliefs about the future. These statements are expressed in good faith and are believed to have reasonable basis.

Speaker #2: However, each forward-looking statement is subject to many risks and uncertainties, and the actual results may differ materially from what is projected. Many of these risks and uncertainties are described in Columbia's SEC filings.

Matt Tucker: Many of these risks and uncertainties are described in Columbia's SEC filings. We caution that forward-looking statements are inherently less reliable than historical information. We do not undertake any duty to update any of the forward-looking statements after the date of this conference call to conform the forward-looking statements to actual results or to changes in our expectations. I'd also like to point out that during the call we may reference certain non-GAAP financial measures, including constant currency net sales. For further information about non-GAAP financial measures and results, including a reconciliation of GAAP to non-GAAP measures and an explanation of management's rationale for referencing these non-GAAP measures, please refer to the supplemental financial information section and financial tables included in our earnings release in the appendix of our CFO commentary and financial review.

Speaker #2: We caution the forward-looking statements are inherently less reliable than historical information. We do not undertake any duty to update any of the forward-looking statements after the date of this conference call to conform to the forward-looking statements to actual results or to changes in our expectations.

Speaker #2: I'd also like to point out that during the call, we may reference certain non-GAAP financial measures including constant currency net sales. For further information, about non-GAAP financial measures and results, including a reconciliation of GAAP to non-GAAP measures and an explanation of management's rationale for referencing these non-GAAP measures, please refer to the supplemental financial information section and financial tables included in our earnings release and the appendix of our CFO commentary and financial review.

Speaker #2: Following our prepared remarks, we will host a Q&A period during which we will limit each caller to two questions, so we can get to everyone by the end of the hour.

Matt Tucker: Following our prepared remarks, we will host a Q&A period during which we will limit each caller to 2 questions so we can get to everyone by the end of the hour. Now, I'll turn the call over to Tim.

Speaker #2: Now, I'll turn the call over to Tim.

Speaker #3: Thanks, Matt, and good afternoon. In the first quarter, we're pleased to have again delivered net sales and profitability exceeding our quarterly guidance, driven by early Spring 2026 wholesale shipments and better-than-expected demand in Europe and the US, as well as disciplined expense management.

Tim Boyle: Thanks, Matt, and good afternoon. In Q1, we're pleased to have again delivered net sales and profitability exceeding our quarterly guidance, driven by early spring 2026 wholesale shipments and better than expected demand in Europe and the US, as well as disciplined expense management. Our international business, which represents over 40% of our sales, continued to lead our growth, up 16% year over year. While our US business remained challenged this quarter and declined 10%, the decrease was largely anticipated based on the decline in our advanced spring 2026 wholesale orders. This also reflected our decision last year to reduce the supply of certain winter products as a precautionary measure in response to US tariff announcements. Cleaner inventories also drove less clearance sales.

Speaker #3: Our international business, which represents over 40% of our sales, continues to lead our growth, up 16% year over year. While our US business remains challenged this quarter and declined 10%, the decrease was largely anticipated based on a decline in our advanced spring 2026 wholesale orders.

Speaker #3: This also reflected our decision last year to reduce the supply of certain winter products as a precautionary measure in response to US tariff announcements.

Speaker #3: Cleaner inventories also drove less clearance sales. That said, I'm encouraged by signs of growing momentum in the US, including an increased fall '26 order book which we expect to enable the wholesale business to return to growth in the second half.

Tim Boyle: That said, I'm encouraged by signs of growing momentum in the US, including an increased fall 2026 order book, which we expect to enable the wholesale business to return to growth in H2. It's increasingly clear to me that the Columbia accelerate growth strategy is resonating with consumers. A major highlight for the Columbia brand in Q1 was the Winter Olympics, where the US curling team thrilled fans at home and around the world, capturing a historic silver medal in mixed doubles, all while competing in distinctive and iconic Columbia kits. This generated billions of views around the world for one of the most watched Olympic events, along with more than 25 million views of Columbia's US curling jerseys on social media.

Speaker #3: It's increasingly clear to me that the Columbia Accelerate Growth Strategy is resonating with consumers. A major highlight for the Columbia brand in Q1 was the Winter Olympics where the US curling team thrilled fans at home and around the world, capturing a historic silver medal in mixed doubles.

Speaker #3: All while competing in distinctive and iconic Columbia kits. This generated billions of views around the world for one of the most watched Olympic events, along with more than 25 million views of Columbia's US curling jerseys on social media.

Tim Boyle: Additionally, longtime Columbia and Team USA freestyle skiing athlete Alex Ferreira reached the pinnacle of his sport, claiming the gold medal in the men's half pipe. Alex's performance and victory further demonstrate that Columbia's products meet the highest standards of elite winter athletes, and he has continued to inspire fans and drive energy for the Columbia brand since returning home. He's been celebrating at events such as the recent US Ski and Snowboard Nationals in Aspen, Colorado. The Columbia brand also garnered outsized attention at another sporting event of major importance in Q1, crashing the tailgate party at the big game in Santa Clara with Nature Calls, the only beer that uses bear scat in the brewing process.

Speaker #3: Additionally, longtime Columbia and Team USA freestyle skiing athlete Alex Ferreira reached the pinnacle of his sport, claiming the gold medal in the men's halfpipe.

Speaker #3: Alex's performance and victory further demonstrate that Columbia's products meet the highest standards of elite winter athletes. And he has continued to inspire fans and drive energy for the Columbia brand since returning home.

Speaker #3: He's been celebrating at events such as the recent US Ski and Snowboard Nationals in Aspen, Colorado. The Columbia brand also garnered outsized attention at the at another sporting event of major importance in Q1, crashing the tailgate party at the big game in Santa Clara with Nature Calls, the only beer that uses bear scat in the brewing process.

Tim Boyle: Columbia sent two bear ambassadors to the game, and they made their presence known, appearing four times on the stadium's jumbotron and even making it on the live TV broadcast. This impact was enhanced by influencer partnerships with sports personalities around the event. Social media content from the game itself generated over 9 million views on social media, alongside hundreds of news articles. We're excited that the return to our irreverent roots also continues to see recognition from the media and outdoor community. The Engineered for Whatever campaign was recently awarded a Gold Clio Award, one of the most respected international awards in advertising, marketing, and communication, for the launch of our Expedition Impossible challenge that we spoke to you about last quarter, which has generated over 10 million organic views on social media. Congrats to the team and stay tuned for more exciting things ahead.

Speaker #3: Columbia sent two bear ambassadors to the game, and they made their presence known, appearing four times on the stadium's jumbo tron and even making it on the live TV broadcast.

Speaker #3: This impact was enhanced by influencer partnerships with sports personalities around the event. Social media content from the game itself generated over 9 million views on social media, alongside hundreds of news articles.

Speaker #3: We're excited that the return to our irreverent roots also continues to see recognition from the media and outdoor community. The engineered-for-whatever campaign was recently awarded a gold Clio Award, one of the most respected international awards in advertising marketing and communication, for the launch of our expedition Impossible Challenge that we spoke to you about last quarter.

Speaker #3: Which has generated over 10 million organic views on social media. Congrats to the team, and stay tuned for more exciting things ahead. Our engineering excellence was also reinforced in Q1 with several product awards from multiple media outlets.

Tim Boyle: Our engineering excellence was also reinforced in Q1 with several product awards from multiple media outlets. Among many examples, a highlight included our Women's Arcadia II jacket, and our Men's Watertight II jacket, both being featured in The New York Times Wirecutter Guide for Best Everyday Rain Jackets. A testament to the durability, performance, and value we build into every design. Our newer product collections and marketing activations launched under the Accelerate Growth strategy, and Engineered for Whatever campaign are increasingly resonating with consumers. This is evidenced by improvements in organic search interest, direct site traffic, and customer acquisition rate for Q1. Another Q1 highlight for the Columbia brand is the momentum we see building in PFG, Performance Fishing Gear. As a reminder, we have a long and deep heritage with PFG as pioneers of the fishing apparel and footwear category.

Speaker #3: Among many examples, a highlight included our women's Arcadia 2 jacket and our men's watertight 2 jacket both being featured in the New York Times Wire Cutter Guide for Best Everyday Rain Jackets.

Speaker #3: A testament to the durability, performance, and value we build into every design. Our newer product collections and marketing activations launched under the Accelerate Growth Strategy and engineered-for-whatever campaign are increasingly resonating with consumers.

Speaker #3: This is evidenced by improvements in organic search interest, direct site traffic, and customer acquisition rate for the first quarter. Another first-quarter highlight for the Columbia brand is the momentum we see building in PFG Performance Fishing Gear.

Speaker #3: As a reminder, we have a long and deep heritage with PFG as pioneers of the fishing apparel and footwear category. As a brand known for high performance, authenticity, and fun, PFG has inspired the next generation of anglers, supported by investments in sales and marketing, including an always-on social media strategy, a refreshing ground game, and the addition of new fishing athletes and ambassadors to the PFG roster.

Tim Boyle: As a brand known for high performance, authenticity, and fun, PFG is inspiring the next generation of anglers, supported by investments in sales and marketing, including an always-on social media strategy, a refreshing ground game, and the addition of new fishing athletes and ambassadors to the PFG roster. A key product highlight in the quarter was the Bahama shirt, long known for keeping anglers cool and comfortable, and also widely known as the unofficial uniform of country music superstar Luke Combs. This year, we're celebrating the Bahama's 30th anniversary and expect sales of the Bahama to grow by double-digit % for the spring 2026 season. The celebration will continue beyond Q1 with additional marketing investments and collaborations with authentic artists and influencers to drive energy for this iconic style. Another PFG highlight on the footwear side is the Dry Tortugas, which saw sales more than triple in Q1.

Speaker #3: A key product highlight in the quarter was the Bahama shirt, long known for keeping anglers cool and comfortable and also widely known as the unofficial uniform of country music superstar Luke Combs.

Speaker #3: This year, we're celebrating the Bahamas' 30th anniversary and expect sales of the Bahamas to grow by a double-digit percent for the Spring 2026 season. The celebration will continue beyond Q1 with additional marketing investments and collaborations with authentic artists and influencers to drive energy for this iconic style.

Speaker #3: Another PFG highlight on the footwear side is the Dry Tortuga boot, which saw sales more than triple in Q1. We believe it's the most rugged, durable, and comfortable fishing boot on the market and delivers attractive styling that's a standout in the fishing category.

Tim Boyle: We believe it's the most rugged, durable, and comfortable fishing boot on the market and delivers attractive styling that's a standout in the fishing category. Looking ahead, we're excited about the potential for PFG to build on this recent momentum and take share in this growing market, particularly with younger consumers who are increasingly adopting the sport and lifestyle of fishing. I'll provide an update on our fall 2026 order book, which is another indicator of the traction we're gaining with our Accelerate Strategy. Since our last update, the order book continued to trend positively, reinforcing our expectations for mid-single-digit % wholesale growth globally in H2. While the overall growth is encouraging, the dimensions of that growth provide further signals of progress under the Accelerate Strategy.

Speaker #3: Looking ahead, we're excited about the potential for PFG to build on this recent momentum and take share in this growing market. Particularly with younger consumers, who are increasingly adopting the sport and lifestyle of fishing.

Speaker #3: Now I'll provide an update on our fall '26 order book, which is another indicator of the traction we're gaining with our Accelerate Strategy. Since our last update, the order book continued to trend positively reinforcing our expectations for mid-single-digit percent wholesale growth globally in the second half.

Speaker #3: While the overall growth is encouraging, the dimensions of that growth provide further signals of progress under the Accelerate Strategy. As a reminder, we launched Accelerate roughly two years ago and given product development timelines, we're now increasingly seeing the new products created under this strategy hit the market.

Tim Boyle: As a reminder, we launched Accelerate roughly 2 years ago. Given product development timelines, we are now increasingly seeing the new products created under this strategy hit the market, driving growth in the order book and representing an increasing share of Columbia brand sales. In addition to US growth in the fall 2026 order book, we are excited to see double-digit% sales growth in Columbia's women's business and in footwear. At a product level on a global basis, we are seeing outsized growth in our most premium and innovative products and platforms, including double-digit% growth or better in our Titanium product and our Omni-Heat Arctic technology, as well as meaningfully scaling of our new MTR fleece. Our two major product launches from fall 2025, the Amaze and ROC lines, will continue to scale, with orders up more than double versus the prior year.

Speaker #3: Driving growth in the order book and representing an increasing share of Columbia brand sales. In addition to US growth in the fall '26 order book, we're excited to see double-digit percent sales growth in Columbia's women's business and in footwear.

Speaker #3: At a product level on a global basis, we're seeing outsized growth in our most premium and innovative products and platforms, including double-digit percent growth or better in our titanium product and our Omniheat Arctic technology.

Speaker #3: As well as meaningfully scaling of our new MTR fleece. Our two major product launches from fall '25, the Amaze and Rock Lines, will continue to scale, with orders up more than double versus the prior year.

Tim Boyle: We're also thrilled to have Amaze featured in triple the number of Dick's Sporting Goods location this fall as compared to last year. Turning to the current operating environment. While we remain focused on execution and what we can control, the operating environment remains highly dynamic, with major external events affecting our business since we last spoke 3 months ago, particularly involving tariffs in the US and the conflict in the Middle East. First, let me address the tariff situation. Following the US Supreme Court's tariff ruling in late February, the US administration implemented a 10% universal tariff under Section 122, which is set to expire in July. Our prior full year outlook, which was issued prior to the court's ruling, included unmitigated incremental tariff impacts of approximately 300 basis points on our gross margin.

Speaker #3: We're also thrilled to have Amaze featured in triple the number of Dick's Sporting Guys location this fall as compared to last year. Turning to the current operating environment, while we remain focused on execution and what we can control, the operating environment remains highly dynamic with major external events affecting our business since we last spoke three months ago.

Speaker #3: Particularly involving tariffs in the US and the conflict in the Middle East. First, let me address the tariff situation. Following the US Supreme Court's tariff ruling in late February, the US administration implemented a 10% universal tariff under Section 122, which is set to expire in July.

Speaker #3: Our prior full-year outlook which was issued prior to the court's ruling included unmitigated incremental tariff impacts of approximately $300 basis points on our gross margin.

Tim Boyle: We are now expecting a slight improvement based on the 10% universal tariffs extending through July and the assumption that the US administration will implement new tariffs at or near IEEPA tariff rates following the expiration of the Section 122 rates. We now expect an approximate 200 basis point unmitigated headwind from tariffs to our full year gross margin outlook. As a reminder, we made the decision last year to absorb nearly all of the fall 2025 impacts of incremental tariffs and not raise prices. The court's ruling also required the refund of IEEPA tariffs already paid. As of the date they were terminated, we had paid a total of approximately $80 million in IEEPA tariffs. Approximately $55 million of which has been recognized through cost of sales, with the remainder residing in inventory on our balance sheet as of the end of the Q1.

Speaker #3: We are now expecting a slight improvement based on the 10% universal tariffs extending through July and the assumption that the US administration will implement new tariffs at or near IEPA tariff rates following the expiration of the Section 122 rates.

Speaker #3: We now expect an approximate $200 basis point unmitigated headwind from tariffs to our full-year gross margin outlook. As a reminder, we made the decision last year to absorb nearly all of the fall '25 impact of incremental tariffs and not raise prices.

Speaker #3: The court's ruling also required the refund of IEPA tariffs already paid. As of the date they were terminated, we had paid a total of approximately $80 million in IEPA tariffs.

Speaker #3: Approximately 55 million of which has been recognized through cost of sales with the remainder residing in inventory on our balance sheet as of the end of the first quarter.

Tim Boyle: We have already taken action by submitting our refund claims, and we fully intend to pursue every avenue available to secure the refunds that we are owed. We have not yet recognized any benefit of refunds in our financial statements, nor have we updated our financial outlook for such refunds. Turning now to the ongoing conflict in the Middle East, which broke out in late February. First, my thoughts go out to any of our customers, employees, business partners, and their loved ones who may be directly impacted by this conflict. Their safety and security is always our first and primary concern. As far as our business is concerned, this conflict has already triggered order cancellations and forecasted order reductions for certain Middle East distributor markets. While these impacts have not meaningfully changed our full-year financial outlook to date, the prolonged nature of the conflict poses further risks.

Speaker #3: We have already taken action by submitting our refund claims and we fully intend to pursue every avenue available to secure the refunds that we are owed.

Speaker #3: We have not yet recognized any benefit of refunds in our financial statements, nor have we updated our financial outlook for such refunds. Turning now to the ongoing conflict in the Middle East, which broke out in late February.

Speaker #3: First, my thoughts go out to any of our customers, employees, business partners, and their loved ones who may be directly impacted by this conflict.

Speaker #3: Their safety and security is always our first and primary concern. As far as our business is concerned, this conflict has already triggered order cancellations and forecasted order reductions for certain Middle East distributor markets.

Speaker #3: While these impacts have not meaningfully changed our full-year financial outlook to date, the prolonged nature of the conflict poses further risks. Macroeconomic and supply chain risks are among the areas that could have a more profound effect.

Tim Boyle: Macroeconomic and supply chain risks are among the areas that could have a more profound effect, including the potential softening of consumer demand driven by the ongoing surge in energy prices and the resulting inflationary pressures on consumers' wallets. Increased oil prices are expected to put pressure on our product input costs, with the exposure beginning in our spring 2027 season. Further, the conflict's impact on global supply chains could result in late-arriving inventory, increased freight and logistics costs, and potential order cancellations.

Speaker #3: These risks including the potential softening of consumer demand driven by the ongoing surge in energy prices, and the resulting inflationary pressures on consumers' wallets.

Speaker #3: Increased oil prices are expected to put pressure on our product input costs, with the exposure beginning in our spring '27 season. Further, the conflict's impact on global supply chains could result in late-arriving inventory, increased freight and logistics costs, and potential order cancellations.

Tim Boyle: Due to the high degree of uncertainty associated with the ongoing conflict and resulting impact on the global economy and supply chains, we are not able to incorporate these risks into our updated 2026 financial outlook. Despite these external factors, I am confident in our ability to navigate these risks given our highly experienced leadership team, flexible and resilient global supply chain, fortress balance sheet, and high-quality products that provide a strong value proposition to the consumer. Turning back to our Q1 financial performance, net sales were roughly flat year-over-year at $779 million, reflecting a balanced performance across channels, with both DTC and wholesale coming in flat to the prior year. Gross margin contracted 20 basis points to 50.7%, driven by 310 basis points in incremental unmitigated tariff costs, partly offset by mitigation actions, including targeted price increases.

Speaker #3: Due to the high degree of uncertainty associated with the ongoing conflict, and the resulting impact on the global economy and supply chains, we are not able to incorporate these risks into our updated 2026 financial outlook.

Speaker #3: Despite these external factors, I am confident in our ability to navigate these risks given our highly experienced leadership team, flexible and resilient global supply chain, fortress balance sheet, and high-quality products that provide a strong value proposition to the consumer.

Speaker #3: Turning back to our first quarter financial performance, net sales were roughly flat year over year at $779 million, reflecting a balanced performance across channels, with both DTC and wholesale coming in flat to the prior year.

Speaker #3: Gross margin contracted 20 basis points to 50.7%. Driven by $310 basis points in incremental unmitigated tariff costs partly offset by mitigation actions including targeted price increases.

Tim Boyle: SG&A expenses increased nearly 1%, reflecting higher DTC expenses, partially offset by lower enterprise technology and supply chain personnel expenses, reflecting cost reductions actions which were taken last year. This overall performance resulted in diluted earnings per share above our guidance range. Inventories remain healthy and are relatively flat versus the prior year in dollar terms, with units down approximately 11% year-over-year. We remain steadfast in our commitment to driving shareholder value, returning meaningful cash to shareholders, including $150 million in share repurchases during Q1, which resulted in the retirement of 2.5 million shares and opportunistic acceleration of activity relative to recent periods. We continue to maintain our fortress balance sheet, exiting Q1 with $535 million in cash and short-term investments and no debt. Looking at net sales by geography.

Speaker #3: SG&A expenses increased nearly 1%, reflecting higher DTC expenses partially offset by lower enterprise technology and supply chain personnel expenses. Reflecting cost reductions, actions which were taken last year.

Speaker #3: This overall performance resulted in diluted earnings per share above our guidance range. Inventories remain healthy and are relatively flat versus the prior year in dollar terms, with units down approximately 11% year over year.

Speaker #3: We remain steadfast in our commitment to driving shareholder value, returning meaningful cash to shareholders, including $150 million in share repurchases during the first quarter, which resulted in the retirement of $2.5 million shares, and opportunistic acceleration of activity related relative to recent periods.

Speaker #3: We continue to maintain our fortress balance sheet exiting the quarter with $535 million in cash and short-term investments and no debt. Looking at net sales by geography, US net sales decreased 10% but performed better than planned.

Tim Boyle: US net sales decreased 10% but performed better than planned. The decline in sales resulted from a lower spring 2026 order book, constrained supply of winter season product, which limited our ability to fulfill consumer demand, and lower clearance sales on lean inventory. The US wholesale business was down low teens %. The US DTC net sales declined high single-digit % in the quarter. Brick-and-mortar was down mid-single-digit %, partially reflective of clean inventories and inclusive of the impact of less temporary clearance stores compared to last year. E-commerce was down low teens %, driven by the shortage of winter product and lower conversion of consumer traffic. We're encouraged with the early spring 2026 selling, led by key categories including footwear, outerwear, women's sportswear, and PFG.

Speaker #3: The decline in sales resulted from a lower spring '26 order book constrained supply of winter season product, which limited our ability to fulfill consumer demand, and lower clearance sales on lean inventory.

Speaker #3: The U.S. wholesale business was down low-teens percent. The U.S. DTC net sales declined high single-digit percent in the quarter. Brick-and-mortar was down mid-single-digit percent, partially reflective of clean inventories and inclusive of the impact of fewer temporary clearance stores compared to last year.

Speaker #3: E-commerce was down low teens percent, driven by the shortage of winter product and lower conversion of consumer traffic. We're encouraged with the early spring 2026 selling.

Speaker #3: Led by key categories including footwear, outerwear, women's sportswear, and PFG. We continue to see momentum building through our elevated homepage, personalized and digital marketing efforts, including improvements in engagement and customer acquisition.

Tim Boyle: We continue to see momentum building through our elevated homepage, personalized and digital marketing efforts, including improvements in engagement and customer acquisition. For my review of Q1 year-over-year net sales growth in international geographies, I will reference constant currency growth rates to illustrate underlying performance in each market. LAAP net sales increased 3%. China net sales increased mid-single digit %, driven by growth in wholesale from increased spring 2026 orders, which benefited from earlier wholesale shipment timing. Highlights from the quarter included a successful airport campaign featuring our Titanium Dry technology and Tellurix performance hiking shoe in China's top 3 airports during the Chinese New Year season, which drove strong full price sell-through for those product lines. We also launched the Columbia Fishing Club to deepen connections with anglers across China following the success we've had with similar club events and activations based on hiking.

Speaker #3: For my review of first quarter year-over-year net sales growth in international geographies, I will reference constant currency growth rates to illustrate underlying performance in each market.

Speaker #3: LAAP net sales increased 3%, China net sales increased mid-single-digit percent, driven by growth in wholesale from increased spring '26 orders, which benefited from earlier wholesale shipment timing.

Speaker #3: Highlights from the quarter included a successful airport campaign featuring our titanium dry technology and Telurex performance hiking shoe in China's top three airports during the Chinese New Year's season, which drove strong full-price sell-through for those product lines.

Speaker #3: We also launched the Columbia Fishing Club to deepen connections with anglers across China, following the success we've had with similar club events and activations based on hiking.

Tim Boyle: We can see the impact that activities like these are having for our brand in China, including strong year-over-year growth in new member acquisition and active purchasers, as well as market share gains with younger consumers and women. Japan net sales declined mid-single-digit percent, reflecting headwinds from softer international tourism, as well as later shipment of spring 2026 wholesale orders. While it was a challenging start to the year, we are encouraged by recent trends with a notable improvement in business momentum following the recent launch of spring 2026 product. Korea net sales increased high single-digit percent with growth across all channels, driven by the execution of marketplace initiatives. The Korea team continued to do a great job of leveraging the Engineered for Whatever campaign in Q1 and amplifying consistent high-impact brand visibility across consumer channels, driving strong sell-through for key products such as the Tellurix.

Speaker #3: We can see the impact that activities like these are having for our brand in China. Including strong year-over-year growth in new member acquisition and active purchasers as well as market share gains with younger consumers and women.

Speaker #3: Japan net sales declined mid-single-digit percent, reflecting headwinds from softer international tourism, as well as later shipment of spring '26 wholesale orders. While it was a challenging start to the year, we're encouraged by recent trends with a notable improvement in business momentum following the recent launch of spring '26 product.

Speaker #3: Korea net sales increased high single-digit percent, with growth across all channels, driven by the execution of marketplace initiatives. The Korea team continued to do a great job of leveraging the engineered-for-whatever campaign in Q1 and amplifying consistent high-impact brand visibility across consumer channels driving strong sell-through for key products such as the Telurex.

Tim Boyle: I'm also pleased with how the team continues to elevate the marketplace and consumer experience, driving improved productivity in targeted doors. I want to take a moment to thank Jeff McPike for his strong leadership of the Korean business. This summer, Jeff will be returning to the US to assume the critical role of vice president, North America Retail. In this role, Jeff will be responsible for leading all aspects of our North America brick-and-mortar business. I'm confident in the ability of the Korea team to continue building on the momentum established under Jeff's leadership. Our LAAP distributor markets delivered low double-digit % growth in Q1, reflecting a healthy order book for spring 2026. Growth was driven by the Columbia brand in both footwear and apparel, particularly sportswear, as our distributor teams continue to do a spectacular job strengthening our brand with active consumers in these diverse global markets.

Speaker #3: I'm also pleased with how the team continues to elevate the marketplace and consumer experience, driving improved productivity in targeted doors. I want to take a moment to thank Jeff McPike for his strong leadership of the Korean business.

Speaker #3: This summer, Jeff will be returning to the U.S. to assume the critical role of Vice President, North America Retail. In this role, Jeff will be responsible for leading all aspects of our North America brick-and-mortar business.

Speaker #3: I'm confident in the ability of the Korea team to continue building on the momentum established under Jeff's leadership. Our LAAP distributor markets delivered low double-digit percent growth in Q1, reflecting a healthy order book for spring '26.

Speaker #3: Growth was driven by the Columbia brand in both footwear and apparel, particularly sportswear, as our distributor teams continue to do a spectacular job strengthening our brand with active consumers in these diverse global markets.

Tim Boyle: EMEA net sales increased low 20% overall. Europe direct net sales increased high teens%, fueled by strong DTC performance and healthy wholesale sales, partly reflecting earlier shipments of spring 2026 orders. Results across channels reflected robust demand for winter season product, aided by favorable weather early in the quarter and ample inventory availability. We're thrilled with the strong start to the year and anticipate seeing that momentum continue with a strong start to our spring season. Our EMEA distributor business increased low 30%, reflecting earlier shipments of orders and a healthy order book for spring 2026. Canada net sales increased low single digits in the quarter, driven by growth in DTC brick and mortar, reflecting increased productivity from existing stores and strong winter sell-through. Looking at the Q1 performance by brand.

Speaker #3: EME net sales increased low 20% overall. Europe direct net sales increased high teens percent, fueled by strong DTC performance and healthy wholesale sales. Partly reflecting earlier shipments of spring '26 orders.

Speaker #3: Results across channels reflected robust demand for winter season product aided by favorable weather early in the quarter and ample inventory availability. We're thrilled with the strong start to the year and anticipate seeing that momentum continue with a strong start to our spring season.

Speaker #3: Our EMEA distributor business increased low 30%, reflecting earlier shipments of orders and a healthy order book for spring '26. Canada net sales increased low single digits in the quarter, driven by growth in DTC brick-and-mortar, reflecting increased productivity from existing stores and strong winter sell-through.

Speaker #3: Looking at the first quarter performance by brand, Columbia net sales increased 1% as international growth more than offset expected declines in the US. Turning now to our emerging brands, all of which are expected to grow in '26 as a reminder each of these brands derive a significant majority of their revenue from the US marketplace.

Tim Boyle: Columbia net sales increased 1% as international growth more than offset expected declines in the US. Turning now to our emerging brands, all of which are expected to grow in 2026. As a reminder, each of these brands derive a significant majority of their revenue from the US marketplace. SOREL net sales decreased 12%, due largely to reduced supply of winter season products in the US as previously discussed, and lower closeout sales, leading to declines across all channels and more than offsetting strong momentum in the international markets. Encouragingly, we have seen sales trends improve with the launch of spring 2026 styles, including healthy growth in sneakers, a priority category that demonstrates SOREL is becoming viewed as more than just a winter brand. prAna net sales decreased 5%, driven by declines in wholesale, partly offset by solid growth in inline DTC channels.

Speaker #3: Sorel net sales decreased 12%, due largely to reduced supply of winter season products in the U.S., as previously discussed, and lower close-out sales, leading to declines across all channels and more than offsetting strong momentum in the international markets.

Speaker #3: Encouragingly, we have seen sales trends improve with the launch of spring '26 styles including healthy growth in sneakers, a priority category that demonstrates Sorrell is becoming viewed as more than just a winter brand.

Speaker #3: Prana net sales decreased 5%, driven by declines in wholesale, partly offset by solid growth in inline DTC channels. This included low-teens percent growth in e-comm, driven partly by a shift in social media strategy that's helping to drive strong brand momentum.

Tim Boyle: This included low teens% growth in e-com, driven partly by a shift in social media strategy that's helping to drive strong brand momentum, including improvement in new customer acquisition, customer retention, revenue per customer, and robust growth with younger consumers. Mountain Hardwear net sales were flat year over year. Weakness with winter season product amid unfavorable weather in the Western US early in the quarter was eventually offset by strong momentum with spring 2026 product, particularly in e-commerce, driven by a surge in organic search demand. US wholesale grew low single-digit% in the quarter, led by high quality specialty retail and digital partners, with key product categories of equipment and outerwear driving the growth in Q1. Looking ahead, we're excited about the recent launch of the DrySpell technology innovation, which sets a new standard for waterproof breathability.

Speaker #3: Including improvement in new customer acquisition, customer retention, revenue per customer, and robust growth with younger consumers. Mountain Hardware net sales were flat year-over-year, weakness with winter season product amid unfavorable weather in the western US early in the quarter was eventually offset by strong momentum with spring '26 product particularly in e-commerce driven by a surge in organic search demand.

Speaker #3: US wholesale grew low single-digit percent in the quarter led by high-quality specialty retail and digital partners. With key product categories of equipment and outerwear driving the growth in Q1.

Speaker #3: Looking ahead, we're excited about the recent launch of the dry-spill technology innovation which sets a new standard for waterproof breathability. Additionally, Mountain Hardware's new lightness of being brand campaign will emphasize innovative equipment and technical apparel for the trail elemental protection from the sun and rain as well as seasonal sportswear styles inspired by consumer insights.

Tim Boyle: Additionally, Mountain Hardwear's new Lightness of Being brand campaign will emphasize innovative equipment and technical apparel for the trail, elemental protection from the sun and rain, as well as seasonal sportswear styles inspired by consumer insights. We'll now discuss our financial outlook for Q2 2026 and for the full year. This outlook and commentary include forward-looking statements. Please see our CFO commentary and financial review presentation for additional details and disclosures related to those statements. While Q1 results exceeded our expectations, we've noted that part of the outperformance was timing related, with some wholesale shipments occurring earlier than planned. The partial and likely temporary reprieve of Section 122 US tariffs also present some favorability to our initial assumptions, as discussed.

Speaker #3: We'll now discuss our financial outlook for the second quarter of '26 and for the full year. This outlook and commentary include forward-looking statements. Please see our CFO commentary and financial review presentation for additional details and disclosures related to those statements.

Speaker #3: While Q1 results exceeded our expectations, we've noted that part of the outperformance was timing related with some wholesale shipments occurring earlier than planned. The partial and likely temporary reprieve of Section 122 US tariffs also presents some favorability to our initial assumptions as discussed.

Tim Boyle: On the other hand, the impacts associated with supply chain disruptions and inflationary pressure from the ongoing conflict in the Middle East represent key risks that were not contemplated in our initial guidance and that we currently cannot forecast. Based on the information we have today, we are maintaining our full year outlook for net sales growth in the range of 1% to 3%. We now expect gross margins of 50.3% to 50.5%, or down 20 basis points to flat versus the prior year. The improved outlook reflects the termination of IEEPA rates by the Supreme Court and our assumption that rates will remain at current levels through July before reverting back to tariff rate levels approximate to the IEEPA rates, subject to the uncertainty of future actions by the US administration.

Speaker #3: On the other hand, the impacts associated with supply chain disruptions and inflationary pressure from the ongoing conflict in the Middle East represent key risks that were not contemplated in our initial guidance and that we currently cannot forecast.

Speaker #3: Based on the information we have today, we are maintaining our full-year outlook for net sales growth in the range of 1 to 3 percent.

Speaker #3: We now expect gross margins of 50.3 to 50.5 percent or down 20 basis points to flat versus the prior year. The improved outlook reflects the termination of AIPA rates by the Supreme Court and our assumption that rates will remain at current levels through July.

Speaker #3: Before reverting back to tariff rate levels, approximate to the AIPA rates, subject to the uncertainty of future actions, by the US administration. We continue to expect that SG&A will represent 43.6 to 44.2 of net sales increasing slightly year-over-year but at a slower rate than net sales growth.

Tim Boyle: We continue to expect that SG&A will represent 43.6 to 44.2 of net sales, increasing slightly year over year, but at a slower rate than net sales growth. Based on these assumptions, we are raising our operating margin guidance to 6.7% to 7.5% for the year, leading to diluted earnings per share in the range of $3.55 to $4.00. In addition to stronger gross margins, this range also reflects the benefit of our accelerated Q1 share repurchase activity relative to our prior assumption. For Q2, which is our seasonally lowest revenue quarter of the year, we anticipate sales in the range of down 1% to up 1% versus the prior year.

Speaker #3: Based on these assumptions, we are raising our operating margin guidance to 6.7 to 7.5 percent for the year leading to diluted earnings per share in the range of $3.55 to $4.

Speaker #3: In addition to stronger gross margins, this range also reflects the benefit of our accelerated first-quarter share repurchase activity relative to our prior assumption. For the second quarter, which is our seasonally lowest revenue quarter of the year, we anticipate sales in the range of down 1% to up 1% versus the prior year.

Tim Boyle: This will result in slight SG&A deleverage, and when combined with our anticipated decline in gross margin, result in a loss per share of $0.46 to $0.37. In closing, while I'm not satisfied with our overall financial performance in Q1, I'm pleased with the continued strength of our international business and our team's ability to execute and start the year off on a positive note by driving upside to our initial plans. I'm encouraged by the additional signs of underlying momentum in our business under the accelerate strategy, particularly with the Columbia brand in the US, our largest market. The operating environment remains highly dynamic and uncertain, our fall 2026 order book and positive early indicators of our accelerate strategy provide us with confidence that we're on the right track.

Speaker #3: This will result in slight SG&A deleverage and when combined with our anticipated decline in gross margin, result in a loss per share of 46 cents to 37 cents.

Speaker #3: In closing, while I'm not satisfied with our overall financial performance in Q1, I'm pleased with the continued strength of our international business and our team's ability to execute and start the year off on a positive note by driving upside to our initial plans.

Speaker #3: Further, I'm encouraged by the additional signs of underlying momentum in our business under the accelerate strategy particularly with the Columbia brand in the US our largest market.

Speaker #3: Although the operating environment remains highly dynamic and uncertain, our Fall 2026 order book and positive early indicators of our Accelerate strategy provide us with confidence that we're on the right track.

Tim Boyle: Thanks again to our global workforce who are instrumental in the execution of our strategies and business success. That concludes my prepared remarks. Operator, could you help us facilitate the questions?

Speaker #3: Thanks again to our global workforce who are instrumental in the execution of our strategies and business success. That concludes my prepared remarks. Operator, could you help us facilitate the questions?

Operator: Certainly. Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, please press star 1 if you have a question or a comment. Our first question comes from Bob Drbul with BTIG. Please proceed, Bob.

Speaker #2: Certainly. Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.

Speaker #2: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker #2: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Speaker #2: Once again, please press star one if you have a question or a comment. Our first question comes from Bob Durble with BTIG. Please proceed, Bob.

Bob Drbul: Hi. Good afternoon.

Speaker #3: Hi. Good afternoon.

Speaker #4: Hey, Bob.

Tim Boyle: Hey, Bob.

Bob Drbul: Tim, a couple of questions, if I could. I guess on the first part, you know, from the last time you spoke where the order book was, you know, to where you are today, you know, were there any surprises, you know, around the remaining, I think, 20% that you were booking? I guess just geographically around the order book, can you talk about the trends in Europe, and I guess just any disruption whatsoever? I know Middle East is a, you know, a risk that you call out. Can you just talk through those three things for us?

Speaker #3: Tim, a couple of questions if I could. I guess on the first part, from the last time you spoke about where the order book was to where you are today, were there any surprises around the remaining, I think, 20% that you were booking?

Speaker #3: And then I guess just geographically, around the order book, can you talk about the trends in Europe and I guess just any disruption whatsoever?

Speaker #3: I know Middle East is a risk that you call out. Can you just talk through those three things for us?

Tim Boyle: Sure. Certainly. Well, as it relates to the order book for fall, we were pleased. You know, we expected it to come in at a number, and we were pleased that it came in north of that number. We're excited about the strength there. You know, again, we're cautioning because there are so many unknowns today about the Middle East conflict and the potential for increased tariffs beyond where we've estimated. Geographically, I think we're in good place. We had strong reports from many of the markets, including Europe was good, despite the fact that they had sort of a tough winter, early winter, in Europe as did we here in North America. It was really quite broad.

Speaker #4: Certainly. Well, as it relates to the order book for fall, we were pleased we expected it to come in at a number, and we were pleased that it came in north of that number.

Speaker #4: So we're excited about the strength there. And again, we're cautioning because there are so many unknowns today about the Middle East conflict and the potential for increased tariffs beyond where we've estimated.

Speaker #4: Geographically, I think we're in good place. We had strong reports from many of the markets, including Europe was good. Despite the fact that they had sort of a tough early winter in Europe as did we here in North America.

Speaker #4: So it was really quite broad. I might just point to the continued improvement and strength in our international distributor markets which despite those that are in the middle of the conflict in the Middle East are doing well.

Tim Boyle: I might just point to the continued improvement and strength in our international distributor markets, which, you know, despite those that are in the middle of the conflict in the Middle East, are doing well.

Jim Swanson: Hey, Bob, I would just add, as we look at that order book and when we take our advanced orders combined with our anticipation of in-season business for H2 of this year, we do contemplate growth across all geographies led by international and growth across each of our brands. We're quite encouraged by the order book as that's come in.

Speaker #5: Hey, Bob. I would just add as we look at that order book and we take our advanced orders combined with our anticipation of in-season business for the second half of this year, we do contemplate growth across all geographies led by international and growth across each of our brands.

Speaker #5: So we're quite encouraged by the order book as that's come in.

Bob Drbul: Great. Great. If I could just sneak in one more. On the tariffs, you know, in terms of the application for the refunds, I guess if you are successful in getting those refunds, Tim, what would be the plan, you know, with that money that you would do for the business?

Speaker #3: Great. And then if I could just sneak in one more. On the tariffs, in terms of the application for the refunds, I guess if you are successful in that, what is the plan with that money—what would you do for the business?

Tim Boyle: Well, yeah. Thanks, Bob. As we know, the administration may or may not allow us to get the returns timely. We have filed all of the documents required to get the tariffs back, but we clearly haven't contemplated those in our plans for 2026. We certainly hope we'll get them back promptly. As it relates to what we will do with those funds, you know, we have our standard allocation of capital rules that we use, which we'll follow. Some of our of our vendors were contributors along the line to helping us sort of in a spirit of partnership, and we wanna make sure that those folks are well taken care of. We're in discussions.

Speaker #4: Well, yeah. Thanks, Bob. As we know, the administration may or may not allow us to get the returns timely. We have filed all of the documents required to get the tariffs back, but we clearly haven't contemplated those in our plans for '26.

Speaker #4: We certainly hope we'll get them back promptly. As it relates to where what we will do with those funds, we have our standard allocation of capital rules that we use which will follow.

Speaker #4: Some of our vendors were contributors along the line to helping us, sort of in a spirit of partnership, and we'll want to make sure that those folks are well taken care of.

Tim Boyle: We wanna make sure that we utilize it correctly, but we're gonna be leaning on our historical capital allocation plans.

Speaker #4: But we're in discussions. We want to make sure that we utilize it correctly, but we're going to be leaning on our historical capital allocation plans.

Bob Drbul: Okay. Great. Thank you very much. Good luck, Tim.

Speaker #3: Okay. Great. Thank you very much. Good luck, Tim.

Tim Boyle: You bet.

Speaker #5: You bet.

Operator: The next question comes from Peter McGoldrick with Stifel. Please proceed.

Speaker #2: The next question comes from Peter McGoldrick with Stifel. Please proceed.

Peter McGoldrick: Hey, thanks for taking my question. I wanted to ask about your engagement efforts to recruit younger consumers. Can you share any KPIs supporting your progress here and how growth is trending with that cohort and how that's embedded in your outlook today?

Speaker #6: Hey, thanks for taking my question. I wanted to ask about your engagement efforts to recruit younger consumers. Can you share any KPIs supporting your progress here and how that's how growth is trending with that cohort and how that's embedded in your outlook today?

Tim Boyle: Well, at the end of the day, it's really the acid test is a larger order book and bigger revenues. We're pleased to see that coming along nicely. I guess I would say, you know, these activations that we've engaged in with our ad agency, Adam and Eve, which would include the Expedition Impossible, Flat Earth Challenge, and the hacking of the big game in Santa Clara in January. Those are primarily focused on a younger consumer, and it's great to see the reaction from those people in terms of visits to our website and important connections in that way. We're gonna be leaning on the acid test to make sure that we've got growth across the business.

Speaker #4: Well, at the end of the day, it's really the asset test is a larger order book and a bigger revenue. So that's we're pleased to see that coming along nicely.

Speaker #4: But I guess I would say these activations that we've engaged in with our ad agency, Adam & Eve, which would include the Expedition Impossible, Flat Earth Challenge, and the hacking of the Big Game in Santa Clara in January.

Speaker #4: Those are primarily focused on a younger consumer, and it's great to see the reaction from those people in terms of visits to our website and important connections in that way.

Speaker #4: So we're going to be leaning on the asset test to make sure that we've got a growth growing across the business.

Peter McGoldrick: Very good. I was hoping you could help me think about today's revenue guidance in terms of price and volume. There's an 11 percentage point spread between inventory dollars and units. I'm curious of how to think that spread flowing through the P&L. Is there anything you could share on like-for-like price increases and mix embedded in the outlook?

Speaker #6: Very good. And then I was hoping you could help me think about today's revenue guidance in terms of price and volume. There's an 11% point spread between inventory dollars and units.

Speaker #6: I'm curious of how to think that spread flowing through the P&L. Is there anything you could share on like-for-like price increases and mix embedded in the outlook?

Jim Swanson: Well, the biggest place where we've taken price increases, we've previously communicated, has been some targeted price increases for both our spring 2026 and fall 2026 product lines in the US. Those have been a high single-digit % of increase. As you look at the comments we've made with regard to our wholesale order book for the fall 2026 season, you know, we anticipate the wholesale business being up a low single to mid-single digit %. Certainly implied in that would be that there's less unit volume on that, on that growth. Hopefully that answers your question, Peter.

Speaker #5: Well, the biggest place where we've taken price increases is we've previously communicated has been targeted price increases for both our spring '26 and fall '26 product lines.

Speaker #5: In the US, and those have been a high single-digit percent of increase. And as you look at the comments we've made with regard to our wholesale order book for the fall '26 season, we anticipate the wholesale business being up a low single to mid-single-digit percentage.

Speaker #5: So, certainly implied in that would be that there's less unit volume on that growth. So, hopefully that answers your question, Peter.

Peter McGoldrick: Yeah, very good. Thank you.

Speaker #6: Yeah. Very good. Thank you.

Operator: Next question comes from Jonathan Komp with Baird. Please proceed.

Speaker #2: Next question comes from Jonathan Kopp with Baird. Please proceed.

Jonathan Komp: Yeah. Hi, good afternoon. I want to follow up on the momentum you're seeing for the Columbia brand in the US specifically. Can you share any more direct feedback you've had from your wholesale partners and you know, the positive developments you mentioned for the Amaze product, especially at Dick's Sporting Goods? Is there a potential to replicate that across some of your other partners?

Speaker #6: Yeah. Hi. Good afternoon. I want to follow up on the momentum you're seeing for the Columbia brand. In the US specifically, can you share any more direct feedback you've had from your wholesale partners in the positive developments you mentioned for the Amaze product, especially at Dick's Sporting Goods?

Speaker #6: Is there a potential to replicate that across some of your other partners?

Tim Boyle: The, the Amaze product for fall of 2025 was quite broadly distributed across our better, our better customers and better areas of distribution. You know, we're thrilled to see the results there. I mean, it's primarily a women's product, so that area has been very good at sold through at very high margins. We've also taken the learnings from Amaze and extended it into our spring 2026 product line, where we have a number of products which are following in the Amaze learnings, including, you know, soft hand on the fabrics, stretch, and colors that are very attractive and are complementary to younger females.

Speaker #4: Yeah. So the Amaze product for fall of '25 was quite broadly distributed across our better customers and better areas of distribution. So we've we're thrilled to see the results there.

Speaker #4: I mean, it's primarily a women's product. So that area has been very good and sold through at very high margins. We've also taken the learnings from Amaze and extended it into our spring '26 product line where we have a number of products which are following in the Amaze learnings including soft hand on the fabrics, stretch, and colors that are very attractive and are complementary to younger females.

Tim Boyle: We intend to, for fall 2026, to extend it beyond those categories of merchandise into some rain and some fleece products where we think we can make the entire Amaze family a much bigger part of our business and frankly, a full franchise, where we can be very successful and especially with younger consumers.

Speaker #4: We intend to for fall '26 to extend it beyond those categories of merchandise into some rain and some fleece products where we think we can make the entire Amaze family a much bigger part of our business and frankly, a full franchise where we can be very successful and especially with younger consumers.

Jonathan Komp: Great. That's very helpful. Then, Jim, if I could follow up. Apologies if I missed this, but I think for the full year you brought down the tariff headwind assumption by 100 basis points. You raised the gross margin by 50 basis points. Could you be a little more specific about the difference between those two? You know, what you're embedding today, and then as you think about the broader uncertainties not captured in your current guidance, you know, which ones are sort of the biggest swing factors or the biggest, you know, incremental risk factors that as you sit here today? Thank you.

Speaker #6: Great. That's very helpful. And then Jim, if I could follow up, apologies if I missed this, but I think for the full year, you brought down the tariff headwind assumption by 100 basis points.

Speaker #6: You raised the gross margin by 50 basis points. Could you be a little more specific about the difference between those two? What are you embedding today?

Speaker #6: And then as you think about the broader uncertainties not captured in your current guidance, which ones are sort of the biggest swing factors or the biggest incremental risk factors that, as you sit here today?

Jim Swanson: John, the delta between the 100 basis point benefit that we're picking up from the reprieve of tariffs and the gross margin outlook improvement of 50 to 50 basis points. There's no one discrete item that I would necessarily point to that's driving that we're seeing in the business. From an overarching standpoint, you look at the revenue and margin that we achieved in Q1, it was in line or slightly better than where we had anticipated. It's really just an acknowledgment of the overall macro environment that we're operating in and the potential risks around that.

Speaker #6: Thank you.

Speaker #5: Yes. Yeah, John. The delta between the 100 basis points benefit that we're picking up from the reprieve of tariffs and the gross margin outlook improvement of 50 basis points, there's no one discrete item that I would necessarily point to that's driving that that we're seeing in the business from an overarching standpoint.

Speaker #5: As you look at the revenue and margin that we achieved in Q1, it was in line or slightly better than where we had anticipated.

Speaker #5: So, it's really just an acknowledgment of the overall macro environment that we're operating in and the potential risks around that. And I think that parlays into the latter part of your question as well, just in terms of as we think about ultimately delivering on the guidance that we've put before you today.

Jim Swanson: I think that parlays into the latter part of your question as well, just in terms of as we think about ultimately delivering on the guidance that we've put before you today, certainly we've called out the Middle East risk. The main pressure valve there is just gonna be how this weighs on the end consumer worldwide as it relates to gas prices and just overall inflationary pressures.

Speaker #5: And certainly, we've called out the Middle East risk. The main pressure valve there is just going to be how this weighs on the end consumer worldwide as it relates to gas prices and just overall inflationary pressures.

Jonathan Komp: Great. Thanks again.

Speaker #6: Great. Thanks again.

Operator: The next question comes from Tom Nikic with Needham. Please proceed, Tom.

Speaker #2: Next question comes from Tom Nickick with Needham. Please proceed, Tom.

Operator: Please proceed.

Speaker #7: Tom, please proceed.

Tom Nikic: Hey, guys. Thanks for taking my question. I wanted to ask about the US direct-to-consumer channel. You know, you've had, you know, I guess a bunch of, you know, negative quarters in a row and, you know, it seems like there's been a lot of, you know, excitement around the new product and, you know, great marketing, et cetera.

Speaker #8: Hey, guys. Thanks for taking my question. I wanted to ask about the US direct-to-consumer channel. You've had, I guess, a bunch of negative quarters in a row, and it seems like there's been a lot of excitement around the new product and great marketing, etc.

Tom Nikic: I guess, you know, why do we think it's sort of taking so long to, you know, get that business back to growth? I guess if we think about, you know, I guess by channel, like, should we think that like digital should turn first or brick-and-mortar should turn first? How do we think about, you know, the progression about getting US direct-to-consumer growing again? Thanks.

Speaker #8: I guess kind of why do we think it's sort of taking so long to get that business back to growth? And I guess if we kind of think about, I guess, by channel, should we think that digital should turn first, or brick-and-mortar should turn first?

Speaker #8: How do we kind of think about the progression about getting US direct-to-consumer growing again? Thanks.

Tim Boyle: Yeah. I would think that when we talk about our brick-and-mortar channel, you have to remember that we're comparing it against a much smaller number of stores. We had many, many stores that were temporary in the effort to liquidate inventories from the logistics log jam that we had. Additionally, we had a high percentage of liquidation inventory in those stores, which typically have a lower impact and a lower rate on our gross margins in those stores. You know, so that's I think is the primary way you're seeing the decline in sales in those numbers.

Speaker #4: Yeah. I would think when we talk about our brick-and-mortar channel, you have to remember that we're comparing it against a much smaller number of stores since the book we had many, many stores that were temporary.

Speaker #4: In the effort to liquidate inventories, from the logistics log jam that we had, additionally, we had a high percentage of liquidation inventory in those stores.

Speaker #4: Which typically have a lower impact and a lower rate on our gross margins in those stores. And so that's, I think, is the primary way you're seeing the decline in sales in those numbers.

Tim Boyle: You know, we've always considered ourselves to be a wholesale, primarily, business, and retail is used as a steam valve, escape valve for the company to liquidate inventories in the right way. That's the primary use on the outlet channels. On the full price channel, it's a newer category of retail that we use, and we're still learning our way around that. We expect that digital is going to be the primary way that we expose our brands to consumers in the best possible light. That will come, we believe, as the accelerate program becomes more fully established.

Speaker #4: We've always considered ourselves to be a wholesale primarily business and retail is used as a steam valve escape valve for the company to liquidate inventories in the right way and so that's the primary use on the outlet channels.

Speaker #4: On the full price channel, it's a newer category of retail that we use and we're still learning our way around that. And we expect the digital is going to be the primary way that we expose our brands to consumers in the best possible light.

Speaker #4: So that will come, we believe, as the Accelerate program becomes more fully established.

Tom Nikic: All right. Makes sense. Thank you very much, and best of luck the rest of the year.

Speaker #8: All right. Makes sense. Thank you very much. And best of luck the rest of the year.

Operator: The next question comes from Laurent Vasilescu with BNP Paribas. Please proceed, Laurent.

Speaker #2: The next question comes from Laurent Vasilescu with BNP Paribas. Please proceed, Laurent.

David Brown: Good afternoon. Thank you very much for taking my question. I wanted to ask, I think you guys called out that there was a shift from Q2 to Q1. Is it fair, Jim, to assume that it's $20 million shift and it should be just in EMEA? Second part of the question is really around the call-out that there were some cancellations with Middle Eastern distributors. Is it fair to assume that Middle East is low single-digit percentage of sales and therefore maybe like $70 million and maybe it was half of it was cut? Just trying to understand that. I have a follow-up on the oil input cost. Thank you very much.

Laurent Vasilescu: Good afternoon. Thank you very much for taking my question. I wanted to ask, I think you guys called out that there was a shift from Q2 to Q1. Is it fair, Jim, to assume that it's $20 million shift and it should be just in EMEA? Second part of the question is really around the call-out that there were some cancellations with Middle Eastern distributors. Is it fair to assume that Middle East is low single-digit percentage of sales and therefore maybe like $70 million and maybe it was half of it was cut? Just trying to understand that. I have a follow-up on the oil input cost. Thank you very much.

Speaker #9: Oh, good afternoon. Thank you very much for taking my question. I wanted to ask, I think you guys called out that there was a shift from 2Q to 1Q.

Speaker #9: Is it fair, Jim, to assume that it's a $20 million shift, and should it be just in EMEA? And then, the second part of the question is really around the callout that there were some cancellations with Middle Eastern distributors.

Speaker #9: Is it fair to assume that Middle East is low single-digit percentage of sales and therefore maybe like 70 million and maybe it was half of it was cut?

Speaker #9: Just trying to understand that. Then I have a follow-up on the oil input cost. Thank you very much.

Jim Swanson: You bet, Laurent. Looking at the first quarter from a revenue standpoint, we beat by around $20 million. Roughly half of that was the timing shift that you're referring to, the majority of that was European-based. There's a little bit from a US perspective. With regard to the Middle East distributors, you're a bit high in terms of what that represents in revenue, particularly from the Gulf countries. It's gonna be the low single-digit percent range of our total business. The cancellations and forecast reductions that we've taken to date, as we've commented, you know, it's relatively insignificant in the grand scheme of our overall outlook, which, you know, you can see that we're holding it, so it's not impacting that to date.

Speaker #5: Yeah, you bet. Laurent. So looking at the first quarter from a revenue standpoint, we beat by around 20 million, roughly half of that was the timing shift that you're referring to.

Speaker #5: And the majority of that was European-based. There's a little bit from a US perspective. And then with regard to the Middle East distributors, you're a bit high in terms of what that represents in revenue, particularly from the Gulf Coast countries.

Speaker #5: It's going to be in the it's going to be the low single-digit percent range of our total business. And the cancellations and forecast reductions that we've taken to date, as we've commented, it's relatively insignificant in the grand scheme of our overall outlook, which you can see that we're holding it.

Speaker #5: So it's not impacting that to date.

David Brown: Very helpful. The second part, second question is really, I think to Tim's point about input costs. You know, most of the products are oil-based derivatives. I think we heard from Adidas yesterday calling out that that could be a potential headwind. We're hearing tonight that it could be an impact for 2027 for spring product. Can you help us frame how do we think about this? If oil hypothetically stayed at $100 throughout the balance of the year for structural reasons, how do we think about that as an increase to your cost of goods sold for at least H1 2027? Thank you very much.

Laurent Vasilescu: Very helpful. The second part, second question is really, I think to Tim's point about input costs. You know, most of the products are oil-based derivatives. I think we heard from Adidas yesterday calling out that that could be a potential headwind. We're hearing tonight that it could be an impact for 2027 for spring product. Can you help us frame how do we think about this? If oil hypothetically stayed at $100 throughout the balance of the year for structural reasons, how do we think about that as an increase to your cost of goods sold for at least H1 2027? Thank you very much.

Speaker #2: Very helpful. And then the second part, second question is really I think to Tim's point, about input cost, most of the products are oil-based derivatives.

Speaker #2: I think we heard from Adidas yesterday, calling out that that could be a potential headwind. We're hearing tonight that it could be an impact for 2027.

Speaker #2: For spring product, can you help us frame how we think about this? If oil hypothetically stayed at $100 throughout the balance of the year for structural reasons, how do we think about that as an increase to your cost of goods sold for at least 1H ’27?

Speaker #2: Thank you very much.

Jim Swanson: I think it'd be a bit premature for us to provide the exact framing on that. You know, we're in the process of finalizing costing and beginning to buy for the spring season. Well, I should step back for a minute. Certain of the raw materials had been already processed and ready in advance of the Middle East. This is gonna bleed in over some period of time. There's no doubt that, you know, come the spring season, we'll begin to see that pressure. If these things don't calm over the coming months here, I think it's increasingly bleed into the fall season as well.

Speaker #5: Yeah, I think it'd be a little bit premature for us to provide the exact framing on that. We're in the process of finalizing costing and beginning to buy for the spring season.

Speaker #5: There's no doubt that certain of those—well, I should step back for a minute. Certain of the raw materials had been already processed and ready in advance of the Middle East.

Speaker #5: So this is going to bleed in over some period of time. But there's no doubt that come the spring season, we'll begin to see that pressure.

Speaker #5: And as these things don't calm over the coming months here, I think it increasingly bleeds into the fall season as well.

Tim Boyle: Laurent, we also have, you know, other mitigation efforts, including engineering our products in a different way and, you know, changing the componentry. We're not trapped with a single source on that.

Speaker #4: And Laurent, we also have other mitigation efforts, including engineering our products in a different way and changing the componentry. So we're not trapped with single source on that.

David Brown: Okay. Very helpful. Thank you very much, and best of luck.

Laurent Vasilescu: Okay. Very helpful. Thank you very much, and best of luck.

Speaker #9: Okay, very helpful. Thank you very much, and best of luck.

Tim Boyle: Thanks, Laurent.

Operator: The next question comes from Mauricio Serna with UBS. Please proceed.

Speaker #2: The next question comes from Mauricio Serna with UBS. Please proceed.

Mauricio Serna: Great. Good afternoon. Thanks for taking my question. Just a quick question on the direct to consumer business. Could you talk about in the US how that business trended throughout the quarter? Curious to see if you can provide some context of how consumers have reacted to the high single digit price increases. On China, I think you mentioned, you know, the growth has been, you know, you noted wholesale

Speaker #10: Great. Good afternoon. Thanks for taking my question. Just a quick question on the direct-to-consumer business. Could you talk about in the US how that business trended throughout the quarter?

Speaker #10: Curious to see if you can provide some context of how consumers have reacted to the high single-digit price increases. And on China, I think you mentioned the growth—you noted wholesale as the primary driver of growth in Q1.

Mauricio Serna: As the primary driver of growth in Q1, could you talk about the direct-to-consumer business there, as well? Thank you.

Speaker #10: Could you talk about the direct-to-consumer business there as well? Thank you.

Jim Swanson: In terms of taking your first question with regard to the DTC business, and I presume you're focused on the US side of that. Trending in the quarter, as you might imagine, you know, certainly the January, February was cold. We did comment on the shortage of inventory that we had. That certainly held things back. Increasingly, as we got into the spring season and we're well supplied from inventory. We were pleased overall with what we're seeing from a demand standpoint in that part of our business, both through our direct-to-consumer business and frankly through our wholesale business where the sell-through is outpacing the intake from retailers and where overall stock levels are.

Speaker #5: Yeah. In terms of taking your first question with regard to the DDC business, and I presume you're focused on the US side of that.

Speaker #5: Trending in the quarter, as you might imagine, certainly the January-February was cold, but we did comment on the shortage of inventory that we had.

Speaker #5: So that certainly helped things back. Increasingly, as we got into the spring season and we're well supplied from an inventory and we were pleased overall with what we're seeing from a demand standpoint, in that part of our business, both through our direct-to-consumer business and, frankly, through our wholesale business where the sell-through is outpacing the intake from retailers and where overall stock levels are.

Jim Swanson: As it relates to the high single-digit price increase and from a price elasticity standpoint, because I think that's essentially where your question's at, it came in more or less where we would've anticipated it being. I think I touched on earlier from an overall revenue and margin perspective on the quarter, we were at around where we would expect it to be. Certainly, there's elasticity in our product. I don't think that's any mystery. There are categories of our business where we've got more pricing power, and we can pass along more of those price increases than others that, you know, less so. Certainly we're adapting to that on the fly.

Speaker #5: As it relates to the high single-digit price increase, and from a price elasticity standpoint—because I think that's essentially where your question's at—it came in more or less where we would have anticipated it being. And I think I touched on earlier, from an overall revenue and margin perspective, on the quarter, we were at or around where we would expect it to be.

Speaker #5: Certainly, there's elasticity in our product. I don't think that's any mystery. There are categories of our business where we've got more pricing power and we can pass along more of those price increases, and others that less so.

Speaker #5: And certainly, we're adapting to that on the fly. And then as it relates to the China business, I guess what I would describe there is, yeah, we grew 5% in the quarter.

Jim Swanson: As it relates to the China business, I guess what I would describe there is, yeah, we grew 5% in the quarter. We still contemplate healthy growth out of the China business for the full year. We've got double-digit percent growth that's planned there. Our DTC business was down a little bit in Q1. Nothing, not down rather, but certainly not growing the way it had. I wouldn't call if there's anything specific there. We still think that's a healthy business.

Speaker #5: We still contemplate healthy growth out of the China business for the full year. We've got double-digit percent growth that's planned there. Our DDC business was down a little bit in the first quarter.

Speaker #5: Nothing not down, rather, but certainly not growing the way it had. I wouldn't call out that there's anything specific there. We still think that's a healthy business.

Mauricio Serna: Got it. Okay. Thank you so much. Then just quickly on the commentary to follow up on the shipments, there was some, you know. It sounds like the, a lot of the impact on the earlier shipments was in Europe. Maybe, just wondering, could you provide a bit more context of how would that impact, you know, the Q2, Q3 or of that region as we think about how we modeled, you know, the next several quarters for Europe?

Speaker #10: Got it. Okay. Thank you so much. And then just quickly on the commentary, the follow-up on the shipments, there was some it sounds like a lot of the impact on the earlier shipments was in Europe.

Speaker #10: Maybe just wondering, can you provide a bit more context of how that impacts the second quarter, third quarter, of that region as we think about how we modeled the next couple of quarters for Europe?

Jim Swanson: Well, certainly the rate of growth that we achieved in Europe in the high teens rate in Q1, given that shift, you're not gonna see that rate of growth come Q2. That said, you know, we were, you know, very pleased with the spring 2026 order book that we took for Europe. It's in the double digits % level of growth. I don't have the fall 2026 in front of me, you know, we'd anticipate our European business being healthy from an overall growth standpoint throughout the full year.

Speaker #5: Well, certainly, the rate of growth that we achieved in Europe in the high-teens rate in Q1, given that shift, you're not going to see that rate of growth come Q2.

Speaker #5: But that said, we were very pleased with the spring '26 order book that we took for Europe. It's in the double-digit percent level of growth.

Speaker #5: I don't have the fall '26 in front of me, but we'd anticipate our European business being healthy from an overall growth standpoint throughout the full year.

Mauricio Serna: Thank you so much, and good luck.

Speaker #10: Thank you so much. Good luck.

Operator: The next question is from Paul Lejuez with Citigroup. Please proceed.

Speaker #2: The next question is from Paul Lejeuze with Citigroup. Please proceed.

Paul Lejuez: Hey, thanks, guys. Curious how much you think sales were hurt in Q1 in the US due to the inability to fulfill this quarter demand, and also if that was more sales in wholesale, DTC, both. Any color you could provide there. Curious just what you saw at POS across markets, and maybe if you could provide more specific color on the fall order book that you're seeing in the US. Thanks.

Speaker #11: Hey, thanks, guys. I'm curious how much you think sales were hurt in the first quarter in the US due to the inability to fulfill first-quarter demand.

Speaker #11: And also, if that was more sales in wholesale, DTC, both, any call you could provide there. And I'm curious just what you saw at POS across markets and maybe if you could provide more specific color on the fall order book that you're seeing in the US.

Speaker #11: Thanks.

Jim Swanson: Well, specifically as it relates to the shortage, and again, I wouldn't wanna speculate on what revenue would have been had we not had the shortage. You know, what we can share is it's, it was roughly about a $30 million reduction in our planned fall 2026 or fall 2025 inventory purchases. From an overarching standpoint, I would describe that was probably more impactful to the wholesale business in Q4 2025 as we were continuing to ship in the season, and then the DTC business would've been a bit more impacted in Q1.

Speaker #5: Well, specifically, as it relates to the shortage, and again, I wouldn't want to speculate on what revenue would have been had we not had the shortage.

Speaker #5: What we can share is it was roughly about a $30 million reduction in our planned fall '26 or fall '25 inventory purchases. And from an overarching standpoint, I would describe that as probably more impactful to the wholesale business in Q4 '25 as we were continuing to ship in the season.

Speaker #5: And then the DTC business would have been a bit more impacted in the first quarter.

Paul Lejuez: The order book, US for the fall?

Speaker #11: And then the order book US for the fall?

Tim Boyle: Yeah. The order book for USA was, as we said, we're very pleased with. It came in slightly north of where we thought it was gonna end up. We're thrilled. You know, of course, in addition to a solid growth across the business, we have these two great categories of merchandise. The Amaze Puff and its new entrance, then the ROC Pant, which is another great product that's doing very well for us.

Speaker #4: Yeah. The order book for USA was, as we said, we're very pleased with it. It came in slightly north of where we thought it was going to end up.

Speaker #4: So we're thrilled. Of course, we have these two great in addition to a solid growth across the business, we had these two great categories of merchandise, the amaze puff, and it's new entrants.

Speaker #4: And then the rock path, which was another great product that's doing very well for us.

Jim Swanson: I think the only thing I would add to the fall 2026 order book is we've previously communicated that we had anticipated the order book being up in the low single to mid-single digit % range. As Tim Boyle touched on, the order book came in a bit healthier than we'd even anticipated. It's moving, you know, more into that mid-single digit % range. We're quite happy with how the order book landed.

Speaker #5: I think the only thing I would add to the fall '26 order book is we previously communicated that we had anticipated the order being booked being up and the low single to mid single-digit percent range.

Speaker #5: And as Tim touched on, the order book came in a bit healthier than we had even anticipated. So it's moving more into that mid single-digit percent range.

Speaker #5: We're quite happy with how the order book landed.

Paul Lejuez: That was overall though, right? Not US?

Paul Lejuez: That was overall though, right? Not U.S.?

Speaker #11: That was overall, though, right now, U.S.?

Jim Swanson: That's US specifically. From an overall, from a global standpoint, we're solidly in the mid-single digit % range based on the order book we have and what we anticipate the wholesale growth to look like in H2. My comment with regard to the US is initially our projections were dated back in February that'd be upper low single to mid-single as we closed out the order book. I think given the uptake of the accelerate product in particular, you know, we ended up on the north end of that range.

Speaker #5: That's U.S. specifically. From an overall, global standpoint, we're solidly in the mid-single-digit percent range based on the order book we have.

Speaker #5: And what we’d anticipate the wholesale growth to look like in the second half. And then my comment with regard to the US is, initially, our projections were dated back in February that the up low single to mid single as we closed out the order book.

Speaker #5: And I think, given the uptake of the Accelerate product in particular, that we ended up on the north end of that range.

Paul Lejuez: Helpful. Thank you. Good luck.

Speaker #11: Got it. Helpful. Thank you. Good luck.

Operator: The next question is from Mitch Kummetz with Seaport Research. Please proceed, Mitch.

Speaker #2: The next question is from Mitch Cummins with Seaport Research. Please proceed, Mitch.

Mitch Kummetz: Yes, thank you. Just to follow up on the $10 million timing shift. I'm just wondering if your outlook for Q2, does that contemplate that as just being like a true shift? I would think that with the orders delivering earlier, that that would kinda lengthen the window for reorder potential, and I'm wondering if, you know, you factored any, you know, maybe stronger reorders into the guidance if that is an opportunity.

Speaker #12: Yes. Thank you. Just to follow up on the $10 million timing shift, I'm just wondering if is that is your outlook for the second quarter?

Speaker #12: Does that contemplate that it's just being a true shift? I would think that with the orders delivering earlier, that that would kind of lengthen the window for reorder potential.

Speaker #12: And I'm wondering if you factored any, maybe, stronger reorders into the guidance—if that is an opportunity.

Jim Swanson: Potentially, Mitch. Anytime you ship and you're able to set the floors a little bit earlier and it sell throughs, that holds up and the consumer's healthy, then certainly that would bode some opportunity. That timing shift, just to be clear though, that's a timing shift relative to what we forecasted and planned for Q1, not necessarily a year-on-year change. By and large, the year-on-year changes in timing shifts are not all that substantial. There's a couple pockets of it that you're seeing in the European business and so forth, but on the whole for the company, it's not a meaningful driver.

Speaker #5: Potentially, Mitch. I mean, anytime you ship into the, and you're able to set the floors a little bit earlier and it's sell-throughs that holds up and the consumer's healthy, then certainly that would bode some opportunity.

Speaker #5: That timing shift, just to be clear, though, that's a timing shift relative to what we forecast and planned for Q1, not necessarily a year-on-year change.

Speaker #5: I think by and large, the year-on-year changes in timing shifts are not all that substantial. I mean, there's a couple of pockets of it that you're seeing in the European business and so forth, but on the whole, for the company, it's not a meaningful driver.

Mitch Kummetz: Okay. Then Tim, I think on the last earnings call, you talked about how depleted channel inventory was coming out of the winter season on seasonal merchandise. I'm curious to get your thoughts if you feel like your fall order book is in line with kinda where channel inventory stands, or do you think that maybe retailers have sort of generally under-ordered just because they're being conservative, and does that, you know, provide more of a, an at-once opportunity going into the back half of the year?

Speaker #12: Okay. And then, Tim, I think on the last earnings call, you talked about how depleted channel inventory was coming out of the winter season on seasonal merchandise.

Speaker #12: I'm curious to get your thoughts. Do you feel like your fall order book is in line with where channel inventory stands, or do you think that maybe retailers have generally under-ordered just because they're being conservative?

Speaker #12: And does that provide more of a at-once opportunity going into the back half of the year?

Tim Boyle: Yeah. I think our retailers ended up quite clean, frankly. I expect that we'll be going into a season where we have lots of opportunity. The question is whether or not the consumer shows up in the kind of robust way. That's why even though we've got indications across the business that we've got a better year looking at us than what we guided, we just wanna make sure that we've got the appropriate conservatism. Frankly, we don't have a lot of extra inventory. Even if things get wildly better, we just don't have a lot of inventory on a speculative basis.

Speaker #4: Yeah, I think our retailers ended up quite clean, frankly, and so I expect that we'll be going into a season where we have lots of opportunity.

Speaker #4: The question is whether or not the consumer shows up in the kind of robust way. So that's why, even though we've got indications across the business that we've got a better year looking at us than what we guided, we just want to make sure that we've got the appropriate conservatism and, frankly, we don't have a lot of extra inventory.

Speaker #4: Even if things go get wildly better, we just don't have a lot of inventory on a speculative basis.

Mitch Kummetz: Got it. All right. Thanks for that color.

Speaker #12: Got it. All right. Thanks for that color.

Operator: Okay. We currently have no further questions in the queue. I would now like to turn the floor back to Tim Boyle for closing remarks.

Speaker #2: Okay. We currently have no further questions in the queue. I would now like to turn the floor back to Tim Boyle for closing remarks.

Tim Boyle: Well, thanks operator. Thanks everybody who's listening in today. I hope that you'll come away from this discussion today with a better appreciation on the progress that we're seeing, and it gives us the confidence that we're on the right path. There is still much work ahead of us to fully realize our strategic vision and unlock the full potential of our brands. Our financial foundation is solid. Our international business remains robust, and we can now see our US business starting to turn the corner with the traction we're gaining under our accelerate growth strategy. In dynamic times like these, strong companies emerge stronger, and I'm confident that our strengths and competitive advantage will position us to compete and win. Look forward to seeing you all in our next quarterly review in the next few months. Thank you.

Speaker #4: Well, thanks, operator. Thanks, everybody who was listening in today. I hope that you'll come away with our from this discussion today with a better appreciation on the progress that we're seeing and that gives us the confidence that we're on the right path.

Speaker #4: There is still much work ahead of us to fully realize our strategic vision and unlock the full potential of our brands. Our financial foundation is solid, our international business remains robust, and we can now see our U.S. business starting to turn the corner with the traction we're gaining under our Accelerate Growth strategy.

Speaker #4: In dynamic times like these, strong companies emerge stronger, and I'm confident that our strengths and competitive advantage will position us to compete and win.

Speaker #4: We look forward to seeing you all at our next quarterly review in the coming months. Thank you.

Operator: Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Q1 2026 Columbia Sportswear Co Earnings Call

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