What Columbia Sportswear Company told the SEC could break it.

Columbia paid ~$50 million in incremental U.S. tariffs in 2025 (plus ~$23M of tariff costs sitting in inventory), pressuring gross margin; a Feb 2026 Supreme Court IEEPA ruling may affect whether it can recover those tariffs via the Court of International Trade.

“Therefore, the outcome of the Company's matter at the CIT may impact our ability to recover the approximately $50 million in incremental tariffs that we paid in 2025, in addition to the incremental tariffs we have paid in 2026.”

Five largest contract finished-goods manufacturers account for ~80% of Columbia's footwear production, with the single largest at ~25%, three at ~15% each and one at ~10%.

“Five of the largest contract finished goods manufacturers account for approximately 80% of our footwear production, with the largest manufacturer accounting for approximately 25%, three manufacturers accounting for approximately 15% each and one manufacturer accounting for approximately 10% individually.”

For combined Spring/Fall 2026 U.S.-market inventory, contract manufacturers sourced ~27% of footwear raw materials and ~21% of apparel raw materials from China; finished goods are produced primarily in Vietnam and China.

“For our Spring 2026 and Fall 2026 inventory combined, our contract manufacturers sourced roughly 27% of our footwear raw materials and roughly 21% of our apparel raw materials for the U.S. market from China.”

Some of Columbia's highly technical/proprietary materials are available from only one source or a very limited number of sources, which may cause increased costs or production delays.

“As an innovative company, some of our materials are highly technical and/or proprietary and may be available from only one source or a very limited number of sources.”