SHARPE
Reported results
- Net sales increased 2 percent (2 percent non-GAAP constant-currency) to $962.6 million compared to $943.4 million in third quarter 2025
- Gross margin contracted 20 basis points to 49.8 percent of net sales from 50.0 percent of net sales in third quarter 2025
- Operating income was $109.6 million, or 11.4 percent of net sales, compared to third quarter 2025 operating income of $67.4 million, or 7.1 percent of net sales
- Net income was $84.7 million, or $1.66 per diluted share, compared to third quarter 2025 net income of $52.0 million, or $0.95 per diluted share
- Cash, cash equivalents, and short-term investments totaled $229.6 million as of September 30, 2026, with no borrowings
Guidance
- Full year 2026 net sales are expected to be $3.46 to $3.50 billion, representing net sales growth of 2.0 to 3.0 percent compared to 2025
- Full year 2026 gross margin is expected to be 52.1 percent to 52.3 percent of net sales
- Full year 2026 operating income is expected to be $300 to $320 million, representing operating margin of 8.7 to 9.1 percent of net sales
- Full year 2026 diluted earnings per share is expected to be $4.65 to $4.90
- Full year 2026 operating cash flow is expected to be $230 to $250 million
- Fourth quarter 2026 net sales are expected to be $1,108 to $1,145 million, representing growth of 3.5 to 7.0 percent from third quarter 2025
- Fourth quarter 2026 diluted earnings per share is expected to be $1.85 to $2.10
Notes
Third quarter 2025 operating income included $29.0 million of impairment charges related to prAna and Mountain Hardwear, which negatively impacted third quarter 2025 diluted earnings per share by $0.46.
Price and volatility reaction
The stock moved +6.0% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -8.2 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 63.69 | 2026-10-29 |
| Close after release | 67.54 | 2026-10-30 |
| Realised move | +6.0% | close to close |
| 30d ATM IV change | -8.2 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-10-29 (8-K, Item 2.02). Read the original filing on sec.gov.