Shares of Columbia Sportswear (COLM) took a sharp 8.33% dive in after-hours trading on Thursday, despite the company reporting better-than-expected second-quarter results. The outdoor apparel and footwear maker posted a narrower loss than analysts had forecast, but investors seemed to focus on other factors in the report.

Columbia Sportswear reported a Q2 loss of $0.19 per share, beating the consensus estimate of a $0.23 loss. Revenue for the quarter came in at $605.2 million, surpassing analysts' expectations of $588.3 million. However, the company's forward-looking statements and industry challenges appear to have overshadowed these positive results.

The significant stock decline may be attributed to Columbia's updated full-year net sales outlook, which now stands at $3.33 to $3.40 billion. Additionally, the company highlighted increasing tariffs as a growing concern for the apparel and footwear industry, potentially impacting future profitability. These factors likely contributed to the negative sentiment among investors, despite the company's ability to exceed Q2 expectations in a challenging retail environment.