COLM Stock Forecast & Price Target

Columbia Sportswear Co reported revenues of $943.4 million, reflecting a modest increase of 1%, with notable growth in the Sorel and prAna brands at 10% and 6% year-over-year, respectively. The company's gross margins remained strong at 48.0%, supported by higher gross profit dollars, despite challenges posed by tariffs expected to impact future financials. Moreover, healthy inventory levels and the company's strategic positioning in the market suggest favorable opportunities for gaining market share against smaller competitors, particularly in the fall/winter season.

Columbia Sportswear Co. faces a challenging financial outlook, with third-quarter guidance indicating a revenue drop of 3% to 1% year-over-year, significantly below prior estimates. Fourth-quarter projections are similarly disappointing, forecasting an 8% to 5% decline in revenue, alongside diluted EPS estimates that fall short of previous projections. Additionally, a notable contraction in gross margins and declining domestic sales—particularly with a 1.5% year-over-year decrease in US revenue—highlight ongoing operational pressures, primarily driven by sluggish brand performance and tariff-related uncertainties.