COLM Stock Forecast & Price Target

Columbia Sportswear Co reported revenues of $943.4 million, reflecting a 1% year-over-year increase, driven largely by substantial growth in the Sorel and prAna brands, which saw year-over-year increases of 10% and 6%, respectively. Improvements in the quality of sales are positively influencing the company's underlying gross margin, despite challenges posed by tariffs anticipated to affect future financials. The healthy inventory levels and the request from retail partners for earlier deliveries demonstrate strong demand, while the unique democratic positioning of the Columbia and Sorel brands presents significant opportunities for market share growth.

Columbia Sportswear Co. has delivered cautious guidance for both F3Q25 and 4Q25, projecting revenue declines of 1% to 3% year-over-year for F3Q25 and 5% to 8% for 4Q25, which falls short of prior market expectations. Additionally, the company has experienced significant pressures from a decline in U.S. sales, which accounted for 55% of F2Q25 revenue, and a softening in brand sell-through, potentially impacting overall financial performance. The expected diluted EPS for FY25 is forecasted to decrease by 16% year-over-year, reinforcing the negative outlook amid challenges such as gross margin contraction and tariff uncertainties.