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What's in Store for Columbia Sportswear's (COLM) Q4 Earnings?
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Columbia Sportswear Company (COLM - Free Report) is likely to report a decline in the top and the bottom line, when it reports fourth-quarter 2020 numbers on Feb 4. The Zacks Consensus Estimate for revenues is pegged at $866.4 million, indicating a decline of 9.3% from the prior-year quarter’s tally. For 2020, the consensus mark is pegged at $2.45 billion that suggests a slump of 19.4% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings has remained unchanged in the past 30 days at $1.21 per share, suggesting a decline of 27.5% from the year-ago quarter’s reported number. For 2020, the Zacks Consensus Estimate for earnings is pegged at $1.39 per share, which suggests a slump of 71.2% from the prior-year’s reported figure. This designer, marketer and distributor of outdoor and active lifestyle apparel, footwear, equipment and accessories, has a trailing four-quarter negative earnings surprise of 27.5%, on average. The company reported a negative earnings surprise of almost 23% in the last reported quarter.
Columbia Sportswear Company Price and EPS Surprise
Columbia Sportswear is bearing the brunt of coronavirus-induced hurdles like soft store traffic. Management, in its last earnings call, highlighted that it expects 2020 results to bear pandemic-led impacts like reduced global net sales, delay of inventory production as well as fulfillment and high costs. Further, sales volumes are likely to have been softer year over year in fourth-quarter 2020.
The company expects net sales in the range of $850-$880 million, which indicates an 8-11% decline from the year-ago quarter’s reported figure. Further, it envisions quarterly earnings per share in the range of $1.07-$1.32, which suggests a decline from $1.67 reported in the prior-year quarter. Also, Columbia Sportswear expects operating income in the range of $91-$112 million during the quarter under review, reflecting an operating margin of 10.7-12.7%. This suggests a decline from the operating income and margin of $138.6 million and 14.5%, respectively, reported in the fourth quarter of 2019.
On its last earnings call, management commented that it intends to continue its investments to create demand, drive brand awareness and enhance digital capabilities. Though these initiatives are growth oriented, they might have hurt margins in the quarter under review.
Markedly, the company is on track with its Experience First initiative or the X1 initiative, aimed at enhancing e-commerce operations to keep pace with the evolving consumer shopping behavior. Also, Columbia Sportswear is committed to expanding and enhancing its global direct-to-consumer business, through accelerated investments. Moreover, the company undertakes brand-enhancing and unique marketing initiatives that further strengthen its presence in the apparel industry. In this regard, the company has had several marketing and social media events for its best-selling winter technology (Omni-Heat) in the fourth quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Columbia Sportswear this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Columbia Sportswear carries a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
Under Armour (UAA - Free Report) currently has an Earnings ESP of +8.59% and carries a Zacks Rank #3.
Guess? (GES - Free Report) currently has an Earnings ESP of +2.91% and carries a Zacks Rank #3.
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What's in Store for Columbia Sportswear's (COLM) Q4 Earnings?
Columbia Sportswear Company (COLM - Free Report) is likely to report a decline in the top and the bottom line, when it reports fourth-quarter 2020 numbers on Feb 4. The Zacks Consensus Estimate for revenues is pegged at $866.4 million, indicating a decline of 9.3% from the prior-year quarter’s tally. For 2020, the consensus mark is pegged at $2.45 billion that suggests a slump of 19.4% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings has remained unchanged in the past 30 days at $1.21 per share, suggesting a decline of 27.5% from the year-ago quarter’s reported number. For 2020, the Zacks Consensus Estimate for earnings is pegged at $1.39 per share, which suggests a slump of 71.2% from the prior-year’s reported figure. This designer, marketer and distributor of outdoor and active lifestyle apparel, footwear, equipment and accessories, has a trailing four-quarter negative earnings surprise of 27.5%, on average. The company reported a negative earnings surprise of almost 23% in the last reported quarter.
Columbia Sportswear Company Price and EPS Surprise
Columbia Sportswear Company price-eps-surprise | Columbia Sportswear Company Quote
Key Factors to Note
Columbia Sportswear is bearing the brunt of coronavirus-induced hurdles like soft store traffic. Management, in its last earnings call, highlighted that it expects 2020 results to bear pandemic-led impacts like reduced global net sales, delay of inventory production as well as fulfillment and high costs. Further, sales volumes are likely to have been softer year over year in fourth-quarter 2020.
The company expects net sales in the range of $850-$880 million, which indicates an 8-11% decline from the year-ago quarter’s reported figure. Further, it envisions quarterly earnings per share in the range of $1.07-$1.32, which suggests a decline from $1.67 reported in the prior-year quarter. Also, Columbia Sportswear expects operating income in the range of $91-$112 million during the quarter under review, reflecting an operating margin of 10.7-12.7%. This suggests a decline from the operating income and margin of $138.6 million and 14.5%, respectively, reported in the fourth quarter of 2019.
On its last earnings call, management commented that it intends to continue its investments to create demand, drive brand awareness and enhance digital capabilities. Though these initiatives are growth oriented, they might have hurt margins in the quarter under review.
Markedly, the company is on track with its Experience First initiative or the X1 initiative, aimed at enhancing e-commerce operations to keep pace with the evolving consumer shopping behavior. Also, Columbia Sportswear is committed to expanding and enhancing its global direct-to-consumer business, through accelerated investments. Moreover, the company undertakes brand-enhancing and unique marketing initiatives that further strengthen its presence in the apparel industry. In this regard, the company has had several marketing and social media events for its best-selling winter technology (Omni-Heat) in the fourth quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Columbia Sportswear this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Columbia Sportswear carries a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
Steven Madden (SHOO - Free Report) currently has an Earnings ESP of +1.61% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Under Armour (UAA - Free Report) currently has an Earnings ESP of +8.59% and carries a Zacks Rank #3.
Guess? (GES - Free Report) currently has an Earnings ESP of +2.91% and carries a Zacks Rank #3.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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