Columbia Sportswear Co. (COLM) is expected to surpass Q4 sales and EPS consensus, with Citi forecasting EPS at $1.90, above the consensus of $1.86. The company is benefiting from colder weather, which has bolstered sales, although wholesale order patterns remain conservative. Citi anticipates Columbia's FY25 EPS guidance to range between $4.10 and $4.50, aligning closely with consensus estimates of $4.28. Despite these positive expectations, Citi maintains a "Neutral" rating, citing a challenging macroeconomic environment and choppy sales and margin trends.
Citi has adjusted its estimates, lowering its FY24 EPS forecast from $3.99 to $3.93 due to foreign exchange impacts, and its FY25 EPS from $4.50 to $4.43. The report highlights Columbia's strong international performance, particularly in Europe and China, contrasting with a weaker U.S. market. "The US business has been choppy, hurt by a challenging backdrop for athletic/outdoor apparel/shoes and cautious wholesale partners," notes Citi.
Columbia's stock closed at $89.58 on January 27, 2025.