Outerwear manufacturer Columbia Sportswear (NASDAQ:COLM) will be reporting earnings tomorrow after the bell. Here's what you need to know.
Last quarter Columbia Sportswear reported revenues of $1.06 billion, down 9.4% year on year, missing analyst expectations by 1.7%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Is Columbia Sportswear buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Columbia Sportswear's revenue to decline 9.4% year on year to $743.3 million, a further deceleration on the 7.8% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.
Looking at Columbia Sportswear's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Levi's's revenues decreased 7.8% year on year, beating analyst estimates by 0.5% and Nike reported revenues up 0.3% year on year, exceeding estimates by 1.1%. Levi's traded up 12.3% on the results, and Nike traded up 3%.
Read our full analysis of Levi's's results here and Nike's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 4.1% over the last month. Columbia Sportswear is up 0.1% during the same time, and is heading into the earnings with analyst price target of $73.4, compared to share price of $78.99.
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