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Bear of the Day: Columbia Sportswear Company (COLM)
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Key Takeaways
COLM's earnings have tanked over the last several years, and after its Q2 release.
Columbia Sportswear is struggling against multiple headwinds from inflation to tariffs.
Outdoor-focused clothing company Columbia Sportswear Company’s (COLM - Free Report) earnings have tanked over the last several years after a huge Covid-period surge.
Columbia is struggling against multiple headwinds from slowing consumer spending, made worse by lingering inflation, to tariffs and tougher competition.
Stay Away from COLM Stock for Now?
Columbia has been at the forefront of outdoor clothing, apparel, and footwear for decades. The Portland, Oregon-headquartered firm owns multiple outdoor-focused brands, including its namesake, as well as boot standout Sorel and higher-end apparel maker Mountain Hard Wear.
The company also owns prAna, which makes everything from rock climbing clothes to yoga gear, and is part of a group of brands competing alongside Lululemon.
Image Source: Zacks Investment Research
The diversification and portfolio expansion have helped Columbia. Still, its namesake brand is by far the largest revenue contributor, bringing in around 80% to 85% of total sales in most quarters.
Columbia competes against The North Face, Patagonia, and tons of digital-native upstarts that are thriving in the direct-to-consumer age.
Columbia posted huge revenue growth in 2021 and 2022. But it hasn’t been able to sustain its momentum as it faces inflation, slowing overall consumer spending, and other setbacks.
The historic outdoor clothing company announced a multi-year profit improvement program in 2024 after its earnings tanked in 2023. COLM’s adjusted and GAAP earnings per share fell again in 2024 despite efforts to grow its bottom line.
Image Source: Zacks Investment Research
Columbia’s situation hasn't improve in 2025. It reported an operating loss of $23.6 million in Q2 and an adjusted loss of -$0.19 a share. “The apparel and footwear industry is facing increasing tariffs, on top of already high existing duties… For the upcoming Fall 2025 season, our focus is delivering exceptional value to consumers, who are pressured by higher prices for many consumer goods,” CEO Tim Boyle said in prepared Q2 remarks.
Columbia’s earnings outlook fell again after its Q2 release, with its estimate for 2026 down 11% over the past two months. Its recent downward earnings revisions, which land it a Zacks Rank #5 (Strong Sell), are part of a huge negative revisions spiral that began in 2022.
COLM stock is down 8% over the last 10 years compared to the S&P 500’s 250% run. This poor performance includes a 36% drop in 2025 as Wall Street pivots away from the entire apparel industry amid all of the headwinds.
Investors who are bullish on a possible Columbia turnaround might want to wait until at least its next earnings report before they consider buying the stock.
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Bear of the Day: Columbia Sportswear Company (COLM)
Key Takeaways
Outdoor-focused clothing company Columbia Sportswear Company’s (COLM - Free Report) earnings have tanked over the last several years after a huge Covid-period surge.
Columbia is struggling against multiple headwinds from slowing consumer spending, made worse by lingering inflation, to tariffs and tougher competition.
Stay Away from COLM Stock for Now?
Columbia has been at the forefront of outdoor clothing, apparel, and footwear for decades. The Portland, Oregon-headquartered firm owns multiple outdoor-focused brands, including its namesake, as well as boot standout Sorel and higher-end apparel maker Mountain Hard Wear.
The company also owns prAna, which makes everything from rock climbing clothes to yoga gear, and is part of a group of brands competing alongside Lululemon.
Image Source: Zacks Investment Research
The diversification and portfolio expansion have helped Columbia. Still, its namesake brand is by far the largest revenue contributor, bringing in around 80% to 85% of total sales in most quarters.
Columbia competes against The North Face, Patagonia, and tons of digital-native upstarts that are thriving in the direct-to-consumer age.
Columbia posted huge revenue growth in 2021 and 2022. But it hasn’t been able to sustain its momentum as it faces inflation, slowing overall consumer spending, and other setbacks.
The historic outdoor clothing company announced a multi-year profit improvement program in 2024 after its earnings tanked in 2023. COLM’s adjusted and GAAP earnings per share fell again in 2024 despite efforts to grow its bottom line.
Image Source: Zacks Investment Research
Columbia’s situation hasn't improve in 2025. It reported an operating loss of $23.6 million in Q2 and an adjusted loss of -$0.19 a share. “The apparel and footwear industry is facing increasing tariffs, on top of already high existing duties… For the upcoming Fall 2025 season, our focus is delivering exceptional value to consumers, who are pressured by higher prices for many consumer goods,” CEO Tim Boyle said in prepared Q2 remarks.
Columbia’s earnings outlook fell again after its Q2 release, with its estimate for 2026 down 11% over the past two months. Its recent downward earnings revisions, which land it a Zacks Rank #5 (Strong Sell), are part of a huge negative revisions spiral that began in 2022.
COLM stock is down 8% over the last 10 years compared to the S&P 500’s 250% run. This poor performance includes a 36% drop in 2025 as Wall Street pivots away from the entire apparel industry amid all of the headwinds.
Investors who are bullish on a possible Columbia turnaround might want to wait until at least its next earnings report before they consider buying the stock.