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Columbia Sportswear (COLM) to Report Q2 Earnings: What to Expect?

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Columbia Sportswear Company (COLM - Free Report) is likely to register an improvement in the top and bottom lines when it reports second-quarter 2021 numbers on Aug 2.

The Zacks Consensus Estimate for the bottom line, which has been unchanged in the past 30 days, is pegged at a loss of 12 cents per share. The projection suggests an improvement from a loss of 77 cents reported in the year-ago quarter. The designer, marketer and distributor of outdoor and active lifestyle apparel, footwear, equipment as well as accessories has a trailing four-quarter earnings surprise of 40.8%, on average. In the last reported quarter, the company’s bottom line significantly outperformed the Zacks Consensus Estimate.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $500.3 million, which suggests growth of 58% from the figure reported in the prior-year quarter.

Columbia Sportswear Company Price and EPS Surprise

 

Columbia Sportswear Company Price and EPS Surprise

Columbia Sportswear Company price-eps-surprise | Columbia Sportswear Company Quote

 

Things to Keep in Mind

Columbia Sportswear is benefiting from its Experience First initiative or the X1 initiative, aimed toward enhancing e-commerce operations and meeting evolving consumer shopping behavior. The company is on track with demand creation investments, which are directed at driving brand awareness and aiding sales. Management has been undertaking brand-enhancing and unique marketing initiatives to strengthen its presence in the apparel industry. Columbia Sportswear is benefiting from strength in direct-to-consumer (DTC) e-commerce business.

Yet, management, in its last earnings call, highlighted that its second-quarter 2021 sales growth (by channel) is likely to be affected by the anniversary of last year’s temporary store closures and heightened DTC e-commerce net sales penetration amid the pandemic. The company noted that the second quarter is usually its lowest volume sales quarter. Historically, profitability has also been challenging for Columbia Sportswear in the second quarter due to its fixed-cost structure. We believe that persistence of such trends is likely to have affected the company’s performance in the to-be-reported 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 currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Some 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 in the to-be-reported quarter.

Under Armour, Inc. (UAA - Free Report) currently has an Earnings ESP of +47.69% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Steven Madden, Ltd. (SHOO - Free Report) currently has an Earnings ESP of +6.67% and carries a Zacks Rank #2.

Deckers Outdoor Corporation (DECK - Free Report) currently has an Earnings ESP of +41.18% and a Zacks Rank of 3.