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Factors to Watch Before Columbia Sportswear's (COLM) Q3 Earnings

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Columbia Sportswear Company (COLM - Free Report) is likely to display year-over-year growth in the top and bottom lines, when it reports third-quarter 2021 earnings on Oct 28. The Zacks Consensus Estimate for revenues is pegged at $868 million, suggesting a rise of 23.8% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at $1.31 per share, which indicates an increase of 39.4% from the figure reported in the prior-year period. The company’s bottom line has outpaced the Zacks Consensus Estimate by a wide margin in the trailing four quarters, on average.

Columbia Sportswear Company Price, Consensus and EPS Surprise

Columbia Sportswear Company Price, Consensus and EPS Surprise

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

Key Factors to Note

The company has been benefiting from the strong fundamental business revival, along with a favorable performance in the U.S. wholesale and the direct-to-consumer (DTC) brick & mortar businesses. The company is also gaining on its robust DTC e-commerce business, given consumers’ increased preference for online shopping. On its last earnings call, management stated that the company was well positioned to gain from the existing consumer and outdoor patterns.
 
Apart from this, the company’s focus on its strategic priorities bodes well. To this end, it is committed toward making demand creation investments, which are aimed at driving brand awareness and aiding sales. Further, the company is committed toward enhancing consumers’ experience and its digital capacity across all networks and regions. It also explores growth opportunities in the DTC business and improves support processes. Finally, the company has been keen on investing in its people and optimizing its organization across the brand portfolio.

On its second-quarter earnings call, management said that it has been witnessing greater-than-expected ocean freight costs in recent months, which affected the full-year guidance. This also raises concerns for the upcoming quarter, though Columbia Sportswear is on track with its efficient pricing to battle the cost headwinds.

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 #4 (Sell) and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Gildan Activewear (GIL - Free Report) has an Earnings ESP of +7.14% and carries a Zacks Rank #3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Victoria's Secret (VSCO - Free Report) has an Earnings ESP of +0.57% and carries a Zacks Rank #3, currently.

The Estee Lauder Companies (EL - Free Report) has an Earnings ESP of +0.24% and currently holds a Zacks Rank #3.

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