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Why Is Columbia Sportswear (COLM) Up 4.1% Since the Last Earnings Report?
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A month has gone by since the last earnings report for Columbia Sportswear Company (COLM - Free Report) . Shares have added about 4.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Columbia Sportswear Fourth-Quarter Earnings Beat, Sales Miss
Columbia Sportswear reported mixed fourth-quarter 2016 numbers, with earnings beating the Zacks Consensus Estimate while revenues missed the same.
The company recorded earnings per share of $1.20 which outpaced the Zacks Consensus Estimate of $1.10 by 9.1%. Further, earnings surpassed year-ago results by 33.3%. Profits surged backed by higher sales and gross margins during the quarter.
Revenues and Operating Profits
Quarterly revenues gained 3% to $717.4 million owing to higher sales in almost all the geographic regions. Sales gained 2% in constant currency during the quarter. However, net sales came in below the Zacks Consensus Estimate of $755.1 million.
Cost of sales fell 7% to $379.8 million. Gross profit gained 6.5% to $337.6 million driven by higher revenues and lower cost of sales. Gross margin inflated 180 basis points (bps) to 47.1%. The company reported net operating profit of $100.4 million, up 22% from the year-ago quarter due to lower selling, general and administrative expenses.
Regional Segments
U.S.: Net sales gained 2% to $455.4 million, reflecting growth from the Columbia brand.
Latin America/Asia Pacific (LAAP): Net sales inched up 1% (down 3% at constant dollar) to $151.9 million on the back of net sales growth in Japan and China.
Canada: Net sales grew 3% (up 1% at constant dollar) to $112.7 million.
Europe/Middle East/Africa (EMEA): Net sales increased 20% (increased 8% at constant dollar) to $70.1 million, backed by an improvement in the company’s Europe-direct business, partly offset by lower sales to EMEA distributors.
Category Segments
Global Apparel, Accessories & Equipment net sales increased 4% to $535.8 million, and Footwear net sales decreased 1% (2% constant-currency) to $181.6 million.
Brands
Columbia brand’s net sales increased 4% to $552.3 million. Global SOREL brand net sales decreased 1% (2% constant-currency) to $103.8 million. Global prAna brand net sales increased 2% to $28.2 million, and global Mountain Hardwear brand net sales slumped 11% (12% on constant-currency basis) to $31.3 million.
Other Financial Updates
Columbia Sportswear ended the quarter with cash and short-term investments of $551.4 million compared with $219.7 million in the year-ago period.
Long-term debt amounted to $42.6 million compared with $40.7 million in the previous quarter.
Full-Year 2016 Results
Earnings per share of $2.72 outpaced the Zacks Consensus Estimate of $2.62 by 9.1%. Earnings also surpassed year-ago results by 11%. Quarterly revenues gained 2% to $2.3 billion. Sales gained 2% in constant currency during the quarter. Further, net sales came in below the Zacks Consensus Estimate of $2.42 billion.
Guidance
Columbia Sportswear issued 2017 guidance. Management anticipates 2017 net sales growth of 4% compared with 2016 levels. Net sales are weighted more heavily toward the Fall season. Currency is expected to affect sales by less than 1%.
The company anticipates gross margin for 2016 to improve by 25 bps and selling, general and administrative costs to rise at a rate marginally above the expected sales growth. Moreover, tax rate is estimated to be 25%.
Operating profit is likely to increase 5% in the band of $260–$270 million. Earnings per share for 2017 are projected in the band of $2.72–$2.82, flat to up 3.6% from 2016 level.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, Columbia Sportswear's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Columbia Sportswear (COLM) Up 4.1% Since the Last Earnings Report?
A month has gone by since the last earnings report for Columbia Sportswear Company (COLM - Free Report) . Shares have added about 4.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Columbia Sportswear Fourth-Quarter Earnings Beat, Sales Miss
Columbia Sportswear reported mixed fourth-quarter 2016 numbers, with earnings beating the Zacks Consensus Estimate while revenues missed the same.
The company recorded earnings per share of $1.20 which outpaced the Zacks Consensus Estimate of $1.10 by 9.1%. Further, earnings surpassed year-ago results by 33.3%. Profits surged backed by higher sales and gross margins during the quarter.
Revenues and Operating Profits
Quarterly revenues gained 3% to $717.4 million owing to higher sales in almost all the geographic regions. Sales gained 2% in constant currency during the quarter. However, net sales came in below the Zacks Consensus Estimate of $755.1 million.
Cost of sales fell 7% to $379.8 million. Gross profit gained 6.5% to $337.6 million driven by higher revenues and lower cost of sales. Gross margin inflated 180 basis points (bps) to 47.1%. The company reported net operating profit of $100.4 million, up 22% from the year-ago quarter due to lower selling, general and administrative expenses.
Regional Segments
U.S.: Net sales gained 2% to $455.4 million, reflecting growth from the Columbia brand.
Latin America/Asia Pacific (LAAP): Net sales inched up 1% (down 3% at constant dollar) to $151.9 million on the back of net sales growth in Japan and China.
Canada: Net sales grew 3% (up 1% at constant dollar) to $112.7 million.
Europe/Middle East/Africa (EMEA): Net sales increased 20% (increased 8% at constant dollar) to $70.1 million, backed by an improvement in the company’s Europe-direct business, partly offset by lower sales to EMEA distributors.
Category Segments
Global Apparel, Accessories & Equipment net sales increased 4% to $535.8 million, and Footwear net sales decreased 1% (2% constant-currency) to $181.6 million.
Brands
Columbia brand’s net sales increased 4% to $552.3 million. Global SOREL brand net sales decreased 1% (2% constant-currency) to $103.8 million. Global prAna brand net sales increased 2% to $28.2 million, and global Mountain Hardwear brand net sales slumped 11% (12% on constant-currency basis) to $31.3 million.
Other Financial Updates
Columbia Sportswear ended the quarter with cash and short-term investments of $551.4 million compared with $219.7 million in the year-ago period.
Long-term debt amounted to $42.6 million compared with $40.7 million in the previous quarter.
Full-Year 2016 Results
Earnings per share of $2.72 outpaced the Zacks Consensus Estimate of $2.62 by 9.1%. Earnings also surpassed year-ago results by 11%. Quarterly revenues gained 2% to $2.3 billion. Sales gained 2% in constant currency during the quarter. Further, net sales came in below the Zacks Consensus Estimate of $2.42 billion.
Guidance
Columbia Sportswear issued 2017 guidance. Management anticipates 2017 net sales growth of 4% compared with 2016 levels. Net sales are weighted more heavily toward the Fall season. Currency is expected to affect sales by less than 1%.
The company anticipates gross margin for 2016 to improve by 25 bps and selling, general and administrative costs to rise at a rate marginally above the expected sales growth. Moreover, tax rate is estimated to be 25%.
Operating profit is likely to increase 5% in the band of $260–$270 million.
Earnings per share for 2017 are projected in the band of $2.72–$2.82, flat to up 3.6% from 2016 level.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Columbia Sportswear Company Price and Consensus
Columbia Sportswear Company Price and Consensus | Columbia Sportswear Company Quote
VGM Scores
At this time, Columbia Sportswear's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.