Columbia Sportswear drops on revised sales outlook

Columbia Sportswear falls as revised full-year sales guidance fails to impress

• On 11:47 am EDT, Friday October 23, 2009

NEW YORK (AP) -- Shares of Columbia Sportswear fell Friday as its revised full-year sales forecast failed to impress an analyst.

Late Thursday the clothing maker from Portland, Ore., said it expects sales to fall 8 percent to 9 percent for the full year. It previously estimated sales would fall in the low double digit percentages.

Analysts polled by Thomson Reuters predict full-year sales of $1.18 billion, down nearly 12 percent from last year's sales of $1.32 billion.

Mitch Kummetz of Baird said while the guidance is better than Columbia's initial take, it hasn't improved all that much. The analyst said in a client note that the company's outerwear and sportswear businesses are fairly mature, and plans to grow its footwear segment have yet to be realized.

Kummetz reaffirmed a "Neutral" rating and increased and increased its price target to $47 from $40.

Columbia Sportswear said Thursday that its third-quarter profit slipped 24 percent on lower sales, but the results beat Wall Street's expectations.

Its shares fell $3.26, or 7.3 percent, to $41.55 in midday trading after rising to a 52-week high of $46.35 earlier in the session.