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Factors to Aid Columbia Sportswear's (COLM) Q1 Earnings

Zacks Equity Research

Columbia Sportswear Company COLM is scheduled to report first-quarter 2019 results on Apr 25, after market close. This lifestyle apparel, footwear, accessories and equipment company has delivered average positive earnings surprise of 83.5% in the trailing four quarters, with a bottom-line beat in each quarter. Let’s see if the company can maintain the beat streak in the upcoming quarterly results.

Project Connect

The company is progressing well with the Project CONNECT program, which focuses on enhancing revenues, capturing cost of sales efficiencies, improving gross margins and lowering SG&A costs. We believe that the project is likely to generate significant financial value in the quarter to be reported.

Strong DTC Business & Other Factors

Columbia Sportswear is committed toward expanding and enhancing its global direct-to-consumer (DTC) business. Within the DTC business, the brick-and-mortar and e-commerce businesses have showcased strong performance. Gains from this channel are likely to be reflected on the upcoming quarterly results.

Additionally, we are optimistic about Columbia Sportswear’s solid international presence. Strong progress witnessed in Europe, Japan and China are likely to make a positive impact in the upcoming announcement. In fact, many other textile-apparel players like lululemon LULU, Ralph Lauren RL and Guess? GES are benefiting from strong overseas operations.

Moreover, Columbia Sportswear’s strong brand positions, especially for the SOREL and prAna banners, are expected to drive the top line in first-quarter results.

Columbia Sportswear Company Price, Consensus and EPS Surprise


Columbia Sportswear Company Price, Consensus and EPS Surprise | Columbia Sportswear Company Quote


Estimates Paint a Rosy Picture

The Zacks Consensus Estimate for first-quarter earnings is pegged at 85 cents per share, suggesting 10.4% rise from 77 cents delivered in the year-ago quarter. Notably, the consensus mark has inched up by a penny in the past 30 days. For revenues, the consensus mark is pegged at $643 million, implying a 5.9% rise from the year-ago quarter’s reported figure.

Zacks Model

Our proven model shows that Columbia Sportswear is likely to beat earnings estimates this quarter. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

Columbia Sportswear’s Zacks Rank #2 combined with the Earnings ESP of +1.57% makes us reasonably confident about an earnings beat. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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lululemon athletica inc. (LULU) : Free Stock Analysis Report
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
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Guess?, Inc. (GES) : Free Stock Analysis Report
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