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Factors That Hold Key to Columbia Sportswear (COLM) Q1 Earnings

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Columbia Sportswear Company COLM is likely to register an increase in the top line when it reports first-quarter 2021 numbers on Apr 29, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $583.3 million, indicating an improvement of 2.7% from the prior-year reported figure.

The bottom line of this designer, marketer and distributor of outdoor and active lifestyle apparel, footwear, equipment and accessories is also expected to increase year over year. The Zacks Consensus Estimate for earnings for the quarter under review has been stable at 33 cents in the past 30 days. The figure suggests a sharp improvement from break-even earnings reported in the year-ago period.

Notably, this Portland, OR-based company has a trailing four-quarter negative earnings surprise of 22.9%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin of 19%.

Factors to Note

While the impact of ongoing coronavirus pandemic on Columbia Sportswear’s first-quarter performance cannot be ruled out, the strength in brands, a strong balance sheet and a robust business model appear encouraging. Markedly, the company has been making investments to drive brand awareness, enhance digital capabilities in all channels and geographies, and expand direct-to-consumer operations globally. Such endeavors along with likely recovery in the wholesale business might have fueled the company’s top line in the quarter to be reported.

Markedly, the company is on track with its Experience First initiative or the X1 initiative, aimed at enhancing e-commerce operations to keep pace with the evolving consumer shopping behavior. Moreover, the company has been undertaking brand-enhancing and unique marketing initiatives that further strengthen its presence in the apparel industry.

Clearly, aforementioned factors raise optimism regarding the outcome. However, supply chain and logistics capacity constraints as well as soft store traffic in tourist-dependent markets might have acted as headwinds for the company.

Columbia Sportswear Company Price, Consensus and EPS Surprise

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

What the Zacks Model Unveils

Our proven model does not 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. But that’s not the case here.

Although Columbia Sportswear carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

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

Abercrombie & Fitch ANF has an Earnings ESP of +22.92% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dillard's, Inc. DDS has an Earnings ESP of +6.49% and a Zacks Rank #1.

Wolverine World Wide WWW has an Earnings ESP of +9.57% and a Zacks Rank #3.

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Columbia Sportswear Company (COLM) : Free Stock Analysis Report

Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

Dillards, Inc. (DDS) : Free Stock Analysis Report

Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report

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