COLM Stock Forecast & Price Target

Columbia Sportswear Co demonstrated a resilient revenue growth of $943.4 million, reflecting a 1% increase, with notable performances from the SOREL and prAna brands, which grew by 10% and 6% year-over-year, respectively. The company is benefiting from healthy inventory levels and improved sales quality, which enhances gross margin potential despite challenges posed by tariffs projected for FY26E. Additionally, the brand's unique democratic positioning and market share gains suggest strong growth opportunities, particularly in the fall/winter season against less competitive brands.

Columbia Sportswear Co. faces a negative outlook primarily due to disappointing revenue guidance for both F3Q25 and 4Q25, with anticipated declines in sales ranging from 1% to 8% year-over-year, which fell short of prior expectations from market analysts. Additionally, the company reported a decline in U.S. revenue, which constitutes over half of its total sales, and a noted gross margin contraction of approximately 20 basis points, indicating ongoing pressures on profitability amid potential tariff uncertainties. These factors culminate in a lowered earnings per share estimate for FY25, forecasting a 16% year-over-year decrease, further reflecting the challenges the company is currently facing.