Columbia Sportswear Company COLM is gearing up to unveil its third-quarter 2024 earnings on Oct. 30, after market close. Investors are closely monitoring for insights into its performance.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $946.6 million, which indicates nearly 4% decline from the year-ago period.
The consensus mark for the bottom line has deteriorated a penny in the past seven days to $1.36. This indicates a 20% decline from the year-ago quarter’s earnings of $1.70 per share. COLM has a trailing four-quarter earnings surprise of 33.1%, on average.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
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
Key Factors to Observe for COLM's Q3 Earnings
Columbia Sportswear has been contending with a challenging U.S. market, marked by softened consumer demand and more conservative retail orders. However, the company has been seeing stronger performance internationally, especially in China and its Europe-direct business. For the third quarter of 2024, COLM anticipates a net sales decline of 3-6% to the $927-$959 million range.
SG&A expenses, as a percentage of sales, have been rising consistently year over year, with the second quarter of 2024 seeing a 280 basis points (bps) increase, reaching 53.1% of sales. This increase was primarily driven by elevated direct-to-consumer expenses. The persistence of these headwinds is a concern. Our model suggests SG&A expenses, as a percentage of sales to increase 320 bps to 38.9% in the third quarter.
COLM expects to deliver an operating income in the band of $94-$107 million, with an operating margin of 10.1-11.2% in the third quarter. Management envisions the bottom line in the range of $1.27-$1.43.
COLM has been benefiting from its focus on strategic priorities to drive profitable growth by creating iconic products that stand out for its functionality and innovation. The company enhances brand engagement through targeted demand creation and increased investments while improving consumer experiences. COLM has also been strengthening its marketplace presence with a digitally-led, omnichannel and global strategy.
Columbia Sportswear has been progressing in its multi-year Profit Improvement Program, aimed at boosting operational efficiency and safeguarding profits. The company also focuses on reducing costs tied to excess inventory and implementing targeted expense cuts across the business. Gains from these upsides are likely to have contributed in the quarter to be reported.
What the Zacks Model Predicts for COLM
Our proven model doesn’t conclusively predict an earnings beat for Columbia Sportswear this time. 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, which is not the case here.
Columbia Sportswear currently has a Zacks Rank #4 (Sell) and an Earnings ESP of +2.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Crocs, Inc. CROX currently has an Earnings ESP of +0.61% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register top-line growth when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for CROX’s quarterly revenues is pegged at $1.05 billion, which indicates growth of 0.5% from the prior-year quarter’s reported figure. The consensus mark for Crocs’ quarterly earnings has increased in the past seven days to $3.13 per share. The estimate indicates a decline of 3.7% from the year-ago quarter. CROX delivered an earnings surprise of 14.9% in the trailing four quarters, on average.
Gildan Activewear Inc. GIL currently has an Earnings ESP of +0.40% and a Zacks Rank #2. The company is likely to register an increase in the top and the bottom line when it reports third-quarter 2024 numbers. The consensus mark for revenues is pegged at $882.2 million, which implies growth of 1.4% from the year-ago quarter.
The Zacks Consensus Estimate for Gildan Activewear's quarterly earnings per share of 84 cents implies an increase of 13.5% from the year-ago quarter. GIL has a trailing four-quarter earnings surprise of 5.5%, on average.
lululemon athletica inc. LULU has an Earnings ESP of +8.44% and a Zacks Rank of 3 at present. The company is expected to register a top and bottom-line increase when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for LULU’s quarterly earnings has risen 3 cents in the past 30 days to $2.73 per share, which indicates an increase of 7.9% from the prior-year quarter.
The consensus mark for lululemon athletica’s quarterly revenues is pegged at $2.35 billion, which indicates an increase of 6.8% from the year-ago quarter. LULU has a trailing four-quarter earnings surprise of 7.9%, on average.
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