Will the growth streak continue?
Columbia Sportswear (COLM) plans to announce its first-quarter results after the market closes on April 25. Columbia Sportswear announced stellar fourth-quarter results in February. The company’s sales grew 18.2% on a reported basis in the fourth quarter, while adjusted EPS grew by an impressive 28.2%. Columbia Sportswear stock rose 15.6% on February 8 in reaction to better-than-expected results declared after the closure of financial markets on February 7. Analysts expect Columbia Sportswear’s (COLM) sales to rise 6.5% and adjusted EPS to increase 7.8% in the first quarter.
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Many analysts increased their price target for Columbia Sportswear stock in reaction to the company’s strong results. On February 8, Cowen and Company increased its price target to $118 from $103. Canaccord Genuity increased its price target to $104 from $93. B Riley raised its price target to $96 from $93. On February 8, Wedbush increased its price target to $111 from $104. Stifel revised its price target to $120 from $103. Wedbush raised its price target to $113 from $111 on April 11.
As of April 22, Columbia Sportswear stock was up 21.2% on a year-to-date basis. Nike (NKE), Under Armour (UAA), Skechers (SKX), and Lululemon (LULU), peers in the footwear and apparel space, have risen 17.8%, 24.2%, 30.1%, and 42.3%, respectively, since the start of this year.
The average 12-month price target for Columbia Sportswear stock was $112.00 as of April 22. This price target implies an upside potential of 10%. Columbia Sportswear is currently rated a “buy” by nine out of 15 analysts, while the remaining six have a “hold” recommendation.
Columbia Sportswear’s efforts to strengthen its DTC (direct-to-consumer) business and further expand its international operations are expected to boost its performance.