Alexander Perry, an analyst from Bank of America Securities, reiterated the Sell rating on Columbia Sportswear (COLM – Research Report). The associated price target is $58.00.
Alexander Perry has given his Sell rating due to a combination of factors impacting Columbia Sportswear’s financial outlook. One significant reason is the ongoing challenges in the U.S. market, which have been partially offset by stronger performance in regions like EMEA and LAAP. Despite a slight increase in revenue, the company’s exposure to tariffs, particularly a 10% universal tariff and a 145% China tariff, has led to increased costs of goods sold, pressuring profit margins.
Perry also notes that while there is strength in the Chinese market, other areas such as the U.S. and Canada have experienced declines, particularly in direct-to-consumer sales. Furthermore, the Sorel brand has faced difficulties with Spring ’25 orders, resulting in a revenue decline. These factors have contributed to a downward revision of the company’s earnings per share forecast, reinforcing the decision to maintain a Sell rating with a reduced price objective of $58.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COLM in relation to earlier this year.