Bear of the Day: Columbia Sportswear Company (COLM)

Outdoor-focused clothing company Columbia Sportswear Company’s COLM earnings have tanked over the last several years after a huge Covid-period surge. Columbia is struggling against multiple headwinds from slowing consumer spending, made worse by lingering inflation, to tariffs and tougher competition.Stay Away from COLM Stock for Now?Columbia has been at the forefront of outdoor clothing, apparel, and footwear for decades. The Portland, Oregon-headquartered firm owns multiple outdoor-focused brands, including its namesake, as well as boot standout Sorel and higher-end apparel maker Mountain Hard Wear. The company also owns prAna, which makes everything from rock climbing clothes to yoga gear, and is part of a group of brands competing alongside Lululemon.Image Source: Zacks Investment ResearchThe diversification and portfolio expansion have helped Columbia. Still, its namesake brand is by far the largest revenue contributor, bringing in around 80% to 85% of total sales in most quarters. Columbia competes against The North Face, Patagonia, and tons of digital-native upstarts that are thriving in the direct-to-consumer age.Columbia posted huge revenue growth in 2021 and 2022. But it hasn’t been able to sustain its momentum as it faces inflation, slowing overall consumer spending, and other setbacks.The historic outdoor clothing company announced a multi-year profit improvement program in 2024 after its earnings tanked in 2023. COLM’s adjusted and GAAP earnings per share fell again in 2024 despite efforts to grow its bottom line.Image Source: Zacks Investment ResearchColumbia’s situation hasn't improve in 2025. It reported an operating loss of $23.6 million in Q2 and an adjusted loss of -$0.19 a share. “The apparel and footwear industry is facing increasing tariffs, on top of already high existing duties… For the upcoming Fall 2025 season, our focus is delivering exceptional value to consumers, who are pressured by higher prices for many consumer goods,” CEO Tim Boyle said in prepared Q2 remarks.Columbia’s earnings outlook fell again after its Q2 release, with its estimate for 2026 down 11% over the past two months. Its recent downward earnings revisions, which land it a Zacks Rank #5 (Strong Sell), are part of a huge negative revisions spiral that began in 2022.COLM stock is down 8% over the last 10 years compared to the S&P 500’s 250% run. This poor performance includes a 36% drop in 2025 as Wall Street pivots away from the entire apparel industry amid all of the headwinds. Investors who are bullish on a possible Columbia turnaround might want to wait until at least its next earnings report before they consider buying the stock. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Sportswear Company (COLM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks