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Columbia Sportswear Company COLM is likely to see top- and bottom-line improvement when it reports fourth-quarter 2021 earnings results on Feb 3, after the market closes. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1,060 million, indicating an improvement of about 15.8% from the year-ago figure.
The Zacks Consensus Estimate for fourth-quarter earnings per share currently stands at $1.78, which suggests a sharp jump from $1.44 per share reported in the year-ago period. The consensus mark has increased by a penny over the past 30 days.
For 2021, the consensus mark for revenues is pegged at $3.06 billion, which indicates growth of 22.2% from last year. Again, the consensus estimate for full-year earnings per share stands at $4.73, suggesting a meaningful improvement from $1.62 reported in the year-ago period.
This designer, marketer and distributor of outdoor, active, and everyday lifestyle apparel, footwear and accessories has a trailing four-quarter earnings surprise of 199.5%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 16%.
Key Factors to Note
Stellar consumer demand, innovative product pipeline, planned price increase and better inventory management are likely to have contributed to Columbia Sportswear’s top-line performance. Lower promotional activity and improved in-store traffic levels might have aided in higher average order values. Impressively, the company’s focus on enhancing digital and analytics capabilities as well as improving direct-to-consumer operations bode well.
Columbia Sportswear is committed toward enhancing consumers’ experience and its digital capacity across all networks and regions. The company has been keen on investing in its people and optimizing its organization across the brand portfolio.
For fiscal 2021, management estimated net sales growth of 21.5-23% to $3.04 to $3.08 billion. It guided gross margin expansion of 190-210 basis points to 50.8% to 51%. The company projected operating margin in the band of 12.6-13.2% compared with operating margin of 5.5% in 2020.
While aforementioned factors raise optimism, we cannot rule out supply chain headwinds that have only become acute. On its last earnings call management highlighted that inbound shipping times, port congestion and other logistic delays have elongated in transit time from factory to inventory receipt.
Columbia Sportswear Company Price, Consensus and EPS Surprise
Columbia Sportswear Company price-consensus-eps-surprise-chart | Columbia Sportswear Company Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict a beat for Columbia Sportswear this earnings season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Columbia Sportswear has an Earnings ESP of +3.37% but a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Macy’s M currently has an Earnings ESP of +7.71% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.97 suggests a substantial improvement from 80 cents reported in the year-ago quarter.
Macy’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $8.44 billion, which indicates an improvement of 24.5% from the prior-year quarter. M has a trailing four-quarter earnings surprise of 313.5%, on average.
Tapestry TPR currently has an Earnings ESP of +0.85% and a Zacks Rank #2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.18 suggests an increase of 2.6% from the year-ago reported number.
Tapestry’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.99 billion, which suggests an improvement of 17.8% from the prior-year quarter. TPR has a trailing four-quarter earnings surprise of 29%, on average.
Target TGT currently has an Earnings ESP of +0.50% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings per share of $2.85 suggests growth of 6.7% from the year-ago quarter’s reported figure.
Target’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $31.53 billion, indicating an increase of 11.3% from the year-ago quarter. TGT has a trailing four-quarter earnings surprise of 19.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Macy’s, Inc. (M): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
Columbia Sportswear Company (COLM): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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