Why Columbia Sportswear (COLM) Stock Is Falling Today

What Happened?

Shares of outerwear manufacturer Columbia Sportswear (NASDAQ:COLM) fell 14.6% in the morning session after the company issued a disappointing financial forecast for its third quarter and the full year, which overshadowed a second-quarter earnings beat. 

The outdoor apparel maker projected third-quarter earnings and revenue that both fell below analysts' expectations. For the full year, Columbia forecasted that sales would range from a 1% decline to a 1% increase compared to the prior year. The company's management pointed to soft business trends in the United States and also signaled an expected tariff impact of $35 million to $40 million for 2025. This weak outlook came amid broader market concerns over new tariffs and a softer U.S. jobs report. In response to the news, analysts at both Citi and UBS lowered their price targets on the stock, citing the sluggish U.S. performance.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Columbia Sportswear? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Columbia Sportswear’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Columbia Sportswear and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 21 days ago when the stock dropped 3.3% on the news that the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada. This move is far more than a typical trade dispute; it targets the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals. 

This move sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks.

Columbia Sportswear is down 40.5% since the beginning of the year, and at $49.15 per share, it is trading 46.6% below its 52-week high of $92.08 from February 2025. Investors who bought $1,000 worth of Columbia Sportswear’s shares 5 years ago would now be looking at an investment worth $666.77.

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