Why Are Columbia Sportswear (COLM) Shares Soaring Today

What Happened?

Shares of outerwear manufacturer Columbia Sportswear (NASDAQ:COLM) jumped 13% in the afternoon session after the company reported fourth-quarter 2025 results that beat Wall Street's expectations and provided an encouraging forecast for the full year 2026. 

The outdoor apparel maker posted a GAAP profit of $1.73 per share, significantly higher than the $1.21 analysts had predicted. Revenue for the quarter came in at $1.07 billion, also topping the consensus estimate of $1.03 billion, although this represented a 2.4% decline from the prior year. Investors were particularly encouraged by the company's full-year 2026 earnings guidance. The forecast for $3.43 per share at the midpoint was 10.5% above expectations and appeared to outweigh a weaker-than-anticipated revenue forecast for the upcoming first quarter.

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What Is The Market Telling Us

Columbia Sportswear’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Columbia Sportswear and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 14.6% on the news that 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.

Columbia Sportswear is up 16.4% since the beginning of the year, but at $65.20 per share, it is still trading 29.2% 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 $695.46.

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