COLM - Columbia Sportswear: No Change In Sentiment

2024-07-08 17:00:00 ET

Summary

• Columbia Sportswear has shown signs of weakness with declining revenue, profits, and cash flows.
• Management is working on cutting costs to improve the financial situation, but weakness continues to build in 2024.
• Despite having a strong cash position and cost-cutting initiatives, it is best to keep the stock rated as a 'hold' until sales stabilize or the share price drops significantly.

One of the most iconic companies in the lifestyle apparel, footwear, accessories, and equipment market, has undoubtedly got to be Columbia Sportswear Company ( COLM ). And yet, as of late, the business has shown some unfortunate signs of weakness. Revenue is on the decline and profits and cash flows are following suit. This is not a new thing. Back in October of last year, I actually downgraded the stock from a 'buy' to a 'hold' because of fundamental weakness. Even though I find the company interesting, and even though shares were not exactly expensive, they weren't cheap enough to justify a bullish outlook when you consider the weakening that was occurring....

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