Shares of clothing maker Columbia Sportswear (NASDAQ: COLM) rose sharply out of the gate today, gaining as much as 20% at their peak in the first hour or so of trading. By 10:30 a.m. EST, that gain had been pared to a still-impressive 12%, as investors digested the after-market earnings update Columbia provided on Feb. 4.
The earnings story here is basically threefold. First, year over year results weren't great. Sales dropped 4% in the quarter as roughly 40% growth in online revenue wasn't enough to offset the hit from reduced in-store traffic due to the global pandemic. Earnings, meanwhile, were off by 14%. However, Columbia managed to best Wall Street consensus earnings estimates by 16% on a low-single-digit revenue beat. So while the company is obviously still dealing with notable headwinds, it is doing better than analysts expected.
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Why Columbia Sportswear Stock Rallied 20% at the Open Today