Columbia Sportswear Shows Strength In U.S. & Canada, EMEA Ticks Down

In a report published Friday, D.A. Davidson analyst Andrew Burns reiterated a Buy rating on Columbia Sportswear Company (NASDAQ: COLM), and raised the price target from $53.00 to $55.00.

In the report, D.A. Davidson noted, "COLM reported revenue and EPS of $677.0 million and $0.79, compared to consensus of $635.4 million and $0.67, and our estimates of $637.1 million and $0.64. Guidance called for approximately $636 million and $0.64. Revenue grew 27.0%, driven by 23.4% Columbia brand growth, 39.5% Sorel growth, and a $20.0 million contribution from prAna."

The report continued, "Mountain Hardwear declined 7.2% y/y. By region, the U.S. and LAAP each increased 31.4%, and Canada grew 27.0%, while EMEA ticked down 0.4%. Gross margin expanded 77bp y/y to 45.4%, primarily driven by improved DTC margins (stronger product assortment & lower promotional activity) and a mix shift toward full-price wholesale product. SG&A increased 26.8% y/y to $226.8 million or 33.5% of sales (in line with 33.6% in 4Q13), driven by increased costs associated with the China JV, PrAna, DTC expansion, incentive comp, and the ERP implementation."

Columbia Sportswear Company closed on Thursday at $43.59.