Citigroup Reiterates Sell Rating, $45 PT on Columbia Sportswear Company Ahead of Thursday Q4 Earnings Report

In a report published Wednesday, Citigroup reiterated its Sell rating and $45.00 price target on Columbia Sportswear Company COLM. Citigroup noted, “COLM previewed a Q4 miss on 1/16, w/ sales expected to be down ~5% y/y (vs. +1.5% previously), gross margins down 120-130bps (below 50-75bps previously), and SG&A expense down ~210bps y/y (vs. prior guidance of down 175bps) on continued expense reductions. Our Q4 EPS estimate is $1.12, based on a 5% sales decline, ~125bps decline y/y in gross margins, and 10% decline in SG&A to 32.1% of sales, roughly in-line w/ management's preview. Consensus EPS for Q4 is $1.14.” Columbia Sportswear Company closed on Tuesday at $49.13.