What Happened?
Shares of outerwear manufacturer Columbia Sportswear (NASDAQ: COLM) fell 13% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%.
From clothing brands and electronics makers to the e-commerce sites that move their goods, companies built on global supply chains took the biggest hit. Stocks with heavy exposure to Asia were especially hard-hit, as the new tariffs threatened the growth and profits of firms with factories in the region. Vietnam, central to many companies' production plans, faced a 46% tariff. Cambodia and Indonesia were also in the crosshairs, with tariff rates of 49% and 32%. These measures could significantly erode the competitiveness of goods produced in those regions. For example, reduced production volumes would negatively affect the sales growth of all companies benefiting from these manufacturing hubs.
The shares closed the day at $67.17, down 13.2% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Columbia Sportswear? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Columbia Sportswear’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare 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 11 months ago when the stock gained 10.6% on the news that the company reported a "beat and raise" quarter. First-quarter results blew past analysts 'EPS expectations, and revenue also came in ahead of consensus estimates.
However, the company called out a challenging market in North America due to inflation.
Looking ahead, full-year EPS guidance was raised above Wall Street's estimates, adding to the positivity of the print. To demonstrate the resolve towards improving its bottom-line via its profit improvement program, management noted the business was on track to deliver between $125 million and $150 million in savings by 2026, including $75 million to $90 million in cost savings this year. Overall, this quarter's results still seemed fairly positive, and shareholders should feel optimistic.
Columbia Sportswear is down 18.7% since the beginning of the year, and at $67.19 per share, it is trading 27% 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 $1,025.
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