Warmer winter, product delays drive Stifel downgrade on Columbia Sportswear
16/12/2021 17:33
** Shares of outdoor gear maker COLM.O fall ~3% to a
two-week low of $96.40
** Brokerage Stifel cuts rating to "hold" from "buy" on risk
of inventory overhang, margin pressures
** Trims PT to $111 from $126, implying an upside of 12% to
stock's last close and lower than Wall Street median PT of
$119.50
** Brokerage says it is concerned that carryover of excess
inventory from 2021 will weigh on fall 2022 orders and full-year
margins
** Says unseasonably warm temperatures coupled with late
arrival of products due to shipping delays poses a risk of
wholesale order cancellations in Q4 (current quarter)
** Stifel also downgrades apparel peer Under Armour Inc
UAA.N on margin risks, lagging brand momentum urn:newsml:reuters.com:*:nL4N2T13PN
** COLM has a consensus rating of "buy" among 12 analysts,
according to Refinitiv data
** COLM stock up ~11% this year, underperforming a 32%
increase in the S&P 400 Apparel, Accessories & Luxury Goods
index .SPMDCTEXT
(Reporting by Deborah Sophia in Bengaluru)
((DeborahMary.Sophia@thomsonreuters.com;))