UBS survey shows Columbia Sportswear has lost ground against peers

UBS analyst Mauricio Serna says UBS Evidence Lab’s 2024 global athletic wear survey increases the firm’s conviction the Columbia Sportswear (COLM) brand is unlikely to deliver strong growth. The survey indicates Columbia has lost ground against peers in terms of purchase intentions and net promoter score while its conversion rate remains below-average, the analyst tells investors in a research note. Collectively, these stats suggest the company has not made much progress in strengthening the Columbia brand’s positioning, which should likely prevent meaningful sales growth acceleration, contends UBS. The firm expects downward revisions to sell-side estimates to pressure the stock towards its $60 price target Columbia owns a decent portfolio of outdoor brands but faces several sales challenges, including increased competition amid tough U.S. outdoor dynamics, says UBS. It keeps a Sell rating on the shares.