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Columbia Sportswear Blasts Into Buy Zone On Strong Earnings Beat

Columbia Sportswear (COLM) delivered blowout earnings on broad-based gains across its brands, channels and markets, after VF Corp. (VFC) beat and as Canada Goose (GOOS) awaits its turn next week. Columbia Sportswear stock blew past a buy point on the stock market.

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Columbia Sportswear Earnings

Beating views by 41 cents, Columbia Sportswear earnings per share jumped 28% to $1.68. Sales rose 18% to $917.6 million, also topping views.

Columbia Sportswear's U.S. sales rose 20%, driven by the direct-to-consumer channel. Canada sales rose 21%. Other international markets also saw double-digit gains. Columbia brand sales increased 21%, prAna brand sales gained 21% and Sorel brand rose 11%. The outlier was Mountain Hardwear brand, which fell 8%. Direct-to-consumer sales gained 23% and wholesale sales increased 14%.

Columbia Sportswear sees 2019 EPS of $4.30 to $4.45 as sales grow 6%-8% to $2.97 billion to $3.03 billion. It sees gross margins expanding 50 basis points up to 50.2%. Analysts expected Columbia Sportswear earnings of $4.10 a share on $2.948 billion in sales.

The apparel and footwear retailer also announced a $200 million increase in stock buybacks.

"We continue to project profitable growth for 2019, even though record 2018 financial performance creates challenging comparisons and we face increasing global economic uncertainty and unresolved trade issues," CEO Tim Boyle said in a statement.

Columbia Sportswear Stock Technical Analysis

Shares shot up 15.6% to close at 106.86 on the stock market today. Columbia Sportswear stock is now well above a 95.84 first-stage, cup-base buy point. But investors can use the opening price of 102.80 as an entry point for the powerful earnings gap.

The relative strength line, which tracks a stock's performance against the S&P 500, bolted into new high ground.

Canada Goose reports fiscal third-quarter earnings before the open Feb. 14. Canada Goose stock rose 3% Friday.

North Face and Vans parent VF Corp. stock gapped up 12% on its earnings beat Jan. 18 and has rallied further since, clearing the 200-day line. VF Corp. stock dipped 0.3% Friday.

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