Columbia Sportswear (COLM) saw its stock plummet 5.14% in pre-market trading on Friday, as investors reacted to the company's withdrawal of its full-year 2025 outlook amid growing concerns over US tariffs, despite reporting better-than-expected first-quarter results.

The outdoor apparel and footwear maker reported Q1 earnings of $0.75 per share, surpassing analysts' expectations of $0.67. Net sales increased by 1% year-over-year to $778 million, also beating the forecasted $757.63 million. However, the positive earnings report was overshadowed by the company's cautious stance on future performance due to tariff-related uncertainties.

During the earnings call, CEO Timothy Boyle highlighted the significant uncertainty stemming from recent US tariff increases, which has led the company to withdraw its full-year 2025 guidance. Columbia Sportswear anticipates absorbing much of the incremental tariff costs in 2025, potentially impacting profitability. The company estimates an additional $40 million to $45 million in costs of goods sold due to higher tariff rates in the second half of the year. In response to these challenges, several analysts have lowered their price targets for Columbia Sportswear, with Stifel cutting its target to $75 from $91 and Barclays reducing its target to $62 from $64.