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Columbia Sportswear Company (COLM)
NASDAQ:COLM
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Columbia Sportswear
(NASDAQ:COLM)
63Neutral
Positive Factors
Product Innovation
Early reception to elevation in upcoming product innovation and planned marketing refresh has been encouraging, particularly among strategic wholesale partners in N. America.
Strategic Initiatives
The company announced a multi-year 'Accelerate' strategy aimed at energizing growth for its largest brand, Columbia, particularly in North America.
Valuation
The valuation multiples for Columbia Sportswear represent significant discounts compared to peers like Adidas and Nike, suggesting potential for growth.
Negative Factors
Competitive Pressures
Competitive pressures across footwear and apparel continue at the same time inflationary costs in SG&A are rising.
Market Conditions
Signs of challenging market conditions for COLM suggest the company may need to cut the Q4 outlook.
Product Demand
Sorel revenue declined 39% given challenging Fall wholesale orders and soft product demand.
Columbia Sportswear (COLM) vs. S&P 500 (SPY)
Market Cap
$3.63B
Dividend Yield1.97%
Average Volume (3M)961.45K
Price to Earnings (P/E)17.2
Beta (1Y)0.70
Revenue Growth-3.35%
EPS Growth-6.09%
CountryUS
Employees9,780
SectorConsumer Cyclical
Sector Strength55
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)3.87
Shares Outstanding55,342,827
10 Day Avg. Volume923,880
30 Day Avg. Volume961,445
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.26
Price to Cash Flow (P/CF)1.90
P/FCF Ratio1.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$75.75Price Target Upside10.83% Upside
Rating ConsensusHold
Number of Analyst Covering4
Columbia Sportswear Business Overview & Revenue Model
Company DescriptionColumbia Sportswear Company, together with its subsidiaries, designs, sources, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment that are used in various activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel. It also offers footwear products that include lightweight hiking boots, trail running shoes, rugged cold weather boots for activities on snow and ice, sandals and shoes for use in water activities, and function-first fashion footwear and casual shoes for everyday use. The company sells its products under the Columbia, Mountain Hardwear, SOREL, and prAna brand names through the company owned network of branded and outlet retail stores, brand-specific e-commerce sites, and concession-based arrangements with third-parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, Internet retailers, and international distributors. As of December 31, 2021, it operated approximately 455 retail stores. The company was founded in 1938 and is headquartered in Portland, Oregon.
How the Company Makes MoneyColumbia Sportswear generates revenue primarily through the sale of its products across various distribution channels, including wholesale, direct-to-consumer (DTC) through owned retail stores and e-commerce platforms, and licensing agreements. The wholesale channel involves selling products to independent distributors, specialty outdoor and sporting goods stores, department store chains, and international distributors. The DTC segment allows Columbia to engage directly with customers via physical retail locations and online sales, enhancing brand loyalty and customer experience. Additionally, the company benefits from strategic partnerships and collaborations that expand its product offerings and market reach. Key factors such as seasonal demand, product innovation, and brand strength significantly influence its earnings.
Columbia Sportswear Financial Statement Overview
Summary
Columbia Sportswear demonstrates strong financial stability with a low debt burden and healthy equity levels. While the company faces challenges with declining revenue and profit margins, its cash flow remains robust, supporting ongoing operations and investment. The financial position is sound, though monitoring profitability trends is essential for sustained growth.Income Statement
Columbia Sportswear shows a stable gross profit margin around 50%, indicating efficient cost management. However, the net profit margin has decreased from 7.21% in 2023 to 6.63% in 2024, reflecting increased operational costs or other expenses. Revenue growth is volatile, with a slight decline of 3.4% in 2024 after a 0.67% increase in 2023. EBIT and EBITDA margins have also reduced, signaling pressure on operational profitability.72
Positive
Balance Sheet
The company maintains a healthy debt-to-equity ratio of 0.25 in 2024, indicating low leverage and financial stability. The equity ratio is strong at 59.84%, reflecting a robust equity base. However, the return on equity has decreased from 12.97% in 2023 to 12.54% in 2024, suggesting slightly reduced efficiency in generating profits from shareholders' equity.78
Positive
Cash Flow
Columbia Sportswear has a strong free cash flow, though it decreased by 25.88% in 2024. The operating cash flow to net income ratio of 2.20 shows effective conversion of net income into cash. The free cash flow to net income ratio is also favorable at 1.93, indicating solid cash generation relative to net income.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.37B | 3.49B | 3.46B | 3.13B | 2.50B | Gross Profit |
| 1.69B | 1.73B | 1.71B | 1.61B | 1.22B | EBIT |
| 270.74M | 310.28M | 393.10M | 450.50M | 137.05M | EBITDA |
| 270.74M | 462.34M | 546.90M | 566.08M | 283.65M | Net Income Common Stockholders |
| 223.27M | 251.40M | 311.44M | 354.11M | 108.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 815.48M | 764.50M | 430.96M | 894.55M | 791.95M | Total Assets |
| 2.98B | 2.94B | 3.05B | 3.07B | 2.84B | Total Debt |
| 449.19M | 407.86M | 379.31M | 385.10M | 418.65M | Net Debt |
| -82.68M | 57.54M | -50.93M | -378.31M | -372.08M | Total Liabilities |
| 1.20B | 1.00B | 1.12B | 1.08B | 1.00B | Stockholders Equity |
| 1.78B | 1.94B | 1.94B | 1.99B | 1.83B |
| Cash Flow | Free Cash Flow | |||
| 431.24M | 581.69M | -83.71M | 319.66M | 247.32M | Operating Cash Flow |
| 491.04M | 636.30M | -25.24M | 354.41M | 276.08M | Investing Cash Flow |
| 87.33M | -461.82M | 72.74M | -163.75M | -27.17M | Financing Cash Flow |
| -386.24M | -254.79M | -360.83M | -210.89M | -151.70M |
Columbia Sportswear Technical Analysis
Negative
68.35
Price Trends
80.75
Negative
83.24
Negative
81.51
Negative
Market Momentum
-2.25
Positive
40.19
Neutral
39.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COLM, the sentiment is Negative. The current price of 68.35 is below the 20-day moving average (MA) of 74.44, below the 50-day MA of 80.75, and below the 200-day MA of 81.51, indicating a bearish trend. The MACD of -2.25 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 39.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COLM.
Columbia Sportswear Risk Analysis
Columbia Sportswear disclosed 30 risk factors in its most recent earnings report. Columbia Sportswear reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Columbia Sportswear Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.29B | 13.63 | 63.68% | 3.91% | 0.07% | 7.19% | |
63 Neutral | $3.63B | 17.18 | 12.01% | 1.97% | -3.35% | -6.09% | |
59 Neutral | $11.74B | 10.16 | -1.06% | 4.15% | 1.27% | -16.61% | |
52 Neutral | $2.22B | ― | -6.12% | ― | -7.47% | -131.70% | |
45 Neutral | $1.72B | ― | -43.06% | ― | -29.44% | -1343.00% | |
44 Neutral | $4.39B | ― | -16.13% | 3.70% | -8.42% | 57.91% | |
44 Neutral | $2.36B | ― | -6.12% | ― | -7.47% | -131.70% |
* Consumer Cyclical Sector Average
Performance Comparison
COLM
Columbia Sportswear
68.35
-6.00
-8.07%
HBI
Hanesbrands
4.86
-0.20
-3.95%
UA
Under Armour
5.34
-1.05
-16.43%
VFC
VF
12.42
-0.44
-3.42%
UAA
Under Armour
5.63
-1.01
-15.21%
KTB
Kontoor Brands
59.48
6.76
12.82%
Columbia Sportswear Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -20.11% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative elements. While strong international growth and effective inventory management were highlighted, the decline in overall net sales and challenges in the U.S. market tempered optimism.Highlights
International Growth
Strong performance in international markets with China net sales increasing by mid-teens percent and over 20% for the year in constant currency. Europe, Middle East, and Africa region net sales increased by 21%.
Inventory and Cost Management
Inventories were down 7%, and the Profit Improvement Program delivered $90 million in cost savings. Columbia exited the year with $815 million in cash and equivalents and no debt.
Fourth Quarter Performance
Fourth quarter net sales increased 3% year-over-year to $1.1 billion, with a gross margin expansion of 50 basis points to 51.1%.
Accelerate Growth Strategy
Introduction of the ACCELERATE Growth Strategy aimed at elevating the brand and attracting younger consumers.
Lowlights
Decline in Net Sales for 2024
Overall net sales for 2024 decreased 3% to $3.4 billion, reflecting challenging market conditions in North America.
Operating Margin and Earnings Decline
Operating margin contracted due to cost pressures, leading to a decline in earnings.
SOREL Brand Performance
SOREL net sales decreased 16%, driven by lower wholesale and DTC sales.
U.S. Market Challenges
U.S. net sales decreased 1%, with U.S. wholesale business declining low-single-digit percent.
Company Guidance
During the Columbia Sportswear Fourth Quarter 2024 Financial Results Conference Call, the company provided guidance for the fiscal year 2025. They anticipate modest net sales growth of 1% to 3%, with a 140 basis point headwind due to foreign currency fluctuations. The company expects gross margin to expand by 80 basis points to approximately 51%, driven by improved inventory positions and favorable input costs. However, SG&A expenses are projected to increase, partly due to demand creation investments, resulting in an operating margin outlook of 7.7% to 8.3%. Columbia Sportswear plans to increase its targeted demand creation spend to 6.5% of sales, up from 5.9% in 2024, to support its refreshed marketing strategy and brand activation efforts. The company also aims to achieve $125 million to $150 million in annual cost savings by 2026 through its Profit Improvement Program.Columbia Sportswear Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Columbia Sportswear Reports 2024 Financial Performance
Positive
Feb 4, 2025
On February 4, 2025, Columbia Sportswear announced its fourth quarter and full year 2024 financial results, highlighting a 3% increase in fourth quarter net sales to $1,096.6 million and a 21% rise in operating income. Despite a 3% decline in full-year net sales, the company sees potential growth in 2025, supported by inventory reduction efforts and strategic initiatives under its ACCELERATE Growth Strategy. The company also declared a quarterly cash dividend of $0.30 per share, emphasizing its commitment to returning value to shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.