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Columbia Sportswear (COLM)
:COLM
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Columbia Sportswear
(NASDAQ:COLM)
Rating:63Neutral
Price Target:―
Positive Factors
Earnings
Columbia Sportswear reported EPS of $0.75, surpassing expectations.
Growth Strategy
The company announced a multi-year 'Accelerate' strategy aimed at energizing growth for its largest brand, Columbia, particularly in North America.
Negative Factors
Revenue Challenges
Sorel revenue declined 8.0% due to challenging Spring orders.
Tariffs and Costs
Incremental costs of goods sold pressure is expected due to a universal tariff and a significant tariff on imports from China.
Columbia Sportswear (COLM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.49B
Dividend Yield1.88%
Average Volume (3M)835.94K
Price to Earnings (P/E)16.3
Beta (1Y)0.50
Revenue Growth-1.69%
EPS Growth-4.01%
CountryUS
Employees9,780
SectorConsumer Cyclical
Sector Strength75
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.75
Shares Outstanding54,743,896
10 Day Avg. Volume599,532
30 Day Avg. Volume835,943
Financial Highlights & Ratios
PEG Ratio12.80
Price to Book (P/B)2.15
Price to Sales (P/S)0.00
P/FCF Ratio12.50
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit2.23
Enterprise Value/Ebitda2.82
Forecast
1Y Price Target
$62.67Price Target Upside-1.77% Downside
Rating ConsensusHold
Number of Analyst Covering6
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 exhibits a stable financial profile with solid profitability and a strong balance sheet. The company maintains effective cost management and leverage, though cash flow from operations has decreased due to higher capital expenditures.Income Statement
Columbia Sportswear has demonstrated stable revenue with modest growth and consistent profitability. The gross profit margin remains healthy at approximately 50%. The net profit margin is stable, though it has slightly declined, reflecting competitive pressures in the apparel industry. EBIT and EBITDA margins are solid, indicating effective cost management despite fluctuating revenue.75
Positive
Balance Sheet
The company has a strong balance sheet with a favorable debt-to-equity ratio, suggesting prudent financial leverage. Return on Equity (ROE) is healthy, reflecting efficient use of equity capital. The equity ratio indicates a robust capital structure, providing stability amidst market volatility.80
Positive
Cash Flow
Operating cash flow remains strong, but there has been a decline in free cash flow due to higher capital expenditures. The free cash flow to net income ratio suggests that the company is generating ample cash relative to its earnings, although the cash flow from operations has decreased compared to previous years.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.38B | 3.37B | 3.49B | 3.46B | 3.13B | 2.50B | Gross Profit |
| 1.70B | 1.69B | 1.73B | 1.71B | 1.61B | 1.22B | EBIT |
| 265.10M | 270.74M | 310.28M | 393.10M | 450.50M | 137.05M | EBITDA |
| 302.91M | 326.69M | 462.34M | 546.90M | 566.08M | 283.65M | Net Income Common Stockholders |
| 223.22M | 223.27M | 251.40M | 311.44M | 354.11M | 108.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 787.73M | 815.48M | 764.50M | 430.96M | 894.55M | 791.95M | Total Assets |
| 2.76B | 2.98B | 2.94B | 3.05B | 3.07B | 2.84B | Total Debt |
| 411.86M | 449.19M | 407.86M | 379.31M | 385.10M | 418.65M | Net Debt |
| -6.60M | -82.68M | 57.54M | -50.93M | -378.31M | -372.08M | Total Liabilities |
| 852.79M | 1.20B | 1.00B | 1.12B | 1.08B | 1.00B | Stockholders Equity |
| 1.91B | 1.78B | 1.94B | 1.94B | 1.99B | 1.83B |
| Cash Flow | Free Cash Flow | ||||
| 291.66M | 431.24M | 581.69M | -83.71M | 319.66M | 247.32M | Operating Cash Flow |
| 352.23M | 491.04M | 636.30M | -25.24M | 354.41M | 276.08M | Investing Cash Flow |
| -11.21M | 87.33M | -461.82M | 72.74M | -163.75M | -27.17M | Financing Cash Flow |
| -433.55M | -386.24M | -254.79M | -360.83M | -210.89M | -151.70M |
Columbia Sportswear Technical Analysis
Negative
63.80
Price Trends
68.26
Negative
76.26
Negative
79.14
Negative
Market Momentum
-0.70
Negative
43.51
Neutral
7.89
Positive
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 63.8 is below the 20-day moving average (MA) of 64.67, below the 50-day MA of 68.26, and below the 200-day MA of 79.14, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 43.51 is Neutral, neither overbought nor oversold. The STOCH value of 7.89 is Positive, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.87B | 17.05 | 56.32% | 2.93% | 1.19% | 3.19% | |
63 Neutral | $3.49B | 16.30 | 12.34% | 1.88% | -1.69% | -4.01% | |
62 Neutral | $2.76B | ― | -9.95% | ― | -7.47% | -131.70% | |
62 Neutral | $6.84B | 11.23 | 3.09% | 3.95% | 2.66% | -25.23% | |
53 Neutral | $4.68B | ― | -2.39% | 3.00% | -8.42% | 57.91% | |
52 Neutral | $1.73B | ― | -23.24% | ― | -33.72% | -892.32% | |
47 Neutral | $2.76B | ― | -9.95% | ― | -7.47% | -131.70% |
* Consumer Cyclical Sector Average
Performance Comparison
COLM
Columbia Sportswear
63.80
-17.89
-21.90%
HBI
Hanesbrands
4.89
0.11
2.30%
UA
Under Armour
6.24
-0.41
-6.17%
VFC
VF
12.00
-0.10
-0.83%
UAA
Under Armour
6.69
-0.15
-2.19%
KTB
Kontoor Brands
69.62
0.13
0.19%
Columbia Sportswear Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 2.94%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
Columbia Sportswear reported a strong performance internationally and exceeded its Q1 guidance, showing resilience in international markets and a commitment to marketing investments. However, significant challenges exist due to U.S. tariff uncertainties, increased costs, and a decline in net sales for several emerging brands. The withdrawal of full-year guidance reflects the challenging environment.Q1-2025 Updates
Positive Updates
Exceeded Guidance for Q1 2025
Columbia Sportswear's first-quarter net sales and earnings exceeded the guidance range, driven by late-season demand for winter products and early spring product shipments.
Strong International Performance
The business outside of North America, representing approximately 40% of annual sales, remained strong with double-digit percent growth in the LAAP region and high single-digit percent constant currency growth in the EMEA region.
Healthy Gross Margin and Earnings Per Share Growth
Gross margin expanded 30 basis points to 50.9%, and diluted earnings per share increased by 6% year-over-year to $0.75.
Commitment to Marketing Investment
Columbia plans to continue investing in demand creation with a new global marketing platform launching in August, emphasizing modern digital and social-first strategies.
Negative Updates
Uncertainty Due to U.S. Tariffs
The company faces unprecedented uncertainty in U.S. trade policy, impacting the ability to plan and invest confidently.
Tariff Impact on Costs
The recent 10% universal tariff and higher tariffs on China could add $40 million to $45 million to the cost of sales for 2025.
Challenges in the U.S. Market
U.S. net sales decreased by 1%, with challenging outdoor category trends and consumer uncertainty impacting demand.
Decline in Emerging Brands
Mountain Hardware net sales decreased by 14%, prAna by 10%, and SOREL by 8% in the first quarter.
Withdrawal of Full-Year Guidance
Due to the heightened uncertainty regarding tariff rates and their impact, the company has withdrawn its full-year 2025 outlook.
Company Guidance
During the first quarter of 2025, Columbia Sportswear exceeded its guidance range for net sales and earnings, with net sales increasing by 1% year-over-year to $778 million. The company's wholesale net sales grew by 2%, while direct-to-consumer sales remained flat. International markets performed strongly, with the LAAP region experiencing double-digit growth and the EMEA region seeing high single-digit constant currency growth. However, U.S. net sales decreased by 1% due to challenging market conditions. The company faced uncertainties related to U.S. tariffs, with potential additional costs between $40 million to $45 million for the fall 2025 season. Despite these challenges, Columbia Sportswear maintained its second-quarter sales growth outlook of 1% to 5% and emphasized its strategic focus on mitigating tariff impacts, preserving capital, and leveraging its strong financial position to potentially gain market share amidst rising prices for U.S. consumers.Columbia Sportswear Corporate Events
Business Operations and StrategyFinancial Disclosures
Columbia Sportswear Reports Q1 Results, Withdraws 2025 Outlook
Neutral
May 1, 2025
On May 1, 2025, Columbia Sportswear announced its first quarter financial results, highlighting a 1% increase in net sales to $778.5 million and a 4% rise in operating income. Despite these positive results, the company withdrew its full-year 2025 financial outlook due to uncertainties in global trade policies, particularly U.S. tariff increases. The company remains financially strong with $658 million in cash and no borrowings, and it continues to focus on strategic investments to drive long-term growth and market share gains.
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.