The pandemic-led lockdowns have meant that people have been spending more time at home. Places of entertainment and leisure have been deserted during the last few months, and the focus has shifted to health and fitness. More and more people are working out at home or heading to a gym (if open). There has been a boom in the sportswear market during the last few months. Companies like Columbia have benefitted as a result and are among the best apparel stocks to invest in at this time. Once the pandemic subsides and retail establishments regain footfalls, sportswear companies could see significant growth in their businesses.
More About Columbia Sportswear’s Business
Columbia Sportswear has a portfolio of brands that offers a variety of outdoor apparel and sportswear. The company uses more than 30 innovative material technologies for its warm wear, dry wear, and other products. Columbia has footwear and apparel products for all seasons. Besides sportswear, the company, through acquisitions like Sorel and prAna, has offerings in casual wear as well. Columbia has increased its sales at a solid CAGR of 10% from 1998 to 2019. Footwear makes up 25% of total sales, while apparel makes up the other 75%. About 64% of sales are from the US, 17% happen in Latin America, and the Asia Pacific combined 12% in Europe, Middle East, and Africa, and the remaining 7% in Canada. Columbia is one of the leading sportswear brands globally and among the top apparel stocks to buy right now.
Columbia’s stock closed at $102 on 3rd March 2021, trading at a 1.02% dividend yield. Over the preceding month, the stock has gained 9% while the 1-year return has been around 14%. VF Corp is considered to be a peer of Columbia, with brands like North Face and Timberland under its belt. Its stock closed at $81 on 3rd March 2021, trading almost flat for the preceding month. On a 1-year basis, VF Corp has returned 9%.