Columbia Sportswear is a well-known footwear and apparel brand in the outdoor and activewear segments. The business has been around for multiple decades and has a portfolio of brands under its belt, namely prAna, Sorel, Columbia, and Mountain Hardware. While the retail outlets of Columbia have witnessed a sharp drop in footfalls because of the pandemic, the longer-term demand for outdoor, hiking, and sports gear that Columbia makes is still intact. Columbia is considered to be among the best footwear stocks to buy now. The company sells most of its products through departmental stores, sporting goods stores, and wholesale channels. It has a network of manufacturers and suppliers, mostly in Asia, to manufacture its products every season.
Columbia Sportswear Financials
Columbia Sportswear has witnessed a steady growth in its top line for most of the past decade. Revenues had grown from $1.7 billion in 2011 to $3 billion in 2019. They dropped to $2.5 billion in 2020 due to the pandemic. Gross margins have actually improved from a robust level of 43% to about 49% in the time period from 2011 to 2020. Operating margins were also on a similar trend until 2019, going from 8% in 2011 to 13%. However, they fell to 5.5% in 2020. The dividend payments had also grown every year since 2011 before falling in 2020. The dividend per share was $0.96 in 2019, $0.43 in 2011, and $0.26 in 2020. In spite of the year 2020 is a challenging one, the company still paid a dividend. The payout ratio is also conservative, ranging between 20% and 30% for the last ten years. Judging by the financials, Columbia Sportswear looks to be among the top footwear stocks to buy now.
If we look at the valuation metrics of Columbia Sportswear, then most of them are above their historical averages. The P/E ratio is at 65, much above the 5-year average of 30. The P/B ratio is at 3.85, while the 5-year average is 3.24. The dividend yield has generally been around the 0.5% to 1% range, with a 5-year average being close to 1%.