The US consumer sentiment has been trending up lately. There is greater optimism for retail and apparel companies as the US emerges from the pandemic with high vaccination rates and the re-opening up of businesses. A recent survey by the University of Michigan found that consumer sentiment is on the up. Official government reports also indicated that US consumer spending has been going up. Such developments are having a positive effect on retail and apparel stocks. One apparel company is worth considering. It is a leader in its niche and the niche also happens to be growing in popularity. We are talking about sportswear and activewear. Columbia Sportswear Company is one of the leading brands in the outerwear and sportswear segment. If you are bullish on apparel stocks due to the recent consumer trends and believe that pent-up demand is also likely to play out in the near term, then stocks like Columbia Sportswear could be among the best apparel stocks to choose from.
Columbia’s Q22021 Points To Strong Recovery
Columbia reported its Q22021 results in early August 2021 recently. According to CEO Tim Boyle, the quarterly results had exceeded expectations and sales numbers were below pre-pandemic levels last seen in 2019. Net sales were up significantly from $316 million in Q22020 to $566 million in Q22021. Gross margins also improved from 46% to 51% year-on-year. Meanwhile, a net loss of $50 million suffered in Q22020 turned into a net profit of $40.6 million in Q22021. On a diluted basis, earnings per share came in at $0.61 as compared to a loss of $0.77 per share in Q22020. The US region reported the highest jump in sales at more than 100%. The wholesale channel experienced a sales growth of 86% year-on-year while the DTC channel delivered a sales growth of 66%. Columbia is clearly an option for apparel stock to invest in 2021.
Best Apparel Stocks
The top apparel companies are the ones that have a strong brand, a wide distribution network, and a reputation for regularly coming out with innovative new products. Columbia Sportswear sells its products in more than 90 countries. It has a strong brand when it comes to outerwear and activewear. The company also has a long heritage as it was founded in 1938.