Columbia Sportswear is an iconic brand when it comes to outdoor apparel, outerwear, and sportswear. Its jackets and fleeces are visible throughout the US. Activewear as a category has also taken off in the apparel industry. The retail industry has been severely hampered by the pandemic. Apparel makers that depended on physical presence had to face the brunt of lockdowns and shelter-in-place guidelines. Companies that had built their online business were still able to do business during the worst months of the pandemic. As the developed world emerges from the pandemic through vaccination drives, the future is now expected to be driven more by the trend of a greater preference for outdoor activities. At the same time, there are also fears of rising inflation and higher freight costs. The latter can affect apparel companies that generally import their products from low-cost manufacturing centers located in the developing world. So, if you are looking for the top apparel stocks now, then you will want to think about these dynamics.
Second-Quarter 2021 Results Indicate A Comeback
On 3rd August 2021, Columbia Sportswear announced its second-quarter 2021 earnings results. The CEO, Tim Boyle, announced that the financials had surpassed the pre-pandemic levels. The comparison was being made with the first half of 2019. Interestingly, the higher performance was driven by direct-to-consumer brick-and-mortar stores and wholesale businesses. The pandemic led many to expect the smaller establishments to suffer the most due to lockdowns. Mr. Boyle also indicated that consumers were gradually returning to physical stores for their shopping activities. At the same time, Columbia has maintained momentum in its online business throughout the last 18-odd months. Mr. Boyle believed that Columbia’s strong brand was responsible for its robust performance. Columbia is among the apparel stocks 2021 to keep track of.
Top Apparel Stocks Now
Columbia Sportswear had grown its revenues from $1.6 billion in 2011 to $3 billion in 2019 before a drop in 2020. Earnings per share had also gone up from $1.5 per share in 2011 to $4.8 per share in 2019 before the pandemic disrupted Columbia’s business. The company has been making acquisitions as well to drive its growth.