Columbia Sportswear is a well-known apparel company specializing in sportswear and outerwear. It actually started out from Portland, Oregon as a hat distributor. The company was named after the Columbia River in the Pacific Northwest. Over the years, Columbia Sportswear has built a brand and is now one of the top names when it comes to outdoor gear and activewear. Columbia has maintained steady gross margins of around 48-49% in recent years. If you go back a bit further in history, then the company has actually improved its gross margins from around 42%-43% to the current levels of 49% thanks to its strong and popular brand. The company sells its products in 72 countries through 13000 retailers. So, it has a decent distribution network and a wide geographical presence. Columbia Sportswear is a compelling choice to consider if you are looking for the best apparel stocks 2021.
Future Outlook In the Near Term
During Columbia’s Q22021 earnings call, company CEO Tim Boyle provided forward-looking estimates of near-term performance. He said that estimates are now being raised to net sales growth estimates of around 26% and a diluted earnings per share estimate of $4.3 to $4.55 for the next year. Mr. Boyle added that these estimates have taken into account the impact of any supply chain disruptions and an increase in ocean freight costs. Rising costs have been a concern as freight rates have jumped a significant amount in recent months. Columbia’s Fall 2021 and Spring 2022 order books also point to strong performance in the next fiscal year. The company has several new products in the pipeline and they will also progressively come to market in the coming years. Columbia Sportswear is considered by investors to be among the top apparel stocks.
Best Apparel Stocks 2021
COLM is the ticker symbol of Columbia Sportswear’s stock. It trades on the Nasdaq exchange and the price was $103.08 at the close of the trading day on 13th August 2021. The preceding one month saw the stock rise by more than 5%. The dividend yield on 13th August was also slightly over 1%.