Columbia sportswear

Columbia Sportswear (COLM) looks solid: over 15% year-to-date


Things seem to be bright enough to Columbia Sportswear Company COLM, which has seen its shares climb 18.4% since the start of the year, topping the industrygrowth of 16.1%. The company has also eclipsed the Zacks Consumer discretionary sector, which fell 2.6% over the same period. Zacks Rank # 1 (Strong Buy) gained on its strong Direct-to-Consumer (“DTC”) e-commerce business, which continued to be a driver in the second quarter of 2021. During the quarter, both earnings and sales increased year over year and exceeded Zacks’ consensus estimate.

Results were supported by a strong recovery in fundamental businesses, as well as better than expected performance in the US wholesale business and DTC brick and mortar. Despite rising ocean freight costs and supply chain bottlenecks due to a pandemic, management has raised its earnings forecast. Zacks’ consensus estimate for 2021 earnings has fallen from $ 4.35 per share to $ 4.62 in the past 60 days.

Let’s take a closer look at the factors that work in favor of this company, which is dedicated to the design, distribution, sourcing and marketing of active and stylish outdoor clothing, footwear, accessories and equipment. daily life.

Columbia Sportswear Company price, consensus and EPS surprise

Columbia Sportswear Company price-consensus-eps-surprise-chart | Columbia Sportswear Company Quote

Strength in DTC business

The company remains committed to growing and improving its global DTC business through accelerated investments. In the second quarter, DTC channel sales increased 69% and wholesalers’ net sales increased 89%. Global net sales of DTC bricks and mortar climbed 149% as the company overtook temporary store closures last year. Sales far exceeded expectations as traffic improved faster than expected. DTC’s e-commerce sales grew 5% year-over-year in the quarter and accounted for 16% of the company’s total sales. DTC e-commerce channel is expected to continue to perform well in the coming periods, because even with the reopening of stores, many consumers prefer to shop online.

Strategic priorities on track

Management is focused on its strategic priorities. To do this, it intends to continue its investments in demand creation, which aim to increase brand awareness and help sales. Additionally, the company remains committed to improving the consumer experience and digital capability across all networks and regions. She will also continue to explore growth opportunities in the DTC business and improve support processes. Finally, the company wishes to invest in its employees and optimize its organization across its entire brand portfolio.

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Image source: Zacks Investment Research

Stellar Q2 & Improved guidance

The company reported earnings of 61 cents per share in the second quarter of 2021, compared to a net loss of 77 cents recorded a year ago. The net result crushed Zacks’ consensus estimate, which was pegged at a loss of 12 cents. Net sales jumped 79% to $ 566.4 million, breaking the consensus mark of $ 500 million. Sales increased in all categories, regions, brands and channels. The company’s second quarter show reflects the strong fundamental recovery in business. Certainly, the company’s brands resonate well with consumer trends.

Columbia Sportswear remains well positioned to take advantage of existing consumer and outdoor models. Encouragingly, management has raised its guidance for 2021. For 2021, the company now expects net sales of between $ 3.13 billion and $ 3.16 billion, indicating an increase from 25 to 26 billion. , 5% compared to the figure for the previous year. Previously, the metric was envisioned between $ 3.04 billion and $ 3.08 billion, which suggests growth of 21.5-23%. For the second half of 2021, management forecasts net sales growth of around 20%. For 2021, operating income is expected to be $ 365-386 million, or an operating margin of 11.7-12.2%. Previously, operating profit was estimated at $ 347-369 million, indicating an operating margin of 11.4-12%. Finally, management is now forecasting earnings per share in the range of $ 4.30 to $ 4.55 for the current year compared to the $ 4.05 to $ 4.30 expected earlier.

3 other choices of sturdy clothing

Ralph lauren RL has a projected long-term earnings growth rate of 15% and is currently ranked Zacks # 1. You can see The full list of today’s Zacks # 1 Rank stocks here.

PVH Corp. PVH currently has a Zacks Rank # 1 and has an expected long-term profit growth rate of 38.5%.

To guess? GES currently has a Zacks Rank # 2 (Buy), and its bottom line has outperformed Zacks’ consensus estimate by a large margin over the past four quarters, on average.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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