QUOTE AND NEWS
SeekingAlpha  Mar 17  Comment 
ByMarshall Hargrave: One of my biggest big fears is that the benefits of one of the coldest winters in decades is already baked into the outerwear stocks. Columbia Sportswear (COLM) is already up nearly 20% over the last three months, compared to...
TheStreet.com  Feb 19  Comment 
NEW YORK (TheStreet) -- Columbia Sportswear gained 7% to $84.16 Wednesday after the company announced quarterly results that greatly surpassed analyst estimates. For the fourth quarter Columbia posted earnings of $1.21 a share, beating analyst...
SeekingAlpha  Feb 19  Comment 
Columbia Sportswear Company (COLM) Q4 2013 Earnings Conference Call February 18, 2014 17:00 ET Executives Ron Parham - Senior Director, Investor Relations Tim Boyle - President and Chief Executive Officer Tom Cusick - Senior Vice...
StreetInsider.com  Feb 18  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Columbia+Sportswear+Co+%28COLM%29+Tops+Q4+EPS+by+29c%3B+Issues+Outlook/9185754.html for the full story.
DailyFinance  Jan 9  Comment 
Columbia Sportswear Company (NASDAQ: COLM) a global leader in active outdoor apparel, footwear, accessories and equipment, unveiled today the 2014 Olympic uniforms for the U.S., Canadian and Russian Freestyle Ski teams. Custom...
DailyFinance  Jan 2  Comment 
Columbia Sportswear Company (NASDAQ: COLM): What:  Columbia Sportswear Company (NASDAQ: COLM) a global leader in active outdoor apparel, footwear, accessories and equipment will unveil the 2014 Olympic...
DailyFinance  Jan 2  Comment 
Columbia Sportswear Company (Nasdaq:COLM), a leading innovator in active outdoor apparel, footwear, accessories and equipment, announced today that its joint venture with Swire Resources Ltd. commenced operation as planned on...
Benzinga  Dec 27  Comment 
In a report published Friday, Bank of America analyst Robert Ohmes raised the price objective on Columbia Sportswear Company’s (NASDAQ: COLM) from $50.00 to $58.00 and maintained a Sell rating. According to the report, the current price...
Benzinga  Oct 25  Comment 
In a report published Friday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Neutral rating on Columbia Sportswear Company (NASDAQ: COLM), and raised the price target from $66.00 to $73.00. In the report, D.A. Davidson & Co. noted,...
StreetInsider.com  Oct 25  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Upgrades/Citi+Upgrades+Columbia+Sportswear+%28COLM%29+to+Neutral/8811065.html for the full story.




 

Colombia Sportswear Company (NYSE: COLM) is one of the largest wholesalers of outdoor sportswear and equipment in the U.S. Headquartered in Portland, Oregon, Columbia sells clothing and equipment for a variety of outdoor sports, including hunting, fishing, hiking, and snowboarding. Its products are sold mostly in sports and specialty stores, in addition to mid-tier department stores and online. The company earned $1.2 billion in revenue and $67 million in net income in 2009.[1]

Columbia relies on department stores for a large portion of its sales. But, as department stores and other specialty stores continue to focus their efforts on increasing their own private label offerings, Columbia may find its efforts grow through increased department store sales frustrated. In addition, Columbia faces risks from a struggling global economy as consumers cut back on spending on new sports-related goods.

Company Overview

Columbia Sportswear’s business segments have on the whole remained stable as percentages of net sales. The core of Columbia’s sales comes from its sportswear and outerwear business. Colombia’s coats, vests, and parkas are popular among active, outdoors-oriented consumers. Its sportswear lines complement the company’s outdoor ethos with hunting, hiking, and fishing gear.

Products[2]

  • Sportswear (38% of net sales) - sportswear products incorporate various fabrication and construction technologies that protect consumers from the outdoor elements and enable consumers to enjoy the outdoors longer and in greater comfort year round. Sportswear products are designed to be worn as a layering system with our outerwear and footwear products during fall and winter outdoor activities, or individually during milder weather commonly encountered during spring and summer outdoor activities such as hiking, trekking, fishing, golfing, adventure travel and water sports. Mountain Hardwear-branded sportswear consists primarily of performance apparel designed for mountaineering, backpacking, rock climbing and adventure sports.
  • Outerwear (38.8% of net sales) - outerwear is designed to protect the wearer from the harsher inclement weather commonly encountered in fall and winter outdoor activities, such as skiing, snowboarding, hiking, hunting, fishing and adventure travel.
  • Footwear (17.2% of net sales) - footwear products include durable, lightweight hiking and trekking boots, trail running shoes, rugged cold weather boots for activities on snow and ice, sandals for use in amphibious activities, and casual shoes for everyday use.
  • Accessories and Equipment (6% of net sales) - includes bags, packs, headwear, scarves and gloves.

Business Growth

FY 2009 (ended December 31, 2009)[1]

  • Net sales 5.6% to $1.2 billion. Sales in all of the company's product categories fell due to lower volume as a result of the weak global economy.
  • Net income fell 29% to $67 million.

Trends and Forces

Economic Conditions

Recent trouble in the credit markets, coupled with high gasoline prices, have the potential to depress consumer spending, thereby impacting Columbia’s bottom line. Such factors may lead consumers scale back on camping vacations and other nature-oriented trips, rendering Columbia's equipment, outdoorswear, and sportswear businesses particularly vulnerable to such a downturn.

However, Columbia’s lower price point (relative to its competitors) may support earnings in times of economic downturn: the price range for a Columbia jacket is around $100-$250[3], while a typical North Face jacket can set consumers back $250- $500[4]. Shoppers may seek out lower-cost outdoor apparel during a softening economy, potentially attracting competitors’ customers to Columbia’s brands.

COLM seeks to grow through higher department store sales

Department stores in the United States have undergone significant changes in recent years. As Columbia seeks future growth through increased department store sales, the company will have to contend with these changes in the future. In response to declining margins, stores have implemented tighter inventory controls and have scaled back the quantities of merchandise that they purchase from wholesalers like Columbia. As a means of increasing market share, companies have also sought to differentiate themselves from the competition by demanding exclusive contracts and store-specific private labels (e.g. Ralph Lauren's "American Living" line for J.C. Penney). Columbia itself has admitted that some of its strongest competition comes from its own clients private label merchandise, as they have a strong incentive to prefer private labels wherever possible because they can be sold at higher margins than outside brands.

In addition, Columbia must deal with the widespread consolidation that is present among department store changes in America. A series of mergers and acquisitions in the industry (e.g. Federated Department Stores' takeover of Marshall Field's) give the businesses that remain potentially greater power to negotiate lower prices with Columbia, thereby lowering profits.

Competition

Columbia Sportswear competes with several similarly outdoor-oriented brands, like The North Face, Timberland, and Patagonia. In addition, the company argues that often its biggest competition comes from its own clients’ private label merchandise, as big department stores like Kohl's, The Sports Authority, and J.C. Penney have better marketing, distribution, and financial resources than Columbia

References

  1. 1.0 1.1 COLM 2009 10-K "Selected Financial Data" pg. 24
  2. COLM 2009 10-K "Products" pg. 3-4
  3. Sportsauthority.com
  4. Thenorthface.com
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