Bull Of The Day: Columbia Sportswear (COLM)

The historic outdoor clothing company got crushed by the coronavirus, from early store closures and fewer people traveling to an overall cutback on some non-essential retail spending. Columbia’s (COLM - Free Reportturnaround now appears underway after a strong first quarter that had analysts racing to raise their earnings guidance.

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Quick COLM Overview

Founded back in the late 1930s, Columbia has remained at the forefront of outdoor clothing, apparel, and footwear ever since through innovation, brand building, as well as a few acquisitions. The Portland, Oregon-headquarter firm bought higher-end outdoor boot maker Sorel in 2000. The brand has since grown into a far more diverse footwear company over the years.

COLM went on to buy higher-end rival Mountain Hardwear in 2003. Most recently, it acquired prAna, which makes everything from rock climbing clothes to yoga gear in 2014. The diversification and portfolio expansion has helped, but its namesake brand is still by far the largest contributor, bringing in around 80% to 85% of total sales in most quarters.  

Columbia competes against The North Face (VFC - Free Report), Patagonia, Canada Goose (GOOS - Free Report), LULU - Free Report), and others. Its offerings can be found at its own stand-alone stores, as well as at places such as Dick’s Sporting Goods (DKS - Free Report) and other clothing and outdoor-focused retailers.

Other Fundamentals

As we touched on at the outset, the outdoor apparel firm took a hit during the coronavirus on the back of store closures and a temporary change in shopping habits as consumers flocked to the likes of Target (TGT - Free Report) and cut back on some spending.

Columbia’s fiscal 2020 revenue fell roughly 18% to $2.5 billion, which ended a nice run of YoY top-line growth. Luckily, things started to turn around in the second half of last year.

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