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1. Company Snapshot

1.a. Company Description

Columbia Sportswear Company, together with its subsidiaries, designs, sources, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada.The company provides apparel, accessories, and equipment that are used in various activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel.It also offers footwear products that include lightweight hiking boots, trail running shoes, rugged cold weather boots for activities on snow and ice, sandals and shoes for use in water activities, and function-first fashion footwear and casual shoes for everyday use.


The company sells its products under the Columbia, Mountain Hardwear, SOREL, and prAna brand names through the company owned network of branded and outlet retail stores, brand-specific e-commerce sites, and concession-based arrangements with third-parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, Internet retailers, and international distributors.As of December 31, 2021, it operated approximately 455 retail stores.The company was founded in 1938 and is headquartered in Portland, Oregon.

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1.b. Last Insights on COLM

Columbia Sportswear's recent performance was positively driven by its Q4 2025 earnings beat, with EPS of $1.73 per share surpassing the Zacks Consensus Estimate of $1.22 per share. The company's international growth and direct-to-consumer (DTC) gains helped offset weak U.S. demand. Additionally, Columbia Sportswear's Columbia brand showed early success from its ACCELERATE initiative targeting younger, active consumers. The company has also been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about its earnings prospects.

1.c. Company Highlights

2. Columbia Sportswear's Q4 2025 Earnings Exceed Guidance

Columbia Sportswear Company's fourth-quarter 2025 financial results exceeded guidance, driven by better-than-expected demand in the U.S. Net sales decreased 2% year over year to $1.1 billion, with a 7% decrease in wholesale net sales partially offset by a 1% increase in direct-to-consumer sales. Gross margin expanded 50 basis points to 51.6%, while SG&A expense increased 3%. The company delivered operating income and diluted earnings per share above guidance, with actual EPS coming in at $1.73, beating estimates of $1.22.

Publication Date: Feb -08

📋 Highlights
  • Exceeded Guidance: Q4 2025 results surpassed targets, with operating income and EPS above guidance despite 2% net sales decline ($1.1 billion) and 7% wholesale sales drop.
  • Margin Expansion: Gross margin rose 50 bps to 51.6%, while SG&A increased 3%, reflecting cost discipline and pricing strategies despite incremental $30M tariff impact in 2025.
  • International Growth: LIAP (10%), China (low double digits), and Japan (high single digits) drove strong global sales, offsetting U.S. wholesale declines and supporting full-year optimism.
  • Emerging Brands Momentum: Prana grew 6% in Q4 2025, with all emerging brands projected to outperform, and fall 2026 order books showing mid-single-digit growth amid inventory discipline.
  • 2026 Outlook: Sales growth of 1–3% expected, with gross margin contracting 50–70 bps (49.8–50%) due to tariffs, but operating margin guidance (0.2–6.9%) hinges on price increases and SG&A control.

Revenue Breakdown and Growth Drivers

International sales growth was strong and broad-based, with LIAP net sales increasing 10%, China net sales up low double-digit percent, and Japan net sales up high single-digit percent. The Columbia brand's Accelerate Growth strategy is resonating with consumers, with new product collections like the Amaze Puff driving growth. The company remains committed to driving shareholder value, returning $201 million in share repurchases and $66 million in dividends in 2025.

Outlook and Guidance

For 2026, the company expects net sales growth of 1% to 3%, with gross margin contracting 70 to 50 basis points to 49.8% to 50% due to incremental unmitigated tariff costs. SG&A expense is expected to increase at a slower rate than net sales growth, with an operating margin of 0.2% to 6.9% and diluted earnings per share in the range of $3.20 to $3.65. Analysts estimate next year's revenue growth at 2.9%.

Valuation Metrics

With a P/E Ratio of 19.11, P/B Ratio of 1.98, and P/S Ratio of 1.0, the market seems to have priced in a reasonable growth expectation. The company's ROE of 10.53% and ROIC of 7.33% indicate a decent return on equity and invested capital, respectively.

Tariff Impact and Mitigation

The company's gross margin has been affected by unmitigated tariffs, with a $30 million impact in 2025 and an incremental 300 basis points. The company has taken actions to mitigate the tariffs, including price increases, tariff cost sharing, and resourcing and moving production. As Jim Swanson noted, the company has taken a conservative approach to winter products and spring business due to tariff uncertainty.

Business Trends and Opportunities

The company is optimistic about its emerging brands, with Prana net sales increasing 6% in the fourth quarter. The company is focused on driving growth through its Accelerate Growth strategy, with a goal of restoring product margin percentage to historical levels. The successful launch of the Columbia brand Engineered for Whatever platform has provided powerful differentiation in a competitive marketplace, positioning the company for continued success.

3. NewsRoom

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Heartland Advisors Inc. Makes New $1.39 Million Investment in Columbia Sportswear Company $COLM

Feb -18

Source: defenseworld.net

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Columbia Sportswear Company $COLM Shares Sold by Principal Financial Group Inc.

Feb -17

Source: defenseworld.net

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U.S. Online Prices Post Largest Increase in 12 Years

Feb -16

Source: gurufocus.com

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Add These 4 Top-Ranked Liquid Stocks to Boost Portfolio Returns

Feb -12

Source: zacks.com

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2 Must-Buy Outdoor Industry Stocks Flying High Year to Date

Feb -11

Source: zacks.com

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What Makes Columbia Sportswear (COLM) a New Buy Stock

Feb -05

Source: zacks.com

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Is Columbia Sportswear (COLM) Stock Outpacing Its Consumer Discretionary Peers This Year?

Feb -05

Source: zacks.com

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Columbia Sportswear Q4 Earnings Beat Estimates, Sales Down Y/Y

Feb -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Apparel, Accessories and Equipment

Expected Growth: 4%

Columbia Sportswear's 4% growth in Apparel, Accessories, and Equipment is driven by increasing outdoor recreation participation, innovative product lines, and strategic marketing campaigns. Expansion into new markets, particularly in Asia, and e-commerce growth also contribute to the segment's growth. Furthermore, the company's focus on sustainability and digital transformation enhances its brand appeal, attracting environmentally conscious and tech-savvy consumers.

Footwear

Expected Growth: 4%

Columbia Sportswear's 4% growth in footwear is driven by increasing outdoor participation, innovative product lines, and strategic marketing efforts. The company's focus on comfort, sustainability, and performance resonates with consumers. Expansion into new markets, such as Asia, and e-commerce growth also contribute to the segment's growth.

7. Detailed Products

Outerwear

Waterproof and breathable jackets, pants, and vests designed for outdoor enthusiasts

Fleece

Soft, warm, and lightweight fleece jackets, pullovers, and hoodies for casual wear

Shirts

Moisture-wicking, breathable, and quick-drying shirts for outdoor activities

Pants and Shorts

Water-resistant, breathable, and comfortable pants and shorts for outdoor activities

Footwear

Waterproof, breathable, and comfortable hiking boots, trail running shoes, and sandals

Accessories

Hats, gloves, scarves, and other accessories designed for outdoor enthusiasts

Sleeping Bags and Pads

Warm, lightweight, and compact sleeping bags and sleeping pads for camping

8. Columbia Sportswear Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Columbia Sportswear Company faces moderate threat from substitutes, as consumers have alternative options for outdoor apparel and footwear from other brands.

Bargaining Power Of Customers

Columbia Sportswear Company has a diverse customer base, which reduces the bargaining power of individual customers, making it a low threat.

Bargaining Power Of Suppliers

Columbia Sportswear Company relies on a few large suppliers for raw materials, which gives them some bargaining power, making it a moderate threat.

Threat Of New Entrants

The outdoor apparel and footwear industry has high barriers to entry, making it difficult for new entrants to compete with established brands like Columbia Sportswear Company, making it a low threat.

Intensity Of Rivalry

The outdoor apparel and footwear industry is highly competitive, with many established brands competing for market share, making it a high threat for Columbia Sportswear Company.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.38%
Debt Cost 3.95%
Equity Weight 82.62%
Equity Cost 8.66%
WACC 7.84%
Leverage 21.04%

11. Quality Control: Columbia Sportswear Company passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ralph Lauren

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Value: 2.4

Growth: 6.1

Quality: 6.8

Yield: 3.0

Momentum: 9.0

Volatility: 6.3

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Columbia Sportswear

A-Score: 4.6/10

Value: 5.7

Growth: 5.4

Quality: 6.2

Yield: 3.0

Momentum: 1.0

Volatility: 6.0

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Value: 7.5

Growth: 2.1

Quality: 4.2

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

64.23$

Current Price

64.23$

Potential

-0.00%

Expected Cash-Flows