Latest news with #ColumbiaSportswear
Yahoo
30-05-2025
- Business
- Yahoo
1 Profitable Stock to Keep an Eye On and 2 to Be Wary Of
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". A business making money today isn't necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that generates reliable profits without sacrificing growth and two that may face some trouble. Trailing 12-Month GAAP Operating Margin: 8.1% Originally founded as a hat store in 1938, Columbia Sportswear (NASDAQ:COLM) is a manufacturer of outerwear, sportswear, and footwear designed for outdoor enthusiasts. Why Are We Out on COLM? Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn't resonate with customers Projected sales for the next 12 months are flat and suggest demand will be subdued Eroding returns on capital suggest its historical profit centers are aging At $66 per share, Columbia Sportswear trades at 18.3x forward P/E. Read our free research report to see why you should think twice about including COLM in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 6.6% Founded in 1903, Harley-Davidson (NYSE:HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways. Why Do We Avoid HOG? Number of motorcycles sold has disappointed over the past two years, indicating weak demand for its offerings Diminishing returns on capital suggest its earlier profit pools are drying up 13× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly Harley-Davidson's stock price of $24.99 implies a valuation ratio of 7.4x forward P/E. Check out our free in-depth research report to learn more about why HOG doesn't pass our bar. Trailing 12-Month GAAP Operating Margin: 25.8% Owning the largest rental fleet in the world, United Rentals (NYSE:URI) provides equipment rental and related services to construction, industrial, and infrastructure industries. Why Are We Fans of URI? Impressive 12.1% annual revenue growth over the last two years indicates it's winning market share this cycle Healthy operating margin of 25.6% shows it's a well-run company with efficient processes, and its operating leverage amplified its profits over the last five years Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.9% exceeded its revenue gains over the last five years United Rentals is trading at $724.90 per share, or 15.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Daily Mirror
24-05-2025
- Daily Mirror
'I ditched my phone and went on an 18-mile hike instead - here's how it went'
I tested myself if I could go a day without using my phone by participating on an 18-mile hike with nothing but a bottle of water - and what I discovered about myself was unexpectedly rewarding I'm not the only one who says that I live attached to my phone and that everything I own and treasure is there. Realising that my screen time is higher than the average person's, I wanted to prove to myself that I could go a day without it. So, when I saw the opportunity to go on a hike in the middle of nowhere with zero phone service, I couldn't say no to it. I wouldn't consider myself a very sporty person, nor do I think I would have ever been interested in completing a hike by choice. With no expectations or preparations, except for a nice kit provided by Columbia Sportswear, I went for it - and let me tell you, it was so worth it. Hiking is nature's therapy Throughout the year, Columbia Hike Society hosts multiple 'Hike Fests' across the world. The whole point is to walk for miles and miles until you reach your destination, where a reward awaits you. In our case, it was an emerging duo group called Lavender Music and Bombay Bicycle Club, an English indie rock band - and of course, a beautiful beach that looked like the ones in the Almafi Coast. We walked through fields, along coastal paths and over sand dunes to an isolated area of Anglesey, located in north-western Wales. There was something so therapeutic about listening to the wind, the birds, the waves of the sea, and even the sound of the sole of the shoe touching the rocky ground. Hiking is an underrated activity that is both engaging and relaxing. I appreciated the silence and being fully present in nature for three hours without using my phone and without listening to music. It's also a social media trend called 'rawdogging', which is a slang term is used when undertaking an activity without any assistance, preparation or comfort. Living in the moment Thankfully, my friend joined the trip, which made it much more bearable, with a few laughs in between. We kept stopping to take pictures, but the insane views can't be as appreciated through the lens as much as they are through your own eyes. Being born and raised in Barcelona, and also being used to the busy London environment, I didn't think that the UK had the potential to be so beautiful! Once we arrived at the beach, we sat down to eat our lunch and enjoyed performances from Lavender and Bombay Bicycle Club as the clear blue skies and sunlight graced us. That's when I realised that I was going to wake up the next morning with a stiff body and that I was so unfit and should probably start going to the gym - but that's another story. What started at 10am, ended at 13:46pm, to be exact. During those long hours of non-stop walking, it gave me plenty of time to think about a lot of things, and I learnt to enjoy my own company without wanting to check my phone notifications. I've also learnt to live in the moment, something we sometimes forget to do because we spend most of our time focused on what's happening on social media and don't look at what's right in front of us. But the one thing that I appreciated the most about this hiking trip was the realisation of how little we actually invest into ourselves and our well-being, and although it was my first time hiking, it will definitely not be the last one.
Yahoo
16-05-2025
- Business
- Yahoo
COLM Q1 Earnings Call: Solid Q1 Amid Tariff Uncertainty and Cautious U.S. Outlook
Outerwear manufacturer Columbia Sportswear (NASDAQ:COLM) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 1.1% year on year to $778.5 million. The company expects next quarter's revenue to be around $587.5 million, close to analysts' estimates. Its non-GAAP profit of $0.75 per share was 14.2% above analysts' consensus estimates. Is now the time to buy COLM? Find out in our full research report (it's free). Revenue: $778.5 million vs analyst estimates of $756.9 million (1.1% year-on-year growth, 2.9% beat) Adjusted EPS: $0.75 vs analyst estimates of $0.66 (14.2% beat) Adjusted EBITDA: $75.01 million vs analyst estimates of $76.45 million (9.6% margin, 1.9% miss) Revenue Guidance for Q2 CY2025 is $587.5 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: 6%, in line with the same quarter last year Free Cash Flow was -$47.6 million, down from $91.98 million in the same quarter last year Constant Currency Revenue rose 5% year on year (-5% in the same quarter last year) Market Capitalization: $3.68 billion Columbia Sportswear's first quarter results reflected resilient global demand and strategic inventory management, as management emphasized late season strength in winter products and healthy international growth—particularly in the Asia-Pacific and European regions. CEO Tim Boyle pointed to late winter weather and early spring shipments driving wholesale sales, while also highlighting the company's diversified supply chain and strong cash position. Boyle acknowledged persistent softness in U.S. direct-to-consumer channels and ongoing promotional headwinds impacting digital sales, noting, 'Challenging outdoor category trends and consumer uncertainty affected late season demand.' Looking ahead, management withdrew full-year guidance due to heightened uncertainty around U.S. tariffs and their impact on product costs, consumer demand, and retailer behavior. Boyle described the current trade environment as "unprecedented" and cited the lack of clarity in U.S. policy as a key reason for pulling guidance. The company's focus for the remainder of the year is on maximizing marketplace opportunities, containing discretionary spend, and adapting inventory and pricing strategies as the tariff situation evolves. Columbia Sportswear's management attributed the quarter's revenue outperformance to strategic global execution, while also outlining the operational adjustments and risks introduced by new U.S. tariffs. The call focused on supply chain flexibility, international momentum, and planned investments in brand and demand creation. International market growth: Robust sales in Asia-Pacific (particularly China and Japan) and Europe, driven by local product innovation and expanded retail presence, offset softer U.S. trends. Tariff mitigation actions: The company domesticated U.S. inventory ahead of April's tariff increases, accelerated shipments, and plans to further diversify sourcing to mitigate future cost pressures. Boyle stressed, "We have very little direct exposure to tariffs on products from China." Marketing and brand investment: A new global marketing platform is set to launch in August, with increased and more efficient spending aimed at reinforcing Columbia's brand distinctiveness, particularly in an environment where competitors may pare back investments. Cost control and supply chain optimization: Management highlighted ongoing efforts to achieve $150 million in annualized cost reductions across distribution, labor, and discretionary spend, with a goal to restore operating margins to double-digit levels over time. Product innovation and collaborations: New product launches, such as the Omni-MAX Konos Featherweight shoe and collaborations for the PFG fishing line, were cited as drivers of category momentum and consumer engagement, especially in international markets. Looking forward, Columbia Sportswear's outlook is shaped by ongoing tariff-related uncertainty, international market expansion, and a cautious approach to U.S. retail trends. Tariff headwinds and mitigation: Management expects higher U.S. tariffs to increase costs by $40–$45 million in the second half of the year, with much of this impact absorbed rather than passed on to consumers. Strategies under consideration for 2026 include product redesign, repricing, and further supply chain adjustments. International expansion priorities: The company is prioritizing investment in China, Japan, and Europe, leveraging localized product, new store formats, and premium brand positioning to drive growth outside the U.S., where consumer trends remain healthier. Marketing and demand creation: A significant step-up in marketing spend is planned, with a focus on digital and social channels. Management believes this will support brand momentum and help offset competitive pressures, especially as some peers may be constrained by higher costs or supply chain disruptions. Laurent Vasilescu (Exane BNP Paribas): Asked about the stability of the fall order book and market share opportunities from tariff impacts; management confirmed minimal cancellations and highlighted competitive advantages from supply chain diversification. Peter McGoldrick (Stifel): Inquired about market share gains and demand creation plans; CEO Boyle cited opportunities from competitors' China exposure and detailed increased, more efficient marketing investments starting in August. Krista Zuber (TD Cowen): Probed cost-saving initiatives and China market progress; CFO Jim Swanson explained ongoing operational savings and outlined growth potential from localized product and retail expansion in China. Mitch Kummetz (Seaport Global): Questioned U.S. retail partner behavior and inventory strategy; management discussed cautious inventory buys, leveraging outlet channels, and the ability to shift product globally to optimize margin. Paul Kearney (Barclays): Sought clarity on inventory rationalization and pricing decisions, especially as competitors may raise prices; management reiterated its conservative approach and focus on taking share from private label and smaller brands reliant on China. In the coming quarters, our analysts will be watching (1) the pace and effectiveness of Columbia's tariff mitigation actions, including supply chain adjustments and vendor negotiations; (2) signs of sustained international sales growth, particularly in China and Japan, where localized strategies are ramping; and (3) the impact of increased marketing investments on both brand engagement and sell-through in key product categories. The evolution of U.S. trade policy and any further cost or pricing actions will also be closely monitored. Columbia Sportswear currently trades at a forward P/E ratio of 18.9×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Columbia Sportswear withdraws 2025 forecast despite positive Q1
In Q1 Columbia Sportswear's net sales climbed by 1% to $778.45m from $769.98m in the same period the previous year. This growth was attributed to an uptick in wholesale net sales, spurred by an increase in orders for the Spring '25 collection. The sales upturn was predominantly propelled by performance in the Latin America, Asia Pacific (LAAP), and Europe, Middle East and Africa (EMEA) markets. However, this was somewhat counterbalanced by a downturn in the Canadian and US markets, notes the company. Columbia Sportswear chairman, president and CEO Tim Boyle stated: 'I'm encouraged by our first quarter results, with net sales and earnings exceeding our guidance range. We generated healthy growth in nearly all our international markets, including double-digit percent growth in the LAAP region and high-single-digit percent constant currency growth in the EMEA region.' Columbia Sportswear key metrics for Q1 FY25 In Q1 FY25, Columbia Sportswear's net income remained relatively unchanged at $42.25m or $0.75 per diluted share. Operating income saw a 4% increase to $46.51m compared to $44.68m in Q1 FY24, representing 5.8% of net sales at that time. Gross profit of the company ascended to $396.06m in Q1 FY25 from $389.56m in Q1 FY24 and gross margin widened by 30 basis points to 50.9% of net sales from 50.6% for the corresponding period in 2024. This margin expansion is credited to a combination of factors including reduced outbound shipping expenses, improved closeout margins, and favourable costs for spring 2025 products inputs; these were partially negated by less advantageous FX hedging rates. Selling, general, and administrative (SG&A) expenses increased slightly to $354.47m or 45.5% of net sales from $349.27m or 45.4% of net sales for the same period in the prior year. Notable changes within SG&A were heightened direct-to-consumer (DTC) and demand creation expenses which were offset by decreased supply chain costs. Inventories experienced a 3% increase to $623.7m in Q1 FY25. Columbia Sportwear's outlook During the earnings call, Boyle said: 'Given the heightened uncertainty regarding tariff rates and the impact this will have on product costs and consumer demand, we are withdrawing our full year 2025 outlook.' He outlined the company's strategy for the remainder of the year. Before the tariff increases, the company was positioned to meet its full-year financial goals. For the second quarter, Columbia expects net sales to increase between 1% and 5% compared to the previous year, aligning with the net sales forecast for the first half that was shared in February, he noted.
Yahoo
07-05-2025
- Business
- Yahoo
Businesses have found strange but legal ways to avoid Trump's tariffs
A cargo ship arriving at the Port of Los Angeles. Nearby are bonded warehouses where businesses pay money to have imports locked up to defer tariff payments. - Norma Galeana/CNN A few months ago, the words 'bonded warehouse' and 'harmonized system codes' might not have been on the minds of many American business owners. Now they're in a massive spotlight. After President Donald Trump slapped a whopping 145% minimum tariff on most goods coming from China, 25% tariffs on cars, auto parts, aluminum and steel and a 10% tariff on almost every country's imports, US businesses are desperate for ways to lower their import costs. Two popular — and legal — strategies involve those bonded warehouses to defer tariffs and harmonized system codes to qualify for lower rates. 'Tariff engineering' There are over 5,000 different product classification codes that governments across the globe use when assessing tariffs. Consumers don't care whether the imported coat they're wearing was officially classified as a windbreaker or a raincoat. But for businesses, that distinction can be the difference between lower and higher tariff rates – and potentially turning a profit or not. And to qualify for the lower rate, all a manufacturer would have to do is tinker with the product's materials, otherwise known as tariff engineering. For instance, Converse's signature All Stars sneakers have a sole that contains felt as opposed to the fully rubber one traditionally seen in sneakers. That may have been a purposeful decision, since foreign-produced shoes with felt bottoms could be considered 'house slippers' for the purpose of tariff codes. And house slippers have qualified for significantly lower tariff rates compared to other kinds of footwear in the past. (Nike, the parent company of Converse, didn't respond to CNN's request for comment. CNN could not determine the latest tariff rates for sneakers versus house slippers given their respective classification codes.) Columbia Sportswear has not been shy about its use of tariff engineering. 'I have a whole team of people that work … with the designers and developers and merchandisers and with customs, actually, and to ensure that during the design process that we're considering the impact of tariffs,' Jeff Tooze, the vice president of global customs and trade at Columbia Sportswear told Marketplace in 2019. Among its uses of tariff engineering: adding small zippered pockets below shirt waistlines to qualify for lower tariff rates, he said. Even in the current environment, with Trump's efforts to target tariffs at China and specific sectors, there are still plenty of opportunities for businesses to tariff engineer products, said Erik Smithweiss, a partner at the law firm GDLSK, who specializes in trade compliance.
