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How Did Columbia Sportswear Perform in 4Q15 and 2015?

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Price movement of Columbia Sportswear

Columbia Sportswear (COLM) rose by 13.7% to close at $55.54 per share at the end of the second week of February 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis was 13.7%, 19.9%, and 13.9%, respectively.

At times, the stock has broken the support of all moving day averages. Currently, COLM is trading 11.7% above its 20-day moving average, 15.9% above its 50-day moving average, and 0.66% below its 200-day moving average.

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The Guggenheim Mid-Cap Core ETF (CZA) invests 0.46% of its holdings in Columbia Sportswear. The ETF tracks the Zacks Mid-Cap Core Index, a proprietary selected portfolio of 100 midcap stocks that seeks to outperform pure market-cap indexes. The YTD price movement of CZA was -11.2% as of February 11, 2016.

The market cap of Columbia Sportswear’s competitors are as follows:

  • Nike (NKE) — $96.1 billion
  • Under Armour (UA) — $16.5 billion
  • Skechers USA (SKX) — $4.8 billion

Performance of Columbia Sportswear in fiscal 4Q15 and fiscal 2015

Columbia Sportswear reported fiscal 4Q15 net sales of $699.4 million, a rise of 3.3% compared to net sales of $677.0 million in fiscal 4Q14. Sales of Columbia, Sorel, prAna, and Mountain Hardwear brands rose by 0.19%, 14.3%, 38.5%, and 1.7%, respectively, in fiscal 4Q15, compared to fiscal 4Q14.

Its net income and EPS (earnings per share) rose to $63.4 million and $0.90, respectively, in fiscal 4Q15, compared to $55.6 million and $0.79, respectively, in fiscal 4Q14.

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Fiscal 2015 results

In fiscal 2015, Columbia Sportswear reported net sales of $2,326.2 million, a rise of 10.7% YoY (year-over-year). Its net income and EPS rose to $174.3 million and $2.45, respectively, in fiscal 2015, compared to $137.2 million and $1.94, respectively, in fiscal 2014.

Meanwhile, its cash and cash equivalents fell by 10.6%, and inventories rose by 23.1% in fiscal 2015. Its current ratio rose to 3.41x in fiscal 2015 compared to 3.39x in fiscal 2014.

The company has declared a regular quarterly dividend of $0.17 per share on its common stock. The dividend will be paid on March 17, 2016, to shareholders at the close of business on March 4, 2016.

The PE (price-to-earnings) and PBV (price-to-book value) ratios of Columbia Sportswear are 23.6x and 2.8x, respectively, as of February 12, 2016.

Projection

The company has made the following projections for fiscal 2016:

  • net sales growth of mid-single-digit, including ~1% negative effect of changes in currency exchange rates
  • operating income in the range of $257 million–$267 million
  • net income in the range of $179 million–$186 million
  • EPS in the range of $2.55–$2.65
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