Can Columbia Sportswear bounce back from 2020 losses?
Columbia Sportswear Company (NASDAQ:COLM) manufactures and distributes outerwear, sportswear, footwear, headgear, camping equipment, ski apparel, and outerwear accessories. The stock is up 15% in 2021, with support from its recent consolidation phase coming from its 200-day moving average. Columbia stock also has a forward dividend of $1.04 and a dividend yield of 1.08%.
Columbia Sportswear will release second quarter earnings on Monday, August 2. Columbia has beat earnings estimates on three of its last four earnings reports released. However, seven of the stock's last eight post-earnings move have been to the downside, including a -22.5% bear gap back in October.
Columbia stock currently trades at a sky-high price-earnings ratio of 39.13. However, COLM's forward price-earnings ratio of 23.75 suggests the sportswear company has potential as a turnaround play after Columbia experienced some major pandemic-related losses akin to its retail peers. In fiscal 2020, COLM's revenues decreased by 18% and its net income dropped by a massive 67%. However, Columbia’s trailing 12-month revenues has increased by 2.3% and the company has grown its trailing 12-month net income by 51.5%, both as compared to what was reported in fiscal 2020.
From a fundamental point of view, Columbia had maintained consistent top and bottom-line growth for multiple years prior to the pandemic. In addition, COLM carries a great balance sheet with $874.5 million in cash and $438 million in debt. Fundamentally speaking, COLM is well positioned to recover from steep losses despite some short-term inconveniences, making Columbia stock a suitable candidate to consider for long-term investing should it recover its post-earnings history.