Columbia Sportswear Valuation

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Valuation of Columbia Sportswear Company (COLM) Nicholas Stoll FI 305 Financial Reporting & Analysis Golden Gate University April 27, 2012 INTRODUCTION Columbia Sportswear (COLM) is the global leader in in the design, sourcing, marketing and distribution of active outdoor apparel, footwear, accessories and equipment. The company design, develop, market and distribute active outdoor apparel, footwear, accessories and equipment under four primary brands: Columbia®, Mountain Hardwear®, Sorel® and Montrail®. With annual revenues of $1.694 billion (2011), Columbia is headquartered in Portland, Oregon, with offices and support centers throughout the United States, Europe, and Asia. As of December…show more content…
Current position in the industry Columbia competes with many different companies in the apparel industry. They name a broad range of different companies manufacturing a very large number of products, but their main competitor is VF Corporation, the holding company for brand names The North Face® and Timberland® footwear. VF Corporation is significantly larger than Columbia due to the additional brand names they carry in the apparel sector but that do not directly compete with Columbia such as Lee jeans. Columbia competes on a day to day basis with The North Face on product quality, innovation, and fashion levels. Columbia has proven to be more innovative yet their balance sheet shows a company with a more conservative approach to growth. VF Corporation has been growing through aggressively purchasing or merging with other companies (Timberland was their latest in July of 2011). Columbia is not anathema to this strategy but they are slower and more deliberate in the process. A complete comparison of company ratios can be seen in Exhibit 12. The table below indicates selected ratios of various competitors. | Columbia Sportswear Company |
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