Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

COLUMBIA SPORTSWEAR COMPANY

(COLM)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Retailers lose love for Asia: Snarled supply chains force manufacturing exodus to Balkans, LatAm (Nov. 9)

11/14/2021 | 10:22am EST
Workers sew cloths at the Jugotex textile factory in Smederevo

(This Nov. 9 story corrects to clarify reference period in paragraph 8 as first half of 2020 instead of whole of 2020)

By Siddharth Cavale and Corina Pons

(Reuters) - Major clothing and shoe companies are moving production to countries closer to their U.S. and European stores, smarting from a resurgence in cases of the Delta variant of the coronavirus in Vietnam and China that slowed or shut down production for several weeks earlier this year.

The disclosures come amid a massive shipping logjam that is driving up costs and forcing companies to rethink their globe-spanning supply chains and low-cost manufacturing hubs in Asia..

The latest example is Spanish fashion retailer Mango, which told Reuters on Friday it has "accelerated" its process of increasing local production in countries such as Turkey, Morocco and Portugal. In 2019, the company largely sourced its products from China and Vietnam. Mango told Reuters that it would "considerably" expand the number of units manufactured locally in Europe in 2022.

Similarly, U.S. shoe retailer Steve Madden on Wednesday said it had pulled back production in Vietnam and had shifted 50% of its footwear production to Brazil and Mexico from China, while Rubber clogs maker Crocs said last month it was moving production to countries including Indonesia and Bosnia.

Bulgaria, Ukraine, Romania, the Czech Republic, Morocco and Turkey were some of the countries drawing new interest from clothing and shoe producers, though China continues to produce a large share of the apparel for U.S. and European clothing chains.

"We are seeing a lot of growth in freight and trucking activity in the former Soviet Republics ... a big rise in Hungary and Romania," said Barry Conlon, chief executive of Overhaul, a supply chain risk management firm.

In Turkey, apparel exports are expected to reach $20 billion this year, an all-time high, driven by a spike in orders from the European Union, Turkey's Union of Chambers Clothing and Garment Council data showed. In 2020, exports totaled $17 billion.

In Bosnia & Herzegovina, exports of textiles, leather and footwear amounted to 739.56 million marka ($436.65 million) in the first half of 2021, higher than the same period in 2020.

"Many companies from the European Union, which is our most important trading partner, are looking for new suppliers and new supply chains in the Balkan market," said Professor Muris Pozderac, secretary of the association of textile, clothing, leather and footwear in Bosnia & Herzegovina.

In Guatemala, where Nordstrom significantly shifted its private-label volume production in 2020, clothing exports were a touch over $1 billion as of the end of August this year, up 34.2% from 2020 and even 8.8% higher than in 2019.

To be sure, many companies are also still heavily reliant on Vietnam, where recent production stoppages have caused significant disruptions. Vietnam's government said in October that it will fall short of its garment exports target this year, by $5 billion in a worst-case scenario, due to the impacts of coronavirus restrictions and a shortage of workers.

Factory inspections in Vietnam - a proxy for retailer manufacturing orders - fell 40% in the third quarter versus the second quarter, with production during those months quickly moving to Bangladesh, India and Cambodia. Inspection rates in Vietnam were still hovering at lower levels in the fourth quarter, with a small uptick seen in late October, said Mathieu Labasse, vice president of QIMA, a supply-chain quality control and auditing firm that represents more than 15,000 brands.

Apparel maker VF Corp and outdoor gear maker Columbia Sportswear were among companies that warned that there would be delays in fall and spring collections and in some cases insufficient size assortments.

Michael Kors handbags maker Capri Holdings said on Wednesday that it would not have the inventories it wanted for the holiday season, while athletic gear maker Under Armour said on last Tuesday it was canceling purchase orders from Vietnam just to help get "the factories get back up and caught up."

($1 = 1.6937 marka)

(Additional reporting by Ceyda Caglayan in Istanbul and Diego Ore in Mexico City; Editing by Steve Orlofsky)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
COLUMBIA SPORTSWEAR COMPANY 0.09% 91.26 Delayed Quote.-6.07%
STEVEN MADDEN, LTD. 0.00% 41.7 Delayed Quote.-9.58%
All news about COLUMBIA SPORTSWEAR COMPANY
01/19Columbia Sportswear Unveils USA Curling Uniforms for 2022 Winter Olympic Games
BU
01/18Seaport Global Initiates Coverage on Columbia Sportswear With Neutral Rating
MT
01/17Columbia Sportswear Company to Announce Fourth Quarter 2021 Financial Results on Thursd..
AQ
01/14Columbia Sportswear Company to Announce Fourth Quarter 2021 Financial Results on Thursd..
BU
01/12Columbia Sportswear Company Names Jim Beeman Vice President, U.S. Sales, Columbia Brand
BU
01/07UBS Adjusts Columbia Sportswear's Price Target to $105 From $120, Maintains Neutral Rat..
MT
01/04Today on Wall Street: Plenty of new records
01/04Baird Downgrades Columbia Sportswear to Neutral from Outperform, Adjusts Price Target t..
MT
01/04ANALYST RECOMMENDATIONS : Columbia Sports, Halliburton, Match Group, Sherwin-Williams, War..
2021WALL STREET STOCK EXCHANGE : Central banks take hawkish turn
More news
Analyst Recommendations on COLUMBIA SPORTSWEAR COMPANY
More recommendations
Financials (USD)
Sales 2021 3 063 M - -
Net income 2021 317 M - -
Net cash 2021 796 M - -
P/E ratio 2021 19,1x
Yield 2021 1,17%
Capitalization 5 946 M 5 946 M -
EV / Sales 2021 1,68x
EV / Sales 2022 1,42x
Nbr of Employees 7 275
Free-Float 58,2%
Chart COLUMBIA SPORTSWEAR COMPANY
Duration : Period :
Columbia Sportswear Company Technical Analysis Chart | COLM | US1985161066 | MarketScreener
Technical analysis trends COLUMBIA SPORTSWEAR COMPANY
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 12
Last Close Price 91,18 $
Average target price 116,33 $
Spread / Average Target 27,6%
EPS Revisions
Managers and Directors
Timothy P. Boyle General Manager
Jim A. Swanson Chief Financial Officer & Executive Vice President
Skip Potter Chief Digital Information Officer & EVP
Peter J. Bragdon Director-Intellectual Property & Senior Counsel
Walter T. Klenz Independent Director
Sector and Competitors
1st jan.Capi. (M$)
COLUMBIA SPORTSWEAR COMPANY-6.07%5 946
LVMH MOËT HENNESSY LOUIS VUITTON SE-4.03%398 923
LULULEMON ATHLETICA INC.-15.46%42 790
V.F. CORPORATION-3.84%27 656
LI NING COMPANY LIMITED-12.01%25 174
MONCLER S.P.A.-8.81%17 862