We recently compiled a list of the 10 Footwear Apparel Stocks Affected By China Tariffs. In this article, we are going to take a look at where Columbia Sportswear Company (NASDAQ:COLM) stands against the other footwear apparel stocks.

Donald Trump’s sweeping tariffs on China, Mexico, and Canada have caused a lot of footwear and apparel stocks to crash. Even though the President paused tariffs on Canadian and Mexican goods for a month, the 10% tariffs on China are still in place.

Fashion brands provide an interesting investment opportunity. Due to their loyal following, they have the ability to raise prices to take care of tariffs. In a similar way, these brands have become quite agile in diversifying their supply chain since the pandemic, so sourcing products from outside China is also a possibility for many. More than these brands, it is the retailers that will get hurt as their value proposition to their customers may get hurt when brands raise prices. However, these retail stocks are not a part of our discussion for now.

In order to come up with our list of 10 stocks affected by Trump’s tariffs on China, we only considered stocks with a market cap of at least $1 billion and a product sourcing mix exposure to China of at least 5%.

A lifestyle customer wearing the apparel company’s clothing and enjoying the outdoors.

Columbia Sportswear Company (NASDAQ:COLM)

Columbia Sportswear Company makes and sells footwear, apparel, accessories, and equipment on a global scale. It sells its products under famous names such as Columbia, SOREL, prAna, and Mountain Hard Wear. The company sources 5% of its products from China.

On its Q4 earnings call on February 4th, CEO Tim Boyle highlighted how the company finally returned to growth in the US market while continuing its already strong performance at the international level. The CEO says the company is working actively on growth drivers such as retail partnerships in the US and new product launches, like the premium Titanium product line and the Omni-MAX footwear collection.

The company has also declared a dividend of $0.3, giving it a decent dividend yield of 1.4%. While the management hasn’t identified the exact impact of the tariffs, they are likely to result in cost pressures as well as foreign exchange pressure in 2025.

Overall COLM ranks 10th on our list of the footwear apparel stocks affected by China tariffs. While we acknowledge the potential of COLM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as COLM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article was originally published at Insider Monkey.