A growing population is inspired to take care of their health and fitness by undertaking sports and outdoor recreational activities. This surge has directly impacted the athletic apparel market, encouraging various innovations and advancements in the industry and offering new opportunities.
Given the industry’s tailwinds, it could be wise to consider quality athletic apparel stocks: Columbia Sportswear Company (COLM), Skechers U.S.A., Inc. (SKX), and G-III Apparel Group, Ltd. (GIII).
The young generation is growingly participating in sports activities, including hiking, yoga, and running, to stay fit, driving the market for athletic wear. Also, the rising health consciousness, increasing preference for outdoor recreational activities, and new product launches are influencing a large number of people to undertake sports activities.
Further, with time, the involvement of women in athletics is rising at an encouraging rate, fueling the demand for wider choices in athlete apparel. Mordor Intelligence projects that the sports apparel market will reach $365.15 billion by 2030, exhibiting growth at a CAGR of 6.7%.
Factors responsible for driving the market growth include advancements in fabric technology, like moisture-wicking, odor control, and temperature regulation, resulting in enhanced functionality and appeal of sportswear. Longstanding fashion trends and sustainable practices are also influential aspects.
Considering these conducive trends, let’s analyze the fundamental aspects of the three Athletics & Recreation industry picks, beginning with the third choice.
Stock #3: Columbia Sportswear Company (COLM)
COLM designs, develops, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment internationally. It provides apparel, accessories, and equipment for hiking, trail running, snow, fishing, hunting, mountaineering, climbing, skiing and snowboarding, trail, and outdoor activities.
COLM’s trailing-12-month gross profit margin of 50.20% is 33.8% higher than the industry average of 37.51%. Likewise, the stock’s trailing-12-month net income margin of 6.63% is 56.9% higher than the industry average of 4.23%. Also, its trailing-12-month levered FCF margin of 12.24% is significantly higher than the 4.64% industry average.
For the fourth quarter that ended December 31, 2024, COLM’s net sales grew 3.4% year-over-year to $1.10 billion. The company’s operating income rose 21.4% year-over-year to $137.32 million. Also, its net income and EPS stood at $102.56 million and $1.80, indicating increases of 9.9% and 16.1% from the year-ago value, respectively.
As per the company’s full-year 2025 financial outlook, COLM projects net sales of $3.40 billion to $3.47 billion, reflecting growth of 1% to 3% compared to 2024. Its operating margin is expected to be 7.7% to 8.3%, and EPS is set at $3.80 to $4.15.
Street expects COLM’s revenue for the third quarter (ending September 2025) to increase 3.3% year-over-year to $962.90 million. The company’s EPS for the same period is expected to grow 3.8% year-over-year to $1.62. Moreover, the company topped the consensus revenue and EPS estimates in three of the trailing four quarters, which is impressive.
Shares of COLM have gained 12.5% over the past six months and 12.6% over the past year to close the last trading session at $90.12.
COLM’s solid fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
COLM has an A grade for Quality. It is ranked #10 out of 33 stocks in the Athletics & Recreation industry.
In addition to the POWR Ratings we’ve stated above, we also have COLM ratings for Stability, Sentiment, Value, Momentum, and Growth. Get all COLM ratings here.
Stock #2: Skechers U.S.A., Inc. (SKX)
SKX designs, develops, markets, and distributes footwear globally for men, women, and children. The company operates in Wholesale and Direct-to-Consumer segments. The company offers footwear under brands like Skechers Hands-Free Slip-ins, Skechers Arch Fit, and Skechers Air-Cooled Memory Foam.
On January 21, 2025, SKX opened its first Skechers Performance store, an immersive destination with half-courts where consumers can try the latest innovative products from The Comfort Technology Company®. The experiential destination will revolutionize the retail experience for customers and showcase the brand’s extensive offerings.
On December 19, 2024, SKX opened a new flagship store in the center of Prague, located on the city’s High Street Na Příkopě. The store offers an extensive offering of footwear, apparel, and accessories for the entire family, including Skechers Hands-Free Slip-ins® and Skechers Uno.
During the fourth quarter that ended on December 31, 2024, SKX’s sales increased 12.8% year-over-year to $2.21 billion. The company’s gross profit rose 13.1% from the year-ago value to $1.18 billion. Net earnings attributable to SKX amounted to $99.30 million, or $0.65 per share, up 13.9% and 16.1% from the previous year’s period, respectively.
The consensus revenue estimate of $2.38 billion for the second quarter (ending June 2025) represents a 10.1% improvement year-over-year. The consensus EPS estimate of $1.02 for the same quarter indicates an 11.9% increase from the prior-year period.
Over the past year, the stock has gained 13.5% to close the last trading session at $65.97.
SKX’s promising outlook is reflected in its POWR Ratings. The stock has a B grade for Value. Within the Athletics & Recreation industry, SKX is ranked #5 of 33 stocks.
Click here to access additional ratings of SKX for Momentum, Sentiment, Quality, Growth, and Stability.
Stock #1: G-III Apparel Group, Ltd. (GIII)
GIII designs, sources, and markets women's and men's apparel internationally. It functions in two segments: Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear, and women's handbags, footwear, small leather goods, cold weather accessories, and luggage.
On July 29, 2024, GIII increased its investment in All We Wear Group, which owns the iconic brands Pepe Jeans London, Hackett, and Façonnable. Post the new investment, the company’s ownership stake increased to approximately 19% from the prior 12%.
The strategic partnership accelerated the international expansion of GIII’s owned brands.
In the third quarter that ended October 31, 2024, GIII reported net sales of $1.09 billion, up 1.8% year-over-year. Its gross profit and adjusted EBITDA were $432.13 million and $174.36 million for the quarter. Also, non-GAAP net income attributable to GIII came in at $116.29 million or $2.59 per common share for the period, respectively.
According to the company’s outlook for fiscal 2025, GIII expects its net sales to increase by approximately 2% to $3.15 billion. Its non-GAAP net income is expected to be between $186 million and $191 million, and EPS is expected to be between $4.10 and $4.20. The company projected an adjusted EBITDA of $309 million to $314 million, compared to the prior $305 million and $310.0 million ranges.
Street expects GIII’s revenue for the fourth quarter (ended January 2025) to increase 5.7% year-over-year to $808.59 million, and its EPS is expected to grow 26.4% year-over-year to $0.96 in the same period. Also, the company has topped the consensus EPS estimates in all four trailing quarters.
GIII’s stock has surged 12.1% over the past six months to close the last trading session at $29.02.
GIII’s POWR Ratings reflect robust prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
The stock has an A grade for Value and a B for Growth. GIII is ranked #4 out of 33 stocks in the same industry.
Click here to access additional ratings of GIII for Quality, Momentum, Stability, and Sentiment.
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SKX shares were trading at $64.96 per share on Thursday morning, down $1.01 (-1.53%). Year-to-date, SKX has declined -3.39%, versus a 3.68% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari Saxena
Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.
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