5 Sports Apparel Companies With High Profit Margins

Ahead of the final week of the National Football League’s regular season, five sports apparel companies with high business quality and profit margins are Nike Inc. (

NKE, Financial), Deckers Outdoor Corp. (DECK, Financial), Columbia Sportswear Co. (COLM, Financial), Oxford Industries Inc. (OXM, Financial) and Moncler SpA (MIL:MONC, Financial) according to the All-in-One Screener, a Premium feature of GuruFocus.

On Saturday, the final week of the NFL regular season concludes with several teams still vying for a chance at the playoffs. The final week of the season comes following a Labor Department report that total nonfarm payrolls increased by just 199,000 during December, down from the Dow Jones consensus estimate of 422,000 jobs added. Despite this, the unemployment rate declined to 3.9%, close to a pandemic-era low and better than the consensus rate of 4.1%.

Leisure and hospitality, professional and business services and manufacturing led job creation with 53,000 jobs added, 43,000 jobs added and 26,000 jobs added.

As investors gear up for postseason football, GuruFocus’ All-in-One Screener listed five sports apparel companies that have high financial strength and profitability and an operating margin that outperforms more than 70% of global industry competitors.

Nike

Shares of Nike (

NKE, Financial) traded around $158.75, showing the stock is significantly overvalued based on Friday’s price-to-GF Value ratio of 1.42.

GuruFocus ranks the Beaverton, Oregon-based sports apparel giant’s profitability 9 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that outperform more than 85% of global competitors.

Gurus with holdings in Nike include

Ken Fisher (Trades, Portfolio) and
Spiros Segalas (Trades, Portfolio).

Deckers

Shares of Deckers (

DECK, Financial) traded around $340.32, showing the stock is modestly overvalued based on Friday’s price-to-GF Value ratio of 1.24.

GuruFocus ranks the Goleta, California-based company’s profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and profit margins and returns that outperform more than 88% of global competitors.

Columbia Sportswear

Shares of Columbia Sportswear (

COLM, Financial) traded around $94.19, showing the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.87.

GuruFocus ranks the Portland, Oregon-based company’s profitability 8 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank, a high Piotroski F-score of 8 and profit margins and returns that are outperforming more than 77% of global competitors.

Oxford Industries

Shares of Oxford Industries (

OXM, Financial) traded around $98.53, showing the stock is significantly overvalued based on Friday’s price-to-GF Value ratio of 1.40.

The Atlanta-based company manufactures apparel items through brands like Tommy Bahama and Lilly Pulitzer. GuruFocus ranks the company’s profitability 7 out of 10 on the back of profit margins outperforming more than 73% of global competitors and returns outperforming over 83% of global apparel companies.

Moncler

Shares of Moncler (

MIL:MONC, Financial) traded around 62.80 euros ($71.35), showing the stock is modestly overvalued based on Friday’s price-to-GF Value ratio of 1.29.

GuruFocus ranks the Italian outerwear apparel company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank, profit margins outperforming more than 94% of global competitors and returns topping over 86% of global apparel companies.