Outdoor and sports apparel maker Columbia Sportswear Company (COLM) inked a multi-year apparel licensing partnership with NFL franchise, the Dallas Cowboys. Under the deal, Columbia Sportswear will provide co-branded sportswear, outerwear and accessories for Dallas Cowboys fans.
The Cowboys have won 5 Super Bowls in its 54-year history, along with 8 NFC crowns and 21 Division titles. This is the only team in the NFL with exclusive rights to distribute its own merchandise.
Columbia Sportswear will initially launch select styles of the co-branded apparel by spring 2015 through wholesale channels including official NFL stores. A broader assortment of stocks will be made available by fall 2015 at all Columbia Sportswear’s U.S. retail and outlet stores as well as its official online store.
The deal will widen Columbia Sportswear’s customer base among Cowboys fans. Moreover, the company will be able to capitalize on the popularity and brand power of the franchise.
Columbia Sportswear reported second-quarter 2014 results in Jul 2014 wherein the adjusted loss was narrower than the Zacks Consensus Estimate and sales exceeded expectations. The company also raised its outlook for 2014. (Read: Columbia Sportswear Q2 Loss Narrower Than Expected, View Up)
Columbia Sportswear is geared to expand its share in the market through several strategic joint ventures and acquisitions. In Jun 2014, the leading apparel and footwear designer acquired California-based PrAna lifestyle apparel brand for $190 million, while in January, the company set up a 60–40% joint venture in China with Swire Resources, a subsidiary of Swire Pacific Limited — an independent distributor of Columbia Sportswear and Mountain Hardwear branded products in China, Hong Kong and Macau.
Columbia Sportswear carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Investors interested in the textile apparel sector can consider stocks like Hanesbrands Inc. (HBI), Vince Holding Corp. (VNCE) and Perry Ellis International Inc. (PERY). While Hanesbrands sports a Zacks Rank #1 (Strong Buy), Vince Holding and Perry Ellis carry a Zacks Rank #2 (Buy).