Columbia Sportswear 2000 Annual Report Download - page 13

PART I
Item 1. Business
General
Founded in 1938 in Portland, Oregon, Columbia Sportswear Company»is a global leader in design,
sourcing, marketing and distribution of active outdoor apparel and footwear, with operations in North
America, Europe and Asia. As one of the largest outerwear companies in the world and the leading seller of
skiwear in the United States, we have developed an international reputation across an expanding product line
for quality, performance, functionality and value. We believe our award-winning advertising campaign
eÅectively positions the Columbia» brand as active, outdoor, authentic and distinctly American.
Since 1938 we have grown from a small family-owned, regional hat distributor to a global leader in the
active outdoor apparel and footwear industries. Known for durability and dependability at a reasonable price,
we leveraged Columbia's brand awareness in the 1990s by expanding into related merchandise categories and
developing our ""head-to-toe'' outÑtting concept. During 2000, we distributed our products to approximately
10,000 retailers in over 40 countries.
In September 2000 we added another internationally known brand to our business, acquiring the Sorel
trademark and associated intellectual property through a Canadian bankruptcy proceeding for approximately
$8 million in cash. We believe that Sorel», a brand associated with quality cold weather boots for roughly four
decades, complements our existing product oÅering, enhances our growth opportunities in footwear, and opens
the door to distribution channels where we have not previously sold Columbia brand products.
We completed an Initial Public OÅering (IPO) of 6,440,000 shares of Common Stock on April 1, 1998.
Gross proceeds from the IPO totaled $115.9 million and proceeds net of underwriting discounts, commissions,
and expenses, totaled approximately $106.9 million. Dividends were declared and paid in the amount of
$102.3 million. The dividends represented our subchapter ""S'' accumulated adjustments account as of the
termination date of our subchapter ""S'' corporation status, and were paid to shareholders of record on
March 23, 1998. The remaining proceeds were used for working capital needs.
Our business is subject to many risks and uncertainties that could materially adversely aÅect our Ñnancial
condition, results of operations and stock price. For a description of some of these risks and uncertainties, we
encourage you to read ""Factors That May AÅect Our Business'' in Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Products
We group our merchandise into four principal categories Ì (1) outerwear, (2) sportswear, (3) rugged
footwear and (4) related accessories. The durability, functionality and aÅordability of our products make them
ideal for use in a wide range of outdoor activities, including skiing, snowboarding, hunting, Ñshing, hiking and
golf, as well as for casual wear. Across all of our product lines, we bring a commitment to innovative,
functional product design and a reputation for durable, high quality materials and construction. We believe our
broad range of competitively priced merchandise oÅers consumers one of the best price-value equations in the
outdoor apparel and footwear industries.
We believe the Columbia brand represents a diÅerentiated active, outdoor, authentic, value-oriented and
distinctly American image. We design our products to reinforce this image. In both the design and production
phases, we focus our eÅorts on the development of popular, higher volume products at moderate price points.
Our attention to technical details such as pockets that double as vents, double storm Öaps over zippers and
""gutters'' that facilitate water run-oÅ, as well as the use of special technical materials, contribute to the
authenticity and functionality of our entire selection of merchandise.
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