Columbia Sportswear 2001 Annual Report Download - page 2

Dear Shareholders,
2001 was another milestone year for Columbia Sportswear Company in terms of corporate
performance. Revenues for the year increased by 26.8% to reach $779.6 million, and net income
for the year rose 51.6% to $88.8 million. These record financial results are a direct result of our
ability to continue providing high quality, value oriented apparel and footwear products to
consumers in over 40 markets globally.
Coming into 2001, we articulated two specific objectives. I am pleased to say that we
successfully completed the physical expansion of our U.S. distribution facility during the course
of the year. This facility, which now provides approximately 852,000 square feet of processing capacity, continues to
be a key strategic advantage for the Company as it enhances our ability to provide a high level of service to our retail
customers. During 2001, we also made significant progress toward our goal of building a European distribution
facility. Although we initially expected this facility to be operational for the Fall 2002 season, I am certainly pleased
with the progress we have seen on this project to date. The new facility, which is located in Cambrai, France, is now
expected to be open for the Spring 2003 shipping season.
Going forward, I believe that we continue to be well positioned in the long term for revenue and earnings growth for
a number of reasons.
First, our diversified product offering enables us to appeal to a broad range of consumers globally. Given the
significant growth we have seen in each of our key product offerings over the last several years, we remain excited
about the opportunity to continue providing consumers with high quality, value oriented outerwear, sportswear,
footwear, and accessories.
Second, the opportunities to expand our sales in international markets are significant. In fact, I believe that Europe is
our most important growth opportunity among international markets for the foreseeable future. With a 5 year
compounded annual growth rate in Europe of 50.4%, culminating in European revenue in 2001 of $82.3 million, we
are highly encouraged by the level of acceptance the Columbia brand has experienced in this market.
Finally, our operational infrastructure, from the sourcing of our products in overseas markets to the distribution of
these products to customers in over 40 countries around the world, is well honed and highly effective. Given the
recent upgrades to the U.S. distribution facility, coupled with the investments we are currently making in developing
the distribution facility in Europe, I am convinced we are well positioned to continue providing the service levels our
customers have come to expect from us.
In closing, I want to point out that while the challenges to grow the business are stronger than ever, so too is the
commitment of the Company’s management and employees to see that Columbia Sportswear continues to grow as a
global leader in the design and distribution of high quality outdoor apparel and footwear.
Once again, I want to thank everyone for their continued support and I look forward to reporting on our progress
during 2002 in next year’s letter.
Sincerely,
Timothy P. Boyle
President and Chief Executive Officer
Columbia Sportswear Company