Columbia Sportswear 2001 Annual Report Download - page 7

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. In 1998 we completed an initial public oÅering of our
common stock. During 2001, 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.
On May 2, 2001, the Company announced that the Board of Directors approved a three-for-two split of
the Company's Common Stock. 13,063,000 shares of Common Stock were distributed on June 4, 2001, to all
shareholders of record at the close of business on May 17, 2001. All shares of common stock presented and the
number of shares used in the computation of earnings per share have been restated to reÖect the three-for-two
stock split.
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 and Our Common Stock'' 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 and hiking,
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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