Columbia Sportswear 2002 Annual Report Download - page 10

Sportswear products are designed to be sold alongside our outerwear and rugged footwear products as part
of our unified “head-to-toe” outfitting concept. Although the majority of our sportswear sales are to sporting
goods and specialty outdoor stores, department stores are becoming an increasingly important part of our
distribution chain.
Rugged Footwear
We introduced rugged footwear in 1993. This category consists of seasonal outdoor footwear for adults and
youth as well as cold weather, hiking/trail and rugged comfort styles. Many feature innovative technical designs
that incorporate waterproof/breathable constructions, thermal insulation, advanced cushioning systems and high
abrasion, slip-resistant outsoles. We believe the market for rugged footwear represents a substantial growth
opportunity.
Our acquisition of the Sorel®trademark rights, associated brand names and other related intellectual
property rights in September 2000 provides additional opportunities for us in the footwear category. The prior
owner of the Sorel brand, William H. Kaufman, Inc., filed for bankruptcy in 2000 providing us the opportunity to
acquire and rejuvenate an existing brand known for cold weather footwear for over forty years. We began
offering classic Sorel styles in the fall of 2001 as well as a line of special make products for some larger retailers.
Sorel styles are being offered to Columbia customers as well as to dealers who do not sell the Columbia footwear
line.
Accessories
We also produce a line of accessories that includes hats, caps, scarves, gloves, mittens and headbands to
complement our outerwear and sportswear lines.
Licensing
In June 1999 we announced a strategy to build brand awareness by licensing our trademarks across a range
of categories that complement our current offerings. We have since signed twelve licensing agreements,
including North American agreements for Columbia brand casual and outdoor socks, packs and adventure travel
bags, small personal leather goods and accessories, thermal tops and bottoms, shoe care products, watches,
leather outerwear and sport knives. We also entered into a global licensing agreement for Columbia brand
eyewear and a European licensing agreement for socks. Our United States sock licensee began shipping during
fall 2000 in the North American market, and our European sock licensee began shipping in spring 2002.
Columbia brand packs and adventure travel bags and small personal leather goods were available beginning in
spring 2001. Our watch licensee began shipping products in spring 2002, and our thermal tops and bottoms, shoe
care products and eyewear licensees began shipping in fall 2002. Columbia brand knives are scheduled to begin
shipping in spring 2003 and Columbia brand leather outerwear is scheduled to begin shipping in fall 2003. In
addition, in 2003 we are continuing our testing for tents and sleeping bags through a limited licensing agreement
with a single retail chain. In connection with the Sorel acquisition, we acquired a license for shoe care products
in North America.
Advertising, Marketing, and Promotion
Our creative and award-winning print and broadcast advertising campaigns have built brand awareness and
have helped to highlight the strengths of our product line among consumers. The humorous advertisements
feature Chairman Gertrude Boyle as an overbearing taskmaster—“one tough mother”—who demands high
quality standards for our products. The advertisements, which often include witty dialogue between “Mother
Boyle” and her son Tim, Columbia’s President and Chief Executive Officer, remind consumers of our long
history of providing authentic outdoor apparel with exceptional value and help to create the image of a distinctly
American brand.
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