Columbia Sportswear 2003 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2003 Columbia Sportswear annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 67

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67

strategy, however, does not eliminate inventory risk entirely since we build a nominal amount of speculative
inventory into our business model. Moreover, customer orders are subject to cancellation prior to shipment.
Product Design
Our experienced in-house merchandising and design teams work closely with internal sales and production
teams as well as with retailers, athletes and consumers to produce products that are designed primarily for
functionality and durability.
We also engineer technical garments with special performance features. Our Titanium™sub-branded
outerwear offers high performance fabrics and features and our most advanced technologies. These garments are
designed for extreme weather conditions and also deliver a level of style and utility that compete with high-end
garments in our market. Our outerwear features include the Columbia Interchange System®, the Radial Venting
System™, the Radial Sleeve™, Stretch Panels, the performance storm hood, and packable and reversible options.
The GRT®line offers the Radial Leg Gusset™, GRT Venting™, the Convertible Sleeve Tab, and convertible and
packable garments. Our footwear features include Quadensity®and our hunting and fishing garments include
features such as the Columbia Comfort System™, the PFG Venting System™, and our Quarpel Thread
Technology™.
We distinguish ourselves by designing clothing that performs well in a wide range of weather conditions
and for a variety of outdoor activities. To accomplish this we carefully choose the appropriate fabric or insulation
for each garment. Those selected possess optimum performance characteristics such as waterproofness,
breathability, weight, durability, and wicking ability. For our outerwear collections we feature our premier
waterproof/breathable Omni-Tech®technology. Three different levels are offered to meet different needs of
waterproofness, breathability, and protection. Our GRT line features Omni-Dry,®which is our high-performance
moisture-management technology that renders superior results in a variety of conditions. Our footwear line
features Omni-Grip®traction technology, which is a specially formulated sticky rubber compound that provides
superior traction as well as stability on wet and dry surfaces.
Our 2004 brands consist of three product segments: our high-end performance Titanium products (high-end,
technical, sold in specialty stores); our moderate Vertex products (lower-priced, technical, sold in sporting goods
stores); and our most broadly distributed Outdoor Issue products (classic, non-technical, sold in department
stores). We believe that increased differentiation allows our retailers to better target their specific customers.
Mountain Hardwear products focus on innovations in fabrics, designs and features that are recognized
worldwide as leading technologies. The products are intended for extreme environments but also extend
themselves to broader uses such as skiing and hiking. The outerwear line features such fabrics as Gore-Tex®and
Windstopper®fabrics for shellwear, softshells, and technical fleece garments. Mountain Hardwear also uses
proprietary technology with our Conduit®waterproof/breathable laminate in both shell and softshell garments.
Unique features such as external seam taping, welded construction, Quantum®sleeping bags, and Flow-Thru®
tents position Mountain Hardwear as an industry leader in innovation.
We believe that these technical innovations and product features provide versatility, comfort and value to
our customers.
Sourcing and Manufacturing
Our apparel and footwear products are produced by independent manufacturers selected, monitored and
coordinated by regional Columbia employees to ensure conformity to strict quality standards. We believe that the
use of these independent manufacturers increases our production capacity and flexibility and reduces our costs.
Unlike many apparel companies, we use few independent agents in our sourcing activities. We maintain
fifteen sourcing and quality control offices in the Far East, each staffed by Columbia employees and managed by
6