Columbia Sportswear 2003 Annual Report Download - page 7

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PART I
Item 1. BUSINESS
General
Founded in 1938 in Portland, Oregon, as a small family-owned, regional hat distributor, Columbia
Sportswear Company has grown to become 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.
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” outfitting concept.
In September 2000, we added another internationally known brand to our business, acquiring the Sorel®
trademarks and associated intellectual property which provided us an additional brand in the outdoor footwear
and apparel markets.
In March 2003, we acquired Mountain Hardwear, Inc. (“Mountain Hardwear”) which designs, develops and
markets technically advanced equipment and apparel for outdoor enthusiasts and professionals. Mountain
Hardwear will continue to operate as an independent brand.
During 2003, we distributed our products to approximately 12,000 retailers in over 50 countries.
Our business is subject to many risks and uncertainties that could have a material adverse effect on our
financial 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 Affect Our Business and the Price of Our Common
Stock” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Products
We group our merchandise into five principal categories—(1) outerwear, (2) sportswear, (3) footwear,
(4) related accessories and (5) equipment. The durability, functionality and affordability of our products make
them ideal for use in a wide range of outdoor activities, including skiing, snowboarding, hunting and fishing,
hiking, backpacking, mountaineering and rock climbing, as well as for casual wear. We are committed to
innovative, functional product design and use durable, high quality materials and construction across all of our
product lines. We believe that our broad range of competitively priced merchandise offers consumers one of the
best price-value equations in the outdoor apparel and footwear industries.
We believe that our award-winning advertising campaign effectively positions the Columbia®brand as
outdoor, active, authentic, value-oriented and distinctly American. Our products are designed to reinforce this
image. In both the design and production phases, we focus our efforts 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 flaps over zippers and “gutters” that facilitate water run-off, as well as the use of special technical
materials, contribute to the authenticity and functionality of our merchandise.
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