Columbia Sportswear 2004 Annual Report Download - page 15

competition in the active outerwear and sportswear business from, among others, The North Face, Inc. (VF
Corporation), Marmot Mountain Ltd., Spyder Active Sports, Inc., Woolrich Woolen Mills, Inc., The Timberland
Company, Patagonia Corporation, Helly Hansen A/S, Burton and Pacific Trail (London Fog). In addition, we
compete with major sport companies, such as Nike, Inc., adidas-Salomon AG and Reebok International Ltd., and
with fashion-oriented competitors, such as Polo Ralph Lauren Corporation and Izod. Our footwear line competes
with, among others, The North Face, Timberland, NIKE ACG, adidas-Salomon AG, Merrell, Carhartt,
Wolverine, Teva and Kamik. Many of these companies have global operations and compete with us in Europe
and Asia. In Europe we also face competition from brands such as Berghaus of the United Kingdom, Jack
Wolfskin of Germany, La Fuma of France, and Helly Hansen in Scandinavia as well as many other regional
brands. In Asia our competition is from brands such as The North Face, Mont-Bell and Patagonia among others.
In many cases, our most significant competition comes from our own retail customers that manufacture and
market clothing and footwear under their own labels. Some of our competitors are substantially larger and have
greater financial, distribution, marketing and other resources than we do. We believe that the primary competitive
factors in the market for activewear are price, brand name, functionality, durability and style and that our product
offerings are well positioned within the market.
Mountain Hardwear equipment (tents and sleeping bags) compete directly with such companies as The
North Face, Sierra Designs, Kelty (American Recreational Products), Marmot, Arctery’x (Salomon USA) and
other smaller specialized brands worldwide.
Credit and Collection
We extend credit to our customers based on an assessment of a customer’s financial condition, generally
without requiring collateral. To assist in the scheduling of production and the shipping of seasonal products, we
offer customers discounts for placing pre-season orders and extended payment terms for taking delivery before
the peak shipping season. These extended payment terms increase our exposure to the risk of uncollectible
receivables. In some markets and with some customers we use credit insurance to minimize our risk of credit
loss. Some of our significant customers have experienced financial difficulties in the past, and future financial
difficulties of our customers could have a material adverse effect on our business.
Government Regulation
Many of our imports are subject to existing or potential governmental duties, tariffs or quotas that may limit
the quantity of various types of goods that may be imported into the United States and other countries. In
addition, these duties often represent a material portion of the cost of the merchandise. Although we diligently
monitor these trade restrictions, the United States or other countries could impose new or adjusted quotas, duties,
tariffs or other restrictions, any of which could have a material adverse effect on our business.
Employees
At December 31, 2004 we had 2,387 full-time employees. Of these employees, 1,148 were based in the
United States, 923 in Asia, 192 in Europe and 124 in Canada.
Available Information
We make available free of charge on or through our website at www.columbia.com our annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to these reports filed
or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we
file these materials with the Securities and Exchange Commission.
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