Columbia Sportswear 2004 Annual Report Download - page 9

Mountain Hardwear brand sportswear is focused on styles that are designed for backpacking, rock climbing
and adventure sports. This category was introduced in 1999 and many styles feature the Mountain Hardwear
patented “Conical Waist” which improves comfort and performance while wearing a backpack. All styles use
technically advanced fabrics and the category has grown to include casual as well as performance athletic apparel
used by outdoor athletes.
Footwear
We introduced our footwear line in 1993. This category consists of seasonal outdoor footwear for adults and
youth in cold weather, hiking, trail, sandals, outdoor casual 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 footwear represents a substantial
growth opportunity.
Our acquisition of the Sorel trademark rights and other related intellectual property rights in September
2000 provides additional opportunities for us in the footwear category. The Sorel brand has been known for cold
weather footwear for over forty years. In the fall of 2001, we began offering the classic Sorel styles as well as a
line of special make product for some larger retailers. We are continuing to focus on the expansion of the Sorel
product offerings into new categories in order to leverage Sorel’s cold weather heritage and to make Sorel a year
round brand for outdoor oriented men, women and children.
Accessories
We also produce a line of accessories that includes hats, caps, scarves, gloves, mittens and headbands to
complement our outerwear and sportswear lines.
Equipment
With our acquisition of Mountain Hardwear in March 2003, our product line expanded to include
technically advanced tents and sleeping systems. These products are designed for such uses as mountaineering,
ultralight backpacking and camping and serve a wide variety of functions for outdoor enthusiasts and
professionals. Some of these products’ designs are patented and are considered industry standards in innovation.
Licensing
In June 1999, we introduced a strategy to build brand awareness by licensing our trademarks across a range
of categories that complement our current offerings. Today we license our brands in thirteen product categories,
including casual and outdoor socks, base layer thermal underwear, packs and adventure travel bags, belts and
personal leather goods for men, leather outerwear, outdoor tools, camping gear, home furnishings, insulated
coolers and containers, fishing and hunting waders, eyewear, watches and shoe and apparel care.
Our United States socks licensee began shipping during fall 2000 in the North American market, and our
European socks licensee began shipping in spring 2002. Columbia brand packs, adventure travel bags, belts and
small personal leather goods for men were available beginning in spring 2001. Our watch licensee began
shipping products in spring 2002. Thermal tops and bottoms, eyewear and leather outerwear licensees began
shipping in fall 2002. Our Columbia brand outdoor tools began shipping in spring 2003. Columbia brand
camping gear began shipping in spring 2004 and home furnishings began shipping in fall 2004. We anticipate
that insulated products will begin shipping in spring 2005 and wader products will begin shipping in fall 2005.
Advertising, Marketing, and Promotion
Columbia’s unique, global advertising campaign featuring our Chairman, Gertrude Boyle, in the role of
cantankerous “Mother Boyle” and her son, Timothy Boyle, our President and Chief Executive Officer, as the
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