Columbia Sportswear 2014 Annual Report Download - page 6

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2
PART I
Item 1. BUSINESS
General
Founded in 1938 in Portland, Oregon, as a small, family-owned, regional hat distributor and incorporated in 1961,
Columbia Sportswear Company has grown to become a global leader in designing, sourcing, marketing and distributing
outdoor and active lifestyle apparel, footwear, accessories and equipment. Unless the context indicates otherwise, the terms
“we”, “us”, “our”, “the Company” and “Columbia” refer to Columbia Sportswear Company, together with its wholly owned
subsidiaries and entities in which it maintains a controlling financial interest.
As one of the largest outdoor and active lifestyle apparel and footwear companies in the world, our products have
earned an international reputation for innovation, quality and performance. We design, source, market and distribute outdoor
and active lifestyle apparel, footwear, accessories and equipment under four primary brands:
Columbia®
The Columbia brand is our largest brand, offering performance and casual products, including outerwear, sportswear,
footwear, accessories and equipment, for a wide variety of activities and consumers.
Sorel®
Acquired in 2000, the Sorel brand offers premium fashion, casual and cold weather footwear for a wide demographic,
with a primary emphasis on young, fashion-forward female consumers.
Mountain Hardwear®
Acquired in 2003, the Mountain Hardwear brand, headquartered in Richmond, California, offers premium apparel,
accessories and equipment primarily for the high performance needs of mountaineering enthusiasts, as well as for consumers
who are inspired by the outdoor lifestyle.
prAna®
Acquired in 2014, the prAna brand, headquartered in Carlsbad, California, offers stylish and functional active lifestyle
apparel and accessories designed and manufactured with an emphasis on sustainable materials and processes.
Other Brands
The Montrail® brand, acquired in 2006, offers high-performance running footwear, with an emphasis on trail-running.
The OutDry® brand, acquired in 2010, holds various patents pertaining to processes for manufacturing waterproof and
breathable footwear, gloves and accessories. We have incorporated OutDry in select Columbia, Mountain Hardwear, Sorel
and Montrail products, and also license the product to other parties. The Pacific Trail® brand, acquired in 2006, is licensed
to third parties across a range of apparel, footwear, accessories and equipment.
Our brands complement each other to address the diverse performance needs of a wide variety of outdoor and active
lifestyle consumers.
We distribute our products through a mix of wholesale distribution channels, our own direct-to-consumer channels
(retail stores and e-commerce), independent distributors and licensees. In 2014, our products were sold in approximately
100 countries, 72 of which are managed by independent distributors. Substantially all of our products are manufactured
by contract manufacturers located outside the United States.
Consumer desire for our products is affected by a number of variables, including the popularity of outdoor activities
and active lifestyles, weather, changing design trends, consumer adoption of innovative performance technologies and the
availability and desirability of competitor alternatives. Therefore, we seek to drive, anticipate and respond to trends and
shifts in consumer preferences by developing new products with innovative performance features and designs, creating
persuasive and memorable marketing communications to generate consumer awareness, demand and retention, and adjusting