Columbia Sportswear

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Columbia Sportswear

• BY Mark Robbins

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Company Profile

• Columbia Sportswear is engaged in the design,
  manufacturing, marketing and distribution of
  active outdoor apparel, including outerwear,
  sportswear, related accessories and equipment.
• The durability, functionality and affordability
  of Columbias products make them ideal for use in
  a ranges of outdoor activities, including skiing,
  snowboarding, hunting and fishing, backpacking
  mountaineering and rock climbing, as well as
  casual wear.
• The companys products are sold to approximately
  12,000 specialty and department store retailers
  worldwide. In June 1999, the company introduced
  a strategy to build brand awareness by licensing
  its trademarks across a range of categories than
  complement its current offerings.

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Products

• Outerwear- most established product category
• Sportswear- consist of durability, functionality,
  and affordability
  
• Footwear- started in 1993, and today offer
  seasonal footwear for adults, children and for
  all types of functions
  
• Accessories- Produces hats, caps, scarves,
  gloves, mittens and headbands to complement its
  outerwear and sportswear lines.
  
• Equipment- Produces tents, and sleeping bags that
  are designed for all different types of outdoor
  use.

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Customers

• People who love the outdoors
• Cold areas
• Hikers
• Snowboarders
• Skiers
• Anyone that works outside
• Windy areas

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Manufacturing and Engineering

• Columbia leads the way in technology and in the
  research and developing of new materials.
  
• They have the warmest, lightest clothing around
  the world.
  
• Columbia has the proprietary technology providing
  superior waterproof/breathable protection in
  varying performance levels.

6
Management

• Chairwomen of the board is Gertrude Boyle, 80.
  Compensation 1.2 M
  
• Her son Timothy Boyle is the president, CEO, and
  director. Compensation 1.6 M
  
• All of the other management has sold a lot of
  their shares in the past two years. Many of them
  had automatic sells on their shares at 56.00
  

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SWOT

• Strengths
• Strong balance sheet position
• Leading Market-Share position in the U.S
• Kentucky distribution center to save costs
• Established infrastructure and significant
  personnel in Asia
  
• Weaknesses
• Seasonality Factor
• Product Mix changes erode gross margins

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SWOT

• Opportunities
• Europe
• Promotional activities increasing sales
• Brand map should provide greater segmentation
• Growth opportunities through The Sports Authority
  chain
  
• Threats
• Intense Competition
• Currency Exchange rate fluctutions impact income
• Labor distributions at ports may adversely affect
  business
  

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Last two Quarters

• For the six months ended 6/30/04, net sales rose
  18 to 377.8 Million
  
• Net Income increased 26 to 30.7 million
• Results reflect higher sales from sportswear
  products and sales and improved operating margins.