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About Columbia Sportswear Company

Columbia Sportswear makes, markets, and distributes upscale outdoor, active and lifestyle apparel, footwear, accessories and equipment products. It operates around the world, but generates around two-thirds of sales in US. Its key brands are Columbia, Mountain Hardwear, Sorel, and prAna. Founded as a hat company in 1938, Columbia Sportswear is fronted by its nonagenarian chairman Gertrude Boyle, who has featured heavily in its "tough mother" advertising campaigns over the years.

Operations

Columbia has two main client bases, retail customers and wholesale partners. Columbia's wholesale business accounts for around 60% of sales and consists of sales made to independent specialty outdoor and sporting goods stores, large regional, national, and international chains, and online retailers. Columbia's retail business comprises outlet stores, branded stores, and its e-commerce sites.

Columbia Sportswear's operations are divided between two product categories. The larger category, apparel, accessories, and equipment, generates some 80% of total revenue. Footwear, including Sorel-branded boots, accounts for the rest.

Geographic Reach

Columbia Sportswear's products are sold in and more than 90 other countries worldwide.

In the US, the sportswear maker operates more than 120 outlet stores, about 20ozen branded retail stores, and four brand-specific e-commerce sites. The company generates nearly 65% of its sales in the US and more than 15% from its second-largest market, LAAP (Latin America and the Asia-Pacific region). Europe, the Middle East, and Africa account for more than 10%, while the remaining +5% comes from Canada.

Sales and Marketing

Columbia's products are primarily sold through nearly 7,800 wholesale distributors to specialty outdoor and sporting goods stores and major retail chains. The company also sells directly to consumers through domestic and international banner retail outlets and stores (Columbia-operated and dealer-operated) as well as online. In countries where it does not trade, the Columbia sells to independent distributors. Almost all of Columbia's items are made in Asia by independent manufacturers.

The company uses a variety of media to market its products, including online advertising and social media sites, TV, and print. It also sponsors events and operates branded and outlet retail stores in high-profile locations.

Company's advertising costs were $166.4 million, $150.4 million and $121.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Financial Performance

Columbia Sportswear negotiated a sticky patch of slow sales growth lasting three years, growing strongly in 2019.

In 2019, sales grew 9% to $3.0 billion thanks to growth in the Columbia, and Sorel brands, partially offset by weakness in prAna and Mountain Hardwear. The main Columbia brand grew across all regions and product categories. By channel, the direct-to-customer (DTC) channel grew 6% and the wholesale channel 11%.

Net income grew nearly 50%to $330.5 million thanks to higher net sales and lower income taxes. Gross profits rose due to a higher proportion of promotional and closeout product net sales and a lower DTC net sales mix, which generally carries a higher gross margin.

Columbia's cash on hand increased $234.2 million during 2019, ending the year at $686.0 million. The company's operations generated $285.5 million, while investing activities provided another $140.7 million and financing activities used $190.7 million. Columbia's main cash uses were capital expenditures, debt repayments, dividends, and share repurchases. It also spent $166.7 million on short-term investments, net of sales and maturities.

Strategy

As part of its commitment to driving sustainable and profitable growth and relentless improvement, Columbia Sportswear remain focused on investment in its strategic priorities, including: driving brand awareness and sales growth through increased, focused demand creation investments; enhancing consumer experience and digital capabilities in all of its channels and geographies; expanding and improving global DTC operations with supporting processes and systems; and investing in its people and optimizing its organization across its portfolio of brands.

Columbia Sportswear's priority is to grow its direct-to-consumer (DTC) business, which offers higher margins than wholesale. The company has been investing in backend technology to springboard its global e-commerce DTC growth by modernizing and standardizing processes to anticipate and meet customer demands. On the front end, Columbia is investing in enhancing its e-commerce systems to adapt to the shift in browsing and buying behavior toward mobile devices. The project should improve search, browsing, checkout, and customer care for mobile customers.

Columbia Sportswear Company

14375 NW Science Park Dr
Portland, OR 97229-5418
Phone: 1 (503) 985-4000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: COLM
Stock Exchange: , NASDAQ
Chairman: Gertrude Boyle
President, CEO, and Director: Timothy P. Boyle
EVP and COO: Thomas B. Cusick
Employees (This Location): 500
Employees (All Locations): 8,900

Major Office Locations

Portland, OR

Other Locations

Camarillo, CA
Commerce, CA
Milpitas, CA
Ontario, CA
Castle Rock, CO
Englewood, CO
Silverthorne, CO
Destin, FL
Ellenton, FL
Estero, FL
Miami, FL
Vero Beach, FL
Alpharetta, GA
Williamsburg, IA
Chicago, IL
Edinburgh, IN
Michigan City, IN
Robards, KY
Leominster, MA
Wrentham, MA
Kittery, ME
Birch Run, MI
Albertville, MN
Minneapolis, MN
Mebane, NC
Merrimack, NH
Tinton Falls, NJ
Central Valley, NY
Deer Park, NY
Niagara Falls, NY
Waterloo, NY
Monroe, OH
Oklahoma City, OK
Arvin, OR
Lake Oswego, OR
Lincoln City, OR
Livermore, OR
Portland, OR
Woodburn, OR
Coraopolis, PA
Pottstown, PA
Bluffton, SC
Myrtle Beach, SC
Allen, TX
Canutillo, TX
Cypress, TX
Houston, TX
Texas City, TX
Park City, UT
Williamsburg, VA
Quil Ceda Village, WA
Seattle, WA
Johnson Creek, WI
Kenosha, WI
Adachi-Ku, Japan
Akishima, Japan
Bunkyo-Ku, Japan
Chiba, Japan
Chitose, Japan
Ebina, Japan
Fujimi, Japan
Fukuoka, Japan
Funabashi, Japan
Gamou-Gun, Japan
Gotemba, Japan
Hachioji, Japan
Hiratsuka, Japan
Hokuto, Japan
Imba-Gun, Japan
Inashiki-Gun, Japan
Iruma, Japan
Izumi, Japan
Izumisano, Japan
Kanazawa, Japan
Kawasaki, Japan
Kisarazu, Japan
Kitahiroshima, Japan
Kitakyushu, Japan
Kobe, Japan
Koto-Ku, Japan
Kurashiki, Japan
Kuwana, Japan
Machida, Japan
Minato-Ku, Japan
Misato, Japan
Nagoya, Japan
Nasushiobara, Japan
Nishinomiya, Japan
Oita, Japan
Okayama, Japan
Osaka, Japan
Oyabe, Japan
Saitama, Japan
Sano, Japan
Sapporo, Japan
Sendai, Japan
Shibuya-Ku, Japan
Suita, Japan
Tachikawa, Japan
Toki, Japan
Tomigusuku, Japan
Toshima-Ku, Japan
Tosu, Japan
Tsukuba, Japan
Yokohama, Japan
Kingston, Canada
London, Canada
Milton, Canada
Mississauga, Canada
Niagara On The Lake, Canada
Richmond, Canada
Windsor, Canada
Taipei City, Taiwan