Columbia Sportswear Company

Sector: Apparel and footwear Countries of operation: Sells to Canada, China, the US and over 69 other countries Key product categories: Accessories, apparel, footwear and outdoor equipment Annual Metrics [caption id="attachment_148711" align="aligncenter" width="700"] Fiscal year ends on December 31
*Trailing 12 months ended March 31, 2022 [/caption]   Summary Founded in 1938 and headquartered in Portland, Oregon, Columbia Sportswear designs and sells active, everyday lifestyle and outdoor accessories, apparel, equipment and footwear across Africa, Asia Pacific, Europe, Latin America, the Middle East and North America. The company’s brand portfolio includes Columbia, SOREL, Mountain Hardwear, and prAna. As of December 31, 2021, the company operates around 450 stores worldwide. Company Analysis Coresight Research insight: Although pandemic-related pressures, including higher inbound freight costs, continue to impact the company’s operations and manufacturing velocity, we believe Columbia Sportswear will weather the disruptions effectively—helped by its lower promotional levels, strong retail sell-through performance and a favorable sales channel mix. In 2021, Mountain Hardwear was the company’s fastest-growing brand, with full-year net sales increasing 33% year over year, followed by Columbia, which increased by 28%, according to the company. We believe these two brands will continue to post strong growth in 2022. Compared to competitors NIKE and Adidas, Columbia Sportswear has a relatively weak online business, presenting opportunities for the company to improve and grow digitally—in 2021, its e-commerce represented 18% of total net sales. In 2022, however, we expect the penetration rate to grow three to five percentage points.

Tailwinds	Headwinds
Consumer pivot toward casual, comfortable apparel Consumers’ increasing concerns about health and fitness	A challenging overall environment as the pandemic continues to disrupt operations and manufacturing velocity Pressure from competitors such as Adidas, NIKE and Skechers

Strategy On February 3, 2022, Columbia Sportswear reiterated its business strategies, focusing on the following four pillars: 1. Drive brand awareness and sales growth through increased investments in product creation

• Create compelling products continuously, which are aesthetically appealing, innovative and technical.

2. Enhance the digital customer experience

• Enhance e-commerce systems to take advantage of changes in consumer browsing and purchasing behaviors.

3. Expand and improve global direct-to-consumer operations with supporting processes and systems

• Deliver an enhanced customer experience, as well as modernize and standardize the company’s processes and systems, enabling it to effectively meet consumer needs.

4. Invest in people and optimize the organization across its portfolio of brands

• Optimize the organization’s investments in different areas including analytics, supply chain, physical stores and product capacities.

Revenue Breakdown (FY21) [caption id="attachment_148713" align="aligncenter" width="700"] Source: Company reports[/caption]   Company Developments

Date	Development
April 28, 2022	Columbia Sportswear announces that it will expand its capabilities at its Robards, Kentucky distribution center by investing approximately $4 million in the facility and adding more than 175 full-time associate jobs and supervisory opportunities to the community.
March 9, 2022	Columbia Sportswear appoints Pri Shumate as Chief Marketing Officer for the Columbia brand.
February 2, 2022	Columbia Sportswear announces the launch of a new special-edition product collection created in collaboration with NASCAR Cup Series driver and brand ambassador Bubba Wallace.
January 19, 2022	Columbia Sportswear unveils USA Curling Uniforms for the 2022 Winter Olympic Games.
January 12, 2022	Columbia Sportswear names Jim Beeman as Vice President, US Sales, Columbia Brand.
October 25, 2021	Columbia Sportswear appoints Andrew Burns as VP, Investor Relations and Strategic Planning.
September 9, 2021	Columbia Sportswear appoints Troy Sicotte as President of the Mountain Hardwear Brand.
September 9, 2021	Columbia Sportswear appoints Monica Mirro as President of the prAna Brand.

Management Team

• Tim Boyle—Chairman, President and Chief Executive Officer
• Jim Swanson—Executive Vice President and Chief Financial Officer
• Peter Bragdon —Executive Vice President, Chief Administrative Officer and General Counsel
• Lisa Kulok—Executive Vice President, Chief Supply Chain Officer
• Skip Potter—Executive Vice President, Chief Digital Information Officer

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Source: Company reports