Columbia Sportswear Company Reports Record Results for Fourth Quarter and Fiscal Year 2002; Company Anticipates Up-Tick in Sales Trends in 2003.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 30, 2003

Columbia Sportswear Company(R) (Nasdaq:COLM), a global leader in the active outdoor apparel and footwear industries, today announced record net sales of $217.3 million for the fourth quarter ended December 31, 2002, an increase of 1.4% over net sales of $214.3 million for the same period of 2001.

The Company reported net income for the fourth quarter of $29.1 million, a 20.2% increase over net income of $24.2 million for the same period of 2001. Earnings per share for the fourth quarter of 2002 were $0.72 (diluted), on 40.3 million weighted average shares, compared to earnings per share of $0.61 (diluted) for the fourth quarter of 2001 on 39.9 million weighted average shares.

Compared to the fourth quarter of 2001, the Company's Domestic sales for the period decreased by 4.5% to $145.8 million, Canadian sales increased by 3.3% to $24.9 million, European sales increased by 16.1% to $23.1 million, and Other International sales increased 33.5% to reach $23.5 million for the fourth quarter of 2002. When measured in constant dollar terms, the Company's European sales grew by 6.4% for the fourth quarter of 2002. Growth in consolidated sales for the period was driven by the Company's sportswear business, which grew 20.4% during the period, but was offset by soft Columbia branded footwear sales which declined 19.5%. The decline in Columbia brand footwear sales for the period was the result of warm weather in the U.S. during the 2001 winter coupled with a lack of fresh product for the season, both of which negatively impacted fall 2002 preseason footwear orders as previously discussed by the Company.

Net income growth for the period was primarily the result of (1) increased sales volumes, (2) improvement in gross margin for the period to 47.2% compared to 45.8% for the fourth quarter of 2001, (3) continued improvement in operating efficiencies which resulted in a decrease in sales, general and administrative (SG&A) expenses to 25.9% of sales compared to 26.9% of sales for the fourth quarter of 2001, and (4) interest income of $316,000 compared to interest expense of approximately $825,000 for the fourth quarter of 2001.

For fiscal year 2002, the Company reported record net sales of $816.3 million, an increase of 4.7% over net sales of $779.6 million for 2001. The Company reported net income for 2002 of $102.5 million, an increase of 15.4% compared to the Company's net income of $88.8 million for 2001. Earnings per share for 2002 were $2.56 (diluted), on 40.1 million weighted average shares outstanding for the period, compared to earnings per share of $2.23 (diluted) on 39.8 million weighted average shares outstanding for 2001.

The increase in net sales for 2002 is attributable to growth in the Company's key merchandise categories as well as relative strength in each of the Company's key geographic markets. Specifically, compared to 2001, outerwear sales were up 4.8% to $422.5 million, sportswear sales increased 5.3% to $245.2 million, footwear sales increased 1.3% to $110.0 million, and accessory sales increased 10.9% to $38.6 million. Within the Company's footwear category, Columbia brand footwear sales decreased by 4.5% to $87.9 million for the period, and Sorel brand footwear sales grew 33.1% to $22.1 million. Geographically, compared to 2001, the Company's Domestic sales grew by 1.1% to $557.5 million, Canadian sales increased by 6.6% to $86.7 million, European sales increased by 16.5% to $95.9 million and the Other International sales increased 17.8% to reach $76.2 million. When measured in constant dollar terms, the Company's European sales grew by 12.3% for the full year 2002.

Net income growth for 2002 was due primarily to (1) increased sales volumes, (2) gross margin improvement in the U.S. and European markets, (3) continued improvements in operating efficiencies generally which resulted in a decrease in SG&A expenses as a percentage of sales for 2002 to 26.3% from 26.8% for 2001, (4) interest income of approximately $354,000 compared to interest expense of $2.6 million for the full year 2001, and (5) a reduction in the Company's effective tax rate to 37.5% compared to an effective tax rate of 39.0% for the full year 2001.

Tim Boyle, Columbia's president and chief executive officer commented: "I am certainly pleased by our performance during the fourth quarter and the full year of 2002. Our steadfast approach to tight inventory management and effective cost controls has allowed us to achieve healthy gains in sales and net income, even in the face of a continuing difficult retail environment. I believe we have addressed product specific and creative process issues in the Columbia brand footwear offering through personnel changes that were enacted late in 2001. With exciting new product flowing into the stores for the upcoming spring season in all categories, including footwear, and favorable product reviews for our fall 2003 product offerings generally, I remain optimistic about the future of Columbia's business. We are committed to our key growth strategies, which include increasing the productivity of our customers, an emphasis on growing the business internationally, further developing our sportswear and footwear businesses, and further expanding retail distribution into department stores and specialty footwear retailers. I am confident that these strategic initiatives will help us to drive future growth."

Guidance

Boyle continued: "In keeping with our standard practice, we will announce our fall 2003 backlog in our first quarter earnings release on April 24th, 2003. For the first quarter of 2003, we are maintaining our prior revenue growth guidance of between 13 and 15% and our net income growth guidance of between 14 and 16% when compared to the first quarter of 2002. For the second quarter of 2003, we currently anticipate revenue growth of between 13 and 15% and net income growth of between 6 and 9% when compared to the second quarter of 2002.

"It is difficult for us to gauge revenue and profitability levels for the full year 2003 until we gain more visibility into the fall 2003 season. That said, it is our current belief that revenue growth of between 5 and 7% is achievable for the full year 2003 when compared to 2002. Based on this anticipated revenue growth, and despite some additional distribution center related fixed costs that will be fully weighted for 2003, we believe that earnings growth for 2003 of up to 2% is achievable.

"Please keep in mind that Columbia's business is always subject to risks and uncertainties: we are always mindful of extenuating circumstances that could have an adverse impact on our business, including potential military action overseas, a very difficult economic environment globally, and a particularly weak economy in the U.S., which may adversely affect sales and profit margins and cause us to fall short of our current goals. Also, note that these projections are forward-looking in nature, and are based on backlog and forecasts, which may change, perhaps significantly."

The Company's senior management will host a telephone conference call at 5:00 p.m. EST , Thursday, January 30, 2002. The call will include discussions regarding the Company's fourth quarter and fiscal year 2002 performance in general, a review of the Company's geographic and merchandise category performance, and the Company's future opportunities generally. To participate, please dial 800/358-8449 in the United States (outside the United States, please dial 706/634-7408) five to ten minutes prior to the call. The call will also be webcast live on the investor information section of the Company's website at www.columbia.com. An audio replay, starting two hours after the conclusion of the call, will be available until 6:00 p.m. January 31, 2003. To access, please dial 800/642-1687 in the United States (outside the United States, please dial 706/645-9291) and enter reservation number 7548518. The web cast can also be accessed on the investor information section of the Company's website at www.columbia.com until February 13, 2003.

Founded in 1938 in Portland, Ore., Columbia Sportswear Company is a global leader in the design, sourcing, marketing and distribution of active outdoor apparel and footwear. As one of the largest outerwear brands in the world and the leading seller of skiwear in the United States, the Company has developed an international reputation for quality, performance, functionality and value. To learn more about Columbia Sportswear and the Sorel brand, please visit the Company's Web site at www.columbia.com or visit www.sorel.com.

This press release contains forward-looking statements, including statements regarding anticipated revenues and earnings in 2003 and growth in future periods. Actual results could differ materially from those projected in these and other forward-looking statements as a result of a number of risks and uncertainties, including those set forth in this press release, those described in the Company's Quarterly Report on Form 10-Q dated November 12, 2002 under the heading "Factors That May Affect Our Business," and other risks and uncertainties that have been or may be described from time to time in other reports filed by the Company, including reports on Form 8-K, Form 10-Q, and Form 10-K. Risk factors that may affect future revenues, earnings and deliveries include, but are not limited to, business disruptions and costs arising from acts of terrorism or military activities around the globe; unfavorable economic conditions generally and weakness in consumer confidence; the financial health of Company customers; the Company's ability to effectively deliver its products to customers in a timely manner due to potential service interruptions; the Company's reliance on product acceptance by consumers; effects of unseasonable weather (including, for example, warm weather in the winter and cold weather in the spring which affects demand for the Company's products); dependence on independent manufacturers and suppliers; effectiveness of the Company's sales and marketing efforts; intense competition in the industry (which the Company expects to increase); the Company's ability to achieve and manage growth effectively; international risks including trade disruptions, political instability in foreign markets, exchange rate fluctuations, changes in quotas and tariffs or other duties; effective implementation and expansion of the Company's distribution facilities; operations of the Company's and third party computer systems; and the Company's ability to establish and protect its intellectual property. Although forward-looking statements help provide complete information about the Company, investors should keep in mind that forward-looking statements are inherently less reliable than historical information. The Company does not undertake any duty to update any of the forward-looking statements after the date of this release, to conform them to actual results or to changes in our expectations.

                           - tables follow -


                      COLUMBIA SPORTSWEAR COMPANY
                      CONSOLIDATED BALANCE SHEETS
                            (In thousands)


                                               December 31,
                                          2002             2001
                                          ----             ----

 Current Assets:
   Cash and cash equivalents            $194,670         $ 79,082
   Accounts receivable, net of
    allowance of $9,341 and
     $8,016, respectively                154,099          155,252
   Inventories                            94,862          114,889
   Deferred tax asset                     10,840           13,691
   Prepaid expenses and
    other current assets                   6,006            3,847
       Total current assets              460,477          366,761

 Property, plant and equipment, net      124,515          100,672
 Intangibles and other assets              7,825            7,534
       Total assets                     $592,817         $474,967


 Current Liabilities:
   Notes payable                        $  9,835         $ 24,905
   Accounts payable                       49,370           32,068
   Accrued liabilities                    35,146           34,054
   Current portion of long-term debt       4,498            4,775
       Total current liabilities          98,849           95,802

 Long-term debt                           20,636           25,047
 Deferred tax liability                      613              729
 Shareholders' equity                    472,719          353,389
       Total liabilities and
        shareholders' equity            $592,817         $474,967
                                       =========        =========


                 CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share amounts)

                       Three Months Ended         Twelve Months Ended
                           December 31,               December 31,
                         2002       2001          2002          2001
                        -----      -----         -----         -----

Net sales             $217,321   $214,324       $816,319      $779,581
Cost of sales          114,816    116,208        437,782       422,430
  Gross profit         102,505     98,116        378,537       357,151
                         47.2%      45.8%          46.4%         45.8%

Selling, general,
 and administrative     56,202     57,602        214,862       208,970

Income from
 operations             46,303     40,514        163,675       148,181

Interest (income)
 expense, net             (316)       825           (354)        2,568

Income before
 income tax             46,619     39,689        164,029       145,613

Income tax
 provision              17,482     15,479         61,511        56,789

Net income            $ 29,137   $ 24,210       $102,518      $ 88,824

Net income per share:
  Basic               $   0.74   $   0.62       $   2.60      $   2.27
  Diluted             $   0.72   $   0.61       $   2.56      $   2.23
    Weighted average
     shares
      outstanding:      39,617     39,260         39,449        39,051
  Diluted               40,334     39,939         40,063        39,840