Columbia Sportswear Company Reports Record Second Quarter 2002 Results.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--July 25, 2002

Columbia Sportswear Company(R) (Nasdaq:COLM) today announced net sales of $124.2 million for its second quarter ended June 30, 2002, an increase of 2.2% over the $121.5 million of net sales for the same period of last year.

Net income for the period was up 17.2% to $7.5 million, or $0.19 per share (diluted) on 40.1 million weighted average shares outstanding for the second quarter, compared to net income of $6.4 million, or $0.16 per share (diluted) on 40.1 million weighted average shares outstanding for the same period of last year.

Compared to the second quarter of 2001, the Company's Domestic sales declined by 1.3% to $86.9 million, Canadian sales declined by 8.9% to $7.2 million, European sales increased by 9.6% to $14.8 million and Other International sales (excluding European direct sales) increased 25.4% to $15.3 million. On a constant dollar basis, Canadian sales declined 7.8%, European sales increased by 7.7%, and Other International sales (excluding European direct sales) increased 27.8% for the period.

Compared to the second quarter of 2001, sportswear sales were up 1.8% to $60.7 million and footwear sales increased by 43.3% to $17.2 million, while outerwear sales declined 8.5% to $41.0 million. The increase in Columbia brand footwear sales for the period was due, in part, to generally later delivery schedules for spring footwear in the US during 2002 when compared to the same period in 2001.

Net income growth for the second quarter of 2002 was primarily the result of higher than anticipated sales growth, lower than expected borrowings, and a reduction in the effective tax rate to 34.9% for the period.

Improvement in the Company's quarterly effective tax rate for the second quarter is due primarily to the relative mix of international and U.S. profitability. The improved effective tax rate for the period resulted in an approximate $0.01 contribution to EPS for the period. The Company is currently modeling an effective tax rate for the full year 2002 and beyond of 37.5%.

Tim Boyle, Columbia's president and chief executive officer, commented, "we are gratified to report another solid quarter despite a less than optimal retail environment. Based on the brand's relative performance during the spring 2002 season and product improvements for the spring 2003 offering, we are currently optimistic about the opportunity to grow the spring 2003 business. Specifically, we continue to see strength in our women's business and we are beginning to see early signs of improvement in the men's category across many points of distribution in the U.S. As is customary, we will announce our consolidated spring 2003 order backlog as a component of our third quarter release on October 24th, 2002."

Boyle continued, "based on the Company's first half performance and our positioning as we move into the fall shipping season, we are raising our outlook for net income for 2002. We currently anticipate revenue growth for the full year of 2002 near the high end of our previous guidance in the 2-4% range, and net income growth in the high single digit percentage range when compared to 2001. Investors need to be aware that these projections are forward-looking in nature, and are based on backlog and forecasts, which may change, perhaps significantly."

The Company will host a conference call to elaborate on second quarter 2002 results on Thursday, July 25th at 5 p.m. Eastern. The call will include discussions regarding the Company's second quarter 2002 performance in general, the Company's geographic and merchandise category performance, and the Company's future opportunities. 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 will be available for 24 hours after the call has ended. To access, please dial 800-642-1687 in the United States (outside the United States, please dial 706-645-9291) and enter reservation # 4084483. The webcast can also be accessed on the investor information section of the Company's website at www.columbia.com until August 9th, 2002.

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 manufacturers 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, please visit the Company's Web site at www.columbia.com.

This press release contains forward-looking statements, including Mr. Boyle's projections for net income and revenue growth in 2002, prospects for the business in 2003, as well as the Company's projected tax rate. Actual results could differ materially from those projected in these forward-looking statements as a result of a number of risk factors, including those set forth in the Company's Annual Report on Form 10-K dated March 29, 2002 under the heading "Factors That May Affect Our Business and Our Common Stock." These risk factors include, but are not limited to, international risks including exchange rate fluctuations, trade disruptions, political instability in foreign markets, quotas and tariffs; the Company's ability to effectively deliver its products to customers in a timely manner due to potential service interruptions (including, but not limited to, a potential labor dispute at western U.S. ports, between the International Longshore and Warehouse Union and the Pacific Maritime Association); effects of unseasonable weather; changes in laws and regulations affecting the Company's business; unfavorable economic conditions in general and weakness in consumer confidence; business disruptions and costs arising from acts of terrorism or military activities around the globe; the financial health of Company customers; the Company's reliance on product acceptance; dependence on independent manufacturers and suppliers; effectiveness of the Company's sales and marketing efforts; intense competition in the industry; the Company's ability to effectively manage the business during adverse economic periods; effective and timely implementation and expansion of the Company's distribution facilities in Europe; and the Company's ability to establish and protect its intellectual property. Although forward-looking statements are intended to 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.

                      COLUMBIA SPORTSWEAR COMPANY

                      CONSOLIDATED BALANCE SHEETS
                            (In thousands)
                              (Unaudited)


                                               June 30,
                                       2002                2001

 Current Assets:
   Cash and cash equivalents      $    71,569          $   20,938
   Accounts receivable, net of
    allowance of $8,602 and
     $6,210, respectively             103,144              97,843
   Inventories                        170,695             186,944
   Deferred tax asset                  14,604              12,217
   Prepaid expenses and other
    current assets                      4,720               6,013
                                   ----------          ----------
       Total current assets           364,732             323,955

 Property, plant and equipment, net   116,354              88,552
 Intangibles and other assets           7,465               8,609
                                   ----------          ----------
       Total assets               $   488,551          $  421,116
                                   ==========          ==========

 Current Liabilities:
   Notes payable                  $    12,069          $   24,411
   Accounts payable                    45,423              71,054
   Accrued liabilities                 23,539              19,233
   Current portion of long-term debt    4,614                 353
                                   ----------          ----------
       Total current liabilities       85,645             115,051

 Long-term debt                        24,648              25,463
 Deferred tax liability                   946               2,462
 Shareholders' equity                 377,312             278,140
                                   ----------          ----------
       Total liabilities and
        shareholders' equity      $   488,551          $  421,116
                                   ==========          ==========

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

                       Three Months Ended       Six Months Ended
                            June 30,                 June 30,
                       2002        2001         2002          2001

Net sales           $ 124,195   $ 121,544    $ 267,494    $  259,627
Cost of sales          70,101      68,355      152,249       147,237
                    ---------   ---------    ---------    ----------
  Gross profit         54,094      53,189      115,245       112,390
                         43.6%       43.8%        43.1%         43.3%

Selling, general,
 and administrative    42,787      41,995       89,014        86,888
                    ---------   ---------    ---------    ----------

Income from operations 11,307      11,194       26,231        25,502
Interest (income)
 expense, net            (276)        566         (167)          646
                    ---------   ---------    ---------    ----------

Income before income
 tax                   11,583      10,628       26,398        24,856
Income tax provision    4,047       4,198        9,899         9,818
                    ---------   ---------    ---------    ----------

Net income          $   7,536   $   6,430    $  16,499    $   15,038
                    =========   =========    =========    ==========

Net income per share:
  Basic             $    0.19   $    0.16    $    0.42    $     0.39
  Diluted           $    0.19   $    0.16    $    0.41    $     0.38

Weighted average shares outstanding:
  Basic                39,399      39,029       39,351        38,865
  Diluted              40,127      40,074       40,046        39,810