Columbia Sportswear Company Reports Record Third Quarter 2002 Results; Net Income Up 14.7%; Spring 2003 Orders Up 15.2%.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 24, 2002

Columbia Sportswear Company (Nasdaq: COLM) today announced record net sales of $331.5 million for its third quarter ended September 30, 2002, an increase of 8.5% over the $305.6 million of net sales for the same period of last year.

Net income for the period increased 14.7% to $56.9 million, or $1.42 per share (diluted) on 40.2 million weighted average shares outstanding for the third quarter, compared to net income of $49.6 million, or $1.24 per share (diluted) on 40.1 million weighted average shares outstanding for the same period of last year. Net sales for the period came in approximately $4 million ahead of the Company's previous expectations due primarily to customer requests for early shipments.

The increase in net sales for the quarter is primarily attributable to continued strength in the Company's key geographic markets, particularly in the outerwear and sportswear categories globally. Specifically, compared to the third quarter of 2001, the Company's Domestic sales grew by 4.5% to $234.2 million, Canadian sales increased by 15.9% to $41.5 million, European sales increased by 25.1% to $32.9 million and Other International sales (excluding European direct sales) increased 18.0% to $22.9 million. On a constant dollar basis, Canadian sales increased 17.5%, European sales increased 13.9%, and Other International sales (excluding European direct sales) increased 16.0% for the period.

Categorically, when compared to the third quarter of 2001, outerwear sales increased 10.2% to $214.0 million, sportswear sales increased 7.7% to $62.9 million, while footwear sales for the period were flat at $37.9 million. Within the footwear category, Columbia branded footwear shipments during the quarter declined by 10.4% to $26.8 million, and Sorel branded footwear sales increased 38.6% to $11.1 million for the period.

Net income growth for the third quarter of 2002 was due primarily to growth in net sales, coupled with gross margin expansion of 50 basis points to 48.5% when compared to the prior year period. Gross margin expansion during the period was primarily the result of continued strong demand for the Company's outerwear products globally, and a favorable sourcing environment generally. A reduction in the effective tax rate for the period to 37.5% also contributed to net income growth for the period.

Backlog

The Company reported that consolidated backlog for future deliveries at September 30, 2002 was $422.2 million, which represents an increase of 5.9% when compared to backlog for future deliveries at September 30, 2001 of $398.5 million. As a component of consolidated backlog, the Company's spring order backlog was $230.8 million at September 30, 2002 compared to $200.3 million at September 30, 2001, an increase of 15.2%.

Tim Boyle, Columbia's president and chief executive officer, commented, "We are thrilled with the Company's performance during the third quarter, particularly in light of the difficult retail environment that persists in several of our key markets. More importantly however, is the resurgence of our spring business globally as evidenced by the strong order book we have reported today. As we discussed last year at this time, we have taken several steps to improve our spring business. Specifically, through a combination of management restructuring, innovative product development, and sharper merchandising strategies, we have been successful at this point in driving order growth in our key spring businesses of sportswear and footwear globally."

Boyle continued, "As previously discussed, we elected to take a relatively conservative stance on outerwear inventories for the fall 2002 season. Therefore, in light of the fact that we shipped approximately $4.0 million more product during the third quarter than we previously anticipated due to customer requests, I believe that we will experience a revenue decline for the fourth quarter of 2002 between 1% to 2% when compared to the prior year period. We currently anticipate a slight increase in net income for the fourth quarter of 2002 of up to 3% when compared to the fourth quarter of 2001. Based on our current outlook for the fourth quarter of 2002, we currently believe that for the full year 2002 revenue growth of up to 4% and net income growth of between 8% to 11% are achievable targets when compared to the full year of 2001, which is consistent with our previous expectations."

Boyle concluded, "Based in part on the spring 2003 order backlog reported today, we currently believe that for the first quarter of 2003 revenue growth of between 13% and 15%, and net income growth in the 14% to 16% range are achievable targets when compared to the first quarter of 2002. As a reminder, spring accounts for a relatively small percentage of our overall business; the bulk of our revenues and profits traditionally come in the second half of the year. Further out, it is difficult for us to gauge revenue and profitability levels until we gain more visibility into the fall 2003 season. Please keep in mind that Columbia's business is always subject to risks and uncertainties, and we are particularly mindful of extenuating circumstances that could have an adverse impact on our business, including work disruptions at west coast ports, potential military actions overseas, and a very difficult economic environment globally. Please note that these projections are forward-looking in nature, and are based on backlog and forecasts, which may change, perhaps significantly. Therefore, as always, we will continue to operate the Company prudently with the objective of preserving a very strong balance sheet."

The Company's senior management will host a telephone conference call at 5:00 p.m. EDT today, Thursday, October 24, 2002. The call will include discussions regarding the Company's third quarter 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 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. October 25. To access, please dial 800/642-1687 in the United States (outside the United States, please dial 706/645-9291) and enter reservation # 5915490. The web cast can also be accessed on the investor information section of the Company's website at www.columbia.com until November 7, 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 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.sorelonline.com.

This press release contains forward-looking statements, including statements regarding anticipated revenues, earnings and deliveries in the fourth quarter of 2002 and in 2003. Actual results could differ materially from those projected in these and other forward-looking statements as a result of a number of risk factors, including those set forth in this press release and those described 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." Risk factors that may affect future deliveries, revenues and earnings 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 (including, but not limited to, those related to labor disputes at western U.S. ports); effects of unseasonable weather (for example, warm weather in the winter and cold weather in the spring which affects demand for the Company's products); the Company's reliance on product acceptance by consumers; dependence on independent manufacturers and suppliers; the Company's ability to successfully complete and integrate a new distribution center in Europe with existing operations; 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; 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.

-table follows-

                     COLUMBIA SPORTSWEAR COMPANY

                    CONSOLIDATED BALANCE SHEETS
                           (In thousands)

                                                      September 30,
                                                   -------------------
                                                     2002      2001
                                                   --------   --------
 Current Assets:
   Cash and cash equivalents                       $ 38,434  $  9,968
   Accounts receivable, net of allowance of
    $9,318 and $7,586, respectively                 268,428   260,707
   Inventories                                      133,645   161,154
   Deferred tax asset                                11,280    13,729
   Prepaid expenses and other current assets          5,124     4,282
                                                    --------  --------
       Total current assets                         456,911   449,840

 Property, plant and equipment, net                 124,070    95,091
 Intangibles and other assets                         7,601     8,368
                                                    --------  --------
       Total assets                                $588,582  $553,299
                                                    ========  ========

 Current Liabilities:
   Notes payable                                   $ 13,116  $ 75,377
   Accounts payable                                  47,174    53,283
   Accrued liabilities                               35,590    34,472
   Income taxes payable                              30,666    27,258
   Current portion of long-term debt                  4,498     4,853
                                                    --------  --------
       Total current liabilities                    131,044   195,243

 Long-term debt                                      20,568    25,483
 Deferred tax liability                               1,233     3,829
 Shareholders' equity                               435,737   328,744
                                                    --------  --------
       Total liabilities and shareholders'
        equity                                     $588,582  $553,299
                                                    ========  ========


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

                               Three Months Ended  Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                  2002      2001      2002      2001
                                --------  --------  --------  --------

Net sales                      $331,504  $305,630  $598,998  $565,257
Cost of sales                   170,717   158,985   322,966   306,222
                                --------  --------  --------  --------
  Gross profit                  160,787   146,645   276,032   259,035

Selling, general, and
 administrative                  69,646    64,480   158,660   151,368
                                --------  --------  --------  --------

Income from operations           91,141    82,165   117,372   107,667
Interest (income) expense, net      129     1,097       (38)    1,743
                                --------  --------  --------  --------

Income before income tax         91,012    81,068   117,410   105,924
Income tax provision             34,130    31,492    44,029    41,310
                                --------  --------  --------  --------

Net income                     $ 56,882  $ 49,576  $ 73,381  $ 64,614
                                ========  ========  ========  ========

Net income per share:
  Basic                        $   1.44  $   1.26  $   1.86  $   1.66
  Diluted                      $   1.42  $   1.24  $   1.83  $   1.62
Weighted average shares
 outstanding:
  Basic                          39,475    39,207    39,393    38,980
  Diluted                        40,151    40,093    40,059    39,881