KING OF THE HILL.

Byline: Joe Harwood The Register-Guard

Standing at the head of a line of SportHill faithful 50 people deep while the rising sun inched its way into the eastern sky, Ardas Khalsa reflected for a moment and then rattled off four words.

"Good quality. Excellent quality," Khalsa said when asked why she arose before 6 a.m. to be first in the door at Eugene-based SportHill's annual warehouse sale.

"I'm totally sold on their quality and durability," Khalsa said. "The stuff I bought a couple years ago still looks new."

Like Khalsa, the remarkably fit-looking bunch of bargain hunters behind her arose at a decidedly uncivilized hour to rummage for discounts of 50 percent or more on the company's athletic apparel.

Susan Dwoskin, another SportHill loyalist, calculated her household owns more than a dozen of the company's garments. The "outrageous bargains" available at the yearly sale, along with the need to outfit two active teenage sons, brought her to SportHill's McKinley Street headquarters in search of cycling, work-out and cold weather gear.

"With boys, there's no question that durability is important," Dwoskin said. "But style matters. They (the boys) would not wear it if it's not the right style."

When the oversize garage door on the side of SportHill's building opens at 7:04 a.m., revealing steeply discounted racks of moisture-wicking tops, running shorts and pants, microfleece jackets and polyester hybrids worn by endurance sports enthusiasts, Khalsa and Dwoskin have no more time to chat. There are bargains to be had. The herd of shoppers moves indoors.

A slightly out of breath Bob Duncan shows up about 10 minutes later. Wearing a small backpack and SportHill running pants he bought "in the early 90s," Duncan said he ran the four miles from his Eugene apartment to get to the sale. "They make the best running clothes on the market, period," Duncan said.

The displays of devotion - albeit fealty mixed with an eye for value - are nothing new to Jim Hill, SportHill's president. Since founding the Eugene company in 1985, Hill has built a cult-like following among the active. Beyond those in track-town Eugene and hundreds of other North American cities, SportHill fans include some of the world's top runners and Canada's Olympic cross country ski teams.

SportHill sells its products at more than 800 specialty athletic stores across the United States and Canada, as well as via catalogs and the Internet sales. A handful of outlets in Norway, Japan and Spain carry SportHill as well.

The sports apparel market is cluttered and competitive, but SportHill has managed to prosper.

Hill said SportHill's approach is straightforward. "We make great apparel that works well and lasts, for a fair price," he said.

"With performance apparel, it has to look great and be very functional," he said. "Being a small company, our products have to look better and function better than the big companys' products."

Starting with pants

Hill estimates SportHill sells 80 to 100 products - ranging from lightweight but wind resistant and breathable cold weather gear used in skiing and winter running to cycling outfits that wick moisture away from the body and quickly dry.

The range of products SportHill sells is remarkable considering that Hill started off in 1985 selling just one thing: the company's trademark running pants.

Hill, who ran track for the University of Oregon and graduated in 1984, wanted to design a running pant that kept him warm. Baggy cotton sweat pants absorbed and held moisture, and the Lycra tights in vogue at the time weren't warm or comfortable.

Hill went in search of fabric that would dry quickly and stretch with the runner. He found a blended cotton-polyester material that became an instant hit.

"In the mid-80s, everyone was wearing tights because there wasn't much of an alternative," he said. "Runners saw our pants and liked them because they were tights without the tight fit."

A year after launching the fledgling business, Hill sold 9,000 pairs of the running pants out of the tool shed behind his rented Onyx Street duplex, which doubled as SportHill's world headquarters. Elated, Hill added running shorts and tops to his product line.

In 1990, Hill recognized that cross country skiers shared many of the same needs as runners, and SportHill introduced its XC line of Nordic ski wear. The clothing, lightweight but warm and water resistant, was a hit with consumers. Several cross country skiing magazines have since labeled the company's XC line as the gold standard of technical clothing.

Using U.S. factories

In the 12 years since, SportHill has steadily introduced a host of new products while improving its existing line.

The company relies on customer feedback to develop many of its products, Hill said.

"We constantly look at the market and come up with voids to fill," he said. "Then we work with our suppliers and designers to come up with unique fabrics and functional clothing."

Hill said SportHill, with 17 employees, has never manufactured its own clothing. "There are factories out there that can do a more efficient and much better job that we can."

The company relies on garment factories in Washington state and California to make the bulk of its products, Hill said, adding that he has been working with the same contractors in Washington and Los Angeles since the late 1980s.

Garment manufacturers have largely fled the United States for Asian countries to take advantage of lower labor costs and lax workplace regulations.

Hill said a 30 percent U.S. duty imposed on imported knit clothing allows him and his contractors to compete with larger companies that have their clothing made overseas.

Hill said the explosive sales growth the company experienced in its first 15 years has slowed to a more manageable pace. Hill declined to disclose annual sales, but said SportHill had a record year in 2002, with sales increasing about 10 percent.

Joe Harwood can be reached at 338-2364 or [e-mail].

SportHill

Business: Designs, sells technical outdoor clothing.

Owner: Jim Hill

Employees: 17

Established: 1985

Web: www.sporthill.com

CAPTION(S):

Kris Lewis looks for a good deal at the recent SportHill factory sale in west Eugene. The athletic apparel company started in Eugene in 1985. SportHill: Company has loyal customers Continued from Page F1 SPORTHILL: Jumphead goes here Continued from Page F1 Eugene-based SportHill emerges as a leader in running and cross-country ski wear Please turn to SPORTHILL, Page F3 Please turn to SPORTHILL, Page F3