Columbia Sportswear Company Reports Fourth Quarter and Full Year 2012 Financial Results; Provides Preliminary Full Year and

  Columbia Sportswear Company Reports Fourth Quarter and Full Year 2012
  Financial Results; Provides Preliminary Full Year and First Quarter 2013
  Financial Outlook

4th Quarter Highlights:

  *Net income increased 8 percent to $39.5 million, or $1.15 per diluted
    share, compared with fourth quarter 2011 net income of $36.7 million, or
    $1.08 per diluted share, despite a 5 percent decline in net sales to
    $501.1 million, compared with fourth quarter 2011 net sales of $526.1
    million.

Fiscal Year 2012 Highlights:

  *Fiscal 2012 net sales totaled $1.67 billion, compared to fiscal 2011 net
    sales of $1.69 billion.
  *Fiscal 2012 net income totaled $99.9 million, or $2.93 per diluted share,
    compared to fiscal 2011 net income of $103.5 million, or $3.03 per diluted
    share.

Preliminary 2013 Outlook:

  *Fiscal 2013 outlook anticipates net sales comparable to 2012 and operating
    margins between approximately 7.5 percent to 8.0 percent of net sales.
  *First quarter 2013 outlook anticipates up to 50 basis points of operating
    margin expansion on net sales comparable to first quarter 2012.

Business Wire

PORTLAND, Ore. -- February 7, 2013

Columbia Sportswear Company (NASDAQ: COLM), a leading innovator in the global
outdoor apparel, footwear, accessories and equipment industries, today
announced an 8 percent increase in net income and a 5 percent decline in net
sales for fourth quarter 2012 compared to fourth quarter 2011. Full year 2012
net income declined 3 percent on a 1 percent decline in net sales compared to
2011.

Tim Boyle, Columbia’s president and chief executive officer, commented,
“Diligent expense management throughout the year enabled us to deliver solid
results during what proved to be another year of unseasonably warm weather in
North America. As a result, despite a slight decline in 2012 full year sales,
we were able to achieve 8 percent operating margin, similar to 2011 operating
margin of 8.1 percent.”

Fourth Quarter Results

(All comparisons are between fourth quarter 2012 and fourth quarter 2011,
unless otherwise noted.)

Consolidated net sales totaled $501.1 million for the quarter ended December
31, 2012, a 5 percent decrease compared with net sales of $526.1 million for
the same period in 2011. Changes in currency exchange rates had a neutral
effect on the net sales comparison.

The company’s fourth quarter results rely heavily on the rate of sell-through
in the company’s direct-to-consumer and wholesale channels, which are both
heavily affected by global fall and winter weather patterns and consumers’
holiday shopping behavior.

Mild winter weather in North America during most of the holiday shopping
period and general consumer caution resulted in reduced retail traffic and a
more promotional environment in key markets, which caused higher order
cancellations and fewer reorders from wholesale customers, as well as lower
than expected direct-to-consumer sales, primarily in the U.S. In addition,
approximately $9 million of factory-direct shipments of international
distributors’ Spring 2013 advance orders shifted into the first quarter of
2013.

Fourth quarter net income increased 8 percent to $39.5 million, or $1.15 per
diluted share, compared with net income of $36.7 million, or $1.08 per diluted
share, for the same period in 2011.

Fourth quarter U.S. net sales declined $19.1 million, or 7 percent.
Europe/Middle East/Africa (EMEA) region net sales declined $15.1 million, or
20 percent, including a 3 percentage point negative effect from changes in
foreign currency exchange rates. Those declines were partially offset by a
$7.7 million, or 6 percent, increase in Latin America/Asia Pacific (LAAP)
region net sales, with a neutral effect of changes in currency exchange rates.
Net sales in Canada increased $1.5 million, or 5 percent, primarily
attributable to the positive impact of changes in currency exchange rates.
(See “Geographical Net Sales” table below.)

Apparel, Accessories & Equipment net sales decreased $7.7 million, or 2
percent, to $392.3 million, and Footwear net sales declined $17.3 million, or
14 percent, to $108.8 million. (See “Categorical Net Sales” table below.)

Columbia brand net sales declined $16.0 million, or 4 percent, to $400.5
million, primarily due to lower sales of cold weather products. Sorel brand
net sales declined $7.8 million, or 12 percent, to $56.5 million, also
primarily due to lower sales of cold weather footwear. Mountain Hardwear and
Montrail net sales each declined less than $1.0 million. (See “Brand Net
Sales” table below.)

Fiscal Year 2012 Results

(All comparisons are between fiscal 2012 and fiscal 2011, unless otherwise
noted.)

Consolidated 2012 net sales totaled $1.67 billion, a decrease of $24.4
million, or 1 percent, compared with 2011 net sales of $1.69 billion,
including a 1 percentage point negative effect from changes in currency
exchange rates.

2012 net income totaled $99.9 million, or $2.93 per diluted share, a decrease
of $3.6 million, or 3 percent, compared with 2011 net income of $103.5
million, or $3.03 per diluted share.

EMEA region net sales declined $44.8 million, or 16 percent, including a 4
percentage point negative effect from changes in currency exchange rates;
Canada net sales declined $14.9 million, or 11 percent, with a neutral effect
from changes in currency exchange rates; and U.S. net sales declined $1.3
million, or less than 1 percent. Those declines were partially offset by an
LAAP region net sales increase of $36.6 million, or 11 percent, including a
neutral effect from changes in currency exchange rates. (See “Geographical Net
Sales” table below.)

Apparel, Accessories & Equipment net sales totaled $1.35 billion, an increase
of $12.1 million, or 1 percent. Footwear net sales totaled $322.6 million, a
decrease of $36.5 million, or 10 percent. (See “Categorical Net Sales” table
below.)

Columbia brand net sales totaled $1.39 billion, essentially equal to 2011
Columbia brand net sales of $1.39 billion; Sorel brand net sales totaled
$127.0 million, a decrease of $23.3 million, or 16 percent; and Mountain
Hardwear brand net sales totaled $141.5 million, compared to 2011 net sales of
$142.3 million. (See “Brand Net Sales” table below.)

Balance Sheet

The company ended the year with $335.4 million in cash and short-term
investments, compared with $243.9 million at December 31, 2011.

Consolidated inventories of $363.3 million at December 31, 2012 were less than
1 percent lower than the $365.2 million balance at December 31, 2011. A high
single-digit unit decline was largely offset by higher average unit costs and
changes in product mix.

Dividend

The board of directors approved a first quarter dividend of $0.22 per share,
payable on March 6, 2013 to shareholders of record on February 21, 2013.

Preliminary 2013 Financial Outlook

All projections related to anticipated future results are forward-looking in
nature and are subject to risks and uncertainties which may cause actual
results to differ, perhaps significantly.

The company’s annual net sales are weighted more heavily toward the
fall/winter season, while operating expenses are more equally distributed
throughout the year, resulting in a highly seasonal profitability pattern
weighted toward the second half of the fiscal year.

The company currently expects 2013 net sales comparable to 2012 net sales of
$1.67 billion, and full year operating margin of between approximately 7.5
percent and 8.0 percent of sales. This preliminary outlook does not include
the anticipated deferral of operating income from 2013 into future periods as
we transition our China distribution from an independent distributor model to
a joint venture operation effective January 1, 2014.

For the first quarter of 2013, the company expects net sales comparable to net
sales of $333.1 million in the first quarter of 2012. Gross margin is expected
to decrease between 120 and 170 basis points, more than offset by anticipated
SG&A leverage of between 100 and 150 basis points and increased licensing
income, resulting in first quarter operating margin expansion of up to 50
basis points from first quarter 2012 operating margin of 1.6 percent.

A more detailed version of the company’s financial outlook can be found in the
“CFO Commentary on Fourth Quarter/Fiscal Year 2012 Financial Results, and
Preliminary 2013 Outlook”, furnished separately to the SEC on Form 8-K and
available on the company’s investor relations website at
http://investor.columbia.com/results.cfm.

CFO’s Fourth Quarter and Fiscal 2012 Financial Commentary Available Online

At approximately 4:15 p.m. EST, a commentary by Tom Cusick, senior vice
president and chief financial officer, reviewing the company’s fourth quarter
and fiscal year 2012 financial results and preliminary 2013 outlook will be
furnished to the SEC on Form 8-K and published on the company’s website at
http://investor.columbia.com/results.cfm. Analysts and investors are
encouraged to review this commentary prior to participating in the conference
call.

Conference Call

The company will host a conference call on Thursday, February 7, 2013 at 5:00
p.m. EST to review its fourth quarter financial results and preliminary 2013
outlook. Dial 877-407-9205 to participate. The call will also be webcast live
on the Investor Relations section of the Company’s website at
http://investor.columbia.com where it will remain available until
approximately February 6, 2014.

First Quarter 2013 Reporting Schedule

Columbia Sportswear plans to report financial results for first quarter 2013
on Thursday, April 25, 2013 at approximately 4:00 p.m. EDT. Following issuance
of the earnings release, a commentary reviewing the company’s first quarter
financial results will be furnished to the SEC on Form 8-K and published on
the investor relations section of the company’s website at
http://investor.columbia.com/results.cfm. A public webcast of Columbia’s
earnings conference call will follow at 5:00 p.m. EDT at www.columbia.com.

About Columbia Sportswear

Columbia Sportswear Company is a leading innovator in the global outdoor
apparel, footwear, accessories and equipment industry. Founded in 1938 in
Portland, Oregon, Columbia products are sold in approximately 100 countries
and have earned an international reputation for innovation, quality and
performance. Columbia products feature innovative technologies and designs
that protect outdoor enthusiasts from the elements, increase comfort, and make
outdoor activities more enjoyable. In addition to the Columbia® brand,
Columbia Sportswear Company also owns outdoor brands Mountain Hardwear®,
Sorel®, Montrail® and OutDry®. To learn more, please visit the company's
websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, and
www.montrail.com.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the
federal securities laws, including statements regarding anticipated results,
net sales, gross margins, operating expenses, operating margins, SG&A expense
leverage, licensing income, market conditions, advance orders, and the
formation and operation of our China joint venture in future periods. Actual
results could differ materially from those projected in these and other
forward-looking statements. The company’s expectations, beliefs and
projections are expressed in good faith and are believed to have a reasonable
basis; however, each forward-looking statement involves a number of risks and
uncertainties, including those set forth in this document, those described in
the company’s Annual Report on Form 10-K for the year ended December 31, 2011
under the heading “Risk Factors,” 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. Potential
risks and uncertainties that may affect our future revenues, earnings and
performance and could cause the actual results of operations or financial
condition of the company to differ materially from those expressed or implied
by forward-looking statements in this document include: unfavorable economic
conditions generally and weakness in consumer confidence and spending rates;
our ability to effectively implement our IT infrastructure, data management
and business process initiatives, failure of which could result in material
unanticipated expenses and/or disruptions to our business; the operations of
our computer systems and third party computer systems; our ability to match
our cost structure with business growth levels, particularly in volatile
demand environments in Europe and China; changes in international, federal
and/or state tax policies and rates, which we expect to increase;
international risks, including changes in import limitations and tariffs or
other duties, political instability in foreign markets, exchange rate
fluctuations, and trade disruptions; failure to realize anticipated benefits
of our Chinese joint venture; our ability to attract and retain key employees;
the financial health of our customers and their continued ability to access
credit markets to fund their ongoing operations; higher than expected rates of
order cancellations; increased consolidation of our retail customers; our
ability to effectively source and deliver our products to customers in a
timely manner, the failure of which could lead to increased costs and/or order
cancellations; unforeseen increases and volatility in input costs, such as
cotton and/or oil; our reliance on product acceptance by consumers; our
reliance on product innovations, which may involve greater regulatory and
manufacturing complexity and could pose greater risks of quality issues,
supply disruptions or intellectual property disputes; the effects of
unseasonable weather (including, for example, warm weather in the winter and
cold weather in the spring), which affects wholesale and consumer demand for
the company’s products; our dependence on independent manufacturers and
suppliers; our ability to source finished products and components at
competitive prices from independent manufacturers in foreign countries that
may experience unexpected periods of inflation, labor and materials shortages
or other manufacturing disruptions; the effectiveness of our sales and
marketing efforts; intense competition in the industry; business disruptions
and acts of terrorism or military activities around the globe; and our ability
to establish and protect our intellectual property. The company cautions 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 document to conform them to
actual results or to reflect changes in events, circumstances or its
expectations. New factors emerge from time to time and it is not possible for
the company to predict all such factors, nor can it assess the impact of each
such factor or the extent to which any factor, or combination of factors, may
cause results to differ materially from those contained in any forward-looking
statement.

COLUMBIA SPORTSWEAR COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                        
                                               December 31,
                                                2012         2011
Current Assets:
Cash and cash equivalents                      $ 290,781     $ 241,034
Short-term investments                           44,661        2,878
Accounts receivable, net                         334,324       351,538
Inventories, net                                 363,325       365,199
Deferred income taxes                            50,929        52,485
Prepaid expenses and other current assets        38,583        36,392
Total current assets                             1,122,603     1,049,526
                                                               
Property, plant and equipment, net               260,524       250,910
Intangibles and other non-current assets         75,715        82,106
Total assets                                   $ 1,458,842   $ 1,382,542
                                                               
                                                               
Current Liabilities:
Notes payable                                  $ 156         $ -
Accounts payable                                 142,240       148,973
Accrued liabilities                              105,190       104,496
Income taxes payable                             4,406         12,579
Deferred income taxes                            67            954
Total current liabilities                        252,059       267,002
                                                               
Long-term liabilities                            40,616        40,995
Shareholders' equity                             1,166,167     1,074,545
Total liabilities and shareholders' equity     $ 1,458,842   $ 1,382,542
                                                               

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
                                                             
                Three Months Ended December      Twelve Months Ended December
                31,                              31,
                  2012            2011        2012          2011      
                                                                   
Net sales       $  501,060        $  526,078     $ 1,669,563     $ 1,693,985
Cost of sales      294,155          302,304      953,169        958,677   
Gross profit       206,905           223,774       716,394         735,308
                   41.3     %        42.5    %     42.9      %     43.4      %
                                                                   
Selling,
general, and       158,754           178,624       596,635         614,658
administrative
expenses
Net licensing      2,952            5,360        13,769         15,756    
income
Income from        51,103            50,510        133,528         136,406
operations
                                                                   
Interest income    (42      )        28           379            1,274     
(expense), net
Income before      51,061            50,538        133,907         137,680
income tax
                                                                   
Income tax         (11,574  )        (13,810 )     (34,048   )     (34,201   )
expense
Net Income      $  39,487        $  36,728     $ 99,859       $ 103,479   
                                                                   
Earnings per
share:
Basic           $  1.16           $  1.09        $ 2.95          $ 3.06
Diluted            1.15              1.08          2.93            3.03
Weighted
average shares
outstanding:
Basic              33,999            33,629        33,840          33,808
Diluted            34,307            33,890        34,132          34,204
                                                                   

COLUMBIA SPORTSWEAR COMPANY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
                                                               
                                                   Year Ended December 31,
                                                    2012         2011     
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                         $ 99,859       $ 103,479
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                        40,892         43,560
Loss on disposal or impairment of property,          1,582          6,485
plant and equipment
Deferred income taxes                                7,140          (3,582   )
Stock-based compensation                             7,833          7,870
Excess tax benefit from employee stock plans         (1,016   )     (1,828   )
Changes in operating assets and liabilities:
Accounts receivable                                  18,166         (54,334  )
Inventories                                          2,951          (55,223  )
Prepaid expenses and other current assets            (2,025   )     (10,186  )
Other assets                                         (1,259   )     (4,520   )
Accounts payable and accrued liabilities             (17,529  )     36,711
Income taxes payable                                 (11,052  )     (7,010   )
Other liabilities                                    3,126         2,374    
Net cash provided by operating activities            148,668       63,796   
                                                                    
CASH FLOWS FROM INVESTING ACTIVITIES
Net sales (purchases) of short-term                  (41,650  )     65,721
investments
Capital expenditures                                 (50,491  )     (78,404  )
Proceeds from sale of property, plant, and           7,099         168      
equipment
Net cash used in investing activities                (85,042  )     (12,515  )
                                                                    
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facilities                      100,654        119,384
Repayments on credit facilities                      (100,498 )     (119,384 )
Proceeds from issuance of common stock under         14,600         10,991
employee stock plans
Tax payments related to restricted stock unit        (1,486   )     (2,974   )
issuances
Excess tax benefit from employee stock plans         1,016          1,828
Repurchase of common stock                           (206     )     (20,000  )
Cash dividends paid                                  (29,780  )     (29,075  )
Net cash used in financing activities                (15,700  )     (39,230  )
                                                                    
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH          1,821         (5,274   )
NET INCREASE IN CASH AND CASH EQUIVALENTS            49,747         6,777
                                                                    
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD       241,034       234,257  
CASH AND CASH EQUIVALENTS, END OF PERIOD           $ 290,781     $ 241,034  
                                                                    
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING
ACTIVITIES
Capital expenditures incurred but not yet          $ 5,313        $ 952
paid
                                                                    

COLUMBIA SPORTSWEAR COMPANY
(In millions, except percentage changes)
(Unaudited)
                                                               
                Three Months Ended December    Twelve Months Ended December 31,
                31,
                 2012     2011    %          2012       2011      %      
                                    Change                             Change
                                                                       
Geographical
Net Sales:
  United        $ 273.8   $ 292.9   (7)%       $ 946.7     $ 948.0     -
  States
  Latin
  America &       132.0     124.3   6%           377.6       341.0     11%
  Asia
  Pacific
  Europe,
  Middle          62.0      77.1    (20)%        230.6       275.4     (16)%
  East, &
  Africa
  Canada         33.3    31.8    5%          114.7     129.6     (11)%
  Total         $ 501.1  $ 526.1   (5)%       $ 1,669.6  $ 1,694.0   (1)%
                                                                       
                                                                       
Categorical
Net Sales:
                                                                       
  Apparel,
  Accessories   $ 392.3   $ 400.0   (2)%       $ 1,347.0   $ 1,334.9   1%
  & Equipment
  Footwear       108.8   126.1   (14)%       322.6     359.1     (10)%
  Total         $ 501.1  $ 526.1   (5)%       $ 1,669.6  $ 1,694.0   (1)%
                                                                       
                                                                       
Brand Net
Sales:
  Columbia      $ 400.5   $ 416.5   (4)%       $ 1,391.1   $ 1,391.5   -
  Mountain        42.7      43.2    (1)%         141.5       142.3     (1)%
  Hardwear
  Sorel           56.5      64.3    (12)%        127.0       150.3     (16)%
  Other          1.4     2.1     (33)%       10.0      9.9       1%
  Total         $ 501.1  $ 526.1   (5)%       $ 1,669.6  $ 1,694.0   (1)%

Contact:

Columbia Sportswear Company
Sr. Director of Investor Relations & Corporate Communications
Ron Parham, 503-985-4584
rparham@columbia.com