8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

October 22, 2009

COLUMBIA SPORTSWEAR COMPANY

(Exact name of registrant as specified in its charter)

Oregon	000-23939	93-0498284
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

14375 Northwest Science Park Drive

Portland, Oregon 97229

(Address of principal executive offices) (Zip code)

(503) 985-4000

(Registrant’s telephone number, including area code)

No Change

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 22, 2009, Columbia Sportswear Company (the “Company”) issued a press release reporting its third quarter 2009 financial results. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

ITEM 7.01 REGULATION FD DISCLOSURE

In its October 22, 2009 press release, the Company also announced that its board of directors approved a dividend of $0.18 per share of common stock to be paid on November 25, 2009 to its shareholders of record on November 12, 2009.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1 Press release dated October 22, 2009 (furnished pursuant to Items 2.02 and 7.01 hereof).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	COLUMBIA SPORTSWEAR COMPANY
Dated: October 22, 2009	By:	/s/    THOMAS B. CUSICK
		Thomas B. Cusick
		Vice President, Chief Financial Officer and Treasurer

EXHIBIT INDEX

Exhibit	Description
99.1	Press release dated October 22, 2009 (furnished pursuant to Items 2.02 and 7.01 hereof).

EX-99.1

Exhibit 99.1

Contact:	Ron Parham
	Sr. Director of Investor Relations & Corporate Communications
	Columbia Sportswear Company
	(503) 985-4584

COLUMBIA SPORTSWEAR COMPANY

REPORTS THIRD QUARTER 2009 RESULTS AND SPRING 2010 BACKLOG

REVISES FULL-YEAR OUTLOOK UPWARD

ANNOUNCES INCREASE IN QUARTERLY DIVIDEND

Highlights:

• Third quarter 2009 consolidated net sales decreased 4 percent to $434.5 million, compared to third quarter 2008 net sales of $452.4 million.

• Third quarter 2009 net income was $46.9 million, or $1.38 per diluted share, compared to net income of $58.3 million, or $1.69 per diluted share, for the third quarter of 2008.

• The company revised its outlook upward for full year 2009, and now expects net sales to decline 8 to 9 percent and operating income to decline approximately 300 basis points, compared with 2008, which included a $24.7 million impairment charge.

• Global spring 2010 product backlog at September 30, 2009 totaled $350.8 million, 5 percent lower than backlog of $370.9 million at September 30, 2008; consolidated backlog, which also includes fall 2009 product orders, was 9 percent lower at $590.0 million.

• The board of directors increased the quarterly dividend by $0.02 per share, or 12.5 percent, to $0.18 per share, payable on November 25, 2009 to shareholders of record on November 12, 2009.

PORTLAND, Ore. — October 22, 2009 — Columbia Sportswear Company (NASDAQ: COLM), a global leader in the active outdoor apparel, footwear and accessories industries, today announced net sales of $434.5 million for the quarter ended September 30, 2009, a decrease of 4 percent compared to net sales of $452.4 million for the same period of 2008, including a 1 percentage point negative effect from changes in foreign currency exchange rates compared with the third quarter of 2008.

Third quarter net income totaled $46.9 million, or $1.38 per diluted share, compared with net income of $58.3 million, or $1.69 per diluted share, for the same period of 2008.

Tim Boyle, Columbia’s president and chief executive officer, commented, “Third quarter results were significantly better than our July outlook, primarily due to greater than expected demand and resulting shipments of Fall 2009 products in the U.S., as well as a greater benefit from stronger international currencies. The gross profit from those incremental shipments dropped to the bottom line as we held spending within our original plan for the quarter.”

Spring 2010 Wholesale Backlog

The company reported that as of September 30, 2009, Spring 2010 wholesale backlog was $350.8 million, $20.1 million, or 5 percent, lower than Spring 2009 wholesale backlog of $370.9 million, including a benefit of 2 percentage points from changes in currency exchange rates compared to Spring 2009. The decline in Spring 2010 wholesale backlog was concentrated in

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the Europe, Middle-East & Africa region (EMEA) where orders declined 22 percent. Spring 2010 wholesale backlog in the U.S., Canada and Latin America & Asia Pacific (LAAP) regions were each essentially equal to Spring 2009 wholesale backlog. Global apparel and footwear wholesale backlog each declined mid-single-digits on a percentage basis.

Mr. Boyle commented, “We are encouraged by our Spring 2010 backlog, which suggests we are gaining market share in the U.S. Our flat Spring 2010 U.S. wholesale backlog compares favorably to the Spring 2009 backlog that included several retail accounts that liquidated or reorganized during 2009. The EMEA backlog decline primarily reflects the very difficult economic conditions in Russia.”

Consolidated wholesale backlog, which includes both global fall and spring orders at September 30, 2009, was $590.0 million, a decline of 9 percent compared with consolidated wholesale backlog of $645.1 million at September 30, 2008, including a benefit of 2 percentage points from changes in currency exchange rates.

Wholesale backlog is not necessarily indicative of changes in total sales for subsequent periods due to the mix of advance and “at once” orders, exchange rate fluctuations and order cancellations, which may vary significantly from quarter to quarter, and because the company’s expanding retail operations are not included in wholesale backlog.

Review of Third Quarter Results

The 4 percent decrease in third quarter 2009 net sales consisted of a 13 percent decline in the EMEA region to $67.7 million, including a 3 percentage point negative effect from changes in foreign currency exchange rates compared with the third quarter of 2008; a 1 percent decline in U.S. net sales to $267.4 million; a 4 percent decline in the LAAP region to $44.3 million, including a 2 percentage point benefit from foreign currency exchange rates; and a 3 percent decline in Canada to $55.1 million, including a 5 percentage point negative effect from foreign currency exchange rates (See “Geographical Net Sales” table below).

Compared with the third quarter of 2008, third quarter 2009 sportswear net sales decreased 9 percent to $142.9 million, outerwear net sales decreased 5 percent to $199.1 million and accessories & equipment net sales decreased 2 percent to $22.2 million. These decreases were partially offset by an 11 percent increase in footwear net sales to $70.3 million (See “Categorical Net Sales” table below).

Columbia brand net sales totaled $370.3 million in the third quarter of 2009, a decrease of 6 percent compared with the third quarter of 2008. Mountain Hardwear brand net sales were equal to the third quarter of 2008 at $35.2 million. Net sales of Sorel footwear increased 42 percent to $27.0 million. Net sales of Montrail and Pacific Trail brand products were insignificant during the third quarter of both years (See “Brand Net Sales” table below).

The company ended the quarter with $210.5 million in cash and short-term investments, compared with $145.3 million at September 30, 2008. Accounts receivable declined $46.7 million, or 13 percent, to $319.5 million, and days sales outstanding improved to 66 days from 73 days, compared with September 30, 2008.

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Consolidated inventories were flat at $301.5 million including 2 percentage points of growth due to changes in currency exchange rates. U.S. inventories declined 11 percent, offset by increases in the company’s international subsidiaries.

Raising 2009 Financial Outlook

The company raised its outlook for fiscal year 2009 and now expects net sales to decline 8 to 9 percent compared with 2008. The company previously expected 2009 net sales to decline at a low-double-digit percentage rate. The company’s revised outlook anticipates a mid-teens percentage decline in wholesale and distributor net sales compared with 2008, partially offset by incremental sales from the company’s direct-to-consumer business.

Full year 2009 gross margins are expected to decline by approximately 100 basis points compared with 2008, primarily due to a higher volume of closeout product sales and the negative effects of foreign currency hedge rates. Full year 2009 operating margin is expected to decline approximately 300 basis points from 2008, which included a $24.7 million impairment charge. This expected operating margin decline is primarily due to fixed cost deleverage caused by lower net sales, coupled with planned investments in direct-to-consumer initiatives. The company currently expects a full-year tax rate of approximately 29 percent.

Boyle concluded, “We are encouraged by our improved outlook for 2009, but global economic conditions continue to be very challenging, particularly in Europe, and we are seeing early signs of economic slowdown in Japan for the first time in several years. These conditions will likely continue to pose challenges well into 2010. We remain committed to our strategy of bringing innovative products to outdoor consumers through our portfolio of outdoor brands.”

The dynamic nature of the current global economic environment and its impact on consumers and the financial health of the company’s wholesale customers has reduced the predictive quality of the company’s wholesale backlog and other factors on which it has historically based estimates of net sales, gross margin and operating expenses as a percentage of net sales, thus limiting the ability to estimate future results. All projections related to anticipated future results are forward-looking in nature and are based, in part, on the economies in key markets continuing to stabilize during the remainder of 2009 and into 2010, as well as on a variety of estimates and assumptions, any of which may change significantly.

Share Repurchase Program

During the third quarter of 2009, the company repurchased approximately 136,000 shares of common stock at an aggregate purchase price of $4.8 million. Through September 30, 2009, the company has repurchased a total of approximately 8.8 million shares at an aggregate purchase price of $404.8 million since the inception of the stock repurchase program in 2004 and approximately $95.2 million remains under the current repurchase authorization. The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Dividend

The board of directors agreed to increase the quarterly dividend by $0.02 per share, or 12.5 percent, to $0.18 per share, payable on November 25, 2009 to shareholders of record on November 12, 2009.

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Conference Call

The Company will host a conference call to discuss third quarter 2009 results and anticipated future performance on Thursday, October 22, 2009 at 5:00 p.m. Eastern. To participate, please dial 800-851-3059 in the United States, Conference ID # 35295114. The call will also be webcast live on the investor relations section of the Company’s website at www.columbia.com, where it will remain available until Thursday, January 28, 2010.

About Columbia Sportswear

Founded in 1938 in Portland, Oregon, Columbia Sportswear Company is a global leader in the design, sourcing, marketing and distribution of active outdoor apparel, footwear, accessories and equipment. As one of the largest outerwear manufacturers in the world and a leading seller of skiwear in the United States, the company has developed an international reputation for innovation, quality, performance, functionality and value. The company manages a portfolio of outdoor brands including Columbia Sportswear, Mountain Hardwear, Sorel, Montrail and Pacific Trail. To learn more about Columbia, please visit the company’s website at www.columbia.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding anticipated results, net sales, gross margins, cash flows, earnings, and strategic initiatives 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 press release, those described in the company’s Annual Report on Form 10-K for the year ended December 31, 2008 and the company’s most recently filed Quarterly Report on Form 10-Q, 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 release include: unfavorable economic conditions generally and weakness in consumer confidence; international risks, including changes in quotas and tariffs or other duties, political instability in foreign markets, exchange rate fluctuations, and trade disruptions; 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; our ability to effectively deliver our products to customers in a timely manner; our reliance on product acceptance by consumers; the effects of unseasonable weather (including, for example, warm weather in the winter and cold weather in the spring, which affects consumer demand for the company’s products); our ability to integrate and manage acquired businesses; 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 (which we expect to increase); business disruptions and acts of terrorism or military activities around the globe; the effective implementation and expansion of our distribution facilities; our ability to implement our strategic initiatives and retail expansion plans; changes in tax policy and laws; the operations of our computer systems and third party computer systems; and our ability to establish and protect our intellectual property. The company cautions that forward-looking statements are inherently less reliable than

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historical information. We do 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 reflect changes in events, circumstances or our 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.

- Financial tables follow-

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COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	September 30,
	2009		2008
Current Assets:
Cash and cash equivalents	$	192,879	$	142,955
Short-term investments		17,637		2,316
Accounts receivable, net		319,548		366,219
Inventories, net		301,477		301,378
Deferred income taxes		31,434		31,851
Prepaid expenses and other current assets		31,483		23,108
Total current assets		894,458		867,827
Property, plant and equipment, net		237,550		224,901
Intangibles and other non-current assets		52,309		70,031
Total assets	$	1,184,317	$	1,162,759
Current Liabilities:
Accounts payable	$	79,397	$	84,778
Accrued liabilities		76,438		74,638
Income taxes payable		9,974		20,893
Other current liabilities		8		83
Total current liabilities		165,817		180,392
Other long-term liabilities		33,365		31,010
Deferred income taxes		4,451		5,444
Shareholders’ equity		980,684		945,913
Total liabilities and shareholders’ equity	$	1,184,317	$	1,162,759

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Net sales	$	434,473		$	452,415		$	885,707		$	962,925
Cost of sales		245,874			250,362			512,306			544,552
Gross profit		188,599			202,053			373,401			418,373
		43.4	%		44.7	%		42.2	%		43.4	%
Selling, general, and administrative expenses		124,184			120,824			318,439			315,992
Net licensing income		1,322			1,899			5,283			3,903
Income from operations		65,737			83,128			60,245			106,284
Interest income, net		319			1,801			1,799			6,390
Income before income tax		66,056			84,929			62,044			112,674
Income tax expense		(19,141	)		(26,600	)		(18,109	)		(36,184	)
Net income	$	46,915		$	58,329		$	43,935		$	76,490
Earnings per share:
Basic	$	1.39		$	1.70		$	1.30		$	2.19
Diluted		1.38			1.69			1.29			2.19
Weighted average shares outstanding:
Basic		33,850			34,411			33,875			34,856
Diluted		33,993			34,518			33,993			34,963

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COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	43,935		$	76,490
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		25,901			23,298
Deferred income taxes		4,070			(3,220	)
Stock-based compensation		4,899			4,902
Other		136			173
Changes in operating assets and liabilities:
Accounts receivable		(15,070	)		(70,355	)
Inventories		(39,608	)		(40,756	)
Prepaid expenses and other current assets		(1,009	)		(9,137	)
Accounts payable and accrued liabilities		(25,563	)		384
Other		2,391			23,710
Net cash provided by operating activities		82			5,489
CASH FLOWS FROM INVESTING ACTIVITIES:
Net sales of short-term investments		4,935			79,228
Capital expenditures		(24,681	)		(32,860	)
Other		9			36
Net cash provided by (used in) investing activities		(19,737	)		46,404
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock		(5,481	)		(79,623	)
Cash dividends paid		(16,259	)		(16,681	)
Proceeds from issuance of common stock		369			3,541
Other		16			20
Net cash used in financing activities		(21,355	)		(92,743	)
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH		3,272			(8,145	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(37,738	)		(48,995	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		230,617			191,950
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	192,879		$	142,955
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES:
Capital expenditures incurred but not yet paid	$	5,166		$	7,539

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COLUMBIA SPORTSWEAR COMPANY

(In millions, except percentage changes)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009		2008		% Change		2009		2008		% Change
Geographical Net Sales to Unrelated Entities:
United States	$	267.4	$	271.3	(1	)%	$	521.4	$	522.7	—
Europe, Middle East, & Africa		67.7		78.2	(13	)%		151.2		207.3	(27	)%
Latin America & Asia Pacific		44.3		46.1	(4	)%		130.3		135.2	(4	)%
Canada		55.1		56.8	(3	)%		82.8		97.7	(15	)%
Total	$	434.5	$	452.4	(4	)%	$	885.7	$	962.9	(8	)%
Categorical Net Sales to Unrelated Entities:
Sportswear	$	142.9	$	157.5	(9	)%	$	379.5	$	434.1	(13	)%
Outerwear		199.1		208.6	(5	)%		311.0		320.0	(3	)%
Footwear		70.3		63.6	11	%		143.7		157.4	(9	)%
Accessories & Equipment		22.2		22.7	(2	)%		51.5		51.4	—
Total	$	434.5	$	452.4	(4	)%	$	885.7	$	962.9	(8	)%
Brand Net Sales to Unrelated Entities:
Columbia	$	370.3	$	395.2	(6	)%	$	773.9	$	856.5	(10	)%
Mountain Hardwear		35.2		35.2	—			71.6		70.8	1	%
Sorel		27.0		19.0	42	%		31.6		25.1	26	%
Other		2.0		3.0	(33	)%		8.6		10.5	(18	)%
Total	$	434.5	$	452.4	(4	)%	$	885.7	$	962.9	(8	)%

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