What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-27 compared with 2024-02-26 · 60 added, 74 removed, 126 unchanged (52% of the section changed)

Founded in 1938 in Portland, Oregon, as a small, family-owned, regional hat distributor and incorporated in Oregon in 1961, Columbia Sportswear Company has grown to become a global leader in designing, developing, marketing, and distributing outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment.

Unless the context indicates otherwise, the terms "we," "us," "our," "the Company," and "Columbia" refer to Columbia Sportswear Company, together with its wholly owned subsidiaries and entities in which it maintained a controlling financial interest.

BRANDS AND PRODUCTS

5 unchanged sentences

Our SOREL brand leverages its rich heritage, innovation and style to offer distinct, compelling, and unexpected footwear to consumers around the world.

Mountain Hard Wear® | Acquired in 2003, our Mountain Hardwear brand's mission is to encourage and equip people to seek a wilder path in life.

With over 30 years of wild wisdom, our Mountain Hardwear brand continues to design essential, premium apparel, accessories and equipment products for climbers, mountaineers, skiers, snowboarders, and trail athletes.

prAna® | Acquired in 2014, our prAna brand's mission is to inspire an intentional, authentic life.

Energized by the culture of yoga and climbing, our prAna brand offers apparel, accessories and equipment products for consumers defining their own kind of movement.

Mountain Hardwear® | Acquired in 2003, our Mountain Hardwear brand's mission is to encourage and equip people to seek a wilder path in life.

With over 30 years of wild wisdom, our Mountain Hardwear brand continues to offer essential, premium apparel, accessories and equipment products for climbers, mountaineers, skiers, snowboarders, and trail athletes.

prAna® | Acquired in 2014, our prAna brand's mission is to celebrate the spirit of adventure and discovery, encouraging individuals to pursue their passions inspired by an active California lifestyle.

Our prAna brand offers apparel and accessories that blend style and versatility for individuals who embrace movement and have a deep reverence for nature.

Across our diverse portfolio of brands, our products have gained recognition for their innovation, quality, value, and performance.

1 unchanged sentence

Our apparel, accessories and equipment products are designed to be used for all seasons, activities and locations.

Our footwear products include durable, lightweight hiking boots, trail running shoes, rugged cold weather boots for activities on snow and ice, sandals and shoes for use in water activities, and footwear for lifestyle wear.

Our footwear products include durable, lightweight hiking boots, trail running shoes, rugged cold weather boots, sandals, shoes for use in water activities, and footwear for lifestyle wear.

SEASONALITY AND VARIABILITY OF BUSINESS

11 unchanged sentences

therefore, we do not own, operate or manage manufacturing facilities.

The majority of our finished goods are produced by contract manufacturers located outside the United States.

The majority of our finished goods are produced by contract manufacturers located outside the United States ("U.S.").

We establish and maintain long-term relationships with key finished good manufacturing partners, but generally do not maintain formal long-term manufacturing volume commitments.

The use of contract manufacturers for our finished goods maximizes our flexibility and improves our product pricing.

The use of contract manufacturers for our finished goods maximizes our flexibility and historically has benefited our product costs.

We value legal, ethical and fair treatment of people involved in manufacturing our products.

Independent contractors manufacturing our products are subject to our standards of manufacturing practices to facilitate safe and humane working conditions, as well as to promote ethical business practices.

We have programs in place to monitor manufacturer practices and assess alignment against these standards.

We maintain eight manufacturing liaison offices in seven Asia Pacific countries.

We have programs in place to monitor manufacturer practices and assess alignment with these standards.

We maintain manufacturing liaison offices in seven Asia Pacific countries.

Our personnel in these offices monitor production at our contract manufacturers' facilities to ensure our products are manufactured to our specifications.

2 unchanged sentences

Five of the largest contract finished goods manufacturers account for approximately 30% of our apparel, accessories and equipment production, with the largest manufacturer accounting for approximately 10%.

In 2023, our footwear products for our wholesale and DTC businesses were manufactured into finished goods in five countries.

In 2024, our footwear products for our wholesale and DTC businesses were manufactured into finished goods in four countries.

In 2024, finished goods manufacturers in Vietnam and China produced approximately 80% and 15%, respectively, of these products.

3 unchanged sentences

Our portfolio of brands enables us to target a wide range of consumers with differentiated products.

Our marketing supports and enhances our competitive position in the marketplace, drives alignment through seasonal initiatives, builds brand equity, raises brand relevance and awareness, infuses our brands with excitement, and, most importantly, stimulates consumer demand for our products.

Our integrated marketing efforts deliver consistent messages about the performance benefits, features and styles of our products within each of our brands and their target consumers.

We utilize a variety of means to deliver our marketing messages, including digital marketing, social media interactions, television and print publications, experiential events, brand ambassadors, enhanced product store displays, and consumer-focused public relations efforts.

Our integrated marketing efforts deliver messages about the performance benefits, features and styles of our products within each of our brands to their target consumers.

We utilize a variety of means to deliver our marketing messages, including digital marketing, branded e-commerce and marketing sites, social media interactions, television and print publications, experiential events, brand ambassadors, branded and enhanced product store displays, and consumer-focused public relations efforts.

In addition, we reinforce our brands' marketing messages with our key wholesale customers by utilizing digital platforms, television, print and advertising campaigns, as well as in-store branded visual merchandising display tools and favorable product presentation.

We operate branded e-commerce and marketing sites and maintain an active presence on a variety of global social media platforms.

We also authorize and encourage our international distributors to connect with consumers by operating e-commerce and marketing sites and maintaining a presence on social media platforms.

Digital marketing and social media engagement increase our ability to build strong emotional connections with consumers through consistent, brand-enhancing content.

Our digital media connects our consumers to brand content and products, while facilitating their direct product purchases or directing them to nearby retail locations.

COLUMBIA SPORTSWEAR COMPANY | 2023 FORM 10-K | 2

SALES AND DISTRIBUTION

We sell our products in more than 100 countries and operate in four geographic segments:

United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA"), and Canada.

Each geographic segment operates predominantly in one industry:

the design, development, marketing, and distribution of outdoor, active and lifestyle apparel, footwear, accessories, and equipment products.

We sell our products in more than 110 countries and operate in four reportable segments:

U.S., Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA"), and Canada.

These reportable segments are organized by geographic location.

Each reportable

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 2

segment operates predominantly in one industry:

the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment.

We sell our products through a mix of distribution channels.

Our wholesale distribution channel consists of small, independently operated specialty outdoor and sporting goods stores, regional, national and international sporting goods chains, large regional, national and international department store chains, internet retailers, international distributors where we generally do not have our own direct operations, and certain other retailers.

Our DTC distribution channel consists of our own network of branded and outlet retail stores, brand-specific e-commerce sites, and concession or franchise based arrangements with third-parties at branded, outlet and shop-in-shop retail locations in the LAAP and EMEA regions.

Our DTC distribution channel includes a network of branded, outlet, temporary clearance and employee retail stores, brand-specific e-commerce sites and shop-in-shop retail locations.

In addition, we earn revenue through licensing certain of our trademarks across a range of apparel, accessories, equipment, and home products.

3 unchanged sentences

We have over 1,850 wholesale customers in the U.S.

In 2023, our four largest U.S.

In 2024, our five largest U.S.

wholesale customers accounted for approximately 20% of U.S.

net sales, and were less than 10% individually.

As of December 31, 2023, we directly operated 161 retail stores and 34 temporary clearance locations.

net sales and less than 10% individually.

As of December 31, 2024, our U.S.

DTC distribution channel sold our products in over 170 retail stores, including 28 temporary clearance locations.

We distribute the majority of our U.S.

products from distribution centers that we own and operate in Portland, Oregon and Robards, Kentucky, as well as through third-party logistics companies that operate distribution centers in Cincinnati, Ohio and Louisville, Kentucky and other facilities located near United States ports.

We also arrange to have products directly shipped from contract manufacturers to wholesale customer-designated facilities in the United States.

products from distribution centers that we own and operate in Portland, Oregon and Robards, Kentucky, as well as through a third-party logistics company that operates a distribution center in Cincinnati, Ohio and other facilities located near U.S.

receiving ports.

We also arrange to have products directly shipped from contract manufacturers to wholesale customer-designated facilities in the U.S.

LAAP provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands and footwear products through our Columbia and SOREL brands.

These products are sold by our wholly owned subsidiaries in Japan, Korea and China, and through distributors in other LAAP markets.

We have nearly 350 wholesale customers, including distributors, in LAAP.

In 2023, our four largest LAAP wholesale customers accounted for approximately 15% of LAAP net sales, and were less than 10% individually.

As of December 31, 2023, we directly operated 248 retail stores, and third-parties operated 27 concession and 47 franchise based stores.

We distribute LAAP products through third-party logistics companies that operate distribution centers near Tokyo, Seoul, and Shanghai for our Japan, Korea and China businesses, respectively.

We have over 350 wholesale customers, including distributors, in LAAP.

In 2024, our five largest LAAP wholesale customers accounted for approximately 10% of LAAP net sales.

As of December 31, 2024, our LAAP DTC distribution channel sold our products in nearly 310 retail stores.

We distribute LAAP products through third-party logistics companies that operate distribution centers near Tokyo, Seoul, and Shanghai for our Japan, Korea and China businesses, respectively, as well as through third-party logistics companies that operate facilities located near receiving ports for our China business.

The vast majority of our products sold to LAAP distributors are shipped directly to the distributors from the contract manufacturers from which we source our products.

1 unchanged sentence

These products are sold by our Europe-direct and EMEA distributor businesses.

We have over 3,400 wholesale customers, including distributors, in EMEA.

In 2023, our three largest EMEA wholesale customers accounted for approximately 15% of EMEA net sales, and were less than 10% individually.

As of December 31, 2023, we directly operated 31 retail stores and third-parties operated 23 concession-based stores.

We distribute the majority of EMEA products from a distribution center that we own and operate in France for our Europe-direct business, as well as through third-party logistics companies that operate facilities located near receiving ports.

We have nearly 3,350 wholesale customers, including distributors, in EMEA.

In 2024, our three largest EMEA wholesale customers accounted for approximately 20% of EMEA net sales and less than 10% individually.

As of December 31, 2024, our Europe-direct distribution channel sold our products in over 60 retail stores.

We distribute the majority of our EMEA products from a distribution center that we own and operate in France for our Europe-direct business, as well as through third-party logistics companies that operate facilities located near receiving ports.

The vast majority of our products sold to EMEA distributors are shipped directly to the distributors from the contract manufacturers from which we source our products.

2 unchanged sentences

We have nearly 450 wholesale customers in Canada.

In 2023, our two largest Canada wholesale customers accounted for approximately 25% of Canada net sales, and were approximately 15% and 10% individually.

As of December 31, 2023, we directly operated 13 retail stores.

In 2024, our two largest Canada wholesale customers accounted for approximately 25% of Canada net sales;

approximately 18% and 7%, respectively.

As of December 31, 2024, our Canada DTC distribution channel sold our products in over 10 retail stores.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 3

3 unchanged sentences

Our trademarks create a market for our products, identify our company and differentiate our products from competitors' products.

We own many trademarks, including Columbia Sportswear Company®, Columbia®, SOREL®, Mountain Hard Wear®, prAna®, the Columbia diamond shaped logo, the Mountain Hardwear nut logo, the SOREL polar bear logo, and the prAna sitting pose logo, as well as many other trademarks relating to our brands, products, styles, and technologies.

We own many trademarks, including Columbia Sportswear Company®, Columbia®, SOREL®, Mountain Hardwear®, prAna®, the Columbia diamond shaped logo, the Mountain Hardwear nut logo, the SOREL polar bear logo, and the prAna sitting pose and horn design logos, as well as many other trademarks relating to our brands, products, styles, and technologies.

We also place significant importance on trade dress (the overall appearance and image of our products) which, as much as trademarks, distinguishes Columbia’s products in the marketplace.

Our design and utility patents describe the technologies, processes and designs incorporated into many of our most important products.

We file applications for United States and foreign patents to protect inventions, designs and enhancements that we deem to have commercial value.

We have design and utility patents, which expire at various times, as well as pending patent applications in the United States and other countries.

We file applications for U.S.

and foreign patents to protect inventions, designs and enhancements that we deem to have commercial value.

We have design and utility patents, which expire at various times, as well as pending patent applications in the U.S.

and other countries.

We vigorously protect these proprietary rights against counterfeit reproductions and other infringing activities.

The markets for outdoor, active and lifestyle apparel, footwear, accessories, and equipment products are highly competitive and we face significant competition from numerous companies.

Our competition includes large companies with significant financial, marketing and operational resources, small companies with limited resources but deep entrenchment in their local markets, emerging brands with a large DTC presence, and other branded competitors.

We also face competition from our wholesale customers who, under their own private brand names, produce and distribute similar products to our target consumers through their own retail stores and e-commerce businesses.

We identify our primary competitive factors in the markets for outdoor, active and lifestyle products to be brand strength, product innovation, design, functionality, durability, and price, as well as effective marketing and delivery of product in alignment with consumer expectations.

We identify our primary competitive factors in the markets for outdoor, active and lifestyle products to be brand strength, product innovation, design, versatility, functionality, performance, durability, and price, as well as effective marketing and delivery of product in alignment with consumer expectations.

GOVERNMENT REGULATION

As a company with global operations, we are, and our products are, subject to the laws of the United States and multiple foreign jurisdictions in which we operate and the rules and regulations of various governing bodies, which may differ among jurisdictions, including laws and regulations concerning product safety, environmental standards, trade, information security, privacy, labor and employment, health, marketing, competition, and safety.

As a company with global operations, we are, and our products are, subject to the laws of the U.S.

and multiple foreign jurisdictions in which we operate and the rules and regulations of various governing bodies, which may differ among jurisdictions, including, but not limited to, laws and regulations concerning product safety, environmental standards, trade, information security, privacy, labor and employment, health, marketing, competition, and safety.

See Item 1A of this Annual Report on Form 10-K for more information of risks relating to these laws, rules, and regulations.

SUSTAINABILITY

Our sustainability strategy is to sustain active lifestyles through investing in initiatives that have a positive impact on the people we reach, the places we touch and the products we make through:

• empowering people;

• sustaining places;

• maintaining responsible practices.

Each of our four brands focuses on impacts that are unique to their positioning within this strategy.

Detailed information regarding our (and our brands’) corporate responsibility priorities and progress can be found in our latest "Impact Report:

Environmental, Social, Governance" at http://columbia.com/corporate-responsibility.

The content of such report is not incorporated by reference.

COLUMBIA SPORTSWEAR COMPANY | 2023 FORM 10-K | 4

HUMAN CAPITAL

3 unchanged sentences

From December 31, 2023 to December 31, 2024, we had an overall employee turnover rate of approximately 56%, impacted by approximately 79% and 54% turnover rates in our retail and distribution employee base, respectively.

Approximately 29% of our workforce was located outside of the United States as of December 31, 2023.

Approximately 32% of our workforce was located outside of the U.S.

as of December 31, 2024.

As of December 31, 2024, our global workforce was self-disclosed as 55% female, 42% male, less than 1% non-binary, and 2% undisclosed or chose not to identify.

In the U.S., the self-disclosed ethnicity of our workforce, including retail and distribution employees, was 55% White, 24% Hispanic or Latino, 7% Asian, 7% Black, less than 1% American Indian or Alaskan Native, less than 1% Native Hawaiian or other Pacific Islander, 3% two or more races, and 2% undisclosed or chose not to identify.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 4

Compensation and Benefits

2 unchanged sentences

Globally, we offer employees affordable, competitive and comprehensive benefit programs.

In the United States, for our largest employee base, we sponsor comprehensive medical, dental, vision and health savings or flexible spending account plans.

In the U.S., for our largest employee base, we sponsor comprehensive medical, dental, vision, and health savings or flexible spending account plans.

We also provide 401(k) plan matching of employee contributions, paid time off, an employee assistance plan, life insurance, and short-term and long-term disability insurance.

Diversity, Equity and Inclusion

A Diversity, Equity and Inclusion Leadership Team was formed in 2020 to focus on diversity, equity, and inclusivity in the workplace.

This team focuses on supporting strategies and efforts in the following categories:

listening and learning, diversifying talent, creating and sponsoring opportunities, and being a force for good.

As of December 31, 2023, our global workforce was self-disclosed as 54% female, 43% male, less than 1% non-binary and 2% undisclosed or chose not to identify.

In the United States, the self-disclosed ethnicity of our workforce, including retail and distribution employees, was 56% White, 23% Hispanic or Latino, 7% Asian, 6% Black, less than 1% American Indian or Alaskan Native, less than 1% Native Hawaiian or other Pacific Islander, 4% two or more races and 2% undisclosed or chose not to identify.

Employee Well-Being

We align our employee programs to the five elements of well-being:

physical health, career, social and emotional health, financial, and community.

For more information on our efforts to support our workforce, see our "Impact Report:

Environmental, Social, Governance" at http://columbia.com/corporate-responsibility.

The content of such report is not incorporated by reference.

AVAILABLE INFORMATION

We make available free of charge on or through the investor relations section on our website at http://investor.columbia.com/sec-filings our proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we file these materials with the Securities and Exchange Commission ("SEC").

Detailed information regarding our (and our brands’) corporate responsibility priorities and progress can be found in our latest "Impact Report" at http://columbia.com/corporate-responsibility.

The content of such report is not incorporated by reference in this Annual Report on Form 10-K.

The content contained on or accessible through any website referred to in this Annual Report on Form 10-K, including those mentioned above, is not incorporated by reference in this annual report unless expressly noted.

9 unchanged sentences

Luther 56 Executive Vice President, Corporate Affairs and Chief Human Resources Officer

Skip Potter 53 Executive Vice President, Chief Digital Information Officer

Swanson 50 Executive Vice President, Chief Financial Officer

24 unchanged sentences

Luther joined the Company in 2008 as Deputy General Counsel.

She was appointed Senior Vice President & Chief Human Resource Officer in September 2015 and named Executive Vice President, Corporate Affairs and Chief Human Resources Officer in January 2023.

She was appointed Senior Vice President & Chief Human Resources Officer in September 2015 and named Executive Vice President, Corporate Affairs and Chief Human Resources Officer in January 2023.

Prior to joining the Company, she served at Northwest Natural Gas from 2002 to 2008, most recently as Corporate Secretary and Chief Governance Officer, and was an attorney at Stoel Rives LLP from 1997 to 2002.

Skip Potter joined the Company in 2021 as Executive Vice President, Chief Digital Information Officer.

Prior to joining the Company, Mr.

Potter held various leadership positions, including Chief Technology Officer and Managing Vice President of Engineering with Nike, Inc., as well as Vice President of Technology Innovation with Capital One, and CIO/CTO for British Telecommunication's Enterprise Group.

Swanson joined the Company in 2003 and has served in numerous roles of increasing responsibility during his tenure, being named Vice President of Finance in 2015 and promoted to Senior Vice President, Chief Financial Officer in 2017 and to Executive Vice President and Chief Financial Officer in 2020.

1 unchanged sentence

Swanson served in a variety of financial planning and analysis, tax, and accounting roles, including senior financial analyst at Freightliner Corporation and at Tality Corporation, and as a senior tax and business advisory associate at Arthur Andersen.

COLUMBIA SPORTSWEAR COMPANY | 2023 FORM 10-K | 6

Craig Zanon joined the Company in 2021 as Senior Vice President, Emerging Brands and was elevated to Executive Vice President, Emerging Brands, EMEA and Asia Direct in February 2024.

3 unchanged sentences

Footwear and General Manager for the Americas.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 6

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business