This quarterly report contains forward-looking statements. Forward-looking statements include any statements related to our expectations regarding future performance or market position, including any statements regarding anticipated sales results across markets, distribution channels and product categories, access to raw materials and factory capacity, and financing and working capital requirements and resources.

These forward-looking statements, and others we make from time to time, are subject to a number of risks and uncertainties. Many factors may cause actual results to differ materially from those projected in forward-looking statements, including the risks described below in Part II, Item 1A, Risk Factors. We do not undertake any duty to update forward-looking statements after the date they are made or to conform them to actual results or to changes in circumstances or expectations.

Our Business

As one of the largest outdoor apparel and footwear companies in the world, we design, develop, market and distribute active outdoor apparel, footwear and related accessories and equipment under the Columbia, Mountain Hardwear, Sorel, Montrail, and Pacific Trail brands. Our brands are distributed through a mix of wholesale distribution channels, independent distributors, our own retail stores and licensees.

As a consumer products company, the popularity of outdoor activities and changing design trends affect the desirability of our products. Therefore, we seek to anticipate and respond to trends and shifts in consumer preferences by adjusting the mix of available product offerings, developing new products with innovative performance features and designs, and by creating persuasive and memorable marketing communications to drive consumer awareness and demand. Failure to respond to consumer needs and preferences in a timely and adequate manner could have a material adverse effect on our sales and profitability.

Strategy and Outlook Update

Our business, like other branded consumer product companies, is heavily dependent upon discretionary consumer spending patterns. Our net sales volumes have been negatively affected by the volatility of the global economy and its impact on consumer purchasing behavior, and retailers' behavior related to advance orders, order cancellations and seasonal reorders. The current macro-economic environment has caused tightening of credit for some of our wholesale customers, independent distributors and consumers and a significant slowing of retail sales. This has resulted in, and could continue to cause, a more cautious approach by many of our wholesale customers and independent distributors when placing advance orders for seasonal products and reducing, delaying delivery of, or cancelling advance orders placed in earlier periods. In addition, the effects of foreign currency exchange rates may amplify potential net sales declines if the U.S. dollar continues to strengthen compared to foreign currencies in our direct markets. We expect our retail revenues to partially offset some of this anticipated wholesale revenue decline.

We believe that we have appropriately factored our historical experiences, incremental sales from our new retail stores, and the estimated effect of changes in foreign currency exchange rates into our plans. However, unfavorable and unprecedented macro-economic conditions have increased the uncertainty of our planning and forecasts. In this challenging economic environment, we are also mindful of our reliance on the overall financial health of our wholesale customers and their ability to continue to access credit markets to fund their purchases and day-to-day operations.

Although we cannot predict future results with certainty and despite current global economic conditions, we are committed to our demand creation and direct-to-consumer initiatives to stimulate increased consumer demand and improve inventory management with minimal disruption to our wholesale distribution channels. Our direct-to-consumer initiatives include our retail expansion strategy and e-commerce platforms for the Columbia and Sorel brands in the United States. With our commitment to investment in these strategies, a well-developed sourcing and distribution infrastructure and a proven design and product development team, we believe that we are well positioned to establish sustainable platforms that will support long-term growth and profitability.

Overview

The following discussion of our results of operations and liquidity and capital resources, including known trends and uncertainties identified by management, should be read in conjunction with the condensed consolidated financial statements and accompanying notes that appear elsewhere in this quarterly report.

All references to quarters relate to the quarter ended March 31 of the particular year. Highlights for the first quarter of 2009 are as follows:

• Net sales decreased $25.4 million, or 9%, to $272.0 million from $297.4 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the first quarter of 2008 negatively affected the consolidated net sales comparison by approximately five percentage points. The decrease in net sales was primarily driven by our Columbia brand business with the largest decline in the EMEA region, followed by Canada and the LAAP region. Net sales in the United States remained essentially flat in 2009 compared to 2008. Net sales by geographical segment, product category and brand category are summarized in the following table.

                                                                Three Months Ended March 31,
                                                       2009                  2008              % Change
                                                        (In millions, except for percentage changes)
Geographical Net Sales to Unrelated Entities:
United States                                    $          156.3      $          155.8           -
EMEA                                                         49.8                  65.7         (24)%
LAAP                                                         46.1                  49.0          (6)%
Canada                                                       19.8                  26.9         (26)%

                                                 $          272.0      $          297.4          (9)%
Categorical Net Sales to Unrelated Entities:
Sportswear                                       $          138.2      $          161.1         (14)%
Outerwear                                                    76.8                  69.6          10%
Footwear                                                     40.0                  51.3         (22)%
Accessories and Equipment                                    17.0                  15.4          10%

                                                 $          272.0      $          297.4          (9)%
Brand Net Sales to Unrelated Entities:
Columbia                                         $          241.6      $          267.2         (10)%
Mountain Hardwear                                            23.2                  21.8           6%
Sorel                                                         3.0                   3.7         (19)%
Montrail                                                      2.6                   3.9         (33)%
Pacific Trail                                                 1.6                   0.8          100%

                                                 $          272.0      $          297.4          (9)%

• Gross profit decreased 330 basis points to 40.6% of net sales from 43.9% of net sales for the comparable period in 2008. This contraction was primarily due to an increased volume of fall 2008 close-out product sales at lower comparative margins resulting from higher than normal order cancellations and a more promotional retail environment.

• Selling, general and administrative ("SG&A") expense decreased $1.9 million, or 2%, to $102.0 million from $103.9 million for the comparable period in 2008. We expect full year 2009 SG&A expense, as a percentage of net sales, to increase compared to 2008 due primarily to anticipated lower 2009 net sales in our wholesale business in the United States and EMEA region as well as our international distributor business in the EMEA and LAAP regions compared to 2008 net sales, along with an increased fixed cost base resulting from our expanding retail business.

• Net income was $6.9 million or $0.20 per diluted share, compared to $19.9 million or $0.56 per diluted share, for the comparable period in 2008.

• Our backlog for the fall 2009 selling season as of March 31, 2009 decreased $106.4 million, or 15%, to $608.0 million from $714.4 million as of March 31, 2008. Changes in foreign currency exchange rates compared with 2008 contributed approximately four percentage points of decline to the fall 2009 backlog. The decrease in our fall backlog was the result of a decrease in Columbia brand orders led by the United States, followed by the EMEA region and Canada. By product category, the decline primarily reflected decreased orders for outerwear and sportswear. Although we cannot predict with certainty any future results, our reported backlog is one indicator of our anticipated net sales for the fall 2009 selling season. Many factors, however, could cause actual sales to differ materially from reported future order backlog, including the potential cancellation of orders by customers, changes in foreign currency exchange rates and the continued deterioration of macro-economic conditions. We expect that our own retail sales will partially offset some of the anticipated wholesale sales decline for the fall 2009 season. Moreover, our fall 2009 backlog should not be used in forecasting sales beyond the fall 2009 selling season.

Results of Operations

Net income decreased $13.0 million, or 65%, to $6.9 million for the first quarter of 2009 from $19.9 million for the comparable period in 2008. Diluted earnings per share was $0.20 for the first quarter of 2009 compared to $0.56 for the first quarter of 2008.

The following table sets forth, for the periods indicated, the percentage relationship to net sales of specified items in our condensed consolidated statements of operations:

                                                       Three Months Ended
                                                            March 31,
                                                       2009           2008
       Net sales                                        100.0 %        100.0 %
       Cost of sales                                     59.4           56.1

       Gross profit                                      40.6           43.9
       Selling, general and administrative expense       37.5           34.9
       Net licensing income                               0.7            0.2

       Income from operations                             3.8            9.2
       Interest income, net                               0.3            0.8

       Income before income tax                           4.2           10.0
       Income tax expense                                (1.6 )         (3.3 )

       Net income                                         2.5 %          6.7 %

Quarter Ended March 31, 2009 Compared to Quarter Ended March 31, 2008

Net Sales: Consolidated net sales decreased 9% to $272.0 million for the first quarter of 2009 from $297.4 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the first quarter of 2008 negatively affected the consolidated net sales comparison by approximately five percentage points.

The decrease in net sales was primarily driven by our Columbia brand business in the EMEA region, followed by Canada and the LAAP region. Net sales in the United States remained essentially flat for the first quarter of 2009 compared to the first quarter of 2008. By product category, the decrease in net sales was led by sportswear, followed by footwear, partially offset by increases in net sales of outerwear and accessories and equipment.

Sales by Geographic Region

Net sales in the United States increased $0.5 million, or less than 1%, to $156.3 million for the first quarter of 2009 from $155.8 million for the comparable period in 2008. The increase in net sales in the United States was led by outerwear, followed by accessories and equipment, partially offset by a decrease in net sales of sportswear and footwear. The net sales increase was primarily attributable to our expanded retail business for the Columbia brand, partially offset by decreased net sales in our wholesale business for the Columbia brand. The decrease in wholesale net sales in the United States was primarily the result of lower initial order volumes for the spring 2009 season that are partially attributable to the weak U.S. retail environment resulting from difficult macro-economic conditions.

Net sales in the EMEA region decreased $15.9 million, or 24%, to $49.8 million for the first quarter of 2009 from $65.7 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the first quarter of 2008 negatively affected the EMEA net sales comparison by approximately eight percentage points. The decrease in net sales in the EMEA region was led by sportswear, followed by footwear and outerwear. Net sales of accessories and equipment in the EMEA region remained essentially flat compared to the first quarter of 2008. The net sales decrease for the EMEA region was primarily due to a decrease in the EMEA direct business. The decrease in EMEA direct net sales was a result of lower initial order volumes reflecting difficult macro-economic conditions and continued product assortment and marketing challenges in that region. Net sales to EMEA distributors decreased slightly reflecting a shift in the timing of shipments. A higher percentage of spring 2009 shipments occurred in the fourth quarter of 2008, while a higher percentage of spring 2008 shipments occurred in the first quarter of 2008.

Net sales in the LAAP region decreased $2.9 million, or 6%, to $46.1 million for the first quarter of 2009 from $49.0 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the first quarter of 2008 negatively affected the LAAP net sales comparison by approximately four percentage points. The decrease in net sales in the LAAP region was led by sportswear and outerwear, partially offset by net sales increases in footwear and accessories and equipment. The net sales decrease in the LAAP region was driven by LAAP distributors, followed by our Korea business, partially offset by an increase in net sales in our Japan business. The net sales decrease for LAAP distributors primarily related to the timing of shipments as a higher proportion of spring 2009 shipments occurred in the fourth quarter of 2008 while a higher proportion of spring 2008 shipments

occurred in the first quarter of 2008. The decrease in Korea net sales was due to unfavorable changes in foreign currency exchange rates compared to the first quarter of 2008 and offset a net sales increase in local currency. The increase in Japan net sales was primarily the result of continued expansion of the wholesale business and favorable changes in foreign exchange rates compared to the first quarter of 2008.

Net sales in Canada decreased $7.1 million, or 26%, to $19.8 million for the first quarter of 2009 from $26.9 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with 2008 negatively affected the Canada net sales comparison by approximately 18 percentage points. The decrease in net sales in Canada was led by sportswear, followed by footwear and outerwear, partially offset by increased net sales of accessories and equipment. The net sales decrease was primarily attributable to intentional reductions in some channels of distribution.

Sales by Product Category

Net sales of sportswear decreased $22.9 million, or 14%, to $138.2 million for the first quarter of 2009 from $161.1 million for the comparable period in 2008. The decrease in sportswear net sales was led by the EMEA region, followed by the United States, Canada and the LAAP region. The sportswear net sales decrease in the EMEA region was primarily attributed to the EMEA direct business. The sportswear net sales decrease in the United States was primarily attributed to the wholesale business for the Columbia brand, partially offset by increased net sales through our expanded retail business. We primarily attribute the decreases in EMEA direct and United States wholesale sportswear net sales to lower initial order volumes for the spring 2009 season resulting from difficult macro-economic conditions in those regions.

Net sales of outerwear increased $7.2 million, or 10%, to $76.8 million for the first quarter of 2009 from $69.6 million for the comparable period in 2008. The increase in outerwear net sales was led by the United States, partially offset by net sales decreases in the LAAP region, Canada and the EMEA region. The outerwear net sales increase in the United States was primarily attributable to a higher volume of fall 2008 close-out product sales compared to the same period in 2008.

Net sales of footwear decreased $11.3 million, or 22%, to $40.0 million for the first quarter of 2009 from $51.3 million for the comparable period in 2008. The decrease in footwear net sales was led by the EMEA region, followed by the United States and Canada, partially offset by an increase in net sales in the LAAP region. The decrease in net sales of footwear for the EMEA region was primarily attributable to the EMEA direct business as a result of lower initial order volumes due to continued product assortment and marketing challenges in that region, coupled with the continued deterioration of macro-economic conditions. The decrease in the United States wholesale net sales was primarily due to lower initial order volumes, partially offset by an increase in net sales in our expanded United States retail business.

Net sales of accessories and equipment increased $1.6 million, or 10%, to $17.0 million for the first quarter of 2009 from $15.4 million for the comparable period in 2008. The increase in accessories and equipment net sales was led by the United States, followed by the LAAP region and Canada. Net sales of accessories and equipment remained essentially flat in the EMEA region. The increase in accessories and equipment net sales in the United States was primarily attributable to increased net sales in our expanded retail business.

Gross Profit: Gross profit, as a percentage of net sales, decreased to 40.6% for the first quarter of 2009 from 43.9% for the comparable period in 2008. Gross profit contraction was primarily due to an increased volume of fall 2008 close-out product sales at lower comparative margins resulting from higher than normal order cancellations and a more promotional retail environment.

Our gross profits may not be comparable to those of other companies in our industry because some include all of the costs related to their distribution network in cost of sales. We, like others, have chosen to include these expenses as a component of SG&A expense.

Selling, General and Administrative Expense: SG&A expense includes all costs associated with our design, merchandising, marketing, distribution and corporate functions, including related depreciation and amortization.

SG&A expense decreased $1.9 million, or 2%, to $102.0 million for the first quarter of 2009 from $103.9 million for the comparable period in 2008. The decrease was driven by cost reduction initiatives that began after the first quarter of 2008 and affected the first quarter of 2009. The cost reduction initiatives included reductions in headcount, incentive compensation, benefits, and other discretionary costs as well as reductions to planned marketing spend for 2009. These cost reduction initiatives were partially offset by increased costs associated with our direct-to-consumer initiatives. As a percentage of net sales, SG&A expense increased to 37.5% of net sales for the first quarter of 2009 from 34.9% of net sales for the comparable period in 2008. The increase in SG&A expense as a percentage of sales was largely the result of reduced net sales in our wholesale business in the United States and EMEA region coupled with an increased fixed cost base resulting from our expanding retail business.

Selling expenses, including commissions and advertising, decreased $5.6 million, or 19%, to 8.6% of net sales for the first quarter of 2009 from 9.7% of net sales for the comparable period in 2008. We attribute the decrease in selling expenses as a percentage of net sales to a planned reduction in marketing investments and lower commission expense as certain sales territories in the United States and EMEA have moved in-house. Operating expenses for the in-house territories are included in general and administrative expenses.

General and administrative expenses increased $3.7 million, or 5%, to 28.9% of net sales for the first quarter of 2009 from 25.2% of net sales for the comparable period in 2008. The increase in general and administrative expenses as a percentage of net sales was primarily due to incremental operating costs in support of our direct-to-consumer initiatives in the United States and the movement of certain sales territories in-house. Depreciation and amortization included in SG&A expense totaled $8.0 million for the first quarter of 2009, compared to $7.5 million for the same period in 2008.

Net Licensing Income: We derive net licensing income from income that we earn through licensing our trademarks for apparel and footwear and across a range of categories that complement our current product offerings. Products distributed by our licensees for the first quarter of 2009 included apparel, footwear, socks, bicycles, insulated products including soft-sided coolers, leather accessories, camping gear, eyewear, watches, home furnishings, and other accessories.

Net licensing income increased $1.1 million to $1.9 million for the first quarter of 2009 from $0.8 million for the same period in 2008 and was primarily attributed to increased apparel and footwear licensing in the LAAP region.

Interest Income, Net: Net interest income was $0.9 million for the first quarter of 2009 compared to $2.3 million for the same period in 2008. The decrease in interest income was due to lower interest rates compared to the same period in 2008. Interest expense was nominal for the first quarter of 2009 and for the comparable period in 2008.

Income Tax Expense: The provision for income taxes decreased to $4.4 million for the first quarter of 2009 from $9.8 million for the comparable period in 2008 due to lower income, partially offset by a higher effective income tax rate in the first quarter of 2009 compared to the first quarter of 2008. Our effective income tax rate was 39.0% for the first quarter of 2009 compared to 33.0% for the same period in 2008. The increase in our effective tax rate was primarily due to the fact that we expect a higher percentage of 2009 income to be earned in the United States, which generally has a higher corporate income tax rate than in foreign jurisdictions. We anticipate that our annual effective tax rate will be lower than our first quarter rate. However, many factors could cause our annual effective tax rate to differ materially from our quarterly effective tax rates, including changes in the geographic mix of taxable income and discrete events in future periods.

Liquidity and Capital Resources

Our primary ongoing funding requirements are for working capital, investing activities associated with the expansion of our global operations and general corporate needs. At March 31, 2009, we had total cash and cash equivalents of $272.1 million compared to $230.6 million at December 31, 2008. In addition, we had short-term investments of $27.7 million at March 31, 2009 compared to $22.4 million at December 31, 2008.

Net cash provided by operating activities was $58.8 million for the three months ended March 31, 2009 compared to $60.9 million for the same period in 2008. The change was primarily due to lower net income and a larger decrease in accounts payable, partially offset by a larger decrease in accounts receivable, during the three months ended March 31, 2009 compared to the same period in 2008.

Net cash used in investing activities was $10.3 million for the three months ended March 31, 2009, compared to net cash provided by investing activities of $70.5 million for the comparable period in 2008. For the 2009 period, net cash used in investing activities primarily consisted of $10.3 million for capital expenditures, of which $5.2 million was incurred but not yet paid, and $5.2 million for purchases of short-term investments. For the 2008 period, net cash provided by investing activities primarily consisted of net sales of short-term investments of $80.0 million, partially offset by $14.2 million used for capital expenditures, of which $4.6 million was incurred but not yet paid.

Cash used in financing activities was $5.6 million for the three months ended March 31, 2009, compared to $45.8 million for the comparable period in 2008. For the 2009 period, net cash used in financing activities primarily consisted of a dividend payment of $5.4 million. For the 2008 period, net cash used in financing activities primarily consisted of the repurchase of common stock at an aggregate price of $40.3 million and a dividend payment of $5.6 million.

To fund our domestic working capital requirements, we have available unsecured revolving lines of credit with aggregate seasonal limits ranging from $50.0 million to $125.0 million, of which $25.0 million to $100.0 million is committed. At March 31, 2009, no balance was outstanding under these lines of credit and we were in compliance with covenants associated with these lines of credit. Internationally, our subsidiaries have local currency operating lines in place guaranteed by us with a combined limit of approximately $100.2 million at March 31, 2009, of which $3.3 million is designated as a European customs guarantee. At March 31, 2009, no balance was outstanding under these lines of credit.

We expect to fund our future capital expenditures with existing cash and cash provided by operations. If the need arises, we may need to seek additional financing. Our ability to obtain additional financing will depend on many factors, including prevailing market conditions, our financial condition, and our ability to negotiate favorable terms and conditions. Financing may not be available on terms that are acceptable or favorable to us, if at all.

Our operations are affected by seasonal trends typical in the outdoor apparel industry, and have historically resulted in higher sales and profits in the third calendar quarter. This pattern has resulted primarily from the timing of shipments to wholesale customers for the fall outerwear season. We believe that our liquidity requirements for at least the next 12 months will be adequately covered by existing cash, cash provided by operations and existing short-term borrowing arrangements.

Off-Balance Sheet Arrangements

We maintain unsecured and uncommitted import lines of credit with a combined limit of $125.0 million at March 31, 2009, available for issuing documentary . . .