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, which includes independent distributors, our own retail channels and licensees.

The popularity of outdoor activities and changing design trends affect consumer 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

Like other branded consumer product companies, our business 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, replenishment orders, order cancellations and seasonal reorders. The current economic environment has caused tightening of credit for some of our wholesale customers and consumers and a significant slowing of retail sales. This has resulted in, and could continue to cause, some bankruptcies among our wholesale customers, a more cautious approach by many of our wholesale customers 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 strengthens compared to local currencies in our direct markets, as we have experienced in some markets. We expect our retail and e-commerce revenues to partially offset some of this anticipated wholesale revenue decline. We launched our e-commerce website in the United States for the Columbia brand during the third quarter of 2009 and launched our e-commerce website in the United States for the Sorel brand early in the fourth quarter of 2009.

We believe that we have appropriately factored our historical experiences, incremental sales from our new retail stores and e-commerce platform, and the estimated effect of changes in foreign currency exchange rates into our outlook for fiscal year 2009. However, unfavorable and unprecedented global 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 inventory purchases and day-to-day operations.

The business climate continues to present us with a great deal of uncertainty and ambiguity, with a number of variables that we rely on for planning purposes moving in opposing directions and making it difficult to predict the future. Factors that could significantly affect our 2010 outlook include:

• Fluctuating currency exchange rates;

• Changes in mix and volume of full price sales versus closeout product sales;

• Changes in the volume of order cancellations;

• Incremental sales through our expanding retail and e-commerce operations, which are not included in backlog;

• Sales fluctuations in our retail stores; and

• Changes in spending levels related to strategic initiatives and cost-containment efforts.

Although we cannot predict future results with certainty and despite current global economic conditions, we are committed to our strategies, which focus on product innovation and using our portfolio of outdoor brands to meet the needs of outdoor consumers. Our direct-to-consumer initiatives include our retail expansion plans and e-commerce platforms for the Columbia and Sorel brands in the United States. With our commitment to investment in these strategies, while maintaining a well-developed sourcing and distribution infrastructure, 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 September 30 of the particular year. Highlights for the third quarter of 2009 are as follows:

• Net sales decreased $17.9 million, or 4%, to $434.5 million from $452.4 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the third quarter of 2008 negatively affected the consolidated net sales comparison by approximately one percentage point. The decrease in net sales was primarily concentrated in our Columbia brand business in the EMEA region, followed by the United States, Canada and the LAAP region. Net sales by geographical segment, product category and brand category are summarized in the following table.

                                                      Three Months Ended September 30,                             Nine Months Ended September 30,
                                               2009                2008               % Change              2009                 2008              % Change
                                                (In millions, except for percentage changes)                (In millions, except for percentage changes)
Geographical Net Sales to Unrelated
Entities:
United States                             $         267.4     $         271.3           (1)%          $          521.4     $          522.7           -
EMEA                                                 67.7                78.2          (13)%                     151.2                207.3         (27)%
LAAP                                                 44.3                46.1           (4)%                     130.3                135.2          (4)%
Canada                                               55.1                56.8           (3)%                      82.8                 97.7         (15)%

                                          $         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 and Equipment                            22.2                22.7           (2)%                      51.5                 51.4           -

                                          $         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)%

                                          $         434.5     $         452.4           (4)%          $          885.7     $          962.9          (8)%

• Gross profit decreased 130 basis points to 43.4% of net sales from 44.7% of net sales for the comparable period in 2008. This decrease was primarily due to lower outerwear gross margins in Canada, the United States wholesale business and EMEA direct and distributor businesses and the unfavorable effects of foreign currency hedge rates in Canada.

• Selling, general and administrative ("SG&A") expense increased $3.4 million, or 3%, to $124.2 million from $120.8 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 compared to 2008, along with an increased fixed cost base resulting from our expanding direct-to-consumer operations.

• Net income was $46.9 million or $1.38 per diluted share, compared to $58.3 million or $1.69 per diluted share, for the comparable period in 2008.

• Our wholesale backlog for the spring 2010 selling season as of September 30, 2009 decreased $20.1 million, or 5%, to $350.8 million from $370.9 million as of September 30, 2008, including a benefit of approximately two percentage points

Results of Operations

Net income decreased $11.4 million to $46.9 million for the third quarter of 2009 from $58.3 million for the comparable period in 2008. Diluted earnings per share was $1.38 for the third quarter of 2009 compared to $1.69 for the third 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          Nine Months Ended
                                                      September 30,               September 30,
                                                   2009           2008          2009          2008
Net sales                                           100.0 %        100.0 %       100.0 %      100.0 %
Cost of sales                                        56.6           55.3          57.8         56.6

Gross profit                                         43.4           44.7          42.2         43.4
Selling, general and administrative expense          28.6           26.7          36.0         32.8
Net licensing income                                  0.3            0.4           0.6          0.4

Income from operations                               15.1           18.4           6.8         11.0
Interest income, net                                  0.1            0.4           0.2          0.7

Income before income tax                             15.2           18.8           7.0         11.7
Income tax expense                                   (4.4 )         (5.9 )        (2.0 )       (3.8 )

Net income                                           10.8 %         12.9 %         5.0 %        7.9 %

Quarter Ended September 30, 2009 Compared to Quarter Ended September 30, 2008

Net Sales: Consolidated net sales decreased 4% to $434.5 million for the third quarter of 2009 from $452.4 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the third quarter of 2008 negatively affected the consolidated net sales comparison by approximately one percentage point.

The decrease in net sales was primarily concentrated in our Columbia brand business in the EMEA region, followed by the United States, Canada and the LAAP region. By product category, the decrease in net sales was concentrated in sportswear, followed by outerwear and accessories and equipment, partially offset by an increase in net sales of footwear.

Sales by Geographic Region

Net sales in the United States decreased $3.9 million, or 1%, to $267.4 million for the third quarter of 2009 from $271.3 million for the comparable period in 2008. The decrease in net sales in the United States was attributable to decreases in net sales of sportswear, outerwear and accessories and equipment, partially offset by an increase in net sales of footwear. The decrease in the United States wholesale business was partially offset by an increase in net sales from our expanded base of retail operations. The wholesale net sales decrease was primarily due to decreases in net sales of Columbia-branded sportswear and outerwear, partially offset by increased net sales of Sorel-branded footwear. The decrease in wholesale net sales reflected lower advance order volumes, customer credit limitations and the liquidation or reorganization of several wholesale customers this year. The increase in net sales from retail stores was primarily attributable to increases in net sales of Columbia-branded sportswear, outerwear and footwear. We operated 18 more retail stores in the United States at September 30, 2009 than at September 30, 2008. In addition, we launched our Columbia brand e-commerce site in the United States in July 2009.

Net sales in the EMEA region decreased $10.5 million, or 13%, to $67.7 million for the third quarter of 2009 from $78.2 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the third quarter of 2008 negatively

affected the EMEA net sales comparison by approximately three percentage points. The decrease in net sales in the EMEA region was led by outerwear, followed by sportswear, partially offset by increased net sales of footwear and accessories and equipment. The net sales decrease for the EMEA region was led by our EMEA direct business followed by EMEA distributors. The decrease in net sales in our EMEA direct business was a result of lower advance order volumes reflecting difficult macro-economic conditions and continued product assortment and marketing challenges in that region. The net sales decrease to EMEA distributors, in part, reflected very difficult macro-economic conditions in Russia, partially offset by a shift in the timing of fall 2009 shipments into the third quarter of 2009 from the second quarter of 2009 as compared to the same periods in 2008.

Net sales in the LAAP region decreased $1.8 million, or 4%, to $44.3 million for the third quarter of 2009 from $46.1 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the third quarter of 2008 positively affected the LAAP net sales comparison by approximately two percentage points. The decrease in net sales in the LAAP region was led by sportswear followed by footwear and accessories and equipment, partially offset by a net sales increase in outerwear. The net sales decrease in the LAAP region was primarily concentrated in 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 reflected continued difficult macro-economic conditions in our distributors' regions and the rescheduling of some shipments for southern hemisphere distributors from mid-year 2009 to the fourth quarter of 2009. The decrease in Korea net sales was due to unfavorable changes in foreign currency exchange rates, compared to the third quarter of 2008, which offset a net sales increase in local currency. The increase in Japan net sales was primarily the result of favorable changes in foreign currency exchange rates compared to the third quarter of 2008.

Net sales in Canada decreased $1.7 million, or 3%, to $55.1 million for the third quarter of 2009 from $56.8 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 five percentage points and turned a net sales increase in local currency into a decrease in reported net sales. The decrease in net sales in Canada was primarily concentrated in sportswear, followed by outerwear, partially offset by net sales increases in footwear and accessories and equipment. The net sales increase in local currency was primarily attributable to a shift in the timing of fall 2009 shipments since a higher proportion of fall shipments occurred in the third quarter of 2009 compared to 2008, where a higher proportion occurred in the fourth quarter. The local currency net sales increase was partially offset by lower advance order volumes from customers which include planned reductions by us in some channels of distribution.

Sales by Product Category

Net sales of sportswear decreased $14.6 million, or 9%, to $142.9 million for the third quarter of 2009 from $157.5 million for the comparable period in 2008. The decrease in sportswear net sales was led by the United States, followed by the EMEA region, Canada, and the LAAP region. The sportswear net sales decrease in the United States was primarily attributable to decreased net sales of Columbia-branded products to our wholesale customers, partially offset by increased net sales through our expanded base of retail operations. The sportswear net sales decrease in the EMEA region was concentrated in our EMEA direct business. The sportswear net sales decrease in the LAAP region was concentrated in LAAP distributors.

Net sales of outerwear decreased $9.5 million, or 5%, to $199.1 million for the third quarter of 2009 from $208.6 million for the comparable period in 2008. The decrease in outerwear net sales primarily consisted of decreased net sales in the EMEA region, followed by the United States and Canada, partially offset by increased net sales in the LAAP region. The outerwear net sales decrease in the EMEA region was led by the EMEA direct business followed by EMEA distributors. In the United States, a net sales decrease in the wholesale business was partially offset by increased net sales from our retail stores. The outerwear net sales increase in the LAAP region was concentrated in Japan.

Net sales of footwear increased $6.7 million, or 11%, to $70.3 million for the third quarter of 2009 from $63.6 million for the comparable period in 2008. The increase in footwear net sales was led by increased net sales in the United States, followed by Canada and the EMEA region, partially offset by a decrease in net sales in the LAAP region. The footwear net sales increase was primarily attributable to increased net sales of Sorel-branded products, partially offset by a decrease in net sales of Columbia-branded products. The increase in footwear net sales in the United States was driven by the wholesale business followed by our retail operations. The increase in EMEA footwear net sales was concentrated in the EMEA direct business and partially offset by decreased EMEA distributor net sales. The decrease in footwear net sales in the LAAP region was concentrated in LAAP distributors.

Net sales of accessories and equipment decreased $0.5 million, or 2%, to $22.2 million for the third quarter of 2009 from $22.7 million for the comparable period in 2008. The decrease in accessories and equipment net sales was led by the United States, followed by the LAAP region, partially offset by net sales increases in the EMEA region and Canada. The decrease in accessories and equipment net sales in the United States was primarily attributable to decreased net sales in the Columbia brand wholesale business, partially offset by a net sales increase in our retail operations.

Gross Profit: Gross profit decreased 130 basis points to 43.4% of net sales for the third quarter of 2009 from 44.7% of net sales for the comparable period in 2008. This decrease was primarily due to lower outerwear gross margins in Canada, the United States wholesale and EMEA direct and distributor businesses and the unfavorable effects of foreign currency hedge rates in Canada.

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 many others, include these expenses in SG&A.

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 increased $3.4 million, or 3%, to $124.2 million for the third quarter of 2009 from $120.8 million for the comparable period in 2008. As a percentage of net sales, SG&A expense increased to 28.6% for the third quarter of 2009 from 26.7% for the comparable period in 2008. The increase in SG&A expense as a percentage of net sales was largely the result of reduced net sales in our wholesale business coupled with an increased fixed cost base related to our expanding direct-to-consumer operations. This increase was partially offset by cost reduction initiatives that began in 2008 and positively affected the third quarter of 2009. These cost reduction initiatives included reductions in headcount, incentive compensation, benefits, and other discretionary costs.

Selling expenses, including commissions and advertising, decreased $4.9 million, or 12%, to 8.5% of net sales for the third quarter of 2009 from 9.2% of net sales for the comparable period in 2008. We attribute the decrease in selling expenses as a percentage of net sales to lower commission expense as relationships with certain independent sales agencies in the United States and the EMEA region have been discontinued and replaced by in-house sales operations. Operating expenses for the in-house sales organization are included in general and administrative expenses.

General and administrative expenses increased $8.3 million, or 11%, to 20.1% of net sales for the third quarter of 2009 from 17.5% 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 and the expansion of our in-house sales organization, partially offset by decreased bad debt expense. Depreciation and amortization included in SG&A expense totaled $9.1 million for the third quarter of 2009, compared to $7.8 million for the same period in 2008.

Net Licensing Income: We license our trademarks across a range of categories that complement our current product offerings.

Net licensing income decreased $0.6 million to $1.3 million for the third quarter of 2009 from $1.9 million for the same period in 2008. Products distributed by our licensees for the third quarter of 2009 included apparel, footwear, leather accessories, eyewear, socks, insulated products including soft-sided coolers, camping gear, bicycles, home products, luggage, watches and other accessories.

Interest Income, Net: Net interest income decreased $1.5 million to $0.3 million for the third quarter of 2009 from $1.8 million for the same period in 2008. The decrease in interest income was due to significantly lower interest rates compared to the same period in 2008. Interest expense was nominal for the third quarter of 2009 and for the comparable period in 2008.

Income Tax Expense: Income tax expense decreased to $19.1 million for the third quarter of 2009 from $26.6 million for the comparable period in 2008 due to lower income before income taxes and a lower effective income tax rate in the third quarter of 2009 compared to the third quarter of 2008. Our effective income tax rate was 29.0% for the third quarter of 2009 compared to 31.3% for the same period in 2008. Our effective income tax rate decreased primarily as a result of the reversal of certain tax reserves due to the expiration of the relevant statute of limitations. 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 that may occur in various quarters.

Nine Months Ended September 30, 2009 Compared to Nine Months Ended September 30, 2008

Net Sales: Consolidated net sales decreased $77.2 million, or 8%, to $885.7 million for the nine months ended September 30, 2009 from $962.9 million for the comparable period in 2008. Changes in foreign currency exchange rates compared with the nine months ended September 30, 2008 negatively affected the consolidated net sales comparison by approximately three percentage points.

The decrease in net sales was primarily concentrated in the EMEA region, followed by Canada, the LAAP region and the United States. By product category, the net sales decrease was led by sportswear, followed by footwear and outerwear. Net sales of accessories and equipment remained essentially flat compared to 2008.

Sales by Geographic Region

Net sales in the United States decreased $1.3 million, or less than 1%, to $521.4 million from $522.7 million for the comparable period in 2008. The decrease in net sales in the United States was primarily concentrated in sportswear, followed by footwear and accessories and equipment, partially offset by an increase in net sales of outerwear. The net sales decrease was due to . . .