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):

April 27, 2017

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 27, 2017, Columbia Sportswear Company (the “Company”) issued a press release reporting its first quarter 2017 financial results and updated full year 2017 financial outlook. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Attached hereto as Exhibit 99.2 and incorporated by reference herein is financial information and commentary by Thomas B. Cusick, Executive Vice President of Finance, Chief Financial Officer and Treasurer of Columbia Sportswear Company, for the first quarter of 2017 and forward-looking statements relating to the full year 2017 financial outlook, as posted on the Company’s investor relations website, http://investor.columbia.com, on April 27, 2017. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

ITEM 7.01 REGULATION FD DISCLOSURE

In its April 27, 2017 press release, the Company also announced that its Board of Directors approved a cash dividend of $0.18 per share of common stock to be paid on June 1, 2017 to its shareholders of record on May 18, 2017.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1	Press Release, dated April 27, 2017 (furnished pursuant to Items 2.02 and 7.01 hereof).
99.2	Commentary by Thomas B. Cusick, Executive Vice President of Finance, Chief Financial Officer and Treasurer of Columbia Sportswear Company, dated April 27, 2017 (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: April 27, 2017	By:	/S/ THOMAS B. CUSICK
		Thomas B. Cusick
		Executive Vice President of Finance, Chief Financial Officer and Treasurer

EXHIBIT INDEX

Exhibit	Description
99.1	Press Release, dated April 27, 2017 (furnished pursuant to Items 2.02 and 7.01 hereof).
99.2	Commentary by Thomas B. Cusick, Executive Vice President of Finance, Chief Financial Officer and Treasurer of Columbia Sportswear Company, dated April 27, 2017 (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

rparham@columbia.com

COLUMBIA SPORTSWEAR COMPANY

REPORTS RECORD FIRST QUARTER FINANCIAL RESULTS;

UPDATES FULL YEAR 2017 FINANCIAL OUTLOOK

First Quarter 2017 Highlights:

• Net sales increased 4 percent to a first-quarter record $543.8 million.

• Operating income increased 8 percent to a first-quarter record $48.0 million.

• Net income increased 13 percent to a first-quarter record $36.0 million, or $0.51 per diluted share.

• Cash and short term investments totaled $590.5 million at March 31, 2017.

• Inventory decreased 3 percent to $398.8 million.

• The board of directors approved a regular quarterly dividend of $0.18 per share.

Updated Fiscal Year 2017 Financial Outlook:

• Approximately 3 percent net sales growth compared with 2016 net sales of $2.38 billion, including approximately 1 percentage point negative effect from changes in currency exchange rates;

• Approximately 3 percent growth in operating income to between approximately $256 million and $265 million, representing operating margin of approximately 10.8 percent;

• An effective income tax rate of approximately 23.0 percent; and

• Up to 4 percent growth in net income to between approximately $192 million and $199 million, or $2.72 to $2.82 per diluted share.

PORTLAND, Ore. - April 27, 2017 - Columbia Sportswear Company (NASDAQ: COLM) today announced record net sales of $543.8 million for the first quarter ended March 31, 2017, a 4 percent increase compared with net sales of $525.1 million for the first quarter of 2016. Record first quarter 2017 net income totaled $36.0 million, or $0.51 per diluted share, compared to first quarter 2016 net income of $31.8 million, or $0.45 per diluted share.

Chief Executive Officer Tim Boyle commented, "Our first quarter results provide a good start to a year that presents many challenges, especially in the U.S., which has been impacted by customer bankruptcies, liquidations and ongoing efforts by U.S. retailers to rationalize their store fleets and square footage. We were encouraged by the Columbia brand's continued growth in Europe-direct markets during the first quarter and by the SOREL brand's successful launch of an expanded Spring assortment. In addition, our direct-to-consumer businesses were a source of growth in every region.

"Our updated 2017 outlook anticipates up to 4 percent earnings growth on approximately 3 percent net sales growth, driven by contributions from three of our four brands and all four of our geographic regions. In the midst of changing consumer shopping patterns, our portfolio of powerful brands and strong balance sheet give us the ability

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to continue to drive sustainable, profitable growth."

First Quarter Results

(All comparisons are between first quarter 2017 and first quarter 2016, unless otherwise noted.)

First quarter consolidated net sales increased 4 percent driven by:

• 16 percent net sales growth (17 percent constant-currency) in the LAAP region to $118.3 million, driven by growth in net sales to LAAP distributors combined with growth in China and Japan, partially offset by a net sales decline in Korea;

• 8 percent net sales growth (10 percent constant-currency) in the EMEA region to $55.4 million, including growth in the company's Europe-direct business, partially offset by a decline in net sales to EMEA distributors; and

• 3 percent net sales growth (1 percent decline constant-currency) in Canada to $36.9 million;

partially offset by:

• a U.S. net sales decrease of 1 percent to $333.2 million, due to a decline in wholesale net sales, partially offset by an increase in direct-to-consumer net sales. (See "Geographical Net Sales" table below.)

Global Columbia brand net sales increased 3 percent to $449.1 million. Global SOREL brand net sales increased 50 percent to $27.2 million. Global Mountain Hardwear brand net sales increased 10 percent to $27.7 million, and global prAna brand net sales decreased 7 percent to $38.7 million. (See "Brand Net Sales" table below.)

Global Apparel, Accessories and Equipment net sales increased 1 percent, to $440.0 million. Global Footwear net sales increased 14 percent (15 percent constant-currency), to $103.8 million. (See "Categorical Net Sales" table below.)

Profitability

First quarter income from operations increased 8 percent to $48.0 million, or 8.8 percent of net sales, compared to $44.3 million, or 8.4 percent of net sales, for the same period in 2016.

The effective income tax rate was 20.1 percent in the first quarter of 2017, compared to 22.5 percent for the same period in 2016.

First quarter net income increased 13 percent to $36.0 million, or $0.51 per share, compared with first quarter 2016 net income of $31.8 million, or $0.45 per share.

Balance Sheet

The company ended the quarter with $590.5 million of cash and short-term investments, compared with $451.2 million at March 31, 2016.

Consolidated inventories of $398.8 million at March 31, 2017 were 3 percent lower than the $412.2 million balance at March 31, 2016.

Share Repurchases and Dividends

During the first quarter, the company repurchased 616,152 shares of common stock for a total price of $33.0 million.

The board of directors authorized a regular quarterly cash dividend of $0.18 per share, payable on June 1, 2017 to shareholders of record on May 18, 2017.

Updated 2017 Financial Outlook

All projections related to anticipated future results are forward-looking in nature and are subject to risks and uncertainties which may cause actual results to differ, perhaps materially. Projections are predicated on normal seasonal weather globally. In addition, our 2017 outlook assumes that current macro and market conditions in key markets do not worsen and that current U.S. regulatory and tax policies remain largely unaltered for the balance of the year.

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

The company currently expects 2017 net sales growth of approximately 3 percent compared with 2016 net sales of $2.38 billion, including approximately 1 percentage point negative effect from changes in foreign currency exchange rates. The company's U.S. direct-to-consumer channel is expected to account for a majority of the projected full year 2017 global net sales increase.

The company expects fiscal year 2017 gross margins to improve by approximately 30 basis points, and for selling, general and administrative ("SG&A") expenses to increase at a rate slightly higher than net sales, resulting in approximately 30 basis points of SG&A expense deleverage, including a planned increase in global demand creation spend. The full year effective tax rate is expected to be approximately 23 percent.

Based on the above assumptions, the company expects 2017 operating income to increase approximately 3 percent, to between $256 million and $265 million, resulting in anticipated 2017 operating margin of approximately 10.8 percent. Net income after non-controlling interest is expected to increase up to 4 percent to between approximately $192 million and $199 million, or approximately $2.72 to $2.82 per diluted share. The company's anticipated growth in full year 2017 operating income and net income is expected to occur in the second half. This outlook does not include any financial impact from activities associated with the previously announced operating model assessment that was initiated during the first quarter of 2017.

A more detailed version of the company's first quarter financial results and updated 2017 outlook can be found in the "CFO Commentary on First Quarter Financial Results and Updated 2017 Financial Outlook", available on the company’s investor relations website: http://investor.columbia.com/results.cfm.

CFO’s Commentary on First Quarter Financial Results and Updated 2017 Financial Outlook Available Online

At approximately 4:15 p.m. ET today, a commentary by Tom Cusick, Executive Vice President of Finance, Chief Financial Officer and Treasurer, reviewing the company’s first quarter financial results and updated 2017 financial outlook will be furnished to the SEC on Form 8-K and published on the company’s website at http://investor.columbia.com/results.cfm. Analysts and investors are encouraged to review this commentary prior to participating in the conference call.

Conference Call

The company will host a conference call on Thursday, April 27, 2017 at 5:00 p.m. ET to review its first quarter financial results and updated 2017 financial outlook. Dial 877-407-9205 to participate. The call will also be webcast live on the Investor Relations section of the company's website at http://investor.columbia.com where it will remain available until approximately April 26, 2018.

Second Quarter 2017 Reporting Schedule

Columbia Sportswear Company plans to report financial results for the second quarter on Thursday, July 27, 2017 at approximately 4:00 p.m. ET. Following issuance of the earnings release, a commentary reviewing the company's second quarter financial results will be furnished to the SEC on Form 8-K and published on the investor relations section of the company’s website at http://investor.columbia.com/results.cfm. A public webcast of Columbia's earnings conference call will follow at 5:00 p.m. ET at www.columbia.com.

Supplemental Constant-Currency Financial Information

The company reports its financial information in accordance with accounting principles generally accepted in the United States ("GAAP"). To supplement financial information reported in accordance with GAAP, the company discloses constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in the exchange rates used to translate net sales generated in foreign currencies into U.S. dollars. The company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into U.S. dollars at the exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an

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additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP measures useful by reviewing our net sales results without the volatility in foreign currency exchange rates.  This non-GAAP financial measure also facilitates management’s internal comparisons to our historical net sales results and comparisons to competitors' net sales results. Constant-currency financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The company provides a reconciliation of this non-GAAP measure to the most directly comparable financial measure calculated in accordance with GAAP. (See "Supplemental Financial Information - Net Sales Growth - Constant-currency Basis" tables below.) The constant-currency information presented may not be comparable to similarly titled measures reported by other companies.

About Columbia Sportswear Company

Columbia Sportswear Company has assembled a portfolio of brands for active lives, making it a leader in the global active lifestyle apparel, footwear, accessories, and equipment industry. Founded in 1938 in Portland, Oregon, the company's brands are today sold in approximately 90 countries. In addition to the Columbia® brand, Columbia Sportswear Company also owns the Mountain Hardwear®, SOREL®, prAna®, and OutDry® brands. To learn more, please visit the company's websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, www.prana.com, and www.outdry.com.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding anticipated results, net sales and net sales growth, gross margins, operating expenses, operating income, operating margins, net income, selling, general and administrative expenses, income tax rates, earnings per share, the effects of changes in foreign currency exchange rates, growth in certain brands and geographic regions, and the performance of our U.S. direct-to-consumer channel. Forward-looking statements often use words such as "will," "anticipate," "estimate," "expect," "should" and "may" and other words and terms of similar meaning or reference future dates. The company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the company, including reports on Form 8-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 the anticipated results expressed or implied by forward-looking statements in this document include: loss of key customer accounts; our ability to effectively implement IT infrastructure and business process initiatives and to maintain the strength and security of our IT systems; the effects of unseasonable weather, including global climate change; trends affecting consumer traffic and spending in direct-to-consumer channels; our ability to implement our growth strategy; unfavorable economic conditions generally, the financial health of our customers and changes in the level of consumer spending, apparel preferences and fashion trends; changes in international, federal or state tax, labor and other laws and regulations that affect our business, including changes in corporate tax rates or increasing wage rates; volatility in global production and transportation costs and capacity; risks inherent in doing business in foreign markets, including fluctuations in currency exchange rates; our ability to attract and retain key personnel; risks associated with our joint venture; higher than expected rates of order cancellations; increased consolidation of our wholesale customers; our ability to effectively source and deliver our products to customers in a timely manner; our dependence on independent manufacturers and suppliers and our ability to source finished products and components at competitive prices from them; the effectiveness of our sales and marketing efforts; intense competition in the industry; business disruptions and acts of terrorism, cyber-attacks or military activities around the globe; our ability to establish and protect our intellectual property; the seasonality of our business; and our ability to develop innovative products. The company cautions that forward-looking statements are inherently less reliable than historical information. The company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time and it is not possible for the company to predict or assess the impact of all such factors 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.

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- Financial tables follow -

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COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	March 31,
	2017		2016
Current Assets:
Cash and cash equivalents	$	556,006	$	430,000
Short-term investments	34,470		21,227
Accounts receivable, net	260,456		268,871
Inventories	398,842		412,228
Prepaid expenses and other current assets	40,863		30,116
Total current assets	1,290,637		1,162,442
Property, plant, and equipment, net	279,730		289,663
Intangible assets, net	132,151		137,298
Goodwill	68,594		68,594
Deferred income taxes	90,109		78,090
Other non-current assets	26,853		24,675
Total assets	$	1,888,074	$	1,760,762
Current Liabilities:
Accounts payable	$	95,253	$	113,013
Accrued liabilities	126,866		121,066
Income taxes payable	5,798		4,911
Total current liabilities	227,917		238,990
Note payable to related party	14,171		15,123
Other long-term liabilities	42,872		41,986
Income taxes payable	10,948		10,517
Deferred income taxes	149		231
Total liabilities	296,057		306,847
Equity:
Columbia Sportswear Company shareholders' equity	1,568,271		1,435,285
Non-controlling interest	23,746		18,630
Total equity	1,592,017		1,453,915
Total liabilities and equity	$	1,888,074	$	1,760,762

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COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended March 31,
	2017			2016
Net sales	$	543,793		$	525,136
Cost of sales	285,326			277,759
Gross profit	258,467			247,377
	47.5		%	47.1		%
Selling, general and administrative expenses	212,815			205,025
Net licensing income	2,353			1,913
Income from operations	48,005			44,265
Interest income, net	955			491
Interest expense on note payable to related party	(249		)	(264		)
Other non-operating expense, net	(53		)	(375		)
Income before income tax	48,658			44,117
Income tax expense	(9,773		)	(9,923		)
Net income	38,885			34,194
Net income attributable to non-controlling interest	2,879			2,424
Net income attributable to Columbia Sportswear Company	$	36,006		$	31,770
Earnings per share attributable to Columbia Sportswear Company:
Basic	$	0.52		$	0.46
Diluted	$	0.51		$	0.45
Weighted average shares outstanding:
Basic	69,606			69,441
Diluted	70,414			70,455

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COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2017			2016
Cash flows from operating activities:
Net income	$	38,885		$	34,194
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	14,940			14,682
Loss on disposal and impairment of property, plant, and equipment	160			159
Deferred income taxes	4,426			1,323
Stock-based compensation	2,941			3,073
Changes in operating assets and liabilities:
Accounts receivable	76,619			108,668
Inventories	94,487			68,511
Prepaid expenses and other current assets	(2,139		)	3,642
Other assets	1,336			(2,426		)
Accounts payable	(122,824		)	(104,419		)
Accrued liabilities	(18,961		)	(33,476		)
Income taxes payable	(1,738		)	1,453
Other liabilities	97			1,612
Net cash provided by operating activities	88,229			96,996
Cash flows from investing activities:
Purchases of short-term investments	(33,813		)	(20,781		)
Capital expenditures	(11,275		)	(10,048		)
Proceeds from sale of property, plant, and equipment	27			24
Net cash used in investing activities	(45,061		)	(30,805		)
Cash flows from financing activities:
Proceeds from credit facilities	400			2,691
Repayments on credit facilities	(400		)	(4,631		)
Proceeds from issuance of common stock under employee stock plans	7,791			7,417
Tax payments related to restricted stock unit issuances	(3,513		)	(4,756		)
Repurchase of common stock	(33,000		)	—
Cash dividends paid	(12,499		)	(11,841		)
Net cash used in financing activities	(41,221		)	(11,120		)
Net effect of exchange rate changes on cash	2,670			5,159
Net increase in cash and cash equivalents	4,617			60,230
Cash and cash equivalents, beginning of period	551,389			369,770
Cash and cash equivalents, end of period	$	556,006		$	430,000
Supplemental disclosures of non-cash investing and financing activities:
Capital expenditures incurred but not yet paid	$	4,206		$	2,582

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COLUMBIA SPORTSWEAR COMPANY

Supplemental Financial Information

Net Sales Growth - Constant-currency Basis

(In millions, except percentage changes)

(Unaudited)

	Three Months Ended March 31,
			Adjust for			Constant-					Constant-
	Reported		Foreign			currency		Reported		Reported	currency
	Net Sales		Currency			Net Sales		Net Sales		Net Sales	Net Sales
	2017		Translation			2017(1)		2016		% Change	% Change(1)
Geographical Net Sales:
United States	$	333.2	$	—		$	333.2	$	336.2	(1)%	(1)%
LAAP	118.3		1.3			119.6		101.8		16%	17%
EMEA	55.4		0.9			56.3		51.3		8%	10%
Canada	36.9		(1.3		)	35.6		35.8		3%	(1)%
Total	$	543.8	$	0.9		$	544.7	$	525.1	4%	4%
Brand Net Sales:
Columbia	$	449.1	$	1.1		$	450.2	$	437.1	3%	3%
SOREL	27.2		(0.1		)	27.1		18.1		50%	50%
prAna	38.7		—			38.7		41.4		(7)%	(7)%
Mountain Hardwear	27.7		(0.1		)	27.6		25.2		10%	10%
Other	1.1		—			1.1		3.3		(67)%	(67)%
Total	$	543.8	$	0.9		$	544.7	$	525.1	4%	4%
Categorical Net Sales:
Apparel, Accessories and Equipment	$	440.0	$	0.2		$	440.2	$	434.0	1%	1%
Footwear	103.8		0.7			104.5		91.1		14%	15%
Total	$	543.8	$	0.9		$	544.7	$	525.1	4%	4%

⁽¹⁾ Constant-currency net sales information is a non-GAAP financial measure, which excludes the effect of changes in foreign currency exchange rates against the U.S. dollar between comparable reporting periods. The Company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into U.S. dollars at the average exchange rates that were in effect during the comparable period of the prior year.

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EX-99.2

Exhibit 99.2

14375 NW Science Park Drive

Portland, OR 97229

April 27, 2017

CFO Commentary on First Quarter 2017 Financial Results

and Updated 2017 Financial Outlook

Financial Information

Please reference accompanying financial information in the corresponding earnings release at

http://investor.columbia.com/results.cfm.

Conference Call

The company will host a conference call on Thursday, April 27, 2017 at 5:00 p.m. ET to review first quarter 2017 financial results, as well as its updated 2017 financial outlook. To participate, please dial (877) 407-9205 in the U.S. The call will be webcast live on the Investor Relations section of the company's website http://investor.columbia.com where it will remain available until April 26, 2018.

First Quarter Summary

Net sales increased $18.7 million, or 4 percent, to a first-quarter record $543.8 million, primarily driven by shifts in timing of shipments of Spring 2017 advance orders to wholesale and distributor channels, combined with growth in direct-to-consumer (DTC) net sales.

Gross margin increased40 basis points to 47.5 percent. Selling, general & administrative (SG&A) expenses increased 4 percent.

Operating incomeincreased 8 percent to a first-quarter record $48.0 million, or 8.8 percent of net sales.

Net incomeincreased 13 percent to a first-quarter record $36.0 million, or $0.51 per diluted share.

The company repurchased 616,152 shares of common stock at an aggregate purchase price of $33.0 million.

Updated FY2017Financial Outlook Summary

Our updated full year 2017 financial outlook anticipates:

• Approximately 3 percent net sales growth compared with 2016 net sales of $2.38 billion, including approximately 1 percentage point negative effect from changes in currency exchange rates;

• Approximately 3 percent growth in operating income to between approximately $256 million and $265 million, representing operating margin of approximately 10.8 percent;

• An effective income tax rate of approximately 23.0 percent; and

• Up to 4 percent growth in net income to between approximately $192 million and $199 million, or $2.72 to $2.82 per diluted share.

The UpdatedFull Year 2017 Financial Outlook section beginning on page 4 below contains a more detailed discussion of the factors contributing to this outlook.

First Quarter Financial Results

(All comparisons are between first quarter 2017 and first quarter 2016, unless otherwise noted.)

Net Sales

Consolidated net sales increased $18.7 million, or 4 percent, to $543.8 million.

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Regions

• U.S. net sales decreased $3.0 million, or 1 percent, to $333.2 million. The decrease in U.S. net sales reflected a mid-single-digit percentage decrease in wholesale net sales, partially offset by a low-single-digit percentage increase in DTC net sales. The combined effects of U.S. wholesale customer bankruptcies, liquidations, and store closures, combined with subdued consumer demand for cold-weather products in key U.S. markets, presented a difficult comparison to the first quarter of 2016 during which U.S. sales grew 18 percent. During the first quarter of 2017, the company operated 120 U.S. retail stores and 4 branded ecommerce sites, compared with 110 stores and 5 branded ecommerce sites in the first quarter of 2016.

• Net sales in the Latin America/Asia Pacific (LAAP) region increased $16.5 million, or 16 percent (17 percent constant-currency), to $118.3 million, consisting of 80 percent growth in net sales to LAAP distributors, reflecting a shift in the timing of shipments of increased Spring 2017 advance orders; low-double-digit percentage growth in China (high-teen constant-currency), including accelerated shipments to wholesale customers in advance of the enterprise resource planning (ERP) go-live planned to occur during the second quarter of 2017; and low-double-digit percentage growth in Japan (high-single-digit constant-currency) driven by increased DTC net sales, partially offset by a mid-single-digit net sales decline in Korea (high-single-digit constant-currency).

• Net sales in the Europe/Middle East/Africa (EMEA) region increased $4.1 million, or 8 percent (10 percent constant-currency), to $55.4 million, reflecting mid-teen percentage growth in Europe-direct markets (high-teen constant-currency) driven by increased Spring 2017 advance wholesale orders coupled with an increase in Fall 2016 at-once orders, partially offset by a mid-20-percent decline in net sales to EMEA distributors, due to a shift in timing of shipments of increased Spring 2017 advance orders.

• Net sales in Canada increased 3 percent (declined 1 percent constant-currency) to $36.9 million, positively affected by foreign currency exchange rates which more than offset a net sales decrease in local currency.

Brands

• Columbia brand net sales increased $12.0 million, or 3 percent, to $449.1 million, including increased net sales to LAAP distributors (aided by a favorable shift in timing of shipments of increased Spring 2017 advance orders), and higher net sales in China, Europe-direct markets, Japan, and the U.S. DTC business, partially offset by lower U.S. wholesale net sales, and lower net sales to EMEA distributors (attributable to an unfavorable shift in timing of shipments of increased Spring 2017 advance orders).

• SOREL brand net sales increased $9.1 million, or 50 percent, to $27.2 million, driven by shipment of advance North American wholesale orders for the brand's expanded Spring season assortment and increased Fall 2016 close-out product sales.

• prAna brand net sales of $38.7 million decreased $2.7 million, or 7 percent, concentrated in the U.S. wholesale business, partially offset by increased net sales in its DTC business.

• Mountain Hardwear brand net sales increased $2.5 million, or 10 percent, to $27.7 million, driven by increased close-out sales in the U.S. and a shift in timing of shipments of advance orders to LAAP distributors.

Product Categories

• Global Apparel, Accessories and Equipment net sales increased 1 percent, to $440.0 million, primarily driven by increased net sales of the Columbia and Mountain Hardwear brands, partially offset by a decline in prAna brand net sales.

• Global Footwear net sales increased 14 percent (15 percent constant-currency), to $103.8 million, reflecting a nearly 50 percent increase in SOREL brand net sales and a mid-single-digit percentage increase in Columbia brand net sales.

Gross Margin

Gross margin improved 40 basis points to 47.5 percent of net sales, driven by:

• a favorable sourcing environment; and

• selective price increases in various product categories and geographies.

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Selling, General and Administrative (SG&A) Expense

SG&A expense increased $7.8 million, or 4 percent, to $212.8 million, or 39.1 percent of net sales, compared to 39.0 percent of net sales in last year’s first quarter, representing approximately 10 basis points of operating expense deleverage. The increased SG&A expense included:

• increased costs to support the company's expanding global DTC businesses;

• changes in the timing of receipt of local tax subsidies related to the company's China joint venture; and

• increased demand creation expenses.

Operating Income

Operating incomeincreased 8 percent to $48.0 million, or 8.8 percent of net sales, compared with first quarter 2016 operating income of $44.3 million, or 8.4 percent of net sales.

Income Tax Expense

The effective tax rate for the first quarter was 20.1 percent, compared to a 22.5 percent rate in the first quarter of 2016. The lower effective income tax rate was primarily due to the resolution of tax audits in certain jurisdictions.

Net Income

Net incomeincreased 13 percent to $36.0 million, or $0.51 per diluted share, compared with net income of $31.8 million, or $0.45 per diluted share, in the first quarter of 2016.

Balance Sheet

At March 31, 2017, cash and short-term investments totaled $590.5 million, compared to $451.2 million at March 31, 2016. At March 31, 2017, approximately 55 percent of cash and short-term investments were held in foreign jurisdictions where a repatriation of those funds to the United States would likely result in a significant tax cost to the company.

Consolidated inventories of $398.8 million at March 31, 2017decreased $13.4 million, or 3 percent, compared to March 31, 2016. The inventory decrease was concentrated in the U.S.

Cash Flow, Share Repurchases and Dividends

Net cash provided by operations in the first three months of 2017 was $88.2 million, compared to $97.0 million in the comparable 2016 period.

Capital expenditures in the first three months of 2017 totaled $11.3 million, compared to $10.0 million in the comparable 2016 period.

The company repurchased 616,152 shares of common stock at an aggregate purchase price of $33.0 million. At March 31, 2017, approximately $140.5 million remained available under the current stock repurchase authorization, which does not obligate the company to acquire any specific number of shares or to acquire shares over any specified period of time.

The company paid cash dividends of $12.5 million during the first quarter of 2017.

Regular Quarterly Cash Dividend

At its regular board meeting on April 21, 2017 the board of directors authorized a regular quarterly cash dividend of $0.18 per share, payable on June 1, 2017 to shareholders of record on May 18, 2017.

Updated Full Year 2017 Financial Outlook

Our objective in providing a forward-looking financial outlook is to help investors understand our business and the variables that we consider when planning our business and evaluating our own performance.

All projections related to anticipated future results are forward-looking in nature and may change, perhaps significantly. Our annual net sales are weighted more heavily toward the Fall/Winter season, while operating expenses are more equally distributed throughout the year, resulting in a highly seasonal net sales and profitability pattern weighted toward the second half of the fiscal year.

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Spring and Fall season advance wholesale orders typically drive a significant portion of our annual net sales and are one of several significant factors we use to formulate our full year outlook. However, among the many risks inherent in our global business, our projected full year net sales and profitability may be materially affected by unfavorable weather patterns and other factors that affect consumer demand and store traffic and lead to higher-than-anticipated order cancellations and lower reorders by our wholesale customers or lower-than-projected net sales through our DTC channels, particularly during the fourth quarter. Projections are predicated on normal seasonal weather globally.

In addition, bankruptcies, liquidations, store closures and consolidation among U.S. wholesale customers create increased uncertainty in our ability to predict near-term net sales and profitability. We are also facing macroeconomic, competitive and geopolitical uncertainty in several major markets, making it more difficult to forecast our net sales and profitability.

All of the company's anticipated growth in full year 2017 operating income and earnings is concentrated in the second half and is heavily dependent upon the performance of our U.S. DTC channel.

Our 2017 outlook assumes that current macro and market conditions in key markets do not worsen, and that U.S. regulatory and tax policies remain largely unaltered for the balance of the year.

We are continuing to invest in our multi-year global ERP implementation. To date, we have implemented the ERP system in our North American wholesale operations and international distributor businesses, excluding prAna, as well as the majority of our global supply chain operations. The next implementation, currently planned to occur in the second quarter of 2017, will transition our China joint venture onto the ERP system.

The following 2017 outlook does not include any financial impact from activities associated with the operating model assessment that was initiated during the first quarter of 2017.

Taking the above factors into consideration, our current fiscal year 2017 outlook anticipates:

• approximately 3 percent growth in global net sales compared to 2016, including contributions from three of our four brands and all four of our geographic regions, and reflecting approximately 1 percentage point negative effect from changes in foreign currency exchange rates;

• a majority of the projected full year 2017 global net sales increase is expected to come from the company's U.S. DTC channel, including the planned addition of 13 stores and increased productivity in our ecommerce channel;

• approximately 30 basis point expansion of gross margins, including a nominal impact from changes in foreign currency hedge rates;

• SG&A expense growth at a rate slightly greater than anticipated net sales growth, resulting in approximately 30 basis points of deleverage;

• approximately 3 percent growth in operating income to between approximately $256 million and $265 million, representing operating margin of approximately 10.8 percent;

• an effective income tax rate of approximately 23.0 percent; and

• up to 4 percent growth in net income to between approximately $192 million and $199 million, or $2.72 to $2.82 per diluted share.

The above outlook also anticipates:

• comparable net sales growth rates in the first and second half; and

• more pronounced SG&A deleverage in the first half of the year than in the second half.

We expect first half operating profit to be approximately $5 million lower than the comparable 2016 period, and 2017 profitability and profitability growth compared with 2016 to be concentrated in the second half of the year.

The above projections are further based on the following expectations:

• Low-single-digit percentage net sales growth from the Columbia brand, mid-single-digit percentage net sales growth from the SOREL brand, and low-single-digit percentage net sales growth from the prAna brand, partially offset by a high-single-digit percentage decline in Mountain Hardwear brand net sales.

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• Low-single-digit percentage net sales growth in the U.S. business, consisting of low-double-digit percentage growth in DTC net sales and a mid-single-digit percentage decline in wholesale net sales.

• Mid-single-digit percentage net sales growth in the EMEA region, with the Europe-direct business contributing mid-single-digit percentage growth (low-double-digit constant-currency) and the EMEA distributor business contributing mid-single-digit percentage growth.

• Low-single-digit percentage net sales growth in the LAAP region, consisting of low-20 percent growth in net sales to LAAP distributors, largely offset by a mid-single-digit percentage net sales decline in Korea (mid-single-digit constant-currency) and a low-single-digit percentage net sales decline in Japan (mid-single-digit growth constant-currency). Net sales in China are expected to be comparable to 2016 (mid-single-digit growth constant-currency).

• Low-single-digit percentage net sales growth in Canada (mid-single-digit constant-currency).

• Gross margin expansion of approximately 30 basis points compared with 2016, reflecting:

• selective price increases in various product categories and geographies;

• a favorable sourcing cost environment; and

• a favorable channel mix with a greater proportion of DTC net sales.

• An SG&A expense growth rate slightly greater than anticipated consolidated net sales growth, resulting in approximately 30 basis points of expense deleverage. The nominal increase in projected SG&A expense consists primarily of:

• increased expenses to support continued expansion in the company's global DTC businesses;

• increased personnel expenses to support strategic initiatives; and

• increased demand creation expenses;

partially offset by:

• favorable foreign currency translation; and

• continued cost containment measures.

• Licensing income of approximately $12.0 million.

• An estimated full-year effective income tax rate of approximately 23.0 percent. The actual rate could differ based on the geographic mix of pre-tax income and the impact of discrete events that may occur during the year. In addition, this tax rate projection does not anticipate any potential regulatory changes related to corporate tax rates, repatriation of cash and short-term investments held in foreign jurisdictions, or border-adjustment tax.

• An insignificant impact on gross margins due to changes in currency exchange rates on the local currency costs of inventory purchased in U.S. dollars by our foreign subsidiaries, in contrast to 2016 when those factors had an estimated unfavorable impact of $(0.24) per share.

• Capital expenditures of approximately $60 million, comprising investments in DTC business expansion, information technology and project-based and maintenance capital.

• Full year free cash flow totaling approximately $175 - $200 million.

Organizational Assessment

As part of the company's commitment to relentless improvement, the senior management team engaged a leading consulting firm during the first quarter to assist in performing a thorough assessment of the company's operating model. The goals are to ensure that the business is aligned and organized to successfully execute its strategic plan. This initiative is in the initial assessment phase and the company anticipates providing updates as the project progresses. The preceding 2017 outlook does not include any financial impact from activities associated with the operating model assessment that was initiated during the first quarter of 2017.

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Supplemental Constant-Currency Financial Information

The company reports its financial information in accordance with accounting principles generally accepted in the United States ("GAAP"). To supplement financial information reported in accordance with GAAP, the company discloses constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in the exchange rates used to translate net sales generated in foreign currencies into U.S. dollars. The company calculates constant-currency net sales by translating net sales in foreign currencies for the current period into U.S. dollars at the exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP measures useful by reviewing our net sales results without the volatility in foreign currency exchange rates.  This non-GAAP financial measure also facilitates management’s internal comparisons to our historical net sales results and comparisons to competitors’ net sales results. Constant-currency financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP. The Company provides a reconciliation of this non-GAAP measure to the most directly comparable financial measure calculated in accordance with GAAP. (See "Supplemental Financial Information - Net Sales Growth - Constant-currency Basis" tables included in the earnings release announcing first quarter financial results located on the investor relations section of the company’s website at http://investor.columbia.com/results.cfm.) The constant-currency information presented may not be comparable to similarly titled measures reported by other companies.

Second Quarter 2017 Reporting Schedule

Columbia Sportswear Company plans to report second quarter 2017 financial results on Thursday, July 27, 2017 at approximately 4:00 p.m. ET. Following issuance of the earnings release, a commentary reviewing the results will be furnished to the SEC on Form 8-K and published on the investor relations section of the company’s website at http://investor.columbia.com/results.cfm.

A public webcast of Columbia’s earnings conference call will follow at 5:00 p.m. ET at www.columbia.com. To receive email notification of future announcements, please visit http://investor.columbia.com/events.cfm and register for E-Mail Alerts.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws, including statements regarding anticipated results, net sales and net sales growth, gross margins, operating expenses, licensing income, operating income, operating margins, net income, earnings per share, income tax rates, selling, general and administrative expenses, including projected increases and decreases in specific components of SG&A, the performance of our U.S. direct-to-consumer and wholesale businesses, projected growth or decline in specific geographies, countries and brands, capital expenditures, changes in foreign currency exchange and hedge rates, changes in sourcing costs, free cash flow and the completion and execution of our organizational assessment. Forward-looking statements often use words such as "will," "anticipate," "estimate," "expect," "should" and "may" and other words and terms of similar meaning or reference future dates. The company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis; however, each forward-looking statement involves a number of risks and uncertainties, including those set forth in this document, those described in the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that have been or may be described in other reports filed by the company, including reports on Form 8-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 the anticipated results expressed or implied by forward-looking statements in this document include: loss of key customer accounts; our ability to effectively implement IT infrastructure and business process initiatives and to maintain the strength and security of our IT systems; the effects of unseasonable weather, including global climate change; trends affecting consumer traffic and spending in our direct-to-consumer channels; our ability to implement our growth strategy; unfavorable economic conditions generally, the financial health of our customers and changes in the level of consumer spending, apparel preferences and fashion trends; changes in international, federal or state tax, labor and other laws and regulations that affect our business, including changes in corporate tax rates or increasing wage rates; volatility in global production and transportation costs and capacity; risks

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inherent in doing business in foreign markets, including fluctuations in currency exchange rates; our ability to attract and retain key personnel; risks associated with our joint venture; higher than expected rates of order cancellations; increased consolidation of our wholesale customers; our ability to effectively source and deliver our products to customers in a timely manner; our dependence on independent manufacturers and suppliers and our ability to source finished products and components at competitive prices from them; the effectiveness of our sales and marketing efforts; intense competition in the industry; business disruptions and acts of terrorism, cyber-attacks or military activities around the globe; our ability to establish and protect our intellectual property; the seasonality of our business; and our ability to develop innovative products. The company cautions that forward-looking statements are inherently less reliable than historical information. The company does not undertake any duty to update any of the forward-looking statements after the date of this document to conform them to actual results or to reflect changes in events, circumstances or its expectations. New factors emerge from time to time and it is not possible for the company to predict or assess the impact of all such factors 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.

End

©2017, Columbia Sportswear Company

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