Columbia Net Income More Than Doubles on 3% Q2 Sales Gain

Compared to the second quarter of 2006, Other International net sales increased 14% to $58.0 million, Europe net sales increased 9% to $31.6 million, U.S. net sales decreased 2% to $117.1 million, and Canada net sales decreased 5% to $11.9 million for the second quarter of 2007.

Excluding changes in currency exchange rates, consolidated net sales increased 2%, Other International net sales increased 14%, Europe net sales increased 1%, U.S. net sales decreased 2%, and Canada net sales decreased 6% for the second quarter of 2007, compared to the same period of 2006.

For the second quarter of 2007, sportswear net sales increased 11% to $124.4 million, footwear net sales decreased 2% to $42.5 million, outerwear net sales decreased 8% to $39.8 million and accessories and equipment net sales decreased 8% to $11.9 million, compared to the second quarter of 2006.

Compared to the second quarter of 2006, Columbia brand net sales increased 3% to $200.1 million, Mountain Hardwear net sales increased 6% to $11.5 million, Sorel net sales increased 28% to $3.2 million for the second quarter of 2007 and Montrail net sales decreased 8% to $3.5 million.

Tim Boyle, Columbia's president and chief executive officer, commented, “Our record second quarter results reflect our continued focus on operating margin improvement. Second quarter gross margins increased substantially due to various factors, including continued improvements in sportswear margins, a higher mix of full price sales and favorable currency exchange rates. Diligent expense management and one-time benefits to selling, general and administrative expenses also contributed to operating margin leverage, despite significant increases in depreciation and amortization related to installation of new equipment and systems in our Portland distribution center. Net sales increased to a second quarter record, but were lower than expectations due to higher than expected order cancellations in the U.S. attributable to a challenging retail environment and a shift in timing of international distributor shipments to the third quarter.”

“In reviewing the second quarter results, investors should be aware that the second quarter is our smallest revenue quarter of the year, as we conclude our spring product shipping season and begin shipping fall products late in the quarter. Because of the comparatively low revenue levels in the quarter, changes in shipments in any one channel, geography or category may be amplified,” continued Mr. Boyle.

The company announced today that the board of directors has approved a dividend of $0.14 per share, payable on August 30, 2007 to shareholders of record on August 16, 2007. During the second quarter, the company repurchased approximately 271,000 shares of common stock at an aggregate purchase price of $17.3 million. The company has repurchased a total of approximately 6.3 million shares at an aggregate purchase price of $301.6 million of the $400 million authorized since the inception of the stock repurchase program in 2004.

Mr. Boyle continued, “Based on our current outlook, we anticipate third quarter 2007 revenue growth of approximately 2 to 3% compared to the third quarter of 2006 and diluted earnings per share of approximately $1.58. For the full year 2007, we anticipate net sales growth of approximately 5.5% compared to 2006, and are increasing full year diluted earnings per share guidance to approximately $3.69. These projections are forward-looking in nature, and are based on backlog and forecasts, which may change, perhaps significantly.”

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share amounts)
                             (Unaudited)

                            Three Months Ended     Six Months Ended
                                June 30,               June 30,
                            ------------------     ----------------  
                             2007       2006       2007       2006
                             ----       ----       ----       ----

 Net sales                 $218,560   $211,553   $508,200   $471,764
 Cost of sales              127,985    130,129    290,927    278,703
                           --------   --------   --------   --------
   Gross profit              90,575     81,424    217,273    193,061  
                               41.4%      38.5%      42.8%      40.9%

 Selling, general, and 
  administrative expense     79,222     77,080    169,583    161,899
 Net licensing income        (1,054)    (1,119)    (2,050)    (2,124)
                           --------   --------   --------   --------  
 Income from operations      12,407      5,463     49,740     33,286

 Interest (income) expense,
  net                        (2,799)    (1,915)    (4,991)    (3,813)
                           --------   --------   --------   --------
 Income before income tax    15,206      7,378     54,731     37,099

 Income tax expense           5,169      2,545     18,608     12,799
                           --------   --------   --------   --------
 Net income                $ 10,037   $  4,833  $  36,123   $ 24,300
                           ========   ========   ========   ========

 Earnings per share:
   Basic                   $   0.28   $   0.13   $   1.00   $   0.66
   Diluted                     0.27       0.13       0.99       0.65
 Weighted average shares 
  outstanding:
   Basic                     36,179     36,555     36,180     36,712
   Diluted                   36,548     36,965     36,552     37,134