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"When we talk about the opportunities for the business long-term, it really is footwear and sportswear," said Tim Boyle, chief executive for Columbia, based near Beaverton. "The real runaway homerun is likely to be a footwear product."
There's reason for optimism. In three years, Columbia's shoe sales have nearly doubled. The company last week reported footwear revenue of $211.2 million for 2005, up from $110 million in 2002. Outerwear sales have grown only 4 percent, from $422.5 million to $440 million, in that same stretch.
Footwear, Boyle said last year in a conference call, could someday be the company's biggest business. But getting from here to there is another matter.
Although Columbia has launched several shoes and sandal models since its first foray into the market in 1993, it finds itself competing with established competitors such as Nike and trendy newcomers like Keen Footwear.
Under newly appointed footwear vice president Brad Gebhard, Columbia has been focusing on developing new shoe styles and designs after a painful third quarter in which retailers preferred competitors' products and ordered fewer shoes from Columbia's spring line than the company anticipated.
Montrail, founded in Seattle in 1993, helps the company in two ways. Montrail makes specialized shoes for such niche markets as rock climbing, mountaineering and whitewater rafting -- targeting a customer base not likely to buy Columbia's middle-tier products. And Montrail's trail-running shoes -- some of which retail for $125 -- are popular in a market that Columbia has been unable to master over the years, Boyle said.
Although Montrail and its 25 employees are expected to move to Columbia's headquarters in the next year, Montrail will still operate as a distinct brand, similar to Columbia's other two acquired brands -- Sorel cold-weather boots and Mountain Hardwear high-end sportswear. Montrail's president, Scott Tucker, will become the brand's general manager under Columbia's footwear division. The acquisition also will give Columbia access to Montrail's research and development expertise for its own shoe lines, said Boyle. He said he especially hopes to capitalize on Montrail's reputation for the fit of its shoes.
Montrail will benefit from Columbia's supply chain and distribution systems, said Tucker. The company rang up sales of about $16 million in 2005, mostly in the United states, said Tucker. . Montrail expects that Columbia's international contacts will help it significantly grow, he said.