Brand Strategy Briefing (Crabstone)
A caricature of Peter Rauch in a dark suit holding an open ledger in one hand and an ice axe awkwardly in the other, standing before a rail of Mountain Hardwear shell jackets.

Columbia Gave SOREL a Product Man and Mountain Hardwear an Accountant

Columbia handed SOREL to a career product executive in June and Mountain Hardwear to a finance-trained regional operator in September. Read together, the two appointments say the parent believes its technical brand is badly placed rather than badly made.

Sir John Crabstone

Columbia Sportswear has given Mountain Hardwear to Peter Rauch, who arrives from running Columbia’s own brand in North America and takes the title on 28 September. Peter Bragdon, styled the company’s president in the release though Columbia called him co-president on its earnings call three weeks earlier, supplies the verdict: Rauch has built “strong cross-functional partnerships” and delivered “meaningful business results.” Not one of the quoted executives mentions product. The appointment is itself a diagnosis: the parent has decided its technical brand is badly placed, not badly made.

The trade press filed it under people. Appointments are the only strategy documents a public company publishes without meaning to.

Rauch’s route to the job runs through the accounts. He spent seven years at Deloitte and a year at Webtrends before joining Columbia in 2008 as a retail accounting manager. He rose by way of an EMEA controller’s desk and the China joint venture’s books to chief accounting officer, then chief transformation officer in 2017. A first decade is not a limit. It is usually the reason for the choice.

The second half of the reshuffle says more than the first. Troy Sicotte, president for nearly five years, becomes global vice-president of sales, charged with strengthening marketplace relationships. He had arrived at the brand in 2018 as vice-president of sales for North America. Columbia has now given Mountain Hardwear the same answer twice, using the same man, in both directions.

Roughly three months earlier, Columbia answered a neighbouring question differently. SOREL went to Joe Vernachio, who ran product and operations at The North Face, ran Mountain Hardwear once already, and then ran Allbirds. Craig Zanon, who runs the emerging brands, is credited as the executive Vernachio reports to; neither release states where Rauch sits, but Bragdon’s title implies he answers a level higher. Zanon welcomed Vernachio’s “deep passion for product and brand storytelling.” Nobody wrote that sentence about the technical brand.

Mountain Hardwear is three percent of Columbia. It turned over $100.2 million last year, down 8 percent, against $3.4 billion for the group. SOREL, more than twice the size at $221.7 million, fell 7 percent over the same year — a shallower decline on a bigger base. Operating income that year carried $29.0 million of impairment charges booked against prAna and Mountain Hardwear together. An impairment is not a forecast — it is an admission already entered.

The product is the part that works. Net sales rose 6 percent in the second quarter, Tim Boyle told analysts, with double-digit growth direct to consumer; SOREL fell 14 percent over the same three months, which Boyle attributed to later wholesale shipment timing rather than to the product itself. The wholesale decline at Mountain Hardwear came from shifting far less closeout stock than a year before. The fourth Stüssy collaboration outsold all three that preceded it, and a new ultralight pack entered the top ten by sell-through in its first quarter on sale. None of that is a placement problem.

Nobody is sent from head office to a three-percent brand to make it stranger.

The design-led repair would surface three or four seasons out, in products nobody has drawn yet. It wants a president who expects to still be there when they land. Mountain Hardwear has had four presidents since 2016.