Columbia Sportswear 2000 Annual Report Download - page 18

During the last three Ñscal years, we recorded the following geographic net sales percentages of our
products.
2000 1999 1998
Net sales to unrelated entities:
United StatesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 71.4% 72.6% 78.6%
Canada ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10.3 10.7 9.1
Other international ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18.3 16.7 12.3
100.0% 100.0% 100.0%
See Note 14 of Notes to Consolidated Financial Statements for net sales, income before income tax,
identiÑable assets, interest expense, and depreciation and amortization by geographic segment.
North America
Approximately 47.6% of the worldwide retailers that oÅer our products are located in the United States
and Canada. The sales in these two countries amounted to 81.7% of our total revenues for 2000. We work with
25 independent sales agencies that work with retail accounts that vary in size from single specialty store
operations to the large chains made up of many stores in several locations.
Our Öagship store in Portland, Oregon is designed to create a distinctive ""Columbia'' environment,
reinforcing the active and outdoor image of the Columbia brand. In addition, this store provides us with the
ability to test new marketing and merchandising techniques. We also operate nine outlet stores in various
locations throughout North America. These outlet stores are designed to sell excess inventory without
adversely aÅecting our retail accounts.
We inspect, sort, pack and ship substantially all of our products to United States retailers from our
Rivergate Distribution Center located in Portland, Oregon, consisting of approximately 649,000 square feet.
Beginning in the Ñrst quarter of 2001, construction began on a new addition to the existing automated
distribution center. The expansion will adjoin an additional 203,000 square-feet to the existing 649,000 square-
feet enabling us to accommodate our growth. The addition will be fully integrated into the existing distribution
center in 2002. We handle Canadian distribution from an approximately 103,000 square foot warehouse in
Strathroy, Ontario. In some instances, we arrange to have the product shipped directly from the independent
manufacturers to a customer-designated facility.
Other International
We have a European sales and marketing oÇce in Strasbourg, France. We currently sell our products
directly to approximately 3,500 Western European retailers. Successful marketing and sales eÅorts, particu-
larly in France, Spain, The Netherlands and Germany, resulted in net direct sales of our products in Europe of
$59.0 million in 2000. We distribute products in Europe from an independent logistics company based in The
Netherlands. In February 2001 we entered into terms of understanding to acquire land in Cambrai, France for
construction of a new distribution facility with approximately 269,000 square feet. We anticipate that the new
facility, which is intended to replace the facility in The Netherlands, will be operational in the summer of
2002. This timetable, however, is subject to a number of factors, including our ability to Ñnalize appropriate
agreements to complete the land acquisition and construction of the new facility on acceptable terms, our
ability to integrate a new facility with existing operations, the availability of labor, raw materials and other
inputs on anticipated terms, our ability to obtain any necessary governmental approvals in a timely fashion,
and uncertainties associated with doing business abroad.
We have distributed our products through independent distributors in Japan since the mid-1970s. In the
fall of 1998, we began distributing our products directly in Japan, and during 2000 we sold our products to
approximately 760 Japanese retailers. We believe that our direct sales approach in Japan creates an
opportunity for accelerated sales growth in this region as economic conditions improve. In 1997 we began
selling our products in South Korea. Our oÇces in Tokyo and Seoul direct sales and marketing eÅorts in Asia.
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