Columbia Sportswear 2004 Annual Report Download - page 22

Net sales increased in each major geographic region, led by the United States, followed by our European,
Other International and Canadian businesses. Sales growth was attributable to increased unit sales volume across
all major geographic regions. Global unit sales volumes also increased within each of our product categories. We
continued to experience a shift in our sales product mix as sales of sportswear and footwear grew faster than our
other product categories.
Net sales from outerwear increased $16.6 million, or 3.7%, to $460.3 million in 2004 from $443.7 million in
2003. Outerwear sales growth was primarily attributable to increased shipments of outerwear in Europe and our
Other International businesses. In Europe, sales of outerwear increased in all key product classes and distribution
channels. Partially offsetting the increase in international sales of outerwear was the decline of outerwear sales in
the United States and Canada.
Net sales from sportswear increased $85.1 million, or 27.3%, to $396.4 million in 2004 from $311.3 million
in 2003. Sportswear sales grew in all global markets in 2004, led by strong gains in the United States followed by
Europe, Other International and Canada. The increase in sales of sportswear in the United States was attributable
to increased sales across all major distribution channels and product classes, including pants, shorts, sweaters and
knitted and woven tops. Shipments of sportswear to the department store channel were particularly strong
throughout the year in the United States. In Europe, the increase in sportswear sales was primarily attributable to
increased shipments of pants, shorts and woven tops.
Net sales from footwear increased $36.0 million, or 24.2%, to $184.6 million in 2004 from $148.6 million in
2003. Footwear sales grew in each of our major markets, led by the United States, followed by Europe, Canada
and Other International. In the United States, sales of footwear increased in all key product classes led by
shipments of boots and sandals. In Europe, footwear sales increased in all key product classes and distribution
channels.
Net sales from accessories increased $2.6 million, or 6.0%, to $46.1 million in 2004 from $43.5 million in
2003. The increase in sales of accessories was the result of increased sales in Other International businesses and
Europe, partially offset by decreased sales in the United States and Canada.
Net sales from equipment increased $3.2 million, or 68.1%, to $7.9 million in 2004 from $4.7 million in
2003. Equipment sales were generated by sales of Mountain Hardwear products predominately in the United
States.
Net sales in the United States increased $69.9 million, or 11.7%, to $666.7 million in 2004 from $596.8
million in 2003. The increase in net sales in the United States was the result of increased sales from sportswear,
footwear and equipment partially offset by decreases in the outerwear and accessories categories. Increased
shipments of sportswear in the United States were the most significant factor contributing to our consolidated
sales growth for the year. Sportswear sales increased in all key product classes and within each major distribution
channel. Footwear sales increased in all key product classes led by boots and sandals. From a distribution channel
perspective, footwear sales increased in all sales channels in the United States except the department store
channel. Sales of outerwear decreased as a result of several factors, including the continued consumer trend
toward purchasing lighter-weight products generally selling at lower prices, unseasonable winter weather
conditions during the fourth quarter of 2004, and a challenging competitive environment. The weakness in our
youth outerwear category also affected outerwear sales during the year.
Europe’s direct net sales increased $35.1 million, or 26.0%, to $170.3 million in 2004 from $135.2 million
in 2003. Excluding changes in currency exchange rates, Europe’s net sales increased 14.0%. Sales growth was
achieved across all product categories in Europe during 2004 led by outerwear, followed by footwear,
sportswear, accessories and equipment. The increase in sales of outerwear in Europe more than offset the
declines in the United States and Canada. Sales of outerwear and footwear increased in all key product classes
and distribution channels. Europe’s sportswear growth was primarily the result of increased shipments of pants,
shorts and woven tops.
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