Columbia Sportswear 2009 Annual Report Download - page 33

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The business climate continues to present us with a great deal of uncertainty, with a number of variables that
we rely on for planning purposes moving in opposing directions and making it more difficult to predict the
future. Factors that could significantly affect our 2010 outlook include:
• Fluctuating currency exchange rates;
• Changes in mix and volume of full price sales in contrast with closeout product sales;
• Changes in the volume of order cancellations and reorders;
• Incremental sales through our expanding retail and e-commerce operations, which are not included in
backlog;
• Changes in consumer activity and sales fluctuations in our retail stores; and
• Changes in spending levels related to strategic initiatives and cost-containment efforts.
Although we cannot predict future results with certainty and despite current global economic conditions, we
are committed to our strategies, which focus on product innovation and using our portfolio of outdoor brands to
meet the needs of outdoor consumers. Our direct-to-consumer initiatives include our retail expansion plans and
e-commerce platforms. We believe that our commitment to invest in these strategies, while maintaining a well-
developed sourcing and distribution infrastructure, positions us well to establish sustainable platforms that will
support long-term growth and profitability.
Overview
The following discussion of our results of operations and liquidity and capital resources, including known
trends and uncertainties identified by management, should be read in conjunction with the Consolidated
Financial Statements and accompanying Notes that appear elsewhere in this annual report.
All references to years relate to the calendar year ended December 31. Highlights for the year ended
December 31, 2009 include the following:
• Net sales decreased $73.8 million, or 6%, to $1,244.0 million in 2009 from $1,317.8 million in 2008.
Changes in foreign currency exchange rates compared with 2008 negatively affected the consolidated
net sales comparison by approximately one percentage point. The decrease in net sales was primarily
the result of decreased sales of Columbia-branded products in the EMEA region and Canada, partially
offset by increased sales of Columbia-branded products in the United States and the LAAP region.
Difficult economic conditions worldwide negatively affected our net sales during 2009 as initial orders
for our wholesale businesses declined for the spring and fall 2009 selling seasons. In addition, customer
order cancellation rates were higher and reorder rates were lower for our spring 2009 selling season,
with some improvement in cancellation and reorder rates for our fall 2009 selling season.
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