Columbia Sportswear 2009 Annual Report Download - page 36

Net sales of outerwear decreased $9.2 million, or 2%, to $482.5 million in 2009 from $491.7 million in
2008. The decrease in outerwear net sales consisted of decreased net sales in the EMEA direct and distributor
businesses, the LAAP distributor business, Canada and the United States wholesale business, partially offset by
increased net sales in our United States retail business, Japan and Korea. By brand, the decrease in net sales of
Columbia-branded outerwear was partially offset by increased net sales of Mountain Hardwear-branded
outerwear. We primarily attribute the decrease in wholesale net sales of Columbia-branded outerwear to lower
initial order volumes.
Net sales of footwear decreased $2.6 million, or 1%, to $214.6 million in 2009 from $217.2 million in 2008.
The decrease in footwear net sales was concentrated in the EMEA distributor business, followed by the United
States wholesale and LAAP distributor businesses, partially offset by increased net sales of footwear in our
United States retail business, Japan and Canada. Footwear net sales were essentially flat in the EMEA direct
business and Korea. By brand, the decrease in net sales of Columbia-branded footwear was partially offset by
increased net sales of Sorel-branded footwear. Net sales of Sorel-branded footwear increased in all regions and
businesses except the EMEA distributor business. The decrease in footwear net sales to EMEA distributors
primarily reflects lower Columbia-branded product net sales to our largest customer in that region and a shift in
the timing of shipments as a smaller percentage of spring 2010 shipments occurred in the fourth quarter of 2009,
while a higher percentage of spring 2009 shipments occurred in the fourth quarter of 2008.
Net sales of accessories and equipment increased $6.4 million, or 9%, to $74.4 million in 2009 from $68.0
million in 2008. Accessories and equipment sales growth was concentrated in Columbia-branded accessories and
equipment and led by the United States and the LAAP region, followed by Canada, partially offset by a decrease
in net sales in the EMEA region.
Sales by Geographic Region
Net sales in the United States increased $9.2 million, or 1%, to $736.9 million in 2009 from $727.7 million
in 2008. The increase in net sales in the United States was led by outerwear, followed by footwear and
accessories and equipment, partially offset by decreased net sales of sportswear. A net sales increase through our
retail channels was partially offset by a net sales decrease in our wholesale business. During 2009, we opened 11
new outlet retail stores in the United States, ending the year with 39 outlet retail stores and 6 branded retail
stores. In addition, we launched e-commerce websites for the Columbia brand in the third quarter of 2009 and for
the Sorel brand in the fourth quarter of 2009.
Net sales in the EMEA region decreased $69.8 million, or 26%, to $197.4 million in 2009 from $267.2
million in 2008. Changes in foreign currency exchange rates compared to 2008 negatively affected the net sales
comparison by three percentage points. The decrease in net sales in the EMEA region was led by sportswear and
outerwear, followed by footwear and accessories and equipment. Net sales decreased for both the EMEA
distributor and EMEA direct businesses. The decrease in net sales to EMEA distributors primarily reflects lower
Columbia-branded product net sales to our largest distributor in the region and a shift in the timing of shipments
as a smaller percentage of spring 2010 shipments occurred in the fourth quarter of 2009, while a higher
percentage of spring 2009 shipments occurred in the fourth quarter of 2008. The decrease in EMEA direct net
sales was consistent with lower advance order volumes due in part to continued product assortment and
marketing challenges.
Net sales in the LAAP region increased $5.0 million, or 3%, to $203.2 million in 2009 from $198.2 million
in 2008. Changes in foreign currency exchange rates contributed two percentage points of benefit to LAAP net
sales compared to 2008. The net sales increase in the LAAP region was led by outerwear, followed by
accessories and equipment and footwear, partially offset by a net sales decrease in sportswear. Net sales growth
in the LAAP region was led by our Japan business, which benefited from foreign currency exchange rates,
followed by our Korea business, partially offset by a net sales decrease in our LAAP distributor business.
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