Columbia Sportswear 2010 Annual Report Download - page 35

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We typically ship the majority of our advance fall season orders to wholesale customers and independent
distributors beginning in late June and continuing through October. Similarly, the majority of our advance spring
season orders ship to wholesale customers and independent distributors beginning in late December and
continuing through late April. Generally, orders are subject to cancellation prior to the date of shipment.
Our spring wholesale backlog at September 30, 2010 (our most recent seasonal ordering deadline) increased
$43.4 million, or 12%, to $394.2 million from $350.8 million at September 30, 2009. Changes in foreign
currency exchange rates compared with 2009 affected the spring wholesale backlog comparison by less than 1%.
Our spring wholesale backlog reflects growth across each major brand, product category and region. The increase
in our spring wholesale backlog was led by the United States, followed by the LAAP region, the EMEA region
and Canada. By product category, the spring wholesale backlog increase was led by sportswear, followed by
footwear, outerwear and accessories and equipment. By brand, the spring wholesale backlog increase was led by
the Columbia brand, followed by the Sorel brand and the Mountain Hardwear brand. Wholesale backlog does not
include anticipated sales to consumers through our own direct-to-consumer channels. Although we cannot predict
with certainty any future results, our reported spring wholesale backlog is one indicator of our anticipated net
sales for the spring 2011 selling season. Many factors, however, could cause actual wholesale sales to differ
materially from the reported spring wholesale backlog, including the potential cancellation of orders by
customers, capacity constraints at our independent manufacturing partners’ facilities resulting in delivery delays,
changes in foreign currency exchange rates and changes in macro-economic conditions. Moreover, our spring
wholesale backlog should not be used in forecasting sales beyond the spring 2011 selling season.
Results of Operations
The following discussion of our results of operations and liquidity and capital resources 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 of the Year Ended December 31, 2010
• Net sales increased $239.5 million, or 19%, to $1,483.5 million in 2010 from $1,244.0 million in 2009.
Changes in foreign currency exchange rates compared with 2009 contributed approximately one
percentage point of benefit to the consolidated net sales comparison.
• Net income increased 15% to $77.0 million in 2010 from $67.0 million in 2009, and diluted earnings
per share increased to $2.26 in 2010 compared to $1.97 in 2009.
• We paid quarterly cash dividends totaling $0.74 per share, or $24.9 million in aggregate, for the year
ended December 31, 2010, which included an 11% increase in the quarterly dividend to $0.20 per share
from $0.18 per share in October 2010. In addition, we paid a special dividend of $1.50 per share, or
$50.5 million in aggregate, in December 2010.
• Cash, cash equivalents and short-term investments as of December 31, 2010 totaled approximately
$303.1 million.
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