Columbia Sportswear 2010 Annual Report Download - page 37

benefit to the LAAP net sales comparison. The net sales increase in the LAAP region by product category was
led by sportswear, followed by outerwear, footwear and accessories and equipment. The LAAP net sales increase
was primarily concentrated in the Columbia brand and was led by Korea, followed by Japan and our LAAP
distributor business. The increase in Korea net sales was primarily due to increased sales from existing stores, the
favorable effect of foreign currency exchange rates and a greater number of retail stores operating during 2010.
The increase in Japan net sales was primarily the result of the favorable effect of foreign currency exchange
rates, increased wholesale net sales to the sporting goods channel and continued growth in our
direct-to-consumer business. Net sales to our LAAP distributors increased due to improved macro-economic
conditions in certain distributor markets, increased advance orders for both the Spring and Fall seasons, as well
as a shift in the timing of shipments as a higher percentage of spring 2011 shipments occurred in the fourth
quarter of 2010, while a higher percentage of spring 2010 shipments occurred in the first quarter of 2010.
Net sales in the EMEA region increased $25.0 million, or 13%, to $222.4 million in 2010 from
$197.4 million in 2009. Changes in foreign currency exchange rates compared to 2009 negatively affected the net
sales comparison by four percentage points. The increase in net sales in the EMEA region by product category
was led by footwear, followed by sportswear, outerwear and accessories and equipment. The net sales increase
by channel was led by EMEA distributors, followed by our EMEA direct business. The increase in net sales to
EMEA distributors was partially the result of improved macro-economic conditions in Russia, coupled with a
shift in the timing of shipments as a higher percentage of spring 2011 shipments occurred in the fourth quarter of
2010, while a higher percentage of spring 2010 shipments occurred in the first quarter of 2010. The increase in
EMEA direct net sales was primarily the result of increased net sales of Sorel-branded footwear.
Net sales in Canada increased $10.2 million, or 10%, to $116.7 million in 2010 from $106.5 million in
2009. Changes in foreign currency exchange rates compared to 2009 contributed eight percentage points of
benefit to the Canada net sales comparison.
Sales by Product Category
Net sales by product category are summarized in the following table:
Year Ended December 31,
2010 2009 % Change
(In millions, except for percentage changes)
Outerwear ........................................... $ 560.8 $ 482.5 16%
Sportswear .......................................... 555.8 472.5 18%
Footwear ........................................... 270.2 214.6 26%
Accessories and Equipment ............................. 96.7 74.4 30%
$1,483.5 $1,244.0 19%
Net sales of outerwear increased $78.3 million, or 16%, to $560.8 million in 2010 from $482.5 million in
2009. The increase in outerwear net sales was primarily concentrated in the Columbia brand and was led by the
United States, followed by the LAAP region, Canada and the EMEA region. The net sales increase in outerwear
in the United States was led by our direct-to-consumer business, followed by our wholesale business. The
outerwear net sales increase in the LAAP region was led by Korea, followed by Japan and our LAAP distributor
business.
Net sales of sportswear increased $83.3 million, or 18%, to $555.8 million in 2010 from $472.5 million in
2009. The increase in sportswear net sales was primarily concentrated in the Columbia brand and was led by the
United States, followed by the LAAP region, EMEA region and Canada. The sportswear net sales increase in the
United States was led by our wholesale business, followed by our direct-to-consumer business. The sportswear
net sales increase in the LAAP region was led by Korea, followed by our LAAP distributor business and Japan.
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