Columbia Sportswear 2010 Annual Report Download - page 40

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 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.
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 Canada decreased $18.2 million, or 15%, to $106.5 million in 2009 from $124.7 million in
2008. Changes in foreign currency exchange rates compared to 2008 negatively affected the net sales comparison
by seven percentage points. The decrease in net sales in Canada was led by sportswear and outerwear, partially
offset by increased net sales of footwear and accessories and equipment. The decrease in net sales was consistent
with lower advance order volumes of Columbia-branded products due in part to planned reductions in certain
channels of distribution.
Sales by Product Category
Year Ended December 31,
2009 2008 % Change
(In millions, except for percentage changes)
Outerwear ........................................... $ 482.5 $ 491.7 (2)%
Sportswear .......................................... 472.5 540.9 (13)%
Footwear ........................................... 214.6 217.2 (1)%
Accessories and Equipment ............................. 74.4 68.0 9%
$1,244.0 $1,317.8 (6)%
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.
34