Columbia Sportswear 2011 Annual Report Download - page 10

support the brand’s positioning with fixtures and imagery that may then be replicated and offered for use by our
wholesale customers. These stores provide high visibility for our brands and products and help us to monitor the
needs and preferences of consumers. In addition, we operate outlet stores, which serve an important role in our
overall inventory management by allowing us to sell a significant portion of excess, discontinued and
out-of-season products while maintaining the integrity of our brands. E-commerce sales are a growing portion of
our total direct-to-consumer sales.
We operate in four geographic segments: (1) the United States, (2) Latin America and Asia Pacific
(“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada, which are reflective of our internal
organization, management, and oversight structure. Each geographic segment operates predominantly in one
industry: the design, development, marketing and distribution of active outdoor apparel, footwear, accessories
and equipment. The following table presents net sales to unrelated entities and approximate percentages of net
sales by geographic segment for each of the last three years (dollars in millions):
2011 2010 2009
Net Sales % of Sales Net Sales % of Sales Net Sales % of Sales
United States ........................... $ 948.0 56.0% $ 881.0 59.4% $ 736.9 59.2%
LAAP ................................. 341.0 20.1 263.4 17.7 203.2 16.3
EMEA ................................ 275.4 16.3 222.4 15.0 197.4 15.9
Canada ................................ 129.6 7.6 116.7 7.9 106.5 8.6
Total .............................. $1,694.0 100.0% $1,483.5 100.0% $1,244.0 100.0%
United States
The United States accounted for 56.0% of our net sales for 2011. We sell our products in the United States
to approximately 3,500 wholesale customers and through our own direct-to-consumer channels. As of
December 31, 2011, we operated 43 outlet retail stores and 8 branded retail stores in various locations in the
United States. We also sell Columbia, Mountain Hardwear, Sorel and Montrail products through e-commerce
websites. In addition, we earn licensing income in the United States based on our licensees’ sale of licensed
products.
We distribute the majority of our products sold in the United States from distribution centers that we own
and operate in Portland, Oregon and Robards, Kentucky. In some instances, we arrange to have products shipped
from the independent factories that manufacture our products through third party logistics vendors and/or directly
to wholesale customer-designated facilities in the United States.
LAAP
The LAAP region accounted for 20.1% of our net sales for 2011. We sell our products in the LAAP region
to approximately 300 wholesale customers in Japan and Korea and to approximately 14 independent distributors
that sell to approximately 700 wholesale customers in locations throughout the LAAP region, including
Australia, New Zealand, Latin America and Asia. In addition, as of December 31, 2011, there were 111 and 236
dealer-operated, branded, outlet and shop-in-shop locations in Japan and Korea, respectively. We also sell
Columbia, Mountain Hardwear, Sorel and Montrail products through e-commerce websites in Japan and Korea.
In addition, we earn licensing income in our LAAP region based on our distributors’ production and sale of
licensed products.
We distribute our products to wholesale customers, our own retail stores and licensed stores in Japan
through an independent logistics company that owns and operates a warehouse located near Tokyo, Japan. We
distribute our products to wholesale customers, our own retail stores and licensed stores in Korea from a leased
warehouse near Seoul, Korea. The majority of sales to our LAAP distributors are shipped directly from the
independent factories that manufacture our products.
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