Columbia Sportswear 2011 Annual Report Download - page 2

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Those three simple ideas explain how
Columbia Sportswear Company has
succeeded for 74 years, and how we will
continue to succeed in the future.
In 2011, we achieved many of the financial and operational goals
we set for the company at the beginning of the year. Record sales
of $1.69 billion, up 14 percent from 2010, were driven by
double-digit growth from the Columbia, Sorel and Mountain
Hardwear brands, as well as from each of our international regions.
More importantly, we improved the company’s profitability,
increasing operating margins to 8.1 percent, compared to 7.0
percent in 2010, and expanding net income by 34 percent, to
$103.5 million, or $3.03 per share, compared to $77.0 million, or
$2.26 per diluted share in 2010. We continue to maintain a very
strong balance sheet, with more than $240 million in cash and
short-term investments, and no long-term debt as of
December 31, 2011.
Each of our brands grew stronger in 2011, as we introduced new
technologies and designs to clearly differentiate our products
from competitors’. With clear strategies for each of our brands, a
pipeline of innovations and design concepts that extend several
seasons into the future, and a disciplined approach to cost
management, we are well-positioned to drive further growth and
improve profitability.
Dear Fellow Shareholders:
INNOVATION.
ENHANCED DESIGN.
COMPELLING MARKETING.
YOUNG, FASHION-FORWARD
FEMALE CONSUMERS.
ELEVATING THE BRAND
THROUGH INNOVATION
Sales of our Columbia brand reached a record $1.39 billion in 2011,
up 10 percent from 2010 and 30 percent higher than 2009. Since
we sharpened Columbia’s emphasis on innovation four years ago,
we have focused on 14 major technologies to help keep people
warm, dry, cool and protected in the outdoors year-round. One of
our long-term goals is to increase consumer adoption of Columbia
products for use in all climates and all seasons, diversifying our
business to generate greater sales and profitability in the first half
of the year and become less dependent on the fall and winter
seasons to achieve our profitability targets.
During 2011, expansion of our award-winning Omni-Heat®
technology into Omni-Heat® Reflective baselayer and
Omni-Heat® Electric heated apparel, gloves and footwear
completed a full-body warmth portfolio. We also launched
footwear and gloves with OutDry® technology to deliver superior
waterproof breathability. For 2012, we’re extending our lightweight,
We launched a strategic repositioning of Sorel two years ago,
targeting young, fashion-forward female consumers with new
assortments featuring premium materials and provocative designs,
while staying true to Sorel’s authentic heritage. The results have
been resounding. Sorel was our fastest growing brand in 2011,
posting a 68 percent increase in global sales to $150 million.
We’ve invested in the creation of a separate sales and marketing
organization focused exclusively on Sorel’s global growth
opportunities as more consumers discover and adopt the brand.
Sorel has succeeded in garnering great exposure on the feet
of influential icons of film, music and fashion, virally increasing
awareness and adoption among our target consumers.
waterproof, breathable + wicking platform, introducing Omni-Dry®
with Omni-Wick® EVAP in apparel to keep consumers dry inside
and out. In addition Omni-Freeze® Ice will introduce outdoor
consumers to an active ingredient that helps keep them cool.
These innovations, combined with enhanced design and
compelling marketing, are succeeding in elevating the Columbia
brand. As evidence, brand-enhancing outdoor specialty and
sporting goods retailers have been the brand’s fastest growing
channels of distribution in the U.S. for the past two years, and
influential outdoor industry and consumer media have recognized
numerous Columbia products with awards for innovation,
performance and design.
We have made great progress with the Columbia brand and are
working closely with our wholesale partners around the world, as
well as through our direct-to-consumer channels in each region, to
ensure that more consumers are exposed to Columbia’s
newest and best designs.