Columbia Sportswear 2011 Annual Report Download - page 3

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Mountain Hardwear sales grew 17 percent in 2011, totaling
$142 million. With its successful launch of Dry.Q™ waterproof,
breathable fabric systems, the Mountain Hardwear brand
reinforced its commitment to serving the high-performance
needs of alpinists and mountaineers who test the edges of
human potential.
Working directly with several of today’s leading alpinists,
including Swiss speed-climber Ueli Steck, Mountain Hardwear
pioneered an assortment of high-performance apparel and
equipment that reduced the weight of the typical ascent kit by
more than 50 percent. These innovations, and the amazing athletes
who depend upon them, are redefining the sport and elevating the
brand to the pinnacle of the market.
With just five countries – the U.S., Korea, United Kingdom,
Canada and Japan – accounting for more than 90 percent of
Mountain Hardwear’s annual sales, we are confident the brand has
potential for global expansion in the years ahead.
As pleased as we are with the growth of Sorel, it remains today
primarily a winter brand with a 90-day presence on retail shelves.
Our product creation team is focused on expanding Sorel’s offering
into Fall, Spring and Summer products, creating an opportunity
for our growing base of high-quality footwear retail partners to
showcase the brand year-round. In addition, we have yet to attack
the potential market for Sorel in Russia, Korea, Japan or China, and
we believe each of those countries represents a fertile market that
can play a significant role in Sorel’s future growth.
While 2011 was our second consecutive year of strong sales and
earnings growth, we are mindful that our business is not insulated
from the lingering effects of unseasonable weather and macro-
economic storms in large markets. We expect those external forces
to slow our sales growth in 2012.
In response, our management team has formulated a 2012
spending plan that correlates with this lower anticipated sales
growth, while maintaining funding for our most important strategic
initiatives.
We are very clear about two things:
• We remain rmly committed to investing in innovation,
enhanced design, an expanded direct-to-consumer platform
and compelling marketing to elevate our brands and gain
market share.
• We are rmly committed to investing in information technology
and process improvements to increase operational and
resource efficiencies and, ultimately, our profitability.
We remain confident about the long-term market opportunities of
our brands and are aligned behind the most impactful
opportunities to drive long-term top-line growth and improve
profitability.
Our best is yet to come.
Sincerely,
Timothy P. Boyle
President and Chief Executive Office
This letter contains forward-looking statements. Actual results may differ materially from those projected in these forward-looking statements as a result of a number of risks and uncertainties, including those described in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2011, under the heading “Risk Factors.”
Our best is yet to come.
SERVING HIGH-PERFORMANCE
NEEDS OF ALPINISTS