Columbia Sportswear 2011 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2011 Columbia Sportswear annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

Year Ended December 31, 2010 Compared to Year Ended December 31, 2009
Net Sales: Consolidated net sales increased $239.5 million, or 19%, to $1,483.5 million in 2010 from
$1,244.0 million in 2009. Net sales increased across all geographic regions, in each product category and across
all major brands. Changes in foreign currency exchange rates compared with 2009 contributed approximately one
percentage point of benefit to the consolidated net sales comparison.
Sales by Geographic Region
Net sales by geographic region are summarized in the following table:
Year Ended December 31,
2010 2009 % Change
(In millions, except for percentage changes)
United States ........................................ $ 881.0 $ 736.9 20%
LAAP .............................................. 263.4 203.2 30%
EMEA ............................................. 222.4 197.4 13%
Canada ............................................. 116.7 106.5 10%
$1,483.5 $1,244.0 19%
Net sales in the United States increased $144.1 million, or 20%, to $881.0 million in 2010 from $736.9
million in 2009. The increase in net sales in the United States by product category was led by outerwear,
followed by sportswear, footwear and accessories and equipment. The net sales increase by channel was led by
our wholesale business, followed by our direct-to-consumer business. The increase in net sales in our wholesale
business was primarily concentrated in the Columbia brand resulting from improved economic conditions
compared to the same period in 2009 and stronger advance orders. The net sales increase in our
direct-to-consumer business was primarily concentrated in the Columbia brand and was driven by increased sales
within existing stores, increased sales through our Columbia and Sorel brand e-commerce sites, which were
launched in the third and fourth quarter of 2009, respectively, incremental sales from our Mountain Hardwear
brand e-commerce site which was launched in the third quarter of 2010, and an increase in the number of retail
stores, with 4 more retail stores operating at December 31, 2010 than at December 31, 2009.
Net sales in the LAAP region increased $60.2 million, or 30%, to $263.4 million in 2010 from $203.2
million in 2009. Changes in foreign currency exchange rates contributed seven percentage points of 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
34