Columbia Sportswear 2012 Annual Report Download - page 34

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Year Ended December 31,
2012 2011 % Change
(In millions, except for percentage changes)
Apparel, Accessories and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,347.0 $ 1,334.9 1%
Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322.6 359.1 (10)%
$ 1,669.6 $ 1,694.0 (1)%
Net sales of apparel, accessories and equipment increased $12.1 million, or 1%, to $1,347.0 million in 2012 from
$1,334.9 million in 2011. The increase in apparel, accessories and equipment net sales consisted of a net sales increase in
the Columbia brand and was led by the LAAP region, followed by the United States, partially offset by net sales decreases
in the EMEA region and Canada. The apparel, accessories and equipment net sales increase in the LAAP region was led
by Japan, followed by Korea and our LAAP distributor business. The net sales increase in apparel, accessories and equipment
in the United States consisted of a net sales increase in our direct-to-consumer business, partially offset by a net sales
decrease in our wholesale business.
Net sales of footwear decreased $36.5 million, or 10%, to $322.6 million in 2012 from $359.1 million in 2011. The
decrease in footwear net sales was led by the Sorel brand, followed by the Columbia brand. The footwear net sales decrease
was led by the EMEA region, followed by the United States and Canada, partially offset by a net sales increase in the LAAP
region. The footwear net sales decrease in the EMEA region was primarily concentrated in our EMEA direct business, and
was led by the Sorel brand, followed by the Columbia brand. The net sales decrease in footwear in the United States
consisted of a net sales decrease in our wholesale business, partially offset by a net sales increase in our direct-to-consumer
business. The LAAP footwear net sales increase was led by our LAAP distributor business, followed by Japan and Korea,
and was primarily concentrated in the Columbia brand, followed by the Sorel brand.
Sales by Brand
Net sales by brand are summarized in the following table:
Year Ended December 31,
2012 2011 % Change
(In millions, except for percentage changes)
Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,391.1 $ 1,391.5 —%
Mountain Hardwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141.5 142.3 (1)%
Sorel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127.0 150.3 (16)%
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.0 9.9 1%
$ 1,669.6 $ 1,694.0 (1)%
The net sales decrease in 2012 compared to 2011 primarily consisted of a net sales decrease in the Sorel brand which
was unfavorably affected by mild winter weather in both 2011 and 2012 resulting in lower advance orders as well as higher
order cancellations and fewer reorders of cold weather footwear from wholesale customers. The Sorel brand net sales
decrease was concentrated in the EMEA region, followed by the United States and Canada, partially offset by a net sales
increase in the LAAP region.
Gross Profit: Gross profit as a percentage of net sales decreased to 42.9% in 2012 from 43.4% in 2011. Gross
margin contraction was primarily due to:
• Lower gross margins on increased promotional selling activities; and
• Higher product input costs;
partially offset by:
• Increased wholesale pricing;
• Lower airfreight costs; and