Columbia Sportswear 2013 Annual Report Download - page 2

Columbia Sportswear Company enhanced
its product and marketing strategies during
2013, driving renewed sales growth in three
of our four geographic regions and two of
our three major brands, and setting the
stage for more robust sales and earnings
growth in 2014.
Although global net sales rose only 1 percent during 2013, the year
concluded with strong sales momentum, as increased consumer
demand across our U.S. direct-to-consumer platform expanded
into U.S. wholesale channels, leading to 6 percent global sales
growth in the fourth quarter.
For the full year, U.S. and Canadian sales each grew 3 percent on
the strength of our direct-to-consumer platform, which more than
offset lower wholesale sales resulting from cautious advance orders
by wholesale customers in the wake of two consecutive warm
winters. Sales in the EMEA (Europe/Middle East/Africa) region grew
4 percent, refl ecting increased sales to independent distributors in
the region, which offset lower sales in our Europe-direct wholesale
markets. LAAP (Latin America/Asia Paci c) region sales declined 6
percent due to a combination of import restrictions and currency
constraints in key South American markets, and the translation
effects of a weaker Japanese yen, which offset growth in our Korean
business.
Net income of $94.3 million, or $2.72 per diluted share, in 2013
declined 6 percent from 2012 net income of $99.9 million, or $2.93
per diluted share, primarily due to a non-cash asset impairment
charge of $5.6 million after tax, or $0.16 per diluted share, related
to our European distribution center. Without that charge, 2013 net
income would have been essentially equal to 2012.
The company generated a record $274.3 million in cash fl ow
from operations in 2013, fueled in part by a 9 percent reduction
in consolidated inventory levels and lower wholesale accounts
receivable. Inventories across our North American wholesale
channels were also generally leaner exiting 2013, clearing the way
for customers to place advance orders for broader assortments of
our Fall 2014 styles, especially in the Columbia and Sorel brands.
We enter 2014 with renewed momentum in key wholesale markets
and a balance sheet that is stronger than ever, with more than $529
million in cash and investments and no long-term debt.That strong
 nancial position and con dence in our long-term growth prospects
prompted the board of directors to authorize a 12 percent increase
in the quarterly dividend to 28 cents per share, following directly on
the heels of a 14 percent increase in late 2013.
Columbia Sportswear is,  rst and foremost, a product- and
marketing-driven company. Our  rst priority is to get the products
right – solving consumers’ problems with sensible innovations that
are differentiated from competitors’ and packaged in great design
at affordable prices.
Dear Fellow Shareholders:
The Columbia brand strives to keep consumers warm, dry, cool and
protected in the outdoors year-around. We solidi ed Columbia’s
existing portfolio of innovations and expanded it with the launch
of TurboDown™, a patent-pending combination of natural down
and synthetic insulation that also features our iconic Omni-Heat™
Refl ective warmth technology. With more accessible price points
across the entire line, we expect the Columbia brand to post double-
digit growth in 2014 after growing 2 percent in 2013.
The SOREL brand is focused on fueling increased awareness and
adoption among young, fashion-forward women who are looking
for footwear that offers stylish protection and comfort from early fall
through late winter. SOREL’s expanded assortment of lightweight,
less-insulated styles is gaining penetration in leading footwear retailers
and extending the brand’s budding relationship with a new generation
of consumers. After growing just 1 percent in 2013, we expect
double-digit growth from SOREL in 2014.
PERFORMANCE
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