Columbia Sportswear 2013 Annual Report Download - page 38

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34
Year Ended December 31,
2012 2011 % Change
(In millions, except for percentage changes)
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 946.7 $ 948.0 —%
LAAP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377.6 341.0 11%
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230.6 275.4 (16)%
Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114.7 129.6 (11)%
$ 1,669.6 $ 1,694.0 (1)%
Net sales in the United States decreased $1.3 million, or less than 1%, to $946.7 million in 2012 from $948.0 million
in 2011. The decrease in net sales in the United States consisted of a net sales decrease in our wholesale business across
all brands and both product categories, partially offset by a net sales increase in our direct-to-consumer channel across all
brands and both product categories. The decrease in net sales in our wholesale business was driven by unseasonably warm
winter weather and general consumer caution, resulting in higher cancellations of advance orders and fewer reorders from
wholesale customers. The increase in direct-to-consumer net sales was due to a greater number of retail stores operating
during 2012 than 2011 and, to a lesser degree, increased sales from existing stores. At December 31, 2012, we operated 63
retail stores, compared with 51 at December 31, 2011.
Net sales in the LAAP region increased $36.6 million, or 11%, to $377.6 million in 2012 from $341.0 million in 2011.
Changes in foreign currency exchange rates affected the LAAP net sales comparison by less than one percent. The net sales
increase in the LAAP region was led by a net sales increase in apparel, accessories and equipment, followed by a net sales
increase in footwear. The LAAP net sales increase was concentrated in the Columbia brand, followed by the Mountain
Hardwear brand and the Sorel brand. The LAAP net sales increase was led by Japan, followed by Korea and our LAAP
distributor business. The increase in Japan net sales was led by an increase in wholesale net sales, followed by an increase
in direct-to-consumer net sales. The increase in Korea net sales was primarily due to a greater number of retail stores
operating during 2012 than in 2011, partially offset by the negative effect of foreign currency exchange rates. Net sales to
our LAAP distributors increased due to higher demand in key distributor markets, partially offset by a smaller percentage
of spring 2013 advance orders shipping in the fourth quarter of 2012 compared to shipments of spring 2012 advance orders
in the fourth quarter of 2011.
Net sales in the EMEA region decreased $44.8 million, or 16%, to $230.6 million in 2012 from $275.4 million in
2011. Changes in foreign currency exchange rates negatively affected the EMEA net sales comparison by approximately
four percentage points. The decrease in net sales in our EMEA region was led by footwear, followed by apparel, accessories
and equipment. The net sales decrease consisted of a net sales decrease in our EMEA direct business reflecting a decline
in advance orders due to the effects of the unseasonably warm 2011/2012 winter and a challenging macroeconomic
environment, which have hampered our ongoing efforts to revitalize the Columbia brand in key European markets. This
decrease was partially offset by a net sales increase in the EMEA distributor business, partially due to higher demand in
Russia.
Net sales in Canada decreased $14.9 million, or 11%, to $114.7 million in 2012 from $129.6 million in 2011. Changes
in foreign currency exchange rates compared to 2011 affected the Canada net sales comparison by less than one percent.
The decrease in net sales was led by apparel, accessories and equipment, followed by footwear, and was led by the Columbia
brand, followed by the Sorel and Mountain Hardwear brands. The Canada net sales decrease was primarily a result of a
decline in fall 2012 advance orders for Columbia brand products due to the unseasonably warm 2011/2012 winter and
retailer consolidation in the region.
Sales by Product Category
Net sales by product category are summarized in the following table: