Columbia Sportswear 2014 Annual Report Download - page 7

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the mix and price points of available product offerings. Failure to anticipate or respond to consumer needs and preferences
in a timely and adequate manner could have a material adverse effect on our sales and profitability.
Our business is subject to many risks and uncertainties that may have a material adverse effect on our financial
condition, results of operations or cash flows. Some of these risks and uncertainties are described below under Item 1A,
Risk Factors.
Seasonality and Variability of Business
Our business is affected by the general seasonal trends common to the industry and is heavily dependent upon seasonal
weather and discretionary consumer shopping and spending patterns. Our products are marketed on a seasonal basis and
our sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed
throughout the year. The expansion of our direct-to-consumer operations has increased the proportion of sales, profits and
cash flows that we generate in the fourth calendar quarter. As a result, our sales and profits tend to be highest in the third
and fourth calendar quarters. In 2014, approximately 60 percent of our net sales and approximately 90 percent of our
profitability were realized in the second half of the year, illustrating our dependence upon sales results in the second half
of the year, as well as the less seasonal nature of our operating costs.
Results of operations in any period should not be considered indicative of the results to be expected for any future
period, particularly in light of persistent volatility in economic and geopolitical conditions. Sales of our products are subject
to substantial cyclical fluctuation, the effects of unseasonable weather conditions, the relative popularity of competitors'
brands and the continued popularity of outdoor and active lifestyles in key markets. Volatile economic and geopolitical
environments in key markets, seasonal weather patterns and inflationary or volatile input costs reduce the predictability of
our business.
For further discussion regarding the effects of the macro-economic environment on our business, see Part II, Item 7,
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Products
We provide high quality apparel, footwear, accessories and equipment for use in a wide range of outdoor and active
lifestyle activities by men, women and youth, designed to keep consumers warm or cool, dry and protected. A large
percentage of our products are also worn for casual or leisure purposes. The durability and functionality of our products
make them ideal for a wide range of outdoor and active lifestyle activities, serving a broad range of consumers, including
elite skiers and mountain climbers, outdoor enthusiasts, hunting and fishing enthusiasts, top endurance trail runners and
outdoor-inspired consumers. We also market licensed collegiate apparel and accessories under our Columbia brand.
We develop and manage our merchandise in two principal categories: (1) apparel, accessories and equipment and (2)
footwear. The following table presents the net sales and approximate percentages of net sales attributable to each of our
principal product categories for each of the last three years ended December 31 (dollars in millions).
2014 2013 2012
Net Sales % of Sales Net Sales % of Sales Net Sales % of Sales
Apparel, accessories and
equipment $ 1,676.2 79.8% $ 1,374.6 81.6% $ 1,347.0 80.7%
Footwear 424.4 20.2 310.4 18.4 322.6 19.3
Total $ 2,100.6 100.0% $ 1,685.0 100.0% $ 1,669.6 100.0%
Apparel, accessories and equipment
We design, develop, market and distribute apparel, accessories and equipment for men and women under our Columbia,
Mountain Hardwear and prAna brands, and for youth under our Columbia and Mountain Hardwear brands. Our products
incorporate the cumulative design, fabrication, fit and construction technologies that we have pioneered over several decades
and that we continue to innovate. Our apparel, accessories and equipment are designed to be used during a wide variety of
outdoor activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running,
water sports and adventure travel.