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SGI weekly intelligence, July 12th

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SGI weekly intelligence, July 12th Document Transcript

  • 1. VOLUME 2, NUMBER 27 JULY 12, 2010 INSIDE: Retail compensation takes a nice jump in 2009 on recovering retail trends. Big 5 lowers guidance; specialty store outlook is choppy. Land America takes control of Star Trac Fitness. Billabong, Delta Apparel make acquisitions. Smith & Wesson has profit against loss on 21% sales increase. Federal Agencies seek comments on access to outdoor recreation. Miscellaneous Tariff Bill posted on House site but quick passage unlikely. John Horan’s Deep Intelligence looks at the Yuan’s effect on sourcing. Judy Spies: Tecnica Eddie Bauer  Football Fanatics  GE Money  G.I. Joe’s  Grapevine Mills Crossing  GSI Commerce  Import cargo  May Golf  Sport Chalet  Top 100 Retailers  Used sporting goods sales  Wal-Mart  Collective Brands  Eagle Creek  Easton Sports  Heelys  Keeper  NSGA  Spyder  TMaG  Nike  Deckers  Gander Mountain  CPSC recalls Tecnica Outdoor’s new TRS Max footwear technology targets the trail running market and will launch at retail in Q1 2011. The shoes feature a platform that is 30 percent larger and 10 percent lighter than traditional trail running models. (For complete details, visit the new product department.) Photo courtesy of Tecnica. INDUSTRY NEWS AND ANALYSIS FOR RETAILERS From the Editorial Team of Sporting Goods Intelligence
  • 2. John Horan HOT TICKETS Publisher jhoran@sginews.com According to a recent 610-459-4040 report from Planalyt- Judy Leand ics, North America ex- Editor jleand@sginews.com perienced both the third 718-858-2354 warmest and second wettest Bob McGee June in 50 years. And July is already shaping Managing Editor up to be a scorcher in the Eastern U.S. But the bmcgee@sginews.com 508-279-3060 temperature isn’t the only thing that’s heating up. Now that the summer tradeshow season is Robert Z. Feiner almost here, the industry is starting to roll out Advertising Director its latest round of innovations. rfeiner@sginews.com 212-879-9200 At Tecnica Outdoor, the focus is on a new Jon Bogert footwear line called TRS Max. The technol- Associate Publisher ogy, which is aimed at the trail running mar- jbogert@sginews.com ket, boasts an oversized platform designed to 610-459-4040 stabilize the foot on uneven and hilly terrain Rob Maturo Circulation while also providing shock absorption and aid- rmaturo@sginews.com ing propulsion. Be sure to visit the new product 610-459-4040 department for all the details. SGI Weekly Intelligence Speaking of outdoors, you’ll certainly want is published by Sporting Goods Intelligence, Inc. to check out this week’s e-vent video, featur- 442 Featherbed Lane, Glen ing highlights from the Teva Extreme Outdoor Mills, PA 19342. Games that were held in Italy in mid-June. ©2010 Sporting Goods Events included kayaking, trail running, moun- Intelligence, Inc. all rights reserved. tain biking, bouldering and even paragliding. Click Here to Of course, this issue is also packed with Request a Subscription the hottest news and events from around the industry, so go ahead and start clicking! Judy Leand Editor PAGE 2 JULY 12, 2010
  • 3. COMPENSATION OF TOP RETAIL EXECS JUMPS 23% IN 2009 A flurry of new executives sporting sizeable stock pack- ages, an industry-wide recovery in stock prices and some improvements in operating performance all contributed to the increase in executive pay at the 15 public companies in our annual survey of top executives drawn from recently filed proxy statements. The industry’s top 77 executives at publicly held retailers were paid $107.6 million, a mean average of $1,396,952 per person and a median average of $995,464 with a range topping out with Foot Locker CEO Ken Hicks at $8.6 million down to PacSun’s newly hired SVP of marketing who had pay of $241,289. Last year’s total compensation had a mean average of $957,676. The mean average salary was $430,805; the mean bonus was $45,566; and -the mean non-equity compensation, usually a cash payment not included in performance-based bonus, was $289,659. Other factors in total compensa- tion were stock compensation, averaging $293,058; options averaging $261,125; and other compensation averaging $76,738. Generally, the CEO was making around twice as much as the next highest paid executive, according to an analysis we did that compared compensation with- in each company on comparable titles. The best paid were the chief merchandising officers, making 57% of the CEO’s compensation, followed by the COO/Operations chief at 53%. Next on the food chain were CFO/finance executives JUly 12, 2010 PAGE 3
  • 4. at 48% of the boss’s pay. Supply chain officers received pay equal to 40% of the CEO. The other three titles, covering marketing, legal/HR/administrative and real estate, were all closely bunched in the range of 26-29% of the CEO’s pay. In terms of the best bargain for shareholders, Lu- lulemon had the top spot in terms of change in stock price with a 315% increase. But looked at another way, LULU’s top executives took 17.0% of the company’s pre-tax profit in compensation, the highest of any retailer, and had one of the biggest pay raises from the prior year at 58.5%. Foot Locker’s top four execs took the most compensation of any retailer with aggregate pay of $15,954,000 but that represented just 4.6% of pre-tax profit, lowest among the retailers reporting a profit. However, Big Foot’s stock price declined 17%. Also notable from a compensation standpoint was Golf Galaxy, whose top four took a 36% cut in pay even as the stock price rose 204%. By far the largest pay raise was at Cabela’s, where the top four had a 92.5% pay increase. The stock price rose 133.0% during the year and CAB execs took a middling 8.8% of pre-tax profit. Retailers reacted to the belt-tightening of the re- cession in various ways. At Zumiez, for instance, CEO Richard Brooks got a 39% raise, but his compensation at $372,308 was well below the levels of other retailers with comparable positions. The next lowest paid CEO, with a raise of 6%, was Big 5’s Steve Miller at $887,538. But at turnaround situations like Pacific Sunwear, new CEO Gary Schoenfeld made $4,051,777. PAGE 4 JULY 12, 2010
  • 5. Some chairmen/founders who have significant stakes in the companies tended to take relatively modest com- pensation during difficult times. Lululemon chairman Den- nis Wilson, whose stock holdings are worth more than $900 million, had compensation of $461,488. Shoe Carnival chairman Wayne Weaver took just a $300,000 salary. His stock in Shoe Carnival, worth $63 million, is a fraction of his entire net worth that also includes Nine West stores and the Jacksonville Jaguars. Zumiez chairman Tom Campion, whose holdings there are worth over $100 million, was paid $370,012. That was a 92% raise from last year. Active CEOs with significant personal stakes were generally paid more in line with other CEOs. At Dick’s, CEO Ed Stack with personal holdings in excess of $700 million, had a compensation of $7.4 million. Big 5 CEO Steve Miller, with about $15.6 million in holdings, had a relatively low compensation package be- cause none of the Big 5 managers got non-equity compensa- tion. PAGE 6 JULY 12, 2010
  • 6. 2009 Retail Executive Salary Survey 2009 2008 Rank Ticker Executive/Retailer Salary Bonus Non-Equity Other Stock Options TOTAL TOTAL CHANGE 1 FL Ken C. Hicks, Chairman, Pres., CEO $506,349 $1,000,000 $0 $285,456 $5,050,000 $1,753,860 $8,595,665 NA NA 2 DKS Edward W. Stack, Chair, CEO $700,000 $0 $2,800,000 $133,256 $491,301 $3,290,324 $7,414,881 $2,765,748 168% 3 PSS Matthew E. Rubel, Chairman, CEO, President $1,123,500 $0 $1,808,835 $173,904 $969,500 $2,380,316 $6,456,055 $5,103,132 27% 4 PSUN Gary H. Schoenfeld, Pres./CEO $625,962 $0 $0 $5,215 $96,000 $3,324,600 $4,051,777 NA NA 5 CAB Thomas L. Millner, President, CEO $569,231 $0 $1,060,769 $36,496 $1,417,052 $535,139 $3,618,687 $931,836 288% 6 DKS Joseph H. Schmidt, President, COO $675,000 $0 $1,012,500 $16,269 $205,227 $1,022,954 $2,931,950 $1,535,422 91% 7 FL Matthew Serra, Rtd. Chair, Pres., CEO $1,500,000 $0 $0 $408,392 $595,800 $344,038 $2,848,230 $4,716,326 -40% 8 FINL Glenn S. Lyon, CEO $661,250 $0 $1,223,313 $38,443 $198,338 $290,261 $2,411,605 $1,234,467 95% 9 LULU Christine M. Day, CEO $492,250 $0 $443,025 $3,759 $1,459,799 $0 $2,398,833 $1,327,538 81% 10 FL Ronald Halls, Pres./CEO, Foot Locker Intl. $750,000 $0 $0 $313,481 $1,020,000 $299,735 $2,383,216 $1,948,395 22% 11 GSIC Michael G. Rubin, COB, Pres., CEO $474,000 $0 $0 $4,055 $1,876,548 $0 $2,354,603 $3,258,415 -28% 12 PSS LuAnn Via, Pres., CEO of Payless ShoeSource $675,000 $25,000 $765,244 $163,326 $189,745 $476,532 $2,294,847 NA NA 13 HIBB Michael J. Newsome, CEO.COB $541,000 $0 $595,100 $16,749 $541,200 $459,295 $2,153,344 $1,769,440 22% 14 FL Richard A. Johnson, Pres./CEO FL/LFL/KFL U.S. $525,000 $0 $407,822 $874,092 $248,250 $71,730 $2,126,894 $1,649,217 29% 15 CAB Dennis Higby, Vice Chairman $517,100 $0 $667,780 $109,800 $480,600 $197,400 $1,972,680 $1,280,090 54% 16 DKS Timothy E. Kullman, EVP Finance, Admin, CFO $504,615 $0 $756,923 $3,675 $136,818 $546,617 $1,948,648 $1,370,380 42% 17 PSS Daniel J. Pavelka, EVP Global Supply Chain $535,000 $51,400 $559,878 $203,811 $83,100 $229,042 $1,662,231 $1,188,025 40% 18 CAB Patrick A. Snyder, EVP/Chief Marketing Officer $475,000 $0 $712,500 $9,800 $320,400 $131,600 $1,649,300 $1,386,743 19% 19 PSS Douglas J. Treff, EVP, CAO $540,750 $0 $565,895 $122,662 $83,100 $217,740 $1,530,147 NA NA 20 DKS Gwen K. Manto, EVP/CMO $126,274 $136,818 $0 $711,458 $0 $546,617 $1,521,167 $1,617,477 -6% 21 CAB Brian J. Linneman, EVP/Chief Merchant $411,538 $0 $623,798 $9,800 $320,400 $131,600 $1,497,136 $1,206,330 24% 22 DKS Jeffery R. Hennion, EVP, Chief Marktng Officer $450,000 $0 $337,500 $15,772 $136,818 $546,617 $1,486,707 $1,321,038 13% 23 CTRN R. David Alexander, Jr., Pres./CEO $500,000 $0 $601,000 $232,322 $125,000 $0 $1,458,322 NA NA 24 LULU John E. Currie, CFO $332,780 $0 $241,650 $1,611 $790,652 $0 $1,366,693 $1,055,527 29% 25 CAB Ralph W. Castner, EVP/CFO $391,779 $0 $589,724 $9,800 $240,300 $98,700 $1,330,303 $552,358 141% 26 PSUN Sally Frame Kasaks, former CEO/COB $1,146,154 $0 $0 $61,299 $82,000 $0 $1,289,453 $3,878,887 -67% 27 FL Gary Bahler, SVP, Gen. Counsel, Secretary $524,975 $0 $0 $383,337 $248,250 $71,730 $1,228,292 $1,555,269 -21% 28 DKS Kathyrn L. Sutter, EVP, CMO $333,846 $0 $333,846 $13,587 $82,920 $448,147 $1,212,346 NA NA 29 SCVL Mark L. Lemond, Pres./CEO $703,500 $422,100 $0 $58,986 $0 $0 $1,184,586 $1,248,082 -5% 30 FL Robert McHugh, SVP/CFO $562,500 $0 $0 $268,635 $248,250 $71,730 $1,151,115 $1,894,220 -39% 31 HIBB Jeffry O. Rosenthal, Pres. And COO $325,000 $0 $321,750 $14,101 $472,648 $0 $1,133,499 $692,486 64% 32 FINL Edward W. Wilheim, EVP/CFO $320,500 $0 $372,115 $24,831 $249,975 $140,917 $1,108,338 NA NA 33 FINL Gary D. Cohen, EVP, Gen. Counsel, Sec. $364,250 $0 $455,313 $16,643 $101,723 $148,877 $1,086,806 $1,050,473 3% 34 CAB Charles Baldwin, EVP, CAO $285,000 $0 $427,500 $9,800 $240,300 $98,700 $1,061,300 NA NA 35 GSIC Stephen J. Gold, EVP, CIO $404,000 $0 $324,189 $52,585 $275,340 $0 $1,056,114 $1,406,174 -25% 36 CAB Joseph M. Friebe, EVP, Pres. Of Bank $278,608 $0 $423,260 $9,800 $240,300 $98,700 $1,050,668 $418,300 151% 37 GSIC Damon Mintzer, EVP of Sales $444,158 $0 $296,474 $4,585 $275,340 $0 $1,020,557 $1,106,688 -8% 38 RVI Jay L. Shottentstein, Chairman $750,000 $250,000 $0 $0 $0 $0 $1,000,000 $1,288,403 -22% 39 GOLF Martin E. Hanaka, COB, Pres./CEO $600,000 $150,000 $93,239 $152,225 $0 $0 $995,464 $2,380,429 -58% 40 FINL George S. Sanders, EVP R.E., Store Dvlpmnt. $320,500 $0 $400,625 $11,390 $96,290 $140,917 $969,722 NA NA 41 GSIC J. Scott Hardy, EVP Business Mngment $415,000 $0 $230,294 $3,914 $301,815 $0 $951,023 $957,212 -1% 42 CTRN Elizabeth R. Feher, EVP/Chief Merchant $373,077 $0 $292,988 $12,354 $243,750 $0 $922,169 $892,950 3% 43 HIBB Gary A. Smith, CFO/SVP $286,000 $0 $251,680 $12,711 $369,820 $0 $920,211 $710,442 30% 44 GSIC Michael R. Conn, EVP Finance/CFO $390,000 $0 $216,420 $10,585 $301,815 $0 $918,820 $1,019,443 -10% 45 ZUMZ Lynn K. Kilbourne, Pres./GMM $350,000 $0 $210,000 $861 $113,520 $233,200 $907,581 $1,127,697 -20% 46 BGFV Steven G. Miller, COB/Pres./CEO $473,000 $305,000 $0 $27,794 $0 $81,744 $887,538 $838,765 6% 47 LULU Sheree Waterson, EVP/Gen. Merch. $313,250 $0 $225,540 $46,185 $0 $293,092 $878,067 $293,087 200% 48 HIBB Cathy E. Pryor, SVP of Store Ops $270,000 $0 $237,600 $2,285 $349,976 $0 $859,861 $647,146 33% 49 CTRN R. Edward Anderson, Former CEO $396,635 $0 $0 $10,602 $375,000 $0 $782,237 $1,516,846 -48% 50 ZUMZ Trevor S. Lang, CFO/Secretary $262,500 $0 $110,250 $4,503 $106,640 $233,200 $717,093 $573,711 25% 51 PSS Douglas G. Boessen, Div. SVP/CFO/Trs. $300,000 $0 $193,200 $112,647 $19,733 $63,769 $689,349 $409,496 68% 52 GOLF Sue E. Gove, EVP/COO $444,296 $50,000 $52,448 $53,472 $0 $73,030 $673,246 $406,562 66% 53 SCVL Clifton E. Sifford, EVP/GMM $425,000 $191,250 $0 $44,685 $0 $0 $660,935 $822,212 -20% 54 PSUN Thomas Leart, former SVP/Gen. Counsel/HR $275,962 $0 $0 $277,710 $14,760 $73,860 $642,292 NA NA 55 CTRN Bruce D. Smith, EVP/CFO $298,462 $0 $180,300 $509 $150,000 $0 $629,271 $561,184 12% 56 SCVL W. Kerry Jackson, EVP/CFO/Treasurer $400,000 $191,250 $0 $36,489 $0 $0 $627,739 $788,742 -20% 57 ZUMZ Ford W. Wright, EVP of Stores $225,000 $0 $74,250 $6,250 $79,120 $233,200 $617,820 $541,598 14% 58 SCVL Timothy T. Baker, EVP-Store Ops $425,000 $166,250 $0 $18,814 $0 $0 $610,064 $745,750 -18% 59 PSUN Charles Mescher, SVP/GMM Young Mens $385,025 $38,503 $0 $51,584 $10,660 $120,629 $606,401 NA NA 60 FINL Steven J. Schneider, Pres., COO $531,350 $0 $0 $0 $0 $0 $531,350 $1,290,471 -59% 61 BGFV Barry D. Emerson, SVP/CFO/Treasurer $325,000 $135,000 $0 $23,932 $0 $32,710 $516,642 $595,692 -13% 62 CTRN Ivy D. Council, SVP of Human Resources $239,231 $0 $144,240 $2,376 $120,000 $0 $505,847 $461,361 10% 63 BGFV Thomas J. Schlauch, SVP Buying $270,000 $163,000 $0 $22,953 $0 $32,710 $488,663 $480,714 2% 64 CTRN James A. Dunn, SVP of Store Ops $219,231 $0 $132,220 $9,484 $110,000 $0 $470,935 $430,708 9% 65 LULU Dennis J. Wilson, COB, Chief Prod. Dsgnr $241,822 $0 $219,666 $0 $0 $0 $461,488 $240,980 92% 66 PSUN Michael L. Henry, SVP/CFO/Secretary $300,000 $0 $0 $43,414 $10,600 $95,895 $449,909 $518,477 -13% 67 BGFV Richard A. Johnson, EVP $244,000 $149,000 $0 $23,762 $0 $32,710 $449,472 $442,362 2% 68 RVI Julia A. Davis, EVP/General Counsel $360,000 $0 $0 $27,714 $0 $0 $387,714 $388,976 0% 69 ZUMZ Richard M. Brooks, CEO $262,500 $0 $105,000 $4,808 $0 $0 $372,308 $268,226 39% 70 ZUMZ Thomas D. Campion, COB $262,500 $0 $105,000 $2,512 $0 $0 $370,012 $267,509 38% 71 HIBB Rebecca A. Jones, SVP of Merchandising $265,000 $0 $0 $3,875 $0 $99,359 $368,234 NA NA 72 BGFV Gary S. Meade, SVP/Gen Counsel/Sec. $209,000 $84,000 $0 $21,137 $0 $32,710 $346,847 $352,979 -2% 73 SCVL J. Wayne Weaver, COB $300,000 $0 $0 $0 $0 $0 $300,000 $300,000 0% 74 PSUN Craig E. Gosselin, SVP/Gen. Counsel/HR $51,154 $0 $0 $1,338 $99,500 $116,120 $268,112 NA NA 75 LULU Delaney Schweitzer, EVP N.A. Retail Estate $179,000 $0 $85,290 $0 $0 $264,290 $471,187 -44% 76 GOLF Matthew Corey, SVP Marketing and Bus. Dev. $212,692 $0 $15,767 $1,667 $0 $28,173 $258,299 $241,244 7% 77 PSUN Robert Cameron, SVP Marketing $25,000 $0 $0 $669 $99,500 $116,120 $241,289 NA NA TOTALS $33,172,056 $3,508,571 $22,303,720 $5,908,803 $22,565,493 $20,106,666 $107,565,309 $73,741,044 23% JUly 12, 2010 PAGE 7
  • 7. BIG 5 LOWERS GUIDANCE AS OUTLOOK GETS CHOPPY Big 5 Sporting Goods revised its Q2 EPS outlook down- ward to a range of $0.20-.23 ($4.4-5.0 mm) versus its May guidance of $0.24-.28, citing “lackluster sales of summer- related products in May” as a significant contributor to the period’s expected shortfall. Big 5’s Q2 comps fell 0.5% year- over-year as footwear, hardgoods and apparel each per- formed within a relatively tight range of one another. Posi- tive same store sales in April and June and “encouraging trends” during the Fourth of July period were unable to off- set the difficult May, the retailer said. June, typically a clearance month for most retailers as they prepare for the crucial Back-To-School shopping season, was not a blockbuster for several in the teen segment. But research firm The NPD Group reported that a “soft” June was no reason for widespread panic given its data suggests consumers intend to spend more in the coming months, par- ticularly on apparel, and that year-over-year sales compari- sons are favorable. Still, other retail experts are forecasting a promotional environment and continued discounting as retailers aim to draw traffic into their doors and keep inven- tory levels in check. For sure, LeBron James’ much bally- hooed move to the Miami Heat from Cleveland should spur additional sales of his NBA jersey this Fall. However, at Zumiez in June, same store sales rose 10.9% for the five weeks ended July 4, helped by a low-single-digit benefit from 2010 calendar shifts for the Memorial Day and Fourth of July holidays. Comps PAGE 8 JULY 12, 2010
  • 8. were higher in each of the five weeks, led by a 14.6% in- crease in the period’s fourth week. Same store sales were 10% in the Western U.S. and up high-single-digits in the Midwest, South and Northeast. Total June sales grew 16.4% to $37.2 million from $32.0 million. Dollars per transaction were down due to lower ASPs and fewer units per transac- tion. Men’s, boys’, accessories and juniors’ each had positive comps for the period; hardgoods and footwear comps were down. Meanwhile, outdoor specialty stores gained 12% in dollars across the chain, Internet and specialty channels with chains producing a strong double-digit, year-over-year increase, according to Leisure Trends. Online outdoor sales were up high-single-digits in most cat- egories. Meanwhile, specialty store sales slipped in units but there were higher retail price points in most categories. Regionally, specialty outdoor dollar sales were up in the Mid- west (+2%) and Northeast (+1%), helped by healthy in- creases from apparel and footwear, but down y-o-y in the South and West. However, camping gear, soft shell jackets and multi-sport shoes each outpaced the prior year period in the South along with solid results from women’s-specific sportswear. In the U.S. West, technical items sold best in May as the region accounted for 32% of all May dollars sold in the outdoor specialty channel. Elsewhere, retail specialty retail dollar sales rose 7% in May y-o-y on an 8% increase in ASPs and flat unit growth. Sales of all running shoes in the channel were up 7% in dollars and 5% in units with growth generated by stabil- ity and neutral/cushion road shoes, road racing models and PAGE 10 JULY 12, 2010
  • 9. trail runners. The multi-sport segment enjoyed triple-digit growth, sparked by Vibram FiveFingers. Women’s products accounted for 67% of all sports apparel sold in May. In Dive, retailers picked up a 1% increase in units sold in May although the y-o-y ASP dropped 9% to drag total dol- lars down 8% y-o-y. Entry-level snorkeling categories sold best and photo equipment was lifted by accessories. Finally, in the Paddlesports segment, y-o-y May sales grew 1% on increases from accessories and apparel. Boats and paddles were down. Chain stores realized double-digit dollar growth off a small base, while specialty brick-and-mortar stores and online sales were down y-o-y. JUly 12, 2010 PAGE 11
  • 10. LAND AMERICA FOUNDER ACQUIRING STAR TRAC PARENT The transaction sees Michael Bruno, the founder and owner of Xiamen, China-based Land America Health & Fit- ness Co., acquire the controlling interest in the parent of Irvine, CA-based Star Trac, a privately held supplier of com- mercial fitness products and consumer fitness equipment un- der the ST Fitness label. Financial terms of the transaction have not been disclosed, but the deal is clearly a signal of further consolidation within the fitness equipment segment. Besides Land America, which was founded in 1992, Bru- no owns the Stairmaster and Schwinn brands. The Star Trac acquisition will be marked by a reorganization plan that fo- cuses on continuity and aggressive streamlining. The latter will include the consolidation of Star Trac’s U.S. operations to a single location in Southern California, including current consumer officers in Colorado. The company employs ap- proximately 450 globally, including about 300 in the U.S., and generates approximately 40% of its top line internation- ally from distribution in the United Kingdom, Germany, Spain and Singapore. Star Trac will continue with its existing management team led by Mike Leveque, president and COO, who has been with the company for 17 years. Meanwhile, Gregg Hammann, the president and CEO of Nautilus from July 2003 through Aug. 2007, is the CEO of Land America. PAGE 12 JULY 12, 2010
  • 11. BILLABONG, DELTA APPAREL MAKE MID-YEAR ACQUISITIONS Billabong will pay C$1.30 cash for all outstanding and common shares in Canadian action sports retailer West 49, which represents a 136% premium over WXX’s closing price on June 29. The transaction for the 138-door retailer under various banners will close in late Aug. or early Sept. Certain West 49 shareholders and its board of directors, who col- lectively own 56% of the company’s common and preferred shares, have already entered into lock-up agreements with Billabong. The company’s two largest shareholders are Retail Di- mensions Inc., which own 22% of common shares and nearly 76% of the preferred stock, and Michael Goldgrub of Cosa Nova Fashions Ltd., who owns 19.5% of WXX’s com- mon shares, according to a West 49 public filing. West 49 is slated to conduct its annual meeting on July 14 when more details about the pending transaction should be known. A special shareholders’ meeting to approve the acquisition by Billabong is scheduled for Aug. 24. But early July 9, West 49 disclosed that Zumiez repre- sentatives have expressed an interest in acquiring it, sub- ject to its own due diligence, for a cash price higher that Billabong’s C$1.30 a share. The WXX board is concerned with ZUMZ’ intent to enter the Canadian market and has in- structed management to protect the company’s competitive position in the market. A special committee and the West 49 board, in a statement, said they continue to support the Billabong transaction despite the interest by Zumiez. PAGE 14 JULY 12, 2010
  • 12. Meanwhile, Delta Apparel will add HPM Apparel, do- ing business as The Cotton Exchange, to its portfolio. The acquisition will add approximately $25 million to DLA’s top line and be slightly accretive to earnings for the FY ending Jul. 2, 2011. Besides selling collegiate apparel into the col- lege bookstore market, TCE markets apparel under the TCX and Just for Us labels. Financial terms of the transaction, expected to close by Jul. 15, were not disclosed. The Cotton Exchange will remain headquartered in Wen- dell, NC, with all existing operations and staff, about 290 presently, remaining in place. Delta’s pending acquisition of the company includes associated inventory, receivables, fixed assets and the assumption of certain liabilities. But no goodwill or intangibles will be added to DLA’s financial state- ments from the acquisition. Elsewhere, Cutter Gloves acquires a majority stake in 85-year-old baseball glove brand Nokona for an undisclosed price. Financial terms of the transaction weren’t disclosed, but Rob Storey will remain with Nokona as VP of operations. And ProMounds, a maker of baseball and softball products, acquires The Designated Hitter, a maker of a pitching train- ing tool, for an unspecified price. The acquired product will be sold through ProMounds’ retail division, On Deck Sports. PAGE 16 JULY 12, 2010
  • 13. SMITH & WESSON FIRES A FY PROFIT AS SALES SHOOT 21% HIGHER Net income was $42,272,000 against a loss of $73,367,000 for the 12 months ended April 30. Total FY sales grew 21% to $406,176,000 from $334,955,000 as gross margins expanded 340 b.p. to 32.3% on improved efficiencies in the gun segment. Last year’s net loss was the result of a $98.2 million impairment charge on the ac- quisition of Thompson/Center Arms. Firearms sales were 7% higher at $357.9 million; perimeter security sales were $48.3 million. In Q4, net income slid 64% to $2.7 million from $7.4 million despite a 4% increase in sales to $103.8 million. At FY end, Smith & Wesson reported a 45% increase in firearm order backlog from the end of Q3 to $108.0 mil- lion, driven by new products. Firearms sales fell $9.3 million to $90.2 million, reflect- ing an historic peak in firearms sales industry-wide last year. Perimeter Security sales were $13.6 million. Smith & Wesson’s current FY11 outlook calls for a revenue range of $430-445 million, representing top line expansion of 6-10%, with firearms contributing $355-365 million and the perimeter security unit some $75-80 million. Full year gross profit margin is forecast at 32-33% with operating expenses flat at approximately 22% of sales. In Q1, expectations are for total revenues of $92- 96 million, a decline from the prior year’s record quarter for firearms sales. PAGE 18 JULY 12, 2010
  • 14. JUly 12, 2010 PAGE 19
  • 15. FEDS SEEK INPUT ON CONNECTING AMERICANS TO OUTDOORS In a number of public listening sessions this summer, the U.S. Depts. of Interior and Agriculture, The Environmental Protection Agency and the Council on Environmental Quality will compile public input for a report that will be sent to Pres. Obama in Nov. America’s Great Outdoors public listening sessions will take place in Grand Junction and Denver, CO, on July 16. In both sessions, federal officials will seek specif- ic input and suggestions about how the federal government can more effectively connect Americans to the outdoors and support community-level efforts to conserve outdoor spaces. The Outdoor Industry Association (OIA) believes the federal government can accomplish these goals by improving and expanding close-to-home recreation opportunities. The trade group wants the federal government to fully fund the Land and Water Conservation Fund (LWCF) at $900 million and increase active transportation/recreation networks for walking and biking. PAGE 20 JULY 12, 2010
  • 16. MISCELLANEOUS TARIFF BILL AWAITS SENATE ACTION But, according to representatives from the Outdoor In- dustry Association, it remains unlikely that Congress will pass the MTB before the Nov. mid-term elections. Still, with the posting of the MTB on the House Ways and Means Com- mittee website, it is possible the Senate will proceed with its version of the bill before the elections. In the House version, all duty suspension extensions are retroactive to Jan. 1, 2010 with a provision that gives importers 180 days after legislation passage to file a liquida- tion or reliquidation request. Also, all MTBs, whether new or extensions, have an expiration of Dec. 31, 2012. The House Bill does extend some of the 2006 MTB provisions related to waterproof/breathable footwear, however, the OIA cau- tions that increases in suspended duty rates demonstrates the need for passage of the Affordable Footwear Act. In the House MTB, temporary suspension of duties on certain ski boots, cross-country ski footwear and snowboard boots; lug bottom boots for fishing; bicycle wheel rims and bicycle speedometers would remain in effect. JUly 12, 2010 PAGE 21
  • 17. FLOATING YUAN HAS LITTLE SHORT-TERM IMPACT ON MARKET The decision of the Chinese government to float the yuan against an undisclosed basket of currencies is not likely to have much impact on pricing in the short term. As Nike made clear on its conference call, the more immediate issues for sporting goods executives are the pending increases in costs from petroleum-based materials, labor rates and freight. Depending on how much the currency actually appreciates against the US$, the normal currency used to price athletic foot- wear purchases in China, there could be some impact over the next three to five years but most sneaker executives we spoke with do not expect the currency to appreciate a great deal. In- deed, if the past is any indication of China’s intentions, there is unlikely to be a major revaluation relative to the US$. Between 2005 and 2008, when China allowed the yuan to appreciate, the change was about 5% per year. And, as one person we spoke to pointed out, if the currency basket includes the euro, as it almost certainly will, that will temper the impact of the yuan’s strength relative to the US$. Some executives even see something of a positive in China’s move, with its obvious political implications. Pressure from Con- gress in an election year to make an issue of trade with China was already starting to heat up. The threat of a trade war has been a staple of election year political theatre for some time with Congressmen always backing off after getting the attention they crave on the issue. The decision by China to float its currency defuses their main talking point. Longer term, however, the decision is going to give more impetus to what everyone knows is going to happen anyway: moving more footwear sourcing to lower wage countries like Vietnam and Indonesia. China is clearly signaling that it wants to be more of a consumer economy and that it is ready to start producing higher value-added products than apparel and foot- PAGE 22 JULY 12, 2010
  • 18. wear. Most see this as a tradeoff between political risk, especially in Indonesia, and the need to source in lower cost countries. There are some exploratory moves in Bangladesh and India, with the former posing more political risk. The fact that the yuan is likely to appreciate over time will tip the balance a bit more in favor of the added risk. Meanwhile, there is a great deal of muscling going on with existing factory capacity. As Nike and Adidas have concentrated their supply chain in fewer factories, they have been pushing out the second tier. Capacity is very tight right now, and the econom- ics of working with the biggest brands are compelling for the pro- ducers. The efficiencies from a 500,000 pair order compared to a 50,000 pair order are very different, and the two biggest brands are the ones with by far the most big orders of a single item. Having a diversified sourcing base is an obvious advantage in this climate, and here again Nike and Adidas have really put some distance between themselves and the rest of the market. Nike as of its last 10K sources 36% of its product in China, 36% in Vietnam, 22% in Indonesia and 6% in Thailand. Adidas is not quite as diversified, relying on China for 41% of its needs and Vietnam for 17%. It has made a commitment to India, which accounts for 2%. Their competitors generally are not as specific about their sourcing diversification, saying only that Asia ac- counts for a majority. Since China accounts for roughly 70% of global production, the rest of the market is similar to K-Swiss, which does disclose that 78% of its needs are sourced in China. Our feeling is that it will be a long, tough road for the second and third tier brands to elbow their way into the less expensive sourcing over the next two to four years. The lower wage pro- duction capacity will be the scarcest and it’s already under con- trol of the two biggest players. John Horan founded Sporting Goods Intelligence in 1984. He has over 30 years experience reporting on the sporting goods industry. If you’d like to comment on this story, join us on JUly 12, 2010 PAGE 23
  • 19. TECNICA HITS THE TRAIL JUDY SPIES... WITH TRS MAX The new footwear collection will launch at retail in Q1 2011, and targets the trail running market by addressing stability, shock absorption and propulsion with an oversized platform. Basically, Tecnica’s TRS Max technology is de- signed to stabilize the foot on hilly and uneven terrain by allowing the user to “surf” downhill and roll uphill with maxi- mum efficiency. TRS Max is an extension of the company’s successful introduction last year of the Tecnica Rolling System (TRS) technology that eliminated the dead spot in traditional out- door shoes while improving energy trans- mission, comfort and performance. TRS Max takes this innova- tion a step further with a platform that is ap- proximately 30 per- cent larger than traditional The Tecnica Inferno Max (orange colorway) and Diablo Max (red colorway, shown on p. 22-23) have a 30 percent bigger footprint and are 10 percent lighter than traditional trail running shoes. PAGE 24 JULY 12, 2010
  • 20. trail running shoes currently on the market. According to the company, TRS Max marks the convergence of two trends: oversized performance-enhancing sports equipment, and al- ternative footwear platforms. “Right now, the market is split into two extremes: barefoot/minimalist and maximalist,” observed Sam Cook, president of Tecnica USA. “Tecnica TRS Max is maximalist. Although TRS Max visually reminds people of toning and well- ness footwear, its intent and benefit is vastly different. Toning/ shaping shoes are designed to create instability, whereas TRS Max is intended to create stability in unstable environments.” TRS Max is comprised of four elements. Paradox Cush- ioning provides twice the cushioning using Tecnica’s propri- etary EVA for more stability with less weight. The Perfor- mance Platform has a 30 percent bigger footprint then tradi- tional trail runners. The Roller Rocker provides an oversized rocker profile with greater toe and heel rocker height. And Bathtub Construction—in which the midsole wraps the up- per—provides 360 degrees of stability. The first two trail running shoes to offer TRS Max tech- nology are the Inferno Max (SRP $150) and Diablo Max (SRP $130). Both will be available in gender-specific sizes. The Inferno Max, designed using tunnel construction and a one- pull speed lace system, provides a high-performance fit for the serious racer. The Diablo Max is a more versatile shoe with a generous fit and a traditional lacing system intended for the trail running enthusiast. According to Tom Berry, VP of global sales, marketing and merchandising for The Tecnica Group, TRS Max technol- JUly 12, 2010 PAGE 25
  • 21. ogy was in development for two years. “We remain commit- JUDY SPIES... ted to our overarching [TRS] technology platform, and TRS Max is simply an oversized version of this technology,” he noted. “Both TRS in general, and TRS Max in particular, were born in the lab and have been proven in the mountains by top outdoor athletes. We are confident that the perfor- mance benefits of TRS will keep us on this technology platform for a long time, and we see many opportunities to use the TRS platform across many dif- ferent categories outside of trail running.” Berry added, “We launched TRS Max in trail running because it was the ultimate expression of perfor- mance for the outdoor athlete, but we have seen, both in the field and in the lab, that TRS Max has a wide usage spectrum and would also be an excellent technology platform for hiking. The platform benefits of cushioning, stability, lightness, adaptation, grip, and rolling open a lot of doors.” Distribution of TRS Max trail running shoes will focus primarily on specialty outdoor stores, as well as on 20 to 30 core running shops. “The response of the retailers who have seen the product—probably more than 50 of the leading global retailers at this point—has been fantastic,” Berry re- ported. “We are looking at penetration rates for this technol- ogy of 80 percent-plus versus targeted retail partners, and PAGE 26 JULY 12, 2010
  • 22. this latest expression of TRS is opening many doors for us and starting many new relationships.” On the marketing side, Tecnica intends to drive consum- er demand for TRS Max (and TRS and Tecnica footwear in general) via grassroots product seeding, Internet initiatives, and partnerships to drive demand online. There will also be an aggressive sports marketing platform. For example, Berry noted that Tecnica recently inked a sponsor- ship deal with the Tor Des Geants ultra-marathon that will take place in Valle D’Aosta, Italy, in September. Regarding athlete sponsorships, “Tecni- ca’s first trail team came on line in France more than six months ago, and we are cur- rently in the process of building teams around the globe,” Berry reported. Cook also pointed to the importance of sponsoring world-class teams in the U.S. “We are now starting to build that team and we want to position product with that team by Spring 2011 because it will help drive consumer demand,” he said. “What’s exciting in the U.S. market now is that the spe- cialty footwear category is paying attention to Tecnica,” Cook remarked. “We planted some important seeds for Spring ’10, and they’ll pay off in Spring ’11 when we’ll bring a unique expansion of TRS technology to the marketplace.” JUly 12, 2010 PAGE 27
  • 23. E-VENTS TEVA GOES EXTREME IN ITALY From June 10-13, the Teva Extreme Outdoor Games were held in Ivrea, Italy, in the northeast part of the province of Turin. Ivrea was chosen as the loca- tion for the 2010 event due to its authentic urban set- ting combined with natural areas, and because it was well suited to outdoor extreme sports competitions. At the Games, athletes competed in whitewater kayaking, trail running, mountain biking and boulder- ing, and paragliding was included as a demonstration event. Kids also got in on the action with special events such as a junior MTB, junior run, and bouldering. Click here to see highlights of the Teva Extreme Outdoor Games 2010. PAGE 28 JULY 12, 2010
  • 24. RETAIL BRIEFS EDDIE BAUER hires John Spotts, a former senior level executive with Coleman and Woolrich, as VP of licensing, inter- national and corporate sales. Most recently, he served as SVP of international for FranklinCovey Products and SVP of brand licensing with The Sharper Image from 2006 to 2008. FOOTBALL FANATICS hires Scott Williams, most recently the VP/GM of Sam’s Club e-commerce business, as president of the Jacksonville, FL, e-tailer. He is being joined at Football Fanatics by Bob O’Keefe, a 12-year veteran of the NFL where he built the league’s fan database and Extra Points credit card rewards program, as VP of business development for the TeamFanShop division. The outsourced, e-commerce solution powers the online stores of the NCAA, Yahoo! Sports, NFL’s Jacksonville Jaguars and 20+ NCAA Div. 1 programs including Ohio State, Florida and Oklahoma. GE MONEY and CCA GLOBAL PARTNERS initiate a new consumer financing program. The package, GE Money Home Design, is available immediately through 11 national retail- ers, including the CCA Bike Cooperative and CCA Fitness Retail Services. Consumers can find CCA Global members who offer GE Money financing in their local market via an online business locator. In addition to offering the financing programs, CCA Global Members will have access to GE Money’s Web-based finance management portal to manage credit programs and serve customers. G.I. JOE’S will not be returning to the retail scene in the Pacific Northwest after all. UFA Holdings of Alberta, Canada, which owns the Joe’s trademark, has reportedly agreed to JUly 12, 2010 PAGE 29
  • 25. settle an infringement suit it brought against a quartet of retail executives aiming to resurrect the Joe’s banner in the market. GRAPEVINE MILLS CROSSING files for Chap. 11. At 1.6 million sq. ft. with 20 anchors and 200 specialty retailers, Grapevine Mills development is one of the largest malls in The Mills platform owned by Simon Property Group. Opened in late Oct. 1997 two miles north of the Dallas/Fort Worth airport, Grapevine Mills’ retail store base roster has long had a signifi- cant presence in sporting goods and shoes. Besides Bass Pro Shops/Outdoor World, sporting goods stores currently open in the mall include the Dallas Cowboys Pro Shop, Fanzz, Finish Line, Foot Locker, Journeys, Kids Foot Locker, Nike Factory Out- let (a former Just For Feet), Polar Ice House, Sun & Ski Sports and Texas Sports Fans. Shoe doors include a Skechers store and an outlet store featuring Stride Rite/Keds. GSI COMMERCE extends its multi-year e-commerce con- tract with the NBA until 2017. The relationship, which began in 2007, has since seen NBA online sales grow annually. Un- der the ongoing agreement, GSIC will continue to provide e- commerce technology, fulfillment, customer care, marketing and catalog services for the NBA, WNBA and NBA Development League. MAY GOLF ROUNDS fell 2.9% in the U.S., bringing the year-to-date total to down 3.0%. Three regions produced higher rounds played in May versus the year-ago period: New England (+8.2%), Mid Atlantic (+4.1%) and South Atlantic (+3.6%). Of the five regions with a drop in monthly rounds played in May, the two with the largest declines were the Mountain (-9.0%) and East North Central (-8.9%) that en- compasses WI, MI, OH, IN and IL. Among key metro areas of PAGE 30 JULY 12, 2010
  • 26. “Outdoor Retailer offers an unparalleled opportunity to meet with the movers and shakers within our industry, and to find new and exciting products to offer to our customers.” – Doug Davis, River City Canoe & Kayak (New retailer & 1st time attendee - Summer Market 2009) JANUARY 20-23, 2011 AUGUST 4-7, 2011 Salt Palace Convention Center Salt Palace Convention Center Salt Lake City, Utah, USA Salt Lake City, Utah, USA All Mountain Demo Open Air Demo JANUARY 19, 2011 AUGUST 3, 2011 Wasatch Range, Utah, USA Wasatch Range, Utah, USA VISIT OUTDOORRETAILER.COM OR CALL 949/226-5722 FOR MORE INFORMATION.
  • 27. the U.S., there was a contrast in rounds played in May. Rounds were up in Boston (2.1%), New York City (3.2%), San Diego (5.4%) and Washington/Baltimore (10.2%) but off in Chicago (-8.1%), Nashville (-2.9%), San Antonio (-7.8%), Seattle (-15.0%) and Los Angeles (-3.6%). REI and The North Face are teaming up on a promo- tional partnership with National Geographic Entertainment to support a new film, “The Wildest Dream: Conquest of Everest,” opening Aug. 6. TNF’s and REI’s involvement includes private screening opportunities for consumers in 10 U.S. cities—Se- attle, San Francisco, Los Angeles, Chicago, Washington, D.C. and five to be announced—and in-store events with adventurer Conrad Anker who stars in the film. NGE, REI and The North Face will cross-promote the film online and via social network- ing tools. SPORT CHALET promotes Tim Anderson, who joined chain in 2002, to EVP of retail operations where he’ll oversee 2,700 retail employees, 50+ in-store specialty services and Sport Chalet’s e-commerce/enterprise selling customer service center. In a separate development, the chain intends to expand its roster of directors to seven from five with the election of two new members at its Aug. 3 annual meeting. Up for elec- tion to the SPCH board for the first time are: Rachel C. Glaser, COO and CFO for MyLife.com who previously served as SVP of Finance at Yahoo; and Randall G. Scoville, Chief Accounting Of- ficer and VP of Intl. Operations for Unified Grocers. TOP 100 RETAILERS, according to the annual list from Stores magazine, did not change all that much in 2009 despite a challenging year as retailers dealt with both anxious and cautious consumers that changed their shopping habits to a PAGE 32 JULY 12, 2010
  • 28. “need-to-buy” basis rather than a “want-to-buy” basis. Sears (#9), which continues to sell fitness equipment and is adding Edwin Watts golf store-within-a store departments to some of its doors this year, is the only retailer in the Top 10 that sells sporting goods of any kind or branded athletic footwear and apparel. The list is once again paced by Wal-Mart ($304.9 bb), Kroger ($76.7 bb), Target ($63.5 bb), Walgreen ($63.3 bb), The Home Depot ($59.2 bb), Costco ($56.5 bb), CVS ($55.4 bb), Lowe’s ($47.2 bb), Sears ($44.0 bb) and Best Buy ($37.3 bb). Other notables on the Stores annual retail list with their rank and 2009 sales were: J.C. Penney (#19, $17.6 bb), Kohl’s (#20, $17.2 bb), TJX (#23, $15.8 bb), Amazon (#26, $12.8 bb), Nordstrom (#38, $8.3 bb), Dick’s SG (#72, $4.4 bb), Nei- man Marcus (#79, $3.6 bb), Foot Locker (#83, $3.4 bb), and Sports Authority (#87, $3.2 bb). USED SG SALES bought by U.S. consumers reached $952 million in 2009, down from $969 million in 2008 and below the $1 billion mark that was exceeded in both 2007 and 2006, according to research from the NSGA. Used outdoor sports equipment (camping, fishing and shooting sports) sales were down 7% from their CY07 level to $592 million. But used exer- cise equipment realized a 14% increase in CY09 sales to $180 million as more than 650,000 treadmills and stationary bikes were purchased used. The NSGA’s complete report, “Purchases of Used Sports Equipment in 2009” is available to members of the trade group for $140 and for $190 to non-members. WAL-MART taps William Simon, a WMT EVP who heads global sourcing for the discount behemoth, to take over as CEO of its U.S. stores division immediately. He is replacing Eduardo Castro-Wright, who is being re-assigned due to a family illness JUly 12, 2010 PAGE 33
  • 29. to lead the retailer’s Internet operations on Aug. 1. Castro- Wright is relocating to the Brisbane, CA, home of Wal-Mart’s e-commerce operations to be nearer to his wife, who is recu- perating from a heart transplant. As for Simon, in his new post he will be charged with increasing store traffic, pushing compa- rable store sales into the black and maintaining the discount- er’s low prices. ON THE MOVE: • City Sports, the 17-door specialty chain, redesigns its website at citysports.com. Additionally, it upgrades to the latest version of the UniteU Connected Commerce platform, a partner of the retailer since the website’s inception in 2008. • Nelson-Gordon Enterprises, doing business as The Dive Shop in Brookfield, CT, filed for Chap. 11 bank- ruptcy on July 1. The business, 100%-owned by Gary Gordon, has $3.78 million in liabilities after losing $51,637 and $73,813 in 2009 and 2008, respectively. • Hibbett Sports is opening a 4,000-sq.-ft. store in Can- on City, CO, in the southern part of the state, later this month. • Sportsworld, of Lynden, WA, relocates to new head- quarters after merging with Cloud 9 Sports, another custom apparel retailer in the market just south of the Canadian border. • Dick’s will open a 37,500-sq.-ft. store in a former Lin- ens ‘N Things location in Bakersfield, CA, in Q4. PAGE 34 JULY 12, 2010
  • 30. COMPANIES COLLECTIVE BRANDS opens a new combined Euro- pean headquarters and distribution center in Heerhugowaard, The Netherlands, near Amsterdam, and a London showroom. Both facilities are part of the company’s continued push to expand across Europe through distributor partners and work- ing directly with retailers on the continent. PSS says it has seen growing international demand for the brands in its Per- formance +Lifestyle Group over its last several quarters, par- ticularly in Europe. PLG brands already have a sizeable pres- ence in the United Kingdom, France, Italy and Germany, and there are plans to grow that base in other European markets through both distributors and retailers. Since 2008, PLG has more than doubled its European operations employee base, and it expects to hire an additional 20 by year’s end to focus on merchandising, marketing and the European distribution center. EAGLE CREEK, founded in 1975, has a new logo as it embarks on a new brand direction designed to inspire per- sonal discovery through travel. The goal of the brand’s new approach is to build a premier global travel brand with a co- hesive brand image worldwide. Eagle Creek has retained Fac- tory Design Labs of Denver to assist with its creative rebirth. The company’s five-year objective, which aims to be met for the brand’s 40th anniversary in 2015, is to make Eagle Creek a household name synonymous with travel while retaining the brand’s authenticity and sustainable business practices. The company’s new brand direction will be unveiled to the trade at the 2010 OutDoor Show in Germany and to consumers in Spring 2011. JUly 12, 2010 PAGE 35
  • 31. EASTON SPORTS taps Agency 215 as its branding agency to generate national awareness and excitement for the brand and its sports equipment. The San Francisco agen- cy, which developed a successful Xbox campaign for Micro- soft, will launch a multi-tier branding and integrated aware- ness program for Easton and its products. HEELYS introduces its patent-pending Nano, an inline footboard that works by removing the wheel from one of the brand’s skate shoes and snapping a patented wheel bracket into the Sole-Linke, like a ski or snowboard binding. Future Nano enhancements will include additional graphic designs, wheels with lights and different finishes for the castings. IMPORT CARGO at major retail container ports in the U.S. is forecast to rise 16% year-over-year in July, but the double-digit monthly increases in container imports are pre- dicted to taper off in the fall as retailers cautiously manage inventories, contends the monthly Global Port Tracker report released by the National Retail Federation and Hackett Asso- ciates. Sales will be slower in July and Aug. and inventories will rise, resulting in some sharp seasonal volume reductions. U.S. ports handled 1.25 million TEU in May, up 20% y-o-y. Also, it was the sixth consecutive month to post y-o-y im- provement. June TEU rose 22% as summer merchandise ar- rived on shelves. H1 container imports were up an estimated 15% to 6.8 million TEU. July imports are predicted to hit 1.29 million TEU with Aug. up 9% to 1.26 million TEU and Sep. expected to rise 13% to 1.29 million TEUs. But Oct. and Nov. container imports are presently only forecast to rise 4% and 3%, respectively. PAGE 36 JULY 12, 2010
  • 32. KEEPER SPORTS PRODUCTS, based in Oceanside, CA, emerges. The company is being led by a pair of industry vet- erans, Scott Burke and Mark Kelly. Burke is a former execu- tive with Earth and Ocean Sports, which launched the foam snow sled category in the late ‘90s, and Kelly has experience that extends from QPI to Wham-O and Sentinel Consumer Products. Keeper will make and wholesale surf (bodyboards, skimboards, soft surf and SOP boards); snow (foam snow sleds); camping pads and accessories and yoga/fitness mats. NSGA VP of information and research Tom Doyle is retir- ing this Fall after 39 years in the sporting goods industry. He will consult to the trade organization following his formal re- tirement. Doyle began his NSGA career with its member pub- lication, Selling Sporting Goods. When the trade group creat- ed its team dealer division in 1975, Doyle was the unit’s first managing director until 2006. During his tenure, he has made presentations on the U.S. sporting goods market in Europe and Asia, as well as assisted in the development of federal studies on the American sporting goods market. He has had responsibility for the NSGA Cost of Doing Business Survey for most of the past 20 years and acted as president of the Na- tional Ski & Snowboard Retailers Association since its found- ing by the NSGA in 1987. SPYDER promotes Ellen Welley to director of U.S. sales, part of a realignment of the company’s internal sales depart- ment. In her new role, she will oversee all U.S. accounts for the brand and manage all U.S. sales representatives. The former director of national accounts for Spyder will now also serve as the sales liaison for the brand’s new Denver, New York and Toronto showrooms slated to open in the fall for JUly 12, 2010 PAGE 37
  • 33. product presentation, seasonal brand launches and events. TAYLORMADE-ADIDAS declares itself the world’s larg- est golf company in terms of sales. In Q1, TMaG sales rose 16% to €223 million ($275 mm) from €194 million as golf ball market share doubled year-over-year. Earlier this year, the Carlsbad, CA, company launched the Burner SuperFast TP and R9 SuperTri drivers. FY09 TMaG revenues hit €831 million ($1.02 bb). LEGAL BRIEFS DECKERS, NIKE sue TheSneakerStore.com, alleging the website and its owner/operator, Maria Carrillo, are selling counterfeit products that infringe on the trademarks of both brands. GANDER MOUNTAIN sues World Financial Network Bank for breach of contract and damages. Through the feder- al lawsuit filed in Minneapolis, Gander wants to prevent World Financial from denying its customers with high credit scores access to a co-branded credit card starting July 1. According to the complaint, in May, the lender informed Gander that it would no longer pay a $37 “bounty fee” to the retailer on new accounts if the consumer has a FICO score of 800 or greater, or deny those consumers access to a co-branded credit card outright. Gander Mtn. contends its 2005 contract with World Financial is for a private label credit card with the Gander name only or co-branded offering with the Mastercard logo. In the complaint, the plaintiff contends the denying of credit cards to its “most valuable customers” will create a negative customer experience that will hurt the retailer’s business. PAGE 38 JULY 12, 2010
  • 34. CPSC RECALLS Salomon USA is recalling approximately 175 pairs of its “Quest Touring Pads” and 83 pairs of its “Quest Pro Pebax” and “Quest Pro” ski boots due to a faulty release. Eight select ski boot retailers in CO, UT, VT and WA sold the Made in Ro- mania products from Feb. through April 2010. Felt Bicycles is recalling about 2,100 bicycles (models B12, B16 and S32) due to a defective fork steer tube. Con- sumers with the recalled models should stop using them im- mediately and contact a local dealer for a free inspection and repair. Aqua Lung America is recalling approximately 1,910 power inflators due to a defective oral stem. Diving stores in the U.S. and Canada sold the recalled product from Nov. 2006 to March 2010. Approximately 100 faulty Eastside Fix bicycle forks dis- tributed by Campus Cruisers are being recalled. Indepen- dent bike dealers sold the specific model, made in China, from Mar. through May 2010. JUly 12, 2010 PAGE 39
  • 35. SHORT STOPS • New Balance teamed with Major League Lacrosse during its All-Star Game on July 8 in Boston to raise money and awareness for MetroLacrosse, the largest urban lacrosse program in the U.S. serving more than 700 in MA. • Dick’s will conduct a 60-door test of the Concave soccer boot line from Toronto-based Concave Holdings. • d3o lab founder Richard Palmer is taking an extended sab- batical from the impact protection technology company. • Delta Apparel is added to the Russell 3000 Index and subset Russell 200 Index. • Nautilus elects M. Carl Johnson, III, SVP and Chief Strate- gy Officer for Campbell Soup since April 2001, to its board. • Billy Casper Golf names Andy Anderson as VP of busi- ness development in response to a high volume of inqui- ries about golf-course management and acquisitions. • Wolverine World Wide hires Chip Coe, the former presi- dent and COO for Smartwool, as VP of licensing and acces- sories. In the newly created position, Coe will initially focus on accessories for the Merrell and Hush Puppies brands. • The first International Bicycle Framebuilder’s Exposi- tion will take place in San Diego from Apr. 8-11, 2011. • Adidas has sold 13 million of its Jabulani World Cup soccer balls to date. • New York City is preparing to launch a textile recycling program in Sept. PAGE 40 JULY 12, 2010
  • 36. CATALOG OF CATALOGS Click on the logo to view the catalog. JUly 12, 2010 PAGE 41