Outdoor Industry Tops $33 Billion
Transcription
Outdoor Industry Tops $33 Billion
A SportsOneSource Trade Publication January 2006 OIA Expands Training; Adds Outdoor University Outdoor Industry Tops $33 Billion Outdoor Industry Association has completed a deal to incorporate Outdoor University into its portfolio of educational events. Outdoor University is a Midwestbased experiential outdoor training event designed to improve the product and selling skills of outdoor industry retail sales associates. Integrating Outdoor University under the OIA umbrella provides the opportunity to expand specialized retail training experiences to a wider audience and is in-line with OIA’s goal of ensuring the growth and success of the outdoor industry. Each year, OIA compiles data from dozens of sources, both inside and outside of the outdoor market and creates a comprehensive report outlining the State of the Industry. OIA will present this report to the industry during their bi-annual industry breakfast year at Outdoor Retailer Winter Market. Over the past few years, this breakfast, which takes place on the first morning of the show, has quickly become a must-attend event. OIA presents vital research and top-quality guest speakers to all participants. Specialty Market RETAILER obtained an advance copy of the document to review and found some clear trends that could make the most conservative pessimist see hope. But these opportunities are also coupled with trends that, if left unchecked, could evolve into industry-wide roadblocks. SMR spoke with OIA’s president, Frank Hugelmeyer, who said that this acquisition will help the entire industry create the next generation of leaders. “Many of the VP’s and CEO’s in the industry today got their start working as salespeople in their local outdoor shops,” he said. “This allows people who are future leaders of the outdoor industry to develop the skills they will need, and it introduces people at the retail level to OIA and shows them what we can offer.” As part of the deal, OIA has contracted Ken Barmore to manage and expand the programs to the northeast and southeast in 2006 and to develop an action plan on how to expand the concept nationally. The program not only offers any retailer valuable product training and skills clinics, but it also helps consolidate and reduce training costs. The two-day, camp-based programs serve several retailers at one time and integrate product testing with selling, training, and merchandising clinics. According to OIA estimates coupled with hard data from various research firms, including SportScanINFO and The Leisure Trends Group, the outdoor industry is a $33.3 billion market with outdoor specialty retailers accounting for roughly $2.2 billion in sales per year and Outdoor specialty Internet and catalog sales accounting for an additional $2.1 billion. This increase in the size of the industry is, in part due to a broader definition of the outdoor industry itself. OIA has created a new vision for the outdoor industry that includes virtually all human-powered outdoor recreation. This new definition requires a shift in thinking for some retailers and manufacturers and may include activities that were once segmented under action sports, bicycling, snow sports, fly-fishing, and running. While the culture portrayed at a specialty running retailer may not mesh with the culture of a surf and skate shop, many of the core values are the same – clean air, access to recreation areas, and always push yourself to the next level of your sport. In the same manner, many of the issues these different markets deal with are universal. Public greenways give cyclists, runners, skaters, hikers, and bird watchers an urban playground. (Continued on Page 4...) INSIDE SMR: • • • Heavy Profits from Lightweight Merchandising Retailer Focus: Midwest Mountaineering Gear Preview: Technical Apparel, Technical Footwear, and Ski Packs From The PUBLISHER We’re Gonna Need a Bigger Tent... Just when you thought the expansion of the Salt Palace would address the needs of the Outdoor Retailer markets, someone goes ahead and redefines what outdoor retail means. Ask Joe Consumer on the street and he might tell you Cabela’s is an outdoor retailer. Another may point to a more narrowly defined point of view that would only include a specialty shop in downtown Bozeman. Ask a consumer where they last purchased outdoor gear and you will get a range of answers from that specialty shop or REI to Dick’s Sporting Goods, Bass Pro, Kohl’s, Costco, Canadian Tire or an Internet site. While many in the industry have spent the last 25 years believing the outdoor industry can fit snugly inside the confines of the Reno Convention Center or the Salt Palace, we must now acknowledge that our little world just barely scratches the surface of the total outdoor business. As we enter our third year of publishing (after more than two decades in the retail and brand business) we have to take stock of this market and redefine for ourselves what we mean by outdoor specialty. To us, it’s a much more inclusive definition of the space, a definition that includes mountain biking, running (trail and road), surfing, skiing, flyfishing, and yes, even hunting. While we may balk at what some of these activities represent to us personally, we must also realize that their participants and the companies that serve them are often advocates for the same or very similar issues when it comes to limiting urban sprawl, preserving natural resources, protecting the environment, or lobbying Congress for funding to help ensure the next generation doesn’t think that an American Eagle is just a place to buy clothes. The broader definition is also driven by our survival instincts as business professionals. If the consumers mentioned above don’t think that outdoor retail is all that special, then how do we sell more to those consumers that are passionate about their own outdoor pursuits; that and do see the importance of product quality and a well-trained store clerk; and aren’t always looking for the next big sale. For those of you in the retail business, it often comes down to what you carry. You probably won’t get that TSA customer shopping in your store for the same items they carry, but you do have an opportunity to sell more to your customer that wants to shop in your environment. Are you selling her running shoes as well as a softshell jacket? Specialty Market RETAILER is published by SportsOneSource, the leading provider of business information in the Sporting Goods industry. Other SportsOneSource titles include: The B.O.S.S. Report Sports Executive Weekly SnowSports Market Report Performance Sports RETAILER Specialty Market UPDATE Sports Market UPDATE ***** © SportsNewsSource, LLC Specialty Market RETAILER is protected under all applicable copyright laws and is intended for the sole use and benefit of the subscriber. Any attempt to copy, alter, distribute or otherwise copy content of this copyrighted material is strictly forbidden. ***** SportsNewsSource, LLC dba SportsOneSource PO Box 480156 Charlotte y NC y 28269 704.987.3450 704.987.3455 fax [email protected] Group Publisher James Hartford [email protected] Group Managing Editor Lou Dzierzak [email protected] Specialty Editor Kris Versteegen [email protected] Associate Editor Andy Kerrigan [email protected] ***** Complete content of this publication and other SportsOneSource products can also be accessed at: For the vendors, it’s thinking outside the box a bit and looking for those specialty retailers that have seen their business impacted by the big-box guys as well. Perhaps your footwear, apparel or accessories are just the ticket for a running specialty retailer. www.SportsOneSource.com While this space is too small for a broader discussion of these opportunities, it will be our mission to continuously probe the market for the possibilities for you to grow your business. See you in the aisles. SportsOneSource Publishing at: For sponsorship or advertising opportunities, contact [email protected] james 2 Specialty Market RETAILER JANUARY 2006 • Volume 2, Issue 1 Feature 6 Heavy Profits from Lightweight Merchandising: Specialty Market RETAILER Takes a Look at the Ultralight Category and How It Can Help Boost Your Sales... MarketWatch 8 Technical Apparel: Warm, Dry, and Stylish 14 Technical Footwear 16 Ski Packs: Helping You Go Beyond Off-Piste 18 Retailer Spotlight: Midwest Mountaineering NewsWire 20 20 Financials 22 Industry News Industry News Specialty Market RETAILER 3 ...As OIA Addresses Broader Issues (Continued from Cover…) Preserving wilderness areas - from undeveloped beaches to deserts to wetlands – all provide recreation destinations and help grow the participant base. Clean air, global warming, endangered species, reef preservation, the list goes on. In business, the similarities are even more prevalent. Quiksilver, Amer Sports, K2 Inc., and even Nike are bringing these markets together on the vendor side. On the retail side, stores are becoming larger and carrying a broader variety of merchandise every day. National chains like Dick’s Sporting Goods, The Sports Authority, Gander Mountain, REI, and Cabela’s are creating footprints with more square footage and carrying more categories than ever before. On-line retailers like Backcountry.com, Zappos.com, and Amazon.com are catering to every type of outdoor athlete from runners to alpinists, which may well be the same person in many cases. The same kid who goes surfing at Scripps after school may head to Joshua Tree on the weekend. The same family that goes rafting at the New River Gorge in August may go mountain biking at Tsali in April. Without a doubt, one of the main drivers behind this growth is lifestyle apparel, a trend that has both its benefits and challenges. The connection extends beyond issues, business, and participation. The different aspects of the new outdoor industry feed off of each other. When one corner becomes healthy, the others follows suit. When a person is introduced to the outdoors through mountain biking, he or she is more likely to take up rock climbing. When another person takes up white water kayaking, surfing could be next.. The popularity of the outdoor lifestyle is creating increased consumer awareness, more media coverage, and a younger customer base. All of these metrics point towards increased growth, at least in the short to medium term. However, there is a more foreboding trend underlying this growth that could stymie any momentum in the industry. While lifestyle apparel is on the rise, technical apparel and equipment sales are declining along with participation numbers. The study also shows that the industry is growing at a faster rate than the rest of the economy. According to the U.S. Department of Commerce, U.S. retail sales on average grew roughly 7.5% in 2004. Outdoor retail outpaced this number by one full percentage point during the same period. This is an impressive improvement considering that since 2001, the industry has lagged behind the national average by as much as four percentage points. The Outdoor Industry by Channel (in $ billions) Outdoor Specialty Stores According to OIA, understanding why some parts of the industry are growing while others remain stagnant is crucial to preparing for what could be the industry’s greatest growth period yet. $2.2 Outdoor Internet/Catalog $2.1 Outdoor Chain Stores $3.9 $2.4 Mass Merchant $4.9 Surf & Skate $5.5 Bike $2.4 Ski and Snow Fly Fishing Hunting Fishing Retailers and manufacturers are now faced with the challenge of shifting their target audience to include two distinct segments, baby boomers and millennials. The two segments account for the majority of the U.S. market and OIA considers them both as the greatest opportunity for long-term growth in outdoor recreation. $2.3 Dept Store In 1998, only 60% of all Americans participated in outdoor activities. That number climbed rapidly until 2001, when it peaked at 67%. Since that time the rate has been falling and today roughly 64% of Americans are outdoor recreation participants. While the overall percentage of participants is shrinking, there are segments of the industry that are showing considerable growth. Trail running, canoeing, and bouldering are all showing healthy increases in participation, albeit off of much lower base numbers. $0.9 $2.2 $4.5 The report gives an honest account of the outdoor industry, outlining the opportunities and challenges presented by today’s market. While the trends currently seem to be favoring the industry currently, a declining participation base and slowing equipment sales certainly are cause for concern. OIA has taken the first step in recognizing the challenge and is presenting its findings to the industry to find a solution. Source: OIA State of the Industry Report 4 Specialty Market RETAILER Specialty Market RETAILER 5 Specialty FEATURE Heavy Profits from Lightweight Merchandising By Kris Versteegen O try have proven that sales of lightweight backpacking gear can improve considerably with some simple merchandising techniques. A few retailers, like ProLite Mountain Sports in Bozeman, Mont., have built their entire business around the category. ver the past several years, the term ‘Fast & Light’ has become pervasive throughout the outdoor industry, shattering the preconception that lightweight backpacking and camping is “just a trend.” Today, Kevin Volz, GoLite’s sales manager, has nearly every manufacturer is producing seen the best and worst of what retail something to address the lightweight has to offer across the country and has category. While the market for tradispoken in several clinics designed to tional backpack gear is help retailers still alive and strong, “It’s important to violate sell lightlightweight and ultra some of the conventional weight gear. lightweight gear continVolz told axioms when you’re buildues to grow as a subS p e c i a lty ing a lightweight assortcategory and drive Market REment, You can’t just put a sales at retail. TAILER that lightweight pack on the However, there is still a the easiest pack wall.” large population of way to imretailers who are not prove sales is taking full advantage of Dave Johnson, Granite Gear to bring sevthe demand for this eral different type of gear. While nearly every retailer lightweight pieces together into a collecin North America stocks a list items tion and create displays to reinforce the that could be considered lightweight, idea. many are not calling out the category as Some retailers are also seeing a lot of something new and different and as a success with lightweight and ultra result their customers do not feel the lightweight packages. Bundling a few need to replace older heavier gear. key items, like a tent, sleeping bag and Several retailers throughout the coun6 pack together and displaying the com- bined weight is an easy way to get customers thinking about the weight of their weekend packs. Volz also emphasized that these displays need to be branded as lightweight gear. Dave Johnson with Granite Gear has also seen how proper merchandising can improve sales in this category, and he agrees with Volz in many respects. He said that one of their more successful retailers took his own fully outfitted pack and kept in on display in the store. Anytime a customer asked about lightweight backpacking the employees knew they could use it as an example of what can be achieved. This not only provided a “wow” factor when customers picked up a sub-10pound pack that offered a weeks worth of backpacking, but it also helped the customer understand what is required to become completely outfitted and all of the advantages that go along with that. “It’s important to violate some of the conventional axioms when you’re building a lightweight assortment,” said Johnson. “You can’t just put a lightweight pack on the pack wall with everything else and an alcohol stove next to the other stoves. Group like items for Specialty Market RETAILER the ultra light category together in one place.” Part of the reason for the lightweight revolution that took place a few years ago is the advance in fabric technology. Big Agnes has been one of the leading lightweight tent manufacturers for several years and Bill Gamber, Co-owner of the company, felt that these advances helped them break some long-standing tent design rules. “Some of the mainstay brands in the industry have some amazing designers who have been around for 20 year and tried everything. We came onto the scene with 30 denier floors and flies and they all said “it won’t work,” because they had tried the same material 15 years ago and it fell apart,” he said. “The thing is, today, that material is much stronger - similar to 70-denier ten years ago. Now, those same designers are working with 30-denier.” This same technology revolution can also help dispel the myth that all lightweight gear sacrifices durability. While it is true that some of the more extreme lightweight pieces trade durability for less weight, most manufacturers try to match the durability of heavier gear. Kevin Volz agrees that today’s fabric technologies are a big step beyond what was available ten years ago. “Part of the durability issue is myth and part is not. When looking for the next technology to shed weight, mistakes can be made,” he said. “But a lot of educating the public about the strength and durability of lightweight gear is related to training staff.” Another myth retailers need to overcome is the misconception that lightweight backpacking is not as safe or comfortable as with traditional gear. “Lightweight travel is as much about proper technique as it is about gear,” said Volz. “It is easy to replace a 5 pound tent with a 2 pound tarptent and maintain the same level of safety. At the same time your pack will be three pounds lighter.” Gamber agrees. “Lightweight is really a second tier category for us. Number one is comfort, but if you are carrying less weight, you are more comfortable, so the two go hand in hand. There is very lightweight and comfortable gear out there. If you haven’t backpacked in 20 years, you will be blown away by what is possible.” There are hundreds of retailers throughout the country who do a considerable amount of business with lightweight gear. Specialty Market RETAILER The highest concentrations are in the Southeast and surrounding the Appalachian Trail, but there are other pockets of enthusiasts and retailers in Colorado, Montana, and the Midwest. Demographically, the category seems to resonate with several different age-ranges, from baby boomers to teenagers. Each person is drawn to the category for different reasons, but generally speaking, older participants buy lightweight gear because they are impressed with the technology, while younger consumers have come to expect a level of comfort in anything they do and the category offers that margin. It is also important to show that ultra light backpacking is not only an activity for extreme athletes who push the limits of what is possible. In every sport there are those who choose to push the limits, but a hiker who through-hikes the Colorado Trail without re-supplying will see the same benefits of ultra light gear as a hiker who escapes for a weekend trip three or four times a year. Everyone enjoying the backcountry can benefit from the technology and design innovation coming out of the lightweight market. The movement began in the 90’s and was called a fad but since then it has turned into a driving force for innovation in the industry. Communicating the benefits of the gear and the techniques of the sport effectively can turn the category into a solid profit center for almost any retailer. Tips For Selling Lightweight... • Call out lightweight gear with displays that are clearly branded as lightweight. • Create brochures that highlight lightweight merchandise in the store. • Create lightweight backpacking packages with clearly market weights. • Educate your staff and the consumer about the advantages and disadvantages. Selling a pack with a weight limit of 20 lbs to someone who regularly carries 40 will not only destroy the pack but also turn-off the customer to the category and your store. • Host regular clinics that not only explain the gear, but also the different techniques involved in lightweight backcountry travel. 7 Specialty TRENDwatch Technical Apparel: Warm, Dry, and Stylish W hile apparel has been a category that has seen more evolutionary changes than revolutionary changes over the past few years, the industry is taking a significant step ahead this year. Integrating fashion elements into performanceoriented apparel has been a theme for several seasons, and as a result, many brands have been experiencing unprecedented growth as new customers begin to take notice of outdoor brands for both fashion and function. This year these same brands are looking at new technologies that improve comfort and performance while at the same time maintaining the “outdoor fashion” look. While hybrid technology is not necessarily new it has been refined over the years to the point where the most recent iteration promises to deliver some real advantages over past attempts. Companies like Arc’Teryx, Mountain Hardwear, and Marmot are all using various technologies that combine different fabrics and laminates to create a garment that offers weather-proof, breathable mobility in nearly any condition. Companies are also continuing to incorporate insulation into both hard- 8 single baselayer. Marmot’s new Z3 Fleece Sweater also uses three different weights of insulating knit that are blended as a single seamless fabric and Marmot has devised a system, called strategically placed on the body to offer the Marmot Mosaic System, which uses both wicking and extra insulation. Mara strategic mosaic of different woven or mot’ new Super Hero Jacket completes knit fabric constructions in a single the Mosaic system with a windproof, garment that offers optimized performwater-resistant and breathable soft ance by placing appropriate fabrics in shell, using four different fabrics, each different places on the body. This providing a different and dissystem is integrated from the base tinct function in the garment. layer, through the insulation The body of the Super layer and out to the shell. WickHero is windproof and ing fabrics are placed in perwater resistant Gore spiration zones, thermal Windstopper Scuba fabrics are placed in cold soft shell fabric. The zones and wind barrier shoulders and outfabrics are placed in side arms are reinfront areas of the body forced with tough Gore that need the most wind Windstopper Tasset fabric. protection. The net result is a Underarm vent gussets are lighter weight, more efficient and breathable knit and the more comfortable performance Marmot’s Superhero removable hood is lightdressing system. weight and waterproof PreCip Plus fabric. Marmot’s new Zonal Baselayer Zip top and bottom are an engineered with Much of the innovation this year is dethree different weights of DriClime knit, rived from a new technology from Goreblended seamlessly to provide the moisTex, called Comfort Mapping. The comture transport, low bulk, odor control, pany says that this new construction comfort and protective warmth in a shells and softshells in various ways, ranging from direct lamination to zipout liners. Specialty Market RETAILER technique effectively handles each part of the body differently, as though the human body were a map with several different climatic zones uses different Gore-Tex laminates in specific areas of the garment to harmonize with the body's activities and temperature requirements. Arc’Teryx is putting the comfort mapping system to use with its new Scorpion Jacket and Pant. The Scorpion garments are designed to not only maintain comfort during lift-access days but also provide enough breathability for tracking out every last line on the hill. With details like adjustable powder skirts, Speedhoods, and Recco reflectors, it’s clear that these new pieces were designed with unrestricted gate access and backcountry skiing in mind. Eider has also taken advantage of this new technology with two new models. Their Latok Jacket features a main body constructed of Gore-Tex Paclite Tenacity for lighter weight and breathability while the shoulders and arms use the more durable Gore-Tex XCR Chamonix 3 layer. Eider has designed an attached adjustable hood and side vent pockets to offer protection and ventilation. Mountain Hardwear has been leading the push to develop this hybrid technology and is using it in several pieces this year. Their new GTX 2.5 Jacket and Pant combines a 70 denier nylon FTX face fabric with a Gore-Tex PacLite laminate. Mountain Hardwear’s proprietary MicroClimate Zoning strategically laminates PimpChimp fleece for added warmth in key areas. These shells, in both men’s and women’s versions, are designed for alpinist’s but light enough for any backcountry enthusiMountain Hardwear’s asts. GTX 2.5 Mountain Hardwear has also created a non-Gore collection that uses face fabric made of 70 denier taslan with 2.5 layer Conduit Hybrid which is a cross between a laminate and a coating. The Descent DT Jacket and Pant also uses the same MicroClimate Zoning found in the GTX 2.5 in addition to scuff overlays on the sleeves Specialty Market RETAILER for durability. The Descent DT jacket is offered as part of a Trifecta package, which includes a zip-in TufStretch insulated soft shell with lightweight Thermic insulation. This can be worn on its own of with the Descent DT for maximum protection on those days when the weather keeps hitting you with surprises. Isis has created several pieces that are putting different forms of hybrid technology to use. The Comet Jacket and Comet Pant are both designed as “light and fast” pieces, but combine different fabrics to provide protection Isis’ where it is needed and save weight where it is not. Both pieces are wind protective from the front with a polyester shell and brushed polyester lining, and airy from the back with stretch woven panels under the arms, behind the legs and down the back. At the other end of the spectrum is Isis’ revamped Prima Diva Jacket, designed for the all-mountain skier/snowboarder and using Isis’ proprietary hybrid waterproof/breathable fabrics as well as super light soft shell fabrics. The Prima Diva utilizes a combination of Isis’ Duet H2O fabric on the sleeves and front torso and Duet, an 8.9 ounce fabric, on the sides and back. Together these fabrics are designed to create a defense against cold and fickle weather conditions while providing lighter weight and better mobility. Insulation New innovations in softshell material from Schoeller, insulation from Primaloft, and fleece from Polartec have been driving new trends in insulation. While puffy down jackets still provide amazing compressability and warmth-to-weight ratios, lower profile silhouettes and sleeker cuts are becoming more popular both in town and in the backcountry. Cloudveil’s Spacewalk Jacket was designed to create its own category as a hooded insulated soft shell that combines warmth, weather resistance and breathability. Schoeller Dynamic fabric protects 60g of Primaloft insulation, with interior stretch panels for maximum mobility. Isis’ new Whisper Jacket provides lightweight warmth with high quality 650-fill goose down and super light downproof mini-ripstop nylon outer with DWR finish. This slim-fitting quilted hip length jacket has microfleece-lined hand pockets; velvet-lined collar, inner security pocket, elastic cuff and drawcord hem and mini stuff sack. The Pandora Jacket incorporates Isis’ new iS3 Insulation System for stretch performance and warmth. The iS3 Insulation is 100% stretch from the Pandora inner lining to the outer shell, combining outstanding cold weather protection with comfortable stretch performance. A lightweight stretch polyester lining is bonded to Polarguard® Delta, stretch continuous filament insulation for unrestricted movement in any outdoor activity. The Pandora features velvet-lined collar, articulated elbows, inner stretch storage pocket in the curve of the waist, inner zip pocket with mesh window pocket and earphone portal, microfleece-lined pockets and adjustable cuff and hem. Jacket colors include Lobster, Citron and Wave. Sierra Designs created the new DriZone Cold Fusion line for Fall/Winter 06-07, which incorporates the PrimaLoft One synthetic insulation to create a low bulk, lightweight and extremely soft and compressible garment that stuffs into its own interior zippered pockets. With three items in the men’s line, the Chockstone Jacket, Tindal Jacket and Torio Vest and two women’s pieces, the Kristel Jacket and Kate Vest, these pieces are designed to be versatile, simple and functional. Mountain Hardwear created the Offwidth Primaloft Jacket to compliment their existing of insulated tops. The Offwidth Primaloft Jacket uses an air permeable soft shell made with MTH’s proprietary TufStretch and insulated with PrimaLoft One. Designed for climbing and cold weather activities this jacket performs as well as it looks with just a hint of metro styling. (Continued on 10...) Cloudveil’s Spacewalk 9 Merino Continues Mid-layer Popularity (Continued from 9…) Specialty TRENDwatch Consumers are warming up to merino wool in nearly any form imaginable. The technical benefits of the material were first realized by the outdoor industry when Jeremy Moon launched Icebreaker in New Zealand, but it quickly spread to the U.S. with SmartWool’s socks and then their apparel. 10 Mayfair combine street styling with the natural performance benefits of merino - breathability, moisture transfer, and low-bulk warmth. SmartWool is also ramping up their apparel offering using Merino wool with a large addition to their VersaWear collection. The most notable addition is SmartWool’s new Synergy line, which While SmartWool and Iceincludes men’s and breaker are leading the market women’s Jackets, pants in merino base-layers, today, Smartwool’s and pullovers. All Ibex is pushing the boundaries Synergy Pullover pieces use a proprietary of what merino can do with innodouble knit fabric to create a vative designs using the natural breathable, wind resistant Smartmaterial for nearly everything, inWool. The Synergy knit blends cluding outerwear. The company SmartWool, Nylon and Polyester for has been making its proprietary a closed knit fabric that sheds moisClimawool softshell fabric for several ture on the outside, while absorbing years and it turns out that the same and then evaporating it from the properties that allow this material to inside. Most SmartWool Synergy wick moisture and retain warmth pieces feature bonded stretch woven can help it create a durable, high pockets some adding technical stylperformance waterproofing and utility. breathable shell. This year the company is Patagonia, has also entered into the introducing the Chiru Merino baselayer market this year. Jacket, featuring adThree years in the making, Patagojustable hem & nia’s new Merino wool baselayers sleeve openings, reflect important advances in core venting hand design, innovation and environwarmer pockets, mental homework. Available in internal mesh three weights in Fall 2006, Patastash and zipgonia’s wool is 100% chlorine pered ipod– free and made from ultra-fine Ibex’ Chiru friendly pocket with merino purchased from three farms buttonhole for headphones, double in New Zealand. Patagonia’s weave- Cordura nylon & Lycra exteunique, slow washing process elimirior 100% wool interior. nates both harmful chlorine and Icebreaker is also looking at Merino as a shell material and has introduced its new Coastal line for FallWinter 2006-07. Coastal is an entirely new range of windproof merino outerwear intended for travel and casual everyday wear. While the designs are unapologetically nontechnical, merino still offers natural warmth and performance. The Escape, Jetter (shown page 8), and need to coat chlorine-treated fibers with polyurethane. This gives the company’s Wool baselayers a more natural feel against the skin, while maintaining wool’s natural benefits – quick wicking, natural odor control and warmth retention. With this introduction, Patagonia becomes the only company to offer a full line of chlorine-free Wool baselayers. See Them at Cloudveil Contact: Katie Jackson Phone: (307) 734-3880 ext. 109 Email: [email protected] Booth: 1301 Eider Contact: Gene Frederick Phone: (802) 434-7288 Email: [email protected] Booth: 3582 Icebreaker Contact: Seth Dennis Phone: (208) 726-1000 Email: [email protected] Booth: 3565 Isis Contact: Kristen Toy Phone: (802) 862-3351 ext. 111 Email: [email protected] Booth: 3234/3234a Marmot Contact: Karen Smith Phone: (707) 544-4590 Email: [email protected] Booth: 3507/MR253B Mountain Hardwear Contact: Brad Bates Phone: (510) 558-3000 Booth: 3641 Patagonia Contact: John Collins Phone: (805) 667-4576 Booth: 927 SmartWool Contact: Regan Spindler Phone: (970) 879-2913 Email: [email protected] Booth: 3327 Specialty Market RETAILER Specialty Market RETAILER 11 al n nu A ! o nd Sec Show rel e n h t io ppa iss t Fash ll a 251D a M f ’t rke latest oom ept Don er Ma R e exc t h g t n n i i y W out Meet ry da ck Che ions in m eve fash :00 p 2 y. at sda e u T Schedule of EVENTS Fri., Jan. 27 7AM Mountain Hardwear BBC Breakfast Transportation from the front entrance tower of the Salt Palace located at 100 South West Temple at 7:00 AM. MEDIA ONLY Silverfork Lodge/Big Cottonwood Canyon 9AM -- 4PM 3rd Annual Backcountry Base Camp All attendees must stop at the Salt Palace for registration before going to the BBC Brighton Ski Resort/Big Cottonwood Cyn All Day Ski Like a Girl @ BBC with the OIWC ackcountry Betty clinics. Choose a clinic and learn from the best female athletes! Co-Sponsored by GoLite. Brighton Ski Resort/ 5PM 4PM -- 5PM Shock Doctor Booth Party Join Shock Doctor at their trailer and wind down after a hard day in the office, grab a beer, and enjoy some snacks. SD Trailer, Ballroom Booth 5346 4PM -- 5PM Torino Pep Rally Wine Tasting Gala Do you get excited every four years by the “Thrill of victory and the agony of defeat”? If so, please join Highgear as we celebrate our sponsorship of double world champion medalist alpine skier Julia Mancuso and the US Ski & Snowboard teams. Highgear Booth 1605 6PM -- 8PM Outdoor Retailer Industry Party Join us for a night of networking, friends and fun at Salt Lake City’s newest and most exciting venue – The Depot. Located directly beside the Grand Hall (host to the last two Winter Market Industry Parties) The Depot features a fine dining restaurant, 2-tiered music venue and state-of-the-art sound, lighting and staging. Sure to be plenty of free beer, appetizers, tunes and good times to go around. Join us! The Depot, 13 North 400 West, SLC Backcountry Base Camp Bash cosponsored by GoLite Raffle at 5PM for award-winning GoLite packs! The Alpine Rose Sat., Jan. 28 7AM -- 9AM Noon -- 1PM 12 Sat., Jan. 28 OIA Industry Breakfast Join Outdoor Industry Association as we host a complimentary breakfast, the return of the Industry Awards, and a keynote presentation on the topic of corporate social responsibility. Downtown Marriott Salons A-E Seminar: Double, Triple or Quadruple Sales with Internal Mktg Strategies Speaker: Daniel Feldsted, The Image Foundry Downtown Marriott Salon E Noon -- 1PM The Outdoor Recreation Participant Speaker: Michelle Barnes, OIF LOCATION -- Downtown Marriott Salon D Noon -- 1PM OIA Fair Labor Panel Discussion with Michael Collins, REI Downtown Marriott Salons A & B 4PM -- 5PM Celebrating a 100 Years of Achievement with Duofold Enjoy light refreshments and local beers. Meet special guest Ted "Cave Dog" Keizer who set a world hiking record during the Duofold Hike 50 Challenge this fall. Duofold Booth 3359 Sun., Jan. 29 7:30A -- 9:30A The Point of Purchase: Guiding Textile-based Product Sales In-Store A lively textile supply chain panel discussion about where 70% of purchasing decisions are made. Downtown Marriott, Salon E 7:30A -- 9:30A W.L. Gore & Associates presents: Pete Goss, author of Close to the Wind, became the fastest British Sailor to sail single handed around the world in 126 days 21 hours in the world’s toughest yacht race, The Vendee Globe non-stop, single-handed Round the World Race. Downtown Marriott Noon -- 1PM Panel Discussion: Cause Marketing Panel members: Sean Patrick / HERA Non Profit Deanne Buck / Access Fund Non Profit Tonia Riggs / Stonewear Man. Peter Metcalf / Black Diamond Man. Maile Buker / IZZE Beverage Man Eric Spreng / REI Retail Kim Walker / Outdoor Divas Downtown Marriott Salon D Specialty Market RETAILER Schedule of EVENTS Sun., Jan. 29 Sun., Jan. 29 Noon -- 1PM Seminar: The Power of Cause Related Marketing Pollyanna Pixton, Evolutionary Systems Downtown Marriott Salon D Noon -- 1PM Seminar: What Has Your Brand Done for you Lately? Part I Greg Bagni, Alien Truth Communications Downtown Marriott Salons A & B 4PM -- 5PM Shock Doctor Booth Party Join Shock Doctor at their trailer and wind down after a hard day in the office, grab a beer, and enjoy some snacks. SD Trailer, Ballroom Booth 5346 8:00PM Pakistan: A Philanthropic Expedition by The North Face Renowned photographer Ace Kvale presents his recent experiences and exclusive photography from this devastated area. The Capitol Theatre, 50 West 200 South 9:00PM -- 2:00AM The World Premiere of Dynasty! Join Teva Pro, Outside Magazine and VW on the ride of a lifetime. Stop by Teva Booth 800 for your free ticket. The Depot, 13 North 400 West, SLC Mon., Jan. 30 OIA New Member Happy Hour OIA would like to invite you to join them for cold beverages and the opportunity to meet you! Come by booth 5600 and learn more about OIA member benefits and how your trade association is working for you, your business and the entire industry. Outdoor Industry Association Booth 5600 7:30AM -- 9:00AM ASTM Meeting - Sleeping Bag, Tent, and Backpack Standards Downtown Marriott Salons G & H 7:30AM -- 9:00AM Seminar Series: Word-of-Mouth Mktg: From Measurement to Management Anthony Schweizer, BzzAgent Inc. Downtown Marriott Salon D Torino Pep Rally Wine Tasting Gala Do you get excited every four years by the “Thrill of victory and the agony of defeat”? If so, please join Highgear as we celebrate our sponsorship of double world champion medalist alpine skier Julia Mancuso and the US Ski & Snowboard teams. Highgear Booth 1605 7:30AM -- 9:00AM Sports Trends & Influences Britt Bivens, Promostyl Trent Office Downtown Marriott Salon E 7:30AM -- 9:00AM Town Hall on Sustainability Scott Leonard, Indigenous Designs Downtown Marriott Salon E 7:30AM -- 9:00AM Business to Business Panel Discussion Progress Report Since ORSM 2005 Downtown Marriott Salons A & B Noon -- 1PM White Sierra Chinese New Year Party Ring in the Year of the Dog at White Sierra's Chinese New Year party! Kick off the new year with good luck, and join us for Chinese food, beer and lots of lucky prizes. White Sierra Booth 2033 Seminar: What Has Your Brand Done for you Lately? Part II Greg Bagni, Alien Truth Communications Downtown Marriott Salons A & B Noon -- 1PM Seminar: Proactive…No Pressure Selling… A Lost Art-Form in Retailing Roger Bowman, The Derosha Group Downtown Marriott Salon D 5:00PM Conservation Alliance Reception KEEN Booth 5324 6:30PM -- 9:30PM 5:00PM Thorlo/Backpacker Silent Auction Benefits the American Hiking Society. Bids accepted 1/28 and 1/29. Thorlo Booth 601 OIWC Gathering Enjoy lively conversation and refreshments at the OIWC Gathering, including a discussion with world-famous adventurers Arlene Blum and Bernadette McDonald. Abravenal Hall, 123 West South Temple 4PM -- 6PM 4PM -- 5PM 4:30PM 4:30PM KCPR Second Bi-annual Cornhole Tournament Test your Cornhole expertise and join us for beer, Cornhole and prizes. It's not what you think! Kristin Carpenter PR Booth 5620 6:00PM -- 8:00PM Hooked on the Outdoors Happy Hour Plan to shake off any tradeshow blues at the semi-annual Hooked On the Outdoors Happy Hour party. Open to all registered OR show attendees. To receive complimentary passes to the Happy Hour, stop by the Hooked booth. Downtown Marriott Hotel Ballroom Specialty Market RETAILER Tue., Jan. 31 7:30AM -- 9:00AM Seminar: The End of Advertising as You Know It Roy Turner, Board Retailers Association Downtown Marriott Salon F 13 Specialty TRENDwatch Technical Footwear: Standing Tall in Slippery Conditions Refinements in technical footwear are addressing consumer concerns about traction in slippery conditions and the constant cry for improved comfort and durability. Unique approaches such as new sole materials and integrated traction aids are being introduced to ease the winter enthusiast’s fear of falling on ice-coated surfaces. The Lowa Ice Grip II GTX, originally developed by the Swiss for use in villages where there is no salting or plowing on the roads and sidewalks, can alleviate those concerns. The sole of the Ice Grip II has a plastic inset piece that flips up or down. One side features small spikes that improve stability and traction when walking on ice. When not needed, the inset fits flush in between the lugs. The Ice Grip upper uses a combination of Nubuck leather, fabric and a Gore-Tex lining. Raichle also addresses slippery winter conditions with the Snow Extreme XT GTX and Snow Track XT GTX. The Snow Track XT GTX is lined inside with GORE-TEX® Partelana, a very warm fleece to insulate the feet from the cold. A waterproof zipper and wide rubber rand protects the boot from mud, snow and slush. Available in men’s and women’s versions, the Snow Extreme and Snow Lowa’s Ice Grip II GTX 14 Track share board-lasted construction and the Vibram® Snow sole. Created with a softer rubber compound and aggressive profile, the sole offers a more stable platform on slush, ice and wet snow. AKU has used input from Italy’s elite climbing group, Ragni di Lecco (Spiders of Lecco) to design the AKU Spider GTX. The lightweight boot offers superior durability, warmth, comfort and performance The Spider name is inspired by the web-shaped design of the upper’s protective layer. A Raichle’s Snow Track XT GTX Specialty Market RETAILER Gore-Tex bootie and Microfiber upper keeps feet warm in harsh conditions without overheating on lower altitude trail ascents. The Spider’s upper is 30 percent lighter then traditional leather boots. foot stability. Exclusive to the Dunham’s Rainier Collection, a Vibram Super Trek Rubber outsole increases traction on slippery trails. The Kamik Force is a three-season boot that can handle snowshoeing duties on late winter days. Thinsulate insulation adds warmth and an OutDry® Breathable Waterproof Bootie keeps feet dry. A compression molded EVA midsole provides Aku’s Spider cushioning. AKU’s unique lacing block system provides a secure comfortable fit. A special last guarantees optimum weight distribution and the upper cuff is designed to articulate and follow leg and ankle movements on tough traverse conditions. A built in “rocker” improves the walking stride when not using crampons. Dunham will form a l l y launch the RainKamik’s Force ier Collection of athletic shoeinspired mid and low cut trail shoes at the 2006 Outdoor Retailer Winter Market. In 1982, New Balance collaborated with legendary mountaineer Lou Whitaker to create a line of hiking boots. Whitaker describes the Dunham Rainier Collection as “the comfort and breathability of an athletic shoe upper with the traction of a Vibram outsole.” The Fre- Garmont’s mont Mid features ABZORB pads in the heel and forefront from provide shock absorption and underfoot cushioning. The abrasion resistant synthetic heel panel offers rear Dunham’s Fremont Mid Specialty Market RETAILER The Syncro Plus GTX is Garmont’s most popular hiking boot. Suitable for rugged day hikes to light load multi-day backpacking trips. Gore-Tex and top grain leather protect the boot in foul weather. A durable toe bumper products feet from frequent collisions on rocky strewn trails. The Vibram Ground Control sole features directional lugs appropriate to each section of the foot. Icebug winter boots offer a different approach to traction control. The BUGrip 2.0 technology uses a combination of rubber and steel studs make contact with the ground. Since poor footing can cause slips from two directional axis, carbide tip studs are configured in traction traction triplets® for m u l t i directional grip in the Syncro Plus GTX iciest conditions. The durable carbide tip studs are attached in a stainless steel crown, which is entirely secured inside the rubber sole offering a durable, snow-tire like platform for winter running and hiking. On ice and snow, the studs extend outside the level of the rubber cleats and increase stability. On harder surfaces, the studs are pushed inward to match the level of the rubber cleats. This offers versatility for the mixed rocky and icy conditions prevalent in winter backcountry hiking and trail-running. See Them at Aku Contact: Joe Guglielmetti Phone: (207) 799-0273 Email: [email protected] Booth: 1711 Dunham Bootmakers Contact: Ross Evans Phone: (617) 779-7627 Email: [email protected] Booth: 3821 Garmont Contact: Gord Bailey Phone: (802) 658-8426 Email: [email protected] Booth: 2927 Kamik Contact: Margaret Salter Phone: (514) 341-3950 Booth: 2327 Lowa Boots Contact: Peter Sachs Phone: (203) 235-0116 Email: [email protected] Booth: 2821 Raichle (Mammut) Contact: Jeff Cunningham Phone: (800) 451-5127 Booth: 613 Vibram USA Contact: Lawrence Anastasi Phone: (978) 318-0000 ext. 204 Booth: 3797 15 Specialty TRENDwatch Ski Packs: Helping You Go Beyond Off-Piste I nterest in backcountry skiing continues to grow. As many parts of the country experience questionable snow conditions close to home, news reports of deep snowpacks and fresh powder draw skiers to backcountry adventures. To address the market, manufacturers are refining existing packs and introducing new models with backcountry specific feature lists. At the Outdoor Retailer Winter Market, Gregory Mountain Products will introduce the first ski- and snowboardspecific backpack that links t h e weight of the skis or board to the pack’s suspension system . The Targhee’s ski-carrying system uses two stays to distribute the weight of the skis or board to the pack’s framesheet and waistbelt and carries skis vertically or diagonally on the back of the pack. Skis are secured with non-slip lockable attachment points. The Targhee can also carry skis in a traditional Aframe style. The straps of the carrying system can be tucked away builtin storage pockets. The 33-liter Targhee also offers other backcountry specific features like side pockets, avalanche shovel handles, and a quick access pocket for the shovel blade. Access to the main compartment is through a panel-loading system. Additional pockets and internal zippered storage compartments keep small items organized. 16 Gregory’s Targhee Gregory will also introduce the Drift, a 20-liter winter pack designed for skiers who ski backcountry terrain close to resort lifts. Specific storage compartments are used for a shovel, probe and climbing skins. No doubt, skiers want to spend more time skiing than fiddling with gear. The Granite Gear Q2 certainly takes care of that concern. The Q2 resembles a medieval archers quiver. You don’t need to take the pack off to get at your skis. Ski tails are dropped into a side holster and then drawn in Granite Gear’s Q2 the “Ski-channel” and secured with a small carabiner to the dring on the right shoulder strap. The side holster retracts into it’s own compartment when not in use. The rigging is fast, easy and holds the skis securely in place. The main compartment features internal sleeves for shovel handles, probes or a snow saw. Shovel blades fit into Specialty Market RETAILER the bottom of the pack. Large outer pockets with mesh internal pockets gives quick access to goggles, climbing skins or an extra layer. The small details on the Arc’teryx M20 pack reveals it’s backcountry specialization. The RollTop closure gives quick and easy access to gear and external compression straps keep the load tight and a Y-Frame suspension keeps everything under control. Thermoformed panels are featured on the back, shoulder straps and interchangeable hipbelt. The Wrap carrying system keeps a tight hold on a snowboard or skis. Ice loops, hydration pocket, integrated shovel pocket, waterproof zippers and a quick release pole clip complete the backcountry oriented feature list. Arc’Teryx’ M20 Mountainsmith thinks even the most dedicated skier needs to take a break once in a while. The Mountainsmith OffPiste 25 features a specially designed fold-down seat pad. Flip it down for a quick lunch or beverage break. The Off- Piste 25 also offers diagonal and A-frame ski carries, vertical and horizontal snowboard carries, shovel shaft/bl ade/ probe sleeves, digital camera waistbelt pockets and ice tool loops. The main Specialty Market RETAILER compartment has two mesh pockets and an internal hydration reservoir pocket. With the assi stan ce of profess i o n a l backcountry skiers, Osprey has completely redesigned the Switch Pack series. See Them at Arc’Teryx Contact: Tammy Norberg Phone: (604) 451-7755 Email: [email protected] Booth: 627 Backcountry Access Osprey’s Switch 26 The Switch 36 and 16 models feature a hatchback style lid opening with separate wet and dry compartments. Snow safety gear can be organized for quick access. The Switch 26 uses back panel entry for access to the main compartment. Hydration tubes are routed through insulated shoulder straps. The DAKINE Heli Pack is a streamlined touring pack. Despite the Heli moniker, the pack works well on earthbound chair lifts. Backcountry oriented feature list includes a diagonal ski carry, vertical snowboard carry, a quickaccess shovel blade pocket, and zippered tool pocket. The Heli is hydration compatible and offers just enough room for essentials like skins, probes, sunglasses and sunscreen. Backcountry Access offers the two packs designed for women who enjoy lift access and out-of-bounds skiing. The shorter shoulder length on the Stash Diva and Stash bc Diva enhances comfort and stability. The packs feature insulated hydration reservoirs, storm-proof zippers, diagonal ski mounts and storage compartments for ski probes and shovels. With the considerable growth the industry is experiencing in telemark and AT skiing, and more resort skiers venturing off into the backcountry, all of these new products are sure to find a niche with skiers, snowshoers, and boarders alike. Mountainsmith’s Off-Piste Contact: Steve Christie Phone: (303) 417-1345 Email: [email protected] Booth: 2701 Dakine Contact: Amy Wall Phone: (800) 827-7466 Email: [email protected] Booth: 1701 Granite Gear Contact: Dave Johnson Phone: (218) 834-6157 ext. 16 Email: [email protected] Booth: 5965 Gregory Mountain Products Contact: Paul Gagner Phone: (957) 676-5621 Email: [email protected] Booth: 2227 MountainSmith Contact: Gareth Richards Phone: (303) 279-5930 ext. 122 Email: [email protected] Booth: 1227 Osprey Packs Contact: Phil Schmitt Phone: (970) 569-5900 Email: [email protected] Booth: 1817 Sierra Designs Contact: Andy Genewick Phone: (303) 262-3050 Booth: 3621 17 SMR Retail Spotlight: Midwest Mountaineering By Lou Dzierzak T Specialty FEATURE hirty-five years ago, Rod Johnson was a chemistry student at the University of Minnesota. When academia wasn’t doing much to motivate him, he joined the University’s outdoor club. Johnson recalls, “The outdoors lit my fire; that’s my passion. Selling outdoor equipment to your friends was just an outgrowth of that.” Johnson started Midwest Mountaineering on his kitchen table. In June 1971, he rented a storefront and began building a reputation as the Twin Cities best resource for outdoor equipment. Over three decades, rising sales from year to year became expected. Interest in camping, climbing, paddling and hiking brought customers to the store looking for the latest equipment and expert “been there, done that” advice. Nine years ago, competition increased significantly. Galyan’s entered the market and REI opened a flagship store in a Minneapolis suburb. “They arrived at a time when the industry was starting to plateau and flatten out. All the outdoor companies had to start running a more efficient business in order to survive. It’s a big adjustment to make from managing growth to fine-tuning a business,” Johnson said. Johnson often makes presentations about his own outdoor adventures around the world. The store’s credibility and reputation is reinforced when seminar attendees can ask the owner for destination and gear advice. “The information gets people excited about going on more trips and ultimate contributes to sales,” he said. An early advocate of ultra-light camping, Johnson includes that philosophy in his presentations. “I did my first ultra-light hike in Alaska back in 1986 with a daypack, jacket, quart of water and a few energy bars. One thing that I’ve found is that a lot of our customers want to lighten up their packs, but don’t go much farther with the light concept. They aren’t into it as much as I am, ”Johnson explained. In addition to reinforcing his brand, the expos are good for business. Rod Johnson reports that 17% of his store’s annual sales come from the eight days devoted to spring and winter events. Visitors entering the store are asked to add their name to a mailing list for future marketing efforts. Today, there are more than 30,000 names on the list. Another 5,000 receive e-mail only announcements. In order to shift funds from paper, mail handling, and postage costs Johnson is working to switch customers to email communications. After thirty years of growth, managing in a stalled market is his biggest concern. Johnson explained, “Part of the problem is people don’t have time to do things anymore. And younger people don’t seem to be as active as the baby boom generation.” With the advent of online stores, outdoor enthusiasts have more options for equipment. “Our customers may purchase something from us, REI and an online store. It doesn’t seem to have hurt our sales,” states Johnson. Online sales on the Midwest Mountaineering website have had limited success. “Visitors to the site are more interested in the clinic listings and product information,” he said. Despite flat or declining outdoor recreation participation rates and fickle weather, sales at Midwest Mountaineering increased in 2005. Johnson is planning to add a series of smaller clinics at locations away from the store and heavier promotion strategies to carry that growth through 2006. Success against competition has come from building long term customer loyalty. Sales tracking shows that 80% of the people visiting Midwest Mountaineering are repeat purchasers. For the last 20 years, Midwest Mountaineering has hosted a summer and winter expo. Over time, the expos have become the transition point from one season to the next for outdoor enthusiasts. Spilling out of the retail space into large tents erected adjacent to the building, the expos are a mix of clinics, seminars, product demonstrations, vendor booths and promotional sales. Typically, attendance at the expos tops 10,000 over a three-day weekend. 18 Specialty Market RETAILER Specialty Market RETAILER 19 Business Specialty SnowSports Sales Climb 8% Specialty NEWSwire Overall sales for the entire winter sports market, including specialty and chain stores, were up 8% in dollars to $696.9 million for the August through November period of 2005, compared to $647.8 million reported last year, according to the SnowSports Industries America (SIA) Retail Audit. Sales at specialty ski and snowboard shops were up 8% in units and dollars compared to last season, translating to $540.9 million in sales compared to $502.6 million in 2004. Off to a very strong start this season, specialty apparel sales (including tops, bottoms, suits and snowboard) are ahead 10% in dollars, reaching $179.6 million as compared to the August through November period last year. Snowboard equipment sales (including snowboards, boots and bindings) were up 7% in dollars with sales reaching a total of $76.3 million for the period. Freestyle boards posted a 24% dollar increase, Freeride boards saw dollar sales increase 10% to $15.0 million. Overall equipment sales (alpine, snowboard, Nordic, Telemark and Randonee/AT) were up 4% in dollars as compared to last season with sales totaling $221.0 million from August through November 2005. In specialty stores, alpine equipment (including skis, ski systems, boots, bindings and poles) grew 2% in dollars this season over last. Integrated ski system sales continue to escalate totaling $31.8 million through the end of November, an increase of 27% in dollars when comparing this period to the same period a year ago. At the end of November, integrated systems were 27% sold-through and retailers were sitting on 14% more inventory Industry Financials Rossi Helps Quiksilver Sales Jump 82% Quiksilver, Inc. consolidated net revenues for the fourth quarter of fiscal 2005 increased 82% to $637.4 million from $350.3 million last year. Consolidated net income for the fourth quarter of fiscal 2005 increased 35% to $33.6 million from $24.9 million the year before. Fourth quarter fully diluted earnings per share was 27 cents versus 20 cents last year, with both amounts as adjusted for the two-for-one stock split that took effect in May 2005. Consolidated net revenues for the full year of fiscal 2005 increased 41% to $1.78 billion from $1.27 billion in fiscal 2004. Net income for fiscal 2005 increased 32% to $107.1 million from $81.4 million in fiscal 2004, and diluted net income per share for fiscal 2005 increased 26% to $0.86 from $0.68 in fiscal 2004. Net revenues from the company’s newly acquired Rossignol and Cleveland Golf businesses totaled $214.5 20 By the end of November, specialty retailers had 13% fewer boards in stock than they did at the end of November 2004. In total, the snowboard category was 32% sold-through. million during the fourth quarter of fiscal 2005 since the effective date of the acquisition on July 31, 2005. Net revenues in the Americas increased 84% during the fourth quarter of fiscal 2005 to $288.9 million from $157.2 million in the fourth quarter of fiscal 2004. Net revenues in the Americas for the full year of fiscal 2005 increased 37% to $843.7 million from $616.8 million in fiscal 2004. Lafuma Fiscal 2005 Profits Climb 3% The Lafuma Group results for fiscal the year ended September 30, 2005, reflect a year of strategic development, acquisition-based growth and a slower economic environment. Net profits were up 3.3 % at €8.4 million ($10.5 mm) benefited from the positive impact of the goodwill amortization resulting from the OBER acquisition. Operating profits were down 12.5% at €13 million ($16.2 mm) due to a decline of 15.8 % in the camping furniture business along with a combination of related circumstances. units than at the end of November 2004. Last season at this time, ski systems were 26% sold-through. Twintip ski sales continue to impress, up 54% in dollars, reaching $3.9 million in sales by the end of this period. Inventories were 55% greater than they were last November and the category was still 31% sold-through. After a slow start last season, the Nordic ski equipment category is showing an increase of 11% in dollars this season over last. Nordic skis (up 2% to $2.9 million), boots (up 13% to $2.7 million), bindings (up 14% to $1.1 million) and poles (up 37% to $724,000) all experienced dollar inclines. Last season’s early snow in the West may be playing a factor in the slipping sales (dollars down 13%) of Telemark ski equipment. Sales of Telemark skis and bindings dropped in dollars 22% and 26%, respectively. Telemark boot sales ended the August through November period up 1% with sales at $911,000. Oakley Sued for Razrwire Patent Infringement USAmerican LLC of Beverly Hills has filed a patent infringement lawsuit against Oakley, Inc. and Motorola, Inc. in the U.S. District Court for the Central District of California alleging that the popular "Razrwire" sunglasses and headset combination jointly marketed by Oakley and Motorola infringes U.S. Patent No. 4,902,120 ("the '120 patent"). The '120 patent was filed in November 1988 by Frank Weyer, an attorney and engineer, who was annoyed by his earphones falling out while jogging. After the '120 patent issued in February 1990, Mr. Weyer formed a company, American Innovative Products, Inc., to market his invention. Advertising in running magazines and at running events, Mr. Weyer sold several thousand pairs of his sunglasses/ earphone product, which were called "Cruisers." Mr. Weyer also licensed his invention to Virtual I/O, who used the patented earphone mounting system in a virtual reality goggle product called "Iglasses." Specialty Market RETAILER Specialty Market RETAILER 21 Business Specialty NewsWire NSAA Revises Environmental Charter In an effort to renew the ski industry’s commitment to environmental stewardship, a fiveyear revision to the Environmental Charter has been released by the National Ski Areas Association (NSAA). The Charter, part of the Sustainable Slopes program, is a comprehensive list of environmental principles created to provide ski resorts with a framework for sustainable operations. This marks the fifth anniversary of Sustainable Slopes and the Charter’s first revision. The Charter also includes a Climate Change Policy adopted by the ski industry in 2002 in an attempt to raise awareness of the potential impacts of global warming. The policy encourages action in the effort to reduce greenhouse gas emissions. Black Diamond Introduces Ski Boot Line Black Diamond Equipment Ltd. will develop a new line of alpine touring and telemark ski boots. This is a logical step for Black Diamond, which has been both S CARP A' s Nor th American distributor as well as its primary driver in terms of telemark ski boot designs and concepts for eighteen years. SCARPA and Black Diamond terminated their partnership as of January 1, 2006, with Black Diamond assuming responsibility of the SCARPA boot line until the end of the current ski season. Patagonia, prAna, & Keen Aid Conservation Alliance Continuing its partnership with The Conservation Alliance, Keen will give a pair of shoes to anyone who donates $35 to The Conservation Alliance. The event is Sunday at 5:00 p.m. at the Keen booth. 22 Keen hosted a similar event at the August show and raised more than $8,000 for the Conservation Alliance in just one hour. Patagonia and prAna have also donated product to the event. Amer Re-orgs Salomon; Moves Production Salomon, the newly-acquired winter and outdoor sports division of Amer Sports, has launched a three-year turnaround program designed to "ensure its future competitiveness." The program includes a reorganization of Salomon operations and the elimination of up to 400 positions, primarily in France. Other important measures include a reallocation of the production of Salomon skis and Atomic ski boots to ensure the optimization of Group benefits. Salomon will work in close collaboration with the workers' representatives in order to find the best possible solutions for the employees via job revitalization and other measures. This social plan is expected to be ready by the end of April 2006. Marmot Test Centers Open For over two decades, Marmot has utilized the mountain professional to test and evaluate product designs. In the belief that hard, everyday use in the harshest environments by individuals who know their equipment needs will yield the best information to examine and improve design, Marmot has established five international test centers throughout the alpine world to better refine this evaluation process. These five centers represent diverse mountain environments, ranging from the warm, wet French Alps to the cold, harsh and windy Scottish highlands to spindrift powder slopes of British Columbia to the sub-zero granite walls of the Tetons and the vertical chutes of Jackson Hole. Each center has established itself as a leader in adventure sport and safety. Each provides a unique crucible to insure continued Marmot product leadership. The Test Center process leverages all Marmot centers, athletes and guide services to insure proper quality and function, and to discover flaws and defects before full production. Both commercial and R&D products are tested. R&D products are typically concept pieces developed 2 or 3 seasons prior to commercial launch. The test process codifies fit, finish, function and aesthetic appeal, is monitored and managed by the VP of design and development, and highly influences future design, production, sales & marketing. LaSportiva Italy Merges with U.S. Distributor La Sportiva's North American distribution operations have become part of La Sportiva Italy’s unified global distribution consortium. La Sportiva S.p.A. - the Italian parent company and manufacturer of the LaSportiva brand - and La Sportiva N.A., Inc. - the North American distribution company founded by Collin Lantz - merged together into one unified company. The company hopes to achieve synergies in its marketing, product line management, R&D, and finance operations. New access to resources from the Italian parent company is expected to fuel growth in the coming years. La Sportiva N.A. also recently reported a 30% growth in preseason sales from spring ‘05 to Spring ‘06 with a considerable spike in the trail running category. What’s more, the Leisure Trends Group recently reported that La Sportiva dominated the U.S. climbing shoe market in 2005 with over 35% overall market share and a 65% market share for price points over $100 and a 65% market share in the Mountain Boot category. The La Sportiva N.A. operations recently restructured its research and development functions with a focus on trail running and light hiking. North American Product Manager, Gary Banik, will continue to head up the Boulder, Colo. R&D office with a new emphasis on co-developing products with the expansive Italian R&D team. As always, you will always find more in-depth analysis of these stories and much more each week in The B.O.S.S. Report, the Bicycle, Outdoor, and SnowSports newsletter. Specialty Market RETAILER Hot Positions This Month at... SALES REPS WANTED SMU MERCHANDISING MANAGER Manage the merchandising and operations functions for assigned SMU categories (outerwear, sportswear, or dept stores). Work closely with the SMU Merchandising/ Operations Manager, SMU Sales Manager and Category Merchandisers to ensure that SMU product assortments are developed and processed through the system. Bachelor’s degree in business, merchandising, or related field - or - experience equivalent to degree. Three to five years progressively responsible experience working with apparel in a sales, customer service, or planning position desired. Experience in a sales related field presenting to customers a plus. Possess knowledge of retail apparel market from a product perspective. Ability to understand and apply retail math applications as they pertain to gross margin and SMU’s essential. Original Buff, S.A., Spanish manufacturer of multifunctional headwear and accessories is seeking accessory sales reps that have strong account relationships within the OUTDOOR, SKI, FITNESS & BICYCLE markets. Openings available in NorCal, SoCal, AZ, UT, NV, Rockies, Midwest, NY Metro and Southeast. ***** Identity Sports is looking for dynamic and energetic Sales Reps from selected territories to join the E3 team. E3 is a new line of techincal sportswear featuring "Kold Fusion" Sew free technology. Stop by at Outdoor Retailer Winter Market; booth 5107. ***** Springboost, A Swiss performance based technology driven athletic footwear company is seeking independent Sales Representatives for its USA Boston based division. Springboost features Swiss designed and inspired high end Women’s and Men’s training and walking shoes based on the science of biomechanics featuring Dorsi Flex technology. RETAIL MARKETING MANAGER Eagle Creek and Clive are currently seeking a full-time Product Designer to help continue and further their leading positions in the luggage, bag, backpack and accessory marketplace. The ideal candidate for this role will have a degree or diploma in design, and at least 3 years experience in the product design and manufacturing fields. Strong design, organizational and adaptability skills are a must, plus an expert knowledge of Adobe Illustrator and Photoshop. A working knowledge of AutoCad, SolidWorks or other 3D programs is a plus. Experience in the Outdoor, Travel or Action Sports industries is desirable. Position is located in Vista, California, available immediately. More details on these and many other career opportunities can be found at www.SportsJobSource.com, the first and only fully interactive career platform for the sporting goods industry. For more details about SportsJobSource.com, or to find out how your company can take advantage of a FREE TRIAL offer for JOB POSTINGS, just call us today at 704.987.3450 or e-mail us at: [email protected]. Specialty Market RETAILER 23 Sign Up for Your FREE Subscription to Specialty Market RETAILER! As an Outdoor Specialty Retailer, you and your team are entitled to free subscriptions to the newsletter designed specifically for you: Specialty Market RETAILER. In addition, you can also receive a FREE TRIAL subscription to The B.O.S.S. Report. Just fax this form to 704.987.3455 today and quickly join the ranks of the best informed executives in the outdoor market. Get your FREE SUBSCRIPTION to: Specialty Market RETAILER and a complimentary trial to : The B.O.S.S. Report Just fax this form back to: 704.987.3455. Recipient Name Code: ORWM06 Company Name Address Phone E-mail* *All fields required to receive complimentary subscription