The Weekly Digital Magazine for the Sporting Goods

ISSUE 1401
JANUARY 6, 2014
The Weekly Digital Magazine for the Sporting Goods Industry
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ISSUE 1401
JANUARY 6, 2013
The Weekly Digital Magazine for the Sporting Goods Industry
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14
MAKING NEWS
4 Giving Back / Phiten Partners with Be The Match
6 Gone But Not Forgotten
18 Industry Calendar
FINANCIALS
7 Sporting Goods Stocks Enjoy Rally In 2013
MOVERS & SHAKERS
8 Year in Review 2013
MERGERS & ACQUISITIONS
10 Fever Ensues In 2013
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FEATURE
14 Sporting Goods Bounceback Continues
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JANUARY 6, 2014 | SGBWeekly.com
3
NEWS I GIVING BACK
Pro baseball players
J.B. Shuck, C.J.
Wilson and Josh
Hamilton wear the
Phiten x Be The Match
Tornado Necklace,
supporting Phiten's
national giving effort.
PHITEN PARTNERS WITH BE THE MATCH
Phiten, best known for its titanium necklaces featuring Aqua-Metal materials, with their "Step Up to the Plate. Be a Hero" public service announcement.
has launched a first-time partnership with Be The Match, a nonprofit which
The partnership comes as Phiten, known for the Phiten Tornado
helps patients with blood cancers receive life-saving bone marrow and um- necklace worn by many players in Major League Baseball, celebrates
bilical cord blood transplants.
15 years of business in the U.S. and more than $100 million in sales of
Representing its first national cause-related effort, Phiten Help Be The health and wellness products in North America. Phiten was launched in
Match Eliminate Blood Cancer program is designed to increase aware- Japan in 1983 and is now in over 30 countries. Its product range based on
ness of the national Be The Match Registry and to
precious-metal technologies has expanded
raise money to help ensure that every person who
to athletic tape, compression sleeves, body
needs a bone marrow transplant receives one. The
support, necklaces and bracelets, addressing
company has designed a limited edition Phiten x
activities from motocross and surfing, to
Be The Match Tornado Necklace with 25 percent of
running, volleyball and kendo.
the net sales supporting the Be The Match mission.
"Looking back, we watched the Boston
The newly launched Phiten x Be The Match
Red Sox break 'The Curse of the Bambino'
Tornado Necklace ($35 USD) is exclusively avail- The Limited Edition Phiten x Be The Match Tornado wearing Phiten necklaces, signed a
Necklace available at PhitenUSA.com/BeTheMatch.
able at www.PhitenUSA.com/BeTheMatch. The Twenty-Five percent of the net sales support the Be The licensing agreement with MLB, NBA
dual-coiled necklace features the unique Be The Match mission to save lives through marrow transplants. and the NHL, providing our products to
Match colors. It is designed with an outer nylon
many of the top athletes in the world, and
fabric permeated with Phiten's Aqua-Titanium technology, which cov- have given countless everyday athletes the technology they crave," said
ers an elastomer compound core, and is held together by custom seam Joe Furuhata, vice president of Phiten USA. "Looking forward, we will
guards.
continue to expand our product lines and market segments to meet the
Phiten athletes and Be The Match Ambassadors of Hope, C.J. Wilson, Josh needs of athletes in all walks of life, and work with organizations like Be
Hamilton and J.B. Shuck, have also joined the cause to support the program The Match to help make a difference in people's lives."
4 SGBWeekly.com | JANUARY 6, 2014
NEWS
GONE BUT NOT FORGOTTEN
ACHIEVE
YOUR
GOALS
Bob Meistrell, who co-founded Body Glove,
died at the age of 84. Body Glove, which celebrated its 60th anniversary in 2013, was cofounded with Meistrell's late twin brother, Bill.
Both earn credit for helping develop in the
1950s the first neoprene wetsuit, at the time
using insulating material from the back of refrigerators.
Joe Weider, who passed away at the age of 93,
founded many of the world’s most popular
bodybuilding magazines, including Muscle and
Fitness, Flex, Men’s Fitness and, for women,
Shape. Weider and his brother Ben also founded the
International Federation of Body Builders, which
sponsored the Mr. Universe and Mr. Olympia
contest. On the product side, he developed fitness
equipment like the Solid Steel Tricep Bomber as
well as an extensive food supplement’s range.
Douglas Dayton, who led the transformation
of the family’s Dayton Hudson department
store business into the discount giant Target,
died at the age of 88.
Doug Abromeit, who helped start the U.S. Forest Service National Avalanche Center, died at
the age of 65 in a biking accident.
BREADTH OF DATA.
DEPTH OF DATA.
TIMELINESS OF DATA
As the broadest, deepest and most
timely data available for the U.S. Sports
and Outdoor Active Lifestyle Market,
SportScanInfo is the weekly retail point-ofsale data reporting solution. To learn more
about how we can help your business, call
704.987.3450 or email
[email protected].
SportScanInfo.com
6 SGBWeekly.com | DECEMBER 23, 2013
Carol M. White, who passed away on October 21, was best known in the sports and fitness industry
as the author and namesake of the Carol M. White Physical Education Program (PEP) Act, which
has provided $800 million in federal funds to quality physical education since 2002. Carol M. White
worked for then-Senator Ted Stevens (R-Alaska) for 21 years, retiring as his chief of staff in 2002. It
was in this capacity that White authored the PEP Act, which is still currently funded.
NEWS I FINANCIALS
SPORTING GOODS STOCKS
ENJOY RALLY IN 2013
The Standard & Poor's 500 Index jumped 29.6 percent in 2014, its best year since 1997. The Dow Jones Industrial
Average advanced 26.5 percent, the biggest gain since 1995. Many sporting goods related stocks likewise enjoyed the
fun with Deckers Outdoor, Nautilus, Quiksilver, Escalade, Pacific Sunwear and G-III Apparel more than doubling in
price. The only declines came from Lululemon, Skullcandy, Tilly’s and Sport Chalet.
COMPANY 12/31/13 12/31/12 PERCENT
CHANGE
COMPANY 12/31/13
12/31/12 PERCENT
CHANGE
Adidas91.87
66.36 +38.4%
Bauer Performance Sports
14.17
10.59
+33.8%
Big 519.82
12.81
+54.6%
Brown Shoe 28.14
18.13 +55.2%
Cabela's 66.66
41.75
+59.7%
Compass Diversified Holdings
19.6
14.71
+33.2%
Columbia Sportswear
78.7553.36+47.6%
Crocs15.92
14.39 +10.6%
Canadian Tire124.40
81.00
+53.6%
Deckers Outdoor
84.4640.27+109.7%
R.G. Barry
19.3014.17+36.2%
Dorel Industries, Inc.
40.46
35.95
+12.5%
Dick's Sporting Goods
58.10
45.49
+27.7%
Delta Apparel
16.9813.98+21.4%
DSW, Inc.
42.73
32.54 +31.3%
Callaway Golf
8.436.46+30.5%
Escalade, Inc.11.77
4.98
+136.3%
Jarden Corp.
61.3534.47+78.0
Finish Line 28.17
18.68
+50.8%
Foot Locker
41.4431.39+32.0%
Genesco 73.06
55.00
+32.8%
G-III Apparel 73.96
34.23
+116.1%
Gildan Activewear 53.31
36.26
+47.0%
Garmin46.19
38.93
+18.6%
Hanesbrands
70.2735.46+98.2%
Hibbett Sports
67.1552.70+27.4%
Johnson Outdoors
26.9519.87+35.6%
Lululemon Athletica
59.03
76.23
(22.6%)
Nike, Inc.78.64
50.90
+54.5%
Nautilus8.43
3.51
+140.2%
Pacific Sunwear
3.341.59+110.1%
Puma 234.65
224.02
+4.7%
Rocky Brands
14.5712.80+13.8%
Sturm, Ruger
73.0943.78+66.9%
Shoe Carnival
29.0120.33+42.7%
Skullcandy, Inc.
7.217.79(7.4%)
Skechers USA
33.1318.50+79.1%
Sport Chalet 1.09
1.65
(33.9%)
Sequential Brands Group
5.40
5.00
+8.0%
Smith & Wesson
13.49
8.44
+59.8%
Tilly's11.45
13.49
(15.1%)
Under Armour 87.30
48.53
+79.9%
V.F. Corp.62.34
37.03
+68.3%
Weyco Group
29.4322.87+28.7%
Winmark Corp.
92.6256.84+62.9%
West Marine
14.2310.75+32.4%
Wolverine World Wide 33.96
20.35
+66.9%
Quiksilver
8.774.25+106.4%
Zumiez26.00
19.41
+34.0%
JANUARY 6, 2014 | SGBWeekly.com
7
MOVERS & SHAKERS
YEAR IN REVIEW
2013
Nike, Inc.’s Charlie Denson, Nike Brand president since 2006, announced plans
to retire in January 2014, setting off a wide scale recasting of responsibilities
across the company’s executive suite. Trevor Edwards, formerly EVP of brand
and category management, became Nike brand president. Eric Sprunk,
formerly the EVP of merchandising and product, became Nike, Inc.’s COO.
Jeanne Jackson, formerly the president of direct-to-consumer, became
president of product and merchandising across footwear, apparel and
equipment categories. Dr. Thomas Clarke, formerly president of new business
development, became president of innovation.
Lululemon Athletica, Inc. appointed Laurent Potdevin, a long-time Burton
executive who most recently ran TOMS shoes, as its CEO. Potdevin succeeds
Christine Day, who served as the company’s CEO since 2008 and announced
her intention to resign in June after a widely covered recall of see-through
yoga pants. Tara Poseley, formerly president of apparel at Kmart, was named
chief product officer.
Under Armour’s Kip Fulks added president of product to his responsibilities as
COO, while Henry Stafford, formerly SVP of apparel, accessories and outdoor,
took over as president of North America. The company added Susie McCabe,
formerly from Ralph Lauren, as SVP, global retail, and Jason LaRose, formerly
from Express, as SVP, global e-commerce.
To maximize the potential of both Adidas and Reebok, the Adidas Group
united both brands under one management team in North America to jointly
operate them. Patrik Nilsson, formerly president of Adidas North America,
was appointed president Adidas Group North America to lead the united
organization. He also assumed global responsibility for Reebok-CCM Hockey.
Uli Becker, president of Reebok North America, left the company.
Puma SE appointed Björn Gulden, who formerly led the Danish jewelry brand
Pandora, as its CEO. He succeeded Franz Koch, who left the company at the
end of March. Andy Koehler was appointed COO.
Recreational Equipment, Inc. (REI) named Jerry Stritzke as the company's
president and CEO following an extensive national search. Stritzke most
recently served as president and COO for Coach, Inc.
Sally Jewell, the former petroleum engineer and banker who led REI for the
last eight years, was sworn in as the 51st Secretary of the Interior.
L.L.Bean's long-time chairman and former CEO Leon A. Gorman retired
succeeded by Shawn Gorman, the founder’s great-grandson.
8 SGBWeekly.com | JANUARY 6, 2014
The Sports Authority’s board of directors appointed Michael Foss, formerly
at Petco and Circuit City, to the position of CEO following the retirement
of Darrell Webb. Paul Okimoto, formerly at RadioShack, was hired as chief
marketing officer.
Gander Mountain promoted Mike Owens to the position of president and
COO. Owens had been Gander Mountain’s EVP and COO since joining the
company in 2009.
The Finish Line, Inc.’s Steve Schneider, formerly president and COO,
transitioned to the role of EVP of strategic initiatives effective July 20
The North Face appointed Tony Erlick to VP of sales.
Patagonia, Inc. promoted Doug Freeman to the position of chief operating
officer. Joy Howard was appointed VP of marketing, and John Collins, VP of
global sales.
Icebreaker hired Mark Koppes, formerly at Backcountry.com and Columbia
Sportswear, as VP of product. Cathy Quain became Icebreaker’s first global
VP of retail.
Columbia Sportswear Company appointed Russ Hopcus as SVP of North
American sales, a newly created position. Shawn Cox was appointed SVP of
retail, another newly created position.
Ibex Outdoor Clothing appointed Ted Manning as the company’s new CEO.
Manning joins Ibex after 18 years at Eastern Mountain Sports and a brief stint
as chief marketing officer at City Sports.
Mike Abbott, who joined Keen as its president in early July, left by October.
Founder, owner and CEO Rory Fuerst assumed his duties.
Wolverine Worldwide appointed Gene McCarthy as president of the Merrell
brand. McCarthy was most recently SVP of footwear for Under Armour, and
had previously been co-president for Timberland, and SVP of global footwear
for Reebok.
On December 30, 2013, Crocs, Inc. announced that John McCarvel, its CEO,
plans to retire in April. The company at the same time announced Blackstone
Group LP would invest $200 million into the company. In October, Crocs
appointed former Walmart executive Greg Sullivan general manager of Crocs'
Americas region.
Hi-Tec Sports appointed Brian Cyr as its first
U.S.-based product and design director. Peter
Shean became its U.S. VP of sales and product.
Skullcandy, Inc. appointed Hoby Darling as
president and CEO. Darling was formerly
general manager, Nike+ Digital Sport
Vibram appointed Antonio Dus to CEO, Vibram
Worldwide.
Woolrich hired Chris Nitzsche as national sales
manager and Chris Megale as sales director.
Newton Running named Craig Heisner as its
president. Heisner most recently served as VP
of marketing, sales and product merchandising
at Li-Ning, where he led the Chinese company’s
introduction into the U.S. market.
Billabong appointed Ed Leasure, former
founder of Quiet Flight Surfboards, as acting
president of the America’s division.
Brooks Sports, Inc. appointed Anne Cavassa
as VP of global apparel. She will manage the
Moving Comfort brand and business, as well as
the Brooks Running Company apparel business.
On the heels of the completion of the April 30th
merger between E.Land World, Ltd. and K-Swiss,
Inc., E.Land named a new global executive team
to oversee the newly formed K-Swiss, Inc. entity.
The K-Swiss, Inc. global executive team will be
led by Truman Kim, chairman; Larry Remington,
president and CEO; Barney Waters, CMO; and
Wim Tuijl, managing director of Europe, Middle
East and Africa
Deckers Outdoor Corporation appointed Jeffrey
Bua, formerly Mozo brand president, as Teva
brand president. Bua replaces Joel Heath who
left the company to pursue other opportunities.
Dave Mahoney, Teva director of commercial sales
for the past five years, became VP of sales.
Sandy Schwarzenbach, formerly VP sales, teen
and sporting good chains for North America for
Quiksilver and DC at Quiksilver,Inc., joined Vans
as director of apparel, national accounts.
Volcom appointed Kevin Meehan as its new
president of North America.
Sof Sole, a division of Implus Corporation based
in Durham, NC, appointed Drew Davies as
manager of national accounts.
Superfeet President Bill McLean retired, replaced
by John Rauvola, who joined Superfeet in March.
Timbuk2 hired Cindy Feinauer, formerly at
SmartWool, as director of U.S. sales.
Rod McGeachy, formerly CEO of Tandy Brands
Accessories, joined Delta Apparel as president
of the company's Soffe division.
2XU, the maker of performance athletic apparel,
appointed Kevin Roberts as CEO. Roberts was
formerly SVP within Adidas’ Sports Performance
Division.
Zoot Sports, the maker of performance apparel,
wetzoots, footwear and accessories, named Erik
Vervloet as its VP and general manager. Vervloet
had worked as VP of sports marketing for
K-Swiss and was most recently chief marketing
officer for the World Triathlon Corporation.
VF Corp. appointed Laurie Etheridge as
president of Lucy Activewear. Etheridge was
previously global SVP at Levi's for women's
merchandising and design at Levi Strauss & Co.
Easton-Bell Sports, Inc., which owns the
Easton, Bell, Riddell and Giro brands, appointed
board member and former CEO and co-owner
Terry Lee executive chairman and CEO. Tim
Mayhew, a managing director of Fenway
Consulting Partners, LLC and an Easton-Bell
Board member since 2004, was appointed
president and chief operating officer..
Mike Ballardie has been named CEO of Prince
Global Sports. He had been responsible for
operations in the eastern hemisphere for
Prince for nearly 10 years.
Polartec, LLC appointed Doug Kelliher to VP
of product management.
Jimmy Jazz promoted Robert Butler to VP
and general merchandise manager of apparel,
footwear and accessories for Jimmy Jazz
Stores, Decibel Stores and Jimmy Jazz.com.
Black Diamond Equipment promoted Brian
Mecham to VP of North American wholesale and
reassigned apparel line sales manager Bill Sinoff
to take Mecham's place as North American
director of wholesale. The two work closely with
Chris Grover, who was appointed to the newly
created position of global go-to-market director.
LaCrosse Footwear, Inc., the parent of Danner
and LaCrosse, appointed Robert Sasaki as its
new president. Sasaki previously served as a
finance director at Nike Inc., where he focused
on Asia.
110%, a maker of compression/recovery gear for
runners, bikers, mixed-martial arts and other athletes,
hired Austin Chow as president. Chow joined 110%
from IMG Licensing, where he developed and
managed co-branded programming with ESPN.
Outdoor Research named Ken Meidell, a
senior executive at Cascade Designs, as its
president and chief operating officer. Meidell
comes to OR after 12 years at Cascade Designs
where he held a variety of posts from VP of
sales and marketing and VP of the Outdoor
Group to chief information officer.
Birkenstock USA named David Kahan as
CEO, starting June 1. Kahan will drive the
strategy, development and growth of the
German-made footwear brand in the United
States.
K-Swiss appointed Eric Sarin, formerly with
Le Coq Sportif and Adidas, as the company’s
new VP of product..
Sanuk, a division of Deckers Outdoor,
appointed Jeff Fitzhugh has joined as VP
of sales for North America. He was most
recently a SVP at DC Shoes.
Brian Enge assumed the role of president at
SKLZ, the maker of athletic training devices.
Enge was most recently an executive at The
Active Network and known for his successful
tenure as CEO of Zoot Sports. SKLZ also
named Aaron Azevedo VP of product and
David Schultz VP of sales.
Dorel Industries Inc., in December announced
the departure of Robert P. Baird, group
president and CEO of the company's nearly
$1 billion Recreational/Leisure segment,
which includes Cannondale, Schwinn, GT,
Mongoose, Caloi, IronHorse and Sugoi. Peter
Woods, the segment's CFO, was named
interim president.
Fanatics, Inc. hired Raphael Peck as president,
Fanatics Apparel. Peck was most recently
chief merchandising officer at Oakley.
Amer Sports appointed Mike Dowse president
of Amer Sports Ball Sports business area,
replacing Chris Considine, who left the company.
Nuun, the maker of electrolyte sports drink
tablets, appointed Kevin Rutherford as CEO.
Johnson Outdoors Gear, Inc., the camping
equipment company, appointed Christopher
Martens as business director - camping.
Nixon, the Southern California-based watch
and accessories brand, named Tom Jones,
formerly at DC Shoes, as the brand’s newly
appointed creative director.
Clif Bar & Company President and COO
Kevin Cleary was promoted to the position
of CEO. Owners Gary Erickson and Kit
Crawford will continue as co-chairs of Clif
Bar & Company’s board of directors and
become co-chief visionary officers guiding
the company’s Five Aspirations business
model.
Klean Kanteen President Jim Osgood was
promoted to CEO and chairman of the
company's board of directors. Osgood
started with the company in 2011 and will be
replacing long-time CEO Darrel Creswell. ■
JANUARY 6, 2014 | SGBWeekly.com
9
MERGERS & ACQUISITIONS
FEVER ENSUES
IN 2013
10 SGBWeekly.com | JANUARY 6, 2014
W
ith heavy attention from the private equity world as well as some
newer and some older strategic buyers, merger activity showed no
signs of slowing down in 2013.
The activity continues to be driven by significant cash on corporate balance
sheets, more confidence in the overall economy, the healthy stock market, and
continued low interest rates. Private equity is also said to be sitting on the largest amount of dry-powder – money-pledged but not invested - ever.
AMONG FOOTWEAR BRANDS:
K-Swiss, Inc., owner of K-Swiss and Palladium, was acquired by South Korea
retail and fashion giant E.Land World, Ltd. in a deal valued at $170 million.
E.Land soon thereafter acquired contemporary comfort footwear brand OTZ
Shoes. Hoka One One, the oversized running shoe brand popular with ultrarunners, was bought by Deckers Outdoor.
Barely two years after buying both brands as part of its acquisition of
American Sporting Goods (ASG), Brown Shoe Co. sold Avia and Nevados
for $74 million to Galaxy Brand Holdings, Inc., which owns And1. Avia soon
thereafter opened up distribution to Wal-Mart.
IN THE HUNT & FISH CATEGORY:
Bushnell Group Holdings was acquired for $985 million in cash by Alliant
Techsystems (ATK), the world’s largest ammunition manufacturer. Earlier in
the year, ATK acquired Savage Sports, one of the world's largest manufacturers of hunting rifles and shotguns.
More attention went to the non-sale of Freedom Group, Inc., the parent
of Bushmaster, DPMS, and Remington Arms and other firearms brands. Under pressure from investment funds, Cerberus Capital Management LP announced plans to sell the business shortly after the December 2012 Newtown
school shootings. (A Bushmaster rifle was used in the tragedy.) In December
2013, Cerberus was close to finding a minority investor to help buyout fund
investors no longer wanting to own Freedom Group.
IN THE OUTDOOR SPACE:
Spyder was acquired by Authentic Brands Group, which has quickly built
up a sizeable sporting goods brand portfolio that also includes Prince, Bobby
Jones, TapOuT and Sportcraft. ABG established Li & Fung USA as the brand’s
licensee partner in a move designed to help make Spyder a bigger player in
sportswear and footwear, as well as in Asia.
Canada Goose, which had been family owned since its founding over
55 years ago, was sold to Bain Capital. Dani Reiss, CEO of Canada Goose,
remained in his position and kept a “significant minority stake.” PE fund Altor
bought ski maker Rossignol with plans to use its experience turning around
Norwegian clothing brand Helly Hansen to help the French company push
into ski wear.
A controlling stake in Timbuk2, the messenger bag specialist, was acquired
by an investment group led by former Timberland COO Ken Pucker along
with Timbuk2 management. Bruckmann, Rosser, Sherrill & Co. (BRS),
a New York-based private equity firm, acquired Royal Robbins, Inc. from
Kellwood Co.
Implus, manufacturer of Sof Sole and Yaktrax, acquired the shoe care, insole, and shoelace assets from Penguin Brands, Inc. With the sale, Nathan,
the running accessories specialist, became a standalone company under its
current ownership and leadership team.
Onex Corp., a PE group, acquired Nielsen Expositions, which operates
Outdoor Retailer, Interbike and other trade shows, for $950 million in cash
and renamed the business Emerald Expositions. In December, the new business agreed to acquire George Little Management, which operates the Surf
Expo and other shows.
IN THE SURF WORLD:
Billabong reached an agreement in September with U.S. hedge funds Oaktree
Capital and Centerbridge Partners for a $385 million debt and equity financing deal following a long sales process. Neil Fiske, who most recently turned
around Eddie Bauer, was appointed CEO and has implemented a turnaround
plan focused on its “big three” brands: Billabong, Element, and RVCA.
Billabong earlier in the year sold Dakine, the action sports and outdoor
accessories and apparel company, to Altamont Capital Partners, while selling
Canadian retail chain West 49 in November to YM, Inc. It’s still exploring options for its “emerging brands”: Von Zipper, Honolua Surf Company, Kustom,
Palmers Surf, Xcel, Tigerlily and Sector.
Quiksilver, Inc. has also been realigning under Andy Mooney, the former head of consumer products at Walt Disney Co., who became CEO in
January 2013. With a similar focus on core brands, Quiksilver, Roxy and DC
Shoes, Quiksilver sold Mervin Manufacturing, designer and manufacturer
of Lib-Tech, GNU, and Roxy snowboards, to Altamont Capital. It also announced plans in early December to divest and exit Surfdome Shop, Ltd.,
Hawk Designs, Inc., its Moskova brand, and its business under license with
Maui and Sons.
ON THE RETAIL SIDE:
Much of the action took place in the run specialty channel, led by Running
Specialty Group (RSG) - the alliance between The Finish Line and Gart Capital Partners that over the past year-and-a-half built up a 47-unit chain. Boulder
Running Co., BlueMile and Bob Roncker’s Running Spot all joined RSG this
year.
Fleet Feet also stepped up its expansion efforts over the last two years and
now has 112 locations. Maine Running Co. and Off ’n Running this year converted their stores to Fleet Feet locations in a new strategy for the franchiser.
Fleet Feet outright purchased Gary Smith's Easy Runner in Little Rock, AK.
Foot Locker, Inc. acquired Runners Point Group, which operates more
than 200 stores under the Runners Point and Sidestep nameplates largely in
Germany. It also continues to operate three Run by Foot Locker stores in the
U.S. Another potential consolidator is Dick’s Sporting Goods, which now
has three True Runner locations, including one recently opened on Boylston
Street in Boston.
THE TEAM DEALER CHANNEL:
Almost singularly driven by BSN Sports, the team dealer channel continues
to undergo rapid consolidation. Over the course of the year, BSN acquired
Sports Gear in Cullman, AL; Spokane Athletic Supply in Spokane, WA; Sols in
Ambridge, PA; Kohlmyer Sporting Goods near Cleveland, OH; and Holovak
& Coughlin (H&C) in Arlington, MA. BSN also acquired Herff Jones, the
manufacturer of graduation-related materials and educational products, as
well as cheerleading apparel and services.
An investment group led by Mark Marney, founder and former CEO of The
Golf Warehouse and Baseball Savings, acquired Team Express Distributing, LLC, owner of the popular BaseballExpress.com, Softball.com, FootballAmerica.com and TeamExpress.com.
Lids Sports Group, which had acquired Anaconda Sport, Brand Athletics
and Impact Sports in past years to quickly create a sizeable team dealer
JANUARY 6, 2014 | SGBWeekly.com
11
presence, slowed down the pace with only one
team acquisition - Shawnee, OK-based Baptist’s
Athletic Supply in 2013.
Lids Sports Group made more noise in the fan
apparel space, with its acquisition of Canada’s
Game On Sports, which primarily sells NHL jerseys and headwear; as well as Fan Outfitters, which
operates seven brick-and-mortar retail stores located in Kentucky and Oklahoma. It also acquired
the rights to operate retail concessions inside Rexall Place, the home arena of the Edmonton Oilers,
marking its first NHL arena partnership.
Fanzz, the 94-unit fan chain owned by the parent of the Utah Jazz, acquired Just Sports, another
fan chain that operates 27 stores in Washington,
Oregon, Idaho and Montana.
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DEEP-POCKETED COMPANIES HELD
OFF BUYING:
Wolverine Worldwide was busy absorbing its
$1.125 billion October 2012 acquisition of Collective Brands’ Performance + Lifestyle Group
(PLG), which included Sperry Top-Sider, Saucony,
Stride Rite and Keds.
VF Corp. was among the bidders for Billabong
but also didn’t make an acquisition in its core outdoor and action sports categories. It was likewise
integrating its $2.3 billion Timberland Cos. acquisition, which closed in September 2011.
Nike, Inc. sold Cole Haan to Apax Partners
in February after selling Umbro to Iconix Brands
Group in October 2012 as it increased its focus on
its remaining core brands: Nike, Jordan, Converse
and Hurley.
Jarden Corp., whose stable of brands includes
Rawlings, K2 and Marmot, made a big acquisition
in acquiring Yankee Candle for $1.75 billion but
hasn't made an acquisition in the sports/outdoors
segment since Zoot in 2009.
Kering, the parent of Puma, acquired Volcom
in 2011 and Cobra in 2010 but hasn’t added any
more brands to its Sports & Lifestyle segment over
the last two years.
Adidas, Amer Sports and Columbia Sportswear are among other majors that have not made a
sizeable acquisition in some years.
Other notable mergers taking place in the industry
over the last year:
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Cramer Products, Inc., a leader in the sports
medicine industry, merged with Performance
Health, a manufacturer and marketer of
Thera-Band, Biofreeze, Perform and Hygenic
branded products;
Bauer Performance Sports acquired Combat Sports, a designer of composite baseball
12 SGBWeekly.com | JANUARY 6, 2014
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and softball bats, hockey sticks and lacrosse
shafts;
Under Armour acquired MapMyFitness,
which operates MapMyRun.com and MapMyRide.com;
Jawbone, maker of wireless audio and fitnesstracking devices, acquired BodyMedia;
L Capital Asia, a private equity fund sponsored by French luxury retail giant LVMH,
acquired a 40 percent stake in 2XU, the Australian-based compression apparel brand;
Xterra Wetsuits was sold back to founder
Keith Simmons and business partner Glynn
Turquand;
The Warnaco Group, Inc., the parent of Speedo, was acquired by PVH Corp.;
PVH Corp. sold its G.H. Bass & Co. footwear
division to G-III Apparel Group, Ltd.;
Heelys was acquired by Sequential Brands
Group, Inc. and licensed to BBC International;
Rocky Brands acquired Creative Recreation,
a lifestyle footwear brand best known for its
collection of upscale sneakers;
Dr. Martens was sold to Permira Funds, a
private equity firm that owns Hugo Boss and
New Look;
Native Shoes, the lightweight EVA footwear
brand, was acquired by Scott Hawthorn, one
of the company’s original founders, in addition to a small group of private investors;
Pacific Vector Holdings, Inc. acquired a controlling stake in DNA, LLC, which owns the
Alien Workshop, Habitat and Reflex skateboarding brands;
Demon International, LLC, doing business
as Action Sports Group, acquired Flexmeter,
a developer of protective wrist guards for action sport athletes;
GoPro acquired General Things, Inc., a
digital design and software studio based in
San Francisco that has been instrumental in
helping GoPro advance its business backend
and consumer-facing web development;
OtterBox, maker of protective cases for
handheld devices, acquired DBA LifeProof,
maker of protective cases for smartphones
and tablets;
Braven LLC, a Provo, UT startup that makes
ruggedized portable Bluetooth speakers for
outdoor adventurers, was acquired by Incipio Technologies, Inc., an Irvine, CA-based
designer and manufacturer of mobile device
accessories;
Sneaker Villa, Inc., the Philadelphia-based
urban footwear chain, was acquired by
Goode Partners;
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FGL Sports, Ltd., a division of Canadian
Tire Corporation, acquired Pro Hockey Life
Sporting Goods Inc.;
Backcountry.com acquired Bergfreunde.de,
a similar outdoor gear website serving Germany, Austria, and Switzerland, to spread its
reach to Europe;
Alleson Athletic, the manufacturer of athletic
team apparel; acquired Battlefield Collection,
an official licensed provider of military athletic wear for the armed forces;
Escalade, Inc. acquired the indoor games
business of DMI Sports, marketers of Arachnid, Nodor and Winmau darting, Prince and
Head table tennis, and Minnesota Fats billiards;
Hedstrom bought the sporting goods and
game company Regent Sports Corporation;
Bownet, the maker of portable sports nets
and goals, acquired No-Errors, an Arizonabased sports bag manufacturer;
CriticalPoint Capital, the investment affiliate
of CriticalPoint Partners, acquired Organized
SportsWear, which manufactures physical
education uniforms;
POW, Inc., parent company to POW Gloves
and Spacecraft, acquired 100 percent ownership of Holden Outerwear;
NRS, the manufacturer and distributor of
paddling gear and inflatable watercrafts, acquired WRSI safety helmets;
Sports-Pool AG, a Swiss company that produces and markets the Belowzero brand of
ski and snowboard apparel, acquired Zimtstern, a provider of snow, bike and street wear
in the German-speaking market;
Delta Apparel acquired the Salt Life beach
brand;
Dorel Industries, Inc. acquired a 70 percent
stake in Brazilian bike maker Caloi, which
has a 40 percent share of the Brazilian market
and operates the largest bike factory outside
of Southeast Asia;
Pivotal 5, a maker of wellness and handheld
fitness products, acquired Lifeline USA,
which supplies functional fitness training
equipment;
Mad Dogg Athletics, Inc., a maker of equipment-based fitness education and the parent
company of Spinning, Peak Pilates, Bodyblade and Resist-A-Ball, acquired the Ugi fitness products line;
Wintersteiger acquired Hotronic Group,
which produces the Hotronic FootWarmer
and the Snapdry Boot & Glove Dryer;
FGX International, a leading eyewear
designer and marketer and wholly-owned
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subsidiary of Essilor International, purchased Suntech Optics, Inc.,
which owns the Ryders performance sunglasses brand;
Sequential Brands Group, Inc. acquired the Revo sunglass brand from
Luxottica Group;
McMillan Group International sold its firearms division, McMillan Firearms, to Strategic Armory Corps, LLC (SAC);
ARK Defense Group bought Osprey Defense LLC, a manufacturer of a
self-cleaning piston conversion kits;
Martin Archery, Inc., including the Damon Howatt line, was acquired by
Diversis Capital, LLC from the Martin family;
Fishpond, creators of fly-fishing and outdoor travel gear and accessories,
acquired Nomad Nets;
Orvis acquired Scientific Anglers and Ross Reels businesses from 3M. It
later in the year sold Ross Reels to Mayfly Group, LLC;
Uncle Josh acquired Acme Tackle Co.;
Williamson-Dickie Mfg. Co. acquired Walls Industries and its hunting
apparel brands (10X, Mossy Oak, Walls Legend);
The Safariland Group, a global provider of a range of safety and survivability products designed for the public safety, military, professional and
outdoor markets, acquired Tactical Command Industries, Inc.;
FAM Brands, the parent of Marika, acquired the Zobha yoga and fitness
apparel line from Kellwood Corp;
Bownet, a supplier of portable sports nets and goals, acquired South Bat,
an Argentinian Guayaibi Wood Bat manufacturer with offices in Southern California;
Invista bought out the apparel related fiber assets of Advansa, including the German company's licensing rights to Invista’s Coolmax and
Thermolite trademarks in Europe, Middle East and Africa and Advansa’s
Thermocool brand and related technologies and staff;
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Noble Biomaterials, Inc., manufacturer of X-Static silver fiber technology, acquired Carolina Silver, LLC, maker of silver-based fabric,
yarn and fiber;
Neiman Marcus was sold for $6 billion to Ares Management, LLC and
Canada Pension Plan Investment Board (CPPIB);
Hudson's Bay Co. acquired Saks;
Sportsman’s Warehouse reacquired 14 Wholesale Sports USA stores
from UFA Co-Operative;
Meb Keflezighi and Bob Kennedy, both holders of Olympic titles, became co-owners of Movin’ Shoes, a three-unit chain of running stores
in the San Diego area;
Specialty Sports Venture (SSV), part of Vail Resorts, Inc., acquired
Hoigaards’s, an outdoor sporting goods store in Minneapolis;
Gatorz, Inc. acquired Ryderz Compound, Inc., which operates a chain
of 34 retail stores in the U.S. under the XRyderz or No Fear store banners;
Universal Athletic Service acquired fellow team dealer Metro Athletic
of Edina, MN;
U.K.-based JD Sports Fashion acquired Tiso Group, a 10-door retailer
of outdoor clothing and equipment based in Edinburgh, Scotland;
Sports Direct International Plc. acquired majority stakes in two leading European sporting goods retailers: Sports Eybl and Sports Experts
AG or EAG, based in Austria; and Sportland International Group (SIG),
based in the Baltic region;
MarineMax, Inc. acquired Parker Boat Company’s retail boat sales and
service operations in Orlando and Daytona, FL;
Vista Equity Partners paid $1.05 billion in cash for Active Network,
which is used by millions of people to register in races, reserve camp
sites and enroll in sports leagues. ■
FACEBOOK: FACEBOOK.COM/COGHLANSGEAR TWITTER: @COGHLANSGEAR
WEB: WWW.COGHLANS.COM
SGBweeklyJan2014.indd 1
12/27/2013 1:45:25 PM
SPORTING GOODS
BOUNCEBACK CONTINUES
By Thomas J. Ryan
The sporting goods industry wrapped up another solid year in 2013,
continuing its recovery from the economic decline that started in
2008. Home equity finally picked up and consumer confidence increased to spur spending through another highly promotional holiday selling period.
The broad U.S. stock market posted its biggest percentage gain since
1997, sidestepping the "fiscal cliff " at the start of the year, the Boston
Marathon bombings, a near war with Syria, a government shutdown and
14 SGBWeekly.com | JANUARY 6, 2014
a jump in yields on long-term government bonds to their highest level
since July 2011. The year began with unemployment at 7.9 percent and
fell by November, to 7 percent.
The uncertainties around ObamaCare impacted consumer confidence for a period while also pointing to the benefits of physical activity in reducing the nation’s heavy health care bill. At the close of the
year, the Conference Board indicated its consumer confidence sentiment index climbed to 78.1 from 72 in November.
In the team channel, however, concussion concerns plagued the sport of
football in 2013. In August, the NFL agreed to pay $765 million to settle
hundreds of cases accusing it of hiding information about the dangers of
concussion. But stories of former players, including legend Tony Dorsett,
speaking publicly about their memory loss, irritability and other health
problems has kept the topic on the front pages and continues to threaten
the sport.
Attributed largely to fears by
parents, Pop Warner, the nation's largest youth football program, stated that participation
dropped 9.5 percent between
2010 and 2012. A Robert Morris University poll found that
40 percent of adults support a
ban on contact football for prehigh school students, and nearly
50 percent would ban it before
middle school.
But other sports are also
equally facing challenges. According to a National Academy of Sciences
report released in November, field hockey, lacrosse, soccer, wrestling, ice
hockey, and basketball all proved about as dangerous or more so than
football in recent years. The recent life-threatening head injury to German
racing driver legend Michael Schumacher while skiing and wearing a
helmet also pointed out the limits of helmet use overall to some.
The attention underscores opportunities to create safer helmets to absorb hits as well as proper fit and safer play across sports and activities.
Among categories, the basketball footwear category saw a long-awaited
comeback, but running participation also remained strong, spurred on by
the growing popularity around color runs, mud runs, obstacle and other
themed runs. For seven straight years, the number of participants in half
marathons nationwide has grown by more than 10 percent each year.
An emerging category that took center stage this year is wearable training
devices, with the opportunity
being explored by the big
three - Nike, Under Armour
and Adidas – as well as
upstarts such as Jawbone
and Fitbit and existing watch
and monitor players such as
Garmin, Sunto, Polar, Timex,
and Sportline. The pending
launch of Google Glass
promises to heighten the
hype and acceptance overall
Photo courtesy Google Glass
of wearable technologies.
The gun category received a
strong boost after the December
2012 tragedy in Newtown
reinvigorated debate about gun
control that drove fears of buying
restrictions. Hunt & Fish retail
also got much more crowded with
Sportsman’s Warehouse, Gander
Mountain, Bass Pro, Cabela’s
and Academy all expanding and
Dick’s Sporting Goods launching
its Field & Stream concept.
In another closely watched
rollout, Finish Line opened up Finish Line
athletic footwear shops inside Macy’s while
Lids did the same with fan apparel.
Among brands, the big just keep getting
much bigger, aided by the opening up of
vendor in-store shops inside Dick’s Sporting
Goods and other full-line stores. In its quarter ended November 31, Nike’s sales in North
America climbed 9 percent. Under Armour’s
Q3 revenues jumped 26 percent. Adidas,
the world's number two maker of sports
gear, has lately been impacted by distribution problems in Russia, currency effects
and poor sales of golf products. All three are
gearing up to do battle during the World Cup
and Winter Olympics - both being played on
the world stage in 2014.
Weather also finally cooperated in 2013. The
late, wet, cold spring in North America and Europe helped snow sports categories while also
setting the stage for disappointing sales at the
start of the year for the run and cycling industry. Even more beneficial, the first good winter in
two years was a boon to ski areas as well as boots,
hardgoods and outerwear sales.
Still, the past tough winters, feeding global
warming fears, caused a hangover for many snowsports and outdoors vendors. With buying coming
in much closer to demand, many orders that typically ship in the third quarter were shipped in the fourth, possibly leading some stores to miss opportunities this year after getting stuck with heavy overstocks in past years.
“The industry has approached this season very cautiously and that means that they have bought conservatively because the last two winters have been so difficult,” said Eric Wiseman, VF Corp.’s chairman,
president and CEO, on his company’s third quarter conference call.
Whether chains will be aggressive in ordering will be closely watched at the upcoming winter
trade shows. ■
C
M
Y
CM
MY
CY
CMY
K
ACCEPTED
®
16 SGBWeekly.com | JANUARY 6, 2014
2013
PULSE OF THE
OUTDOOR CONSUMER STUDY
A Market Insight Study from
The SportsOneSource Group
SOS Research takes an in-depth look at the key shopping behaviors,
influences, and motivators for America’s active outdoor consumer
For more information, or to reserve your copy of the Pulse Of The Outdoor Consumer study,
contact Neil Schwartz 561.692.3722 or email [email protected]
For full year calendar go to
sportsonesource.com/events
TRADE ASSOCIATIONS | BUYING GROUPS
CALENDAR
JANUARY
6-8
ATA Show
Nashville, TN
7-9
MWSRA January Show
Madison, WI
7-9
WWSRA Rocky Mtn Preview
Denver, CO
7-9
WWSRA Northwest Preview
Portland, OR
9-11
13-14
Surf Expo
Orlando, FL
WWSRA Intermountain Preview
Salt Lake City, UT
13-15
WWSRA NorCal Early Preview
Reno, NV
14-17
SHOT Show
Las Vegas, NV
15-18
NBS Winter-Specialty Market
Fort Worth, TX
16-18
Sports Licensing & Tailgate Show
Las Vegas, NV
17-19
Imprinted Sportswear Show (ISS)
Long Beach, CA
21
ORWM Demo Day
TBA
22-25
Outdoor Retailer Winter Market
Salt Lake City, UT
30-2
SIA Snow Show
Denver, CO
FEBRUARY
3-4
SIA On-Snow Demo
Copper Mountain, CO
18 SGBWeekly.com | JANUARY 6, 2014
3-4
SIA Nordic Demo
Copper Mountain, CO
5-7
FFANY
New York, NY
5-8
Sports Inc. Outdoor Show
Phoenix, AZ
6-10
NBS Semi-Annual Market
Fort Worth, TX
9-11
EORA SE February Show
Greenville, SC
10-13
Worldwide Spring Show
Reno, NV
11-13
18-19
MWSRA February Show
Madison, WI
MWSRA New Model Demo
Hastings, MN
MARCH
4-5
SFIA National Health Through Fitness Day
Washington, DC
14-16
Imprinted Sportswear Show (ISS)
Atlantic City, NJ
APRIL
4-6
Imprinted Sportswear Show (ISS)
Orlando, FL
7-8
SFIA Litigation & Risk Management Summit
Phoenix, AZ
27-30
NSGA Management Conference and
Team Dealer Summit
Indian Wells, CA
Athletic Dealers of America
1395 Highland Avenue
Melbourne, FL 32935
t 321.254.0091
f 321.242.7419
athleticdealersofamerica.com
National Shooting Sports Foundation
Flintlock Ridge Office Center
11 Mile Hill Road
Newtown, CT 06470
t 203.426.1320
f. 203.426.1087
nssf.org
National Sporting Goods Association
1601 Feehanville Drive / Suite 300
Mount Prospect, IL 60056
t 847.296.6742
f 847.391.9827
nsga.org
Nation’s Best Sports
4216 Hahn Blvd.
Ft. Worth, TX 76117
t 817.788.0034
f 817.788.8542
nbs.com
Outdoor Industry Association
4909 Pearl East Circle / Suite 300
Boulder, CO 80301
t 303.444.3353
f 303.444.3284
outdoorindustry.org
Sports & Fitness Industry Association
8505 Fenton St., Suite 211
Silver Spring, MD 20910
t 301.495.6321
f 301.495.6322
sfia.org
Snow Sports Industries America
8377-B Greensboro Drive
McLean, VA 22102
t 703.556.9020
f 703.821.8276
snowsports.org
Sports, Inc.
333 2nd Avenue North
Lewistown, MT 59457
t 406.538.3496
f 406.538.2801
sportsinc.com
Sports Specialists Ltd.
590 Fishers Station Drive / Suite 110
Victor, NY 14564
t 585.742.1010
f 585.742.2645
sportsspecialistsltd.com
Team Athletic Goods
629 Cepi Drive
Chesterfield, MO 63005
t 636.530.3710
f 636.530.3711
tag1.com
Worldwide
8211 South 194th
Kent, WA 98032
t 253.872.8746
f 253.872.7603
wdi-wdi.com
CARBON
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Our revolutionary insole achieves a new level of lightweight performance by combining a carbon fiber-reinforced
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superfeet.com | ©Superfeet Worldwide Inc.
The Weekly Digital Magazine for the Sporting Goods Industry
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20 SGBWeekly.com | JANUARY 6, 2014
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