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