SGB WEEKLY 1227
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JULY 2, 2012 ISSUE 1227 The Weekly Digital Magazine for the Sporting Goods Industry SGMA 2012 STATE OF THE INDUSTRY REPORT
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SGB WEEKLY 1227
Transcript of SGB WEEKLY 1227
JULY 2, 2012ISSUE 1227
The Weekly Digital Magazine for the Sporting Goods Industry
SGMA2012 STATE OF THE INDUSTRY REPORT
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JULY 2, 2012 | SGBWeekly.com 3
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Copyright 2012 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB WEEKLY are not necessarily those of the editors or publishers. SGB WEEKLY is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB WEEKLY may not be reproduced in whole or in part without the express permission of the publisher. SGB WEEKLY is published weekly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB WEEKLY , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450
The Weekly Digital Magazine for the Sporting Goods Industry
JULY 2, 2012ISSUE 1227
Senior Business EditorThomas J. Ryan
Contributing EditorsFernando J. Delgado, Mackenzie Lobby,
Charlie Lunan, Matt Powell
Creative DirectorTeresa Hartford
[email protected] (x105)
Graphic DesignerCamila Amortegui
[email protected] 704.987.3450 (x103)
Special Projects ManagerDao Huynh
[email protected] (x109)
President, Sports & OutdoorPaul Gagner
VP Business Development / EastBarry Gauthier
VP Business Development / WestBarry Schrimsher
VP Marketing / Product DevelopmentGregg Hartley
Chief Information OfficerMark Fine
[email protected] (x224)
Advertising Sales Account Manager / Northeast
201.887.5112
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Barry Kingwill & Jim [email protected]@sportsonesource.com
847.537.9196
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Katie O'[email protected]
828.244.3043
Circulation & [email protected]
Editor In ChiefJames Hartford
2151 Hawkins Street • Suite 200 • Charlotte • NC • 28203t. 704-987-3450 • f. 704-987-3455
www.SportsOneSource.com
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Weekly Updates: SGB, Footwear Business, Outdoor Business, Sportsman’s Business, TEAM Business
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4 SHOCK DOCTOR Adds Cutters Gloves To Its Product Portfolio 5 BATTLE SPORTS Science Acquires Prince Sports Assets 6 BILLABONG Downplays Financial Woes And Looks To Revitalize Its Business MOVERS & SHAKERS 7 FOOTLOCKER 100 Years On The New York Stock Exchange
SPOTLIGHT 8 Water Bottles
FEATURES 10 KEEN Unveils The Keen.Cnx Low Profile Footwear Collection For Spring 2013 14 COMEBACK TRAIL The Sporting Goods Industry Rebounds
DEPARTMENTS
22 Job Classifieds
NEWS
14
4 SGBWeekly.com | JULY 2, 2012
Shock Doctor, the leading mouthguard and sports protection product company, announced on June 26 that it bought Cutters Gloves, the maker of sports gloves.
The acquisition is a highly strategic move, as Cutters’ position as a leader in high-quality sports gloves aligns with Shock Doctor’s direction.
“Shock Doctor brings the most innovative and highest quality tech-nology and materials to the market across all of our product lines. Cutters shares these values and their C-TACK technology is superior to any grip technology on the market. Cutters is a perfect addition to the Shock Doctor product portfolio and serious athletes around the world recognize Cutters Gloves as the best,” said Tony Armand, CEO of Shock Doctor.
Shock Doctor, headquartered in Minneapolis, MN, features sports protection products ranging from mouthguards, core protective equipment and apparel to Performance Sports Therapy, designed to protect athletes in a variety of sports including football, hockey, baseball, lacrosse, MMA, fitness and more.
“We are very excited to own a brand that has had such strong stewardship from its founders, Jeff and Laura Beraznik,” added Armand. “We are fortunate that both will continue to be involved in the business going forward, as we plan to continue operating both
SHOCK DOCTOR ADDS CUTTERS GLOVES TO ITS PRODUCT PORTFOLIO
NEWS
companies as business as usual.” Based in Phoenix, AZ, Cutters develops, manufactures, distributes
and markets an industry-leading line of football gloves and accessories, in addition to other sports gloves for the baseball, fitness, golf and soccer markets. Cutters Gloves are made with an exclusive C-TACK Performance Grip Material, and are crafted for performance and durability. Cutters stands out from other glove companies, most of which use a silicon application on their gloves that results in an inferior grip that will peel off, wear out more quickly, and that does not self-restore.
“We could not have asked for a better partner to take the Cutters’ business to the next level than Tony and his team at Shock Doctor,” shared Jeff Beraznik of Cutters Gloves. “Their commitment to innovation and quality aligns with the vision we have always had for Cutters. Their reputation and position in the market, as well as their growing global distribution, will be a huge benefit to the brand going forward.”
Cutters was advised by McColl Partners on the transaction, and terms of the deal between Shock Doctor and Cutters were not announced.
Principals of Battle Sports Science and Waitt Company have joined together to form Active Brands Company and a wholly owned sub-sidiary, Prince Americas, in order to acquire the operating assets of Prince Sports. The acquisition includes the exclusive license to the Prince, Ektelon, and Viking brands from Prince Sports, Inc. through-out North America, Latin America and South America.
Bordentown, NJ-based Prince Sports, founded in 1970, is a lead-ing brand in tennis equipment and apparel, while Ektelon and Viking are premiere brands in the racquetball and paddle tennis categories, respectively. Prince is best known for its innovative designs, includ-ing the "oversized" racquet, the "longbody" racket and other racquet technology.
“This is a very significant event in the growth of our company, as the Prince, Ektelon, and Viking brands are prominent and highly regarded properties with tremendous potential for growth,” said Chris Circo, CEO of the Active Brands Company. “If not for the vision, drive and leader-ship of the Waitt Company, we would not have been able to capture such an extraordinary opportunity.”
Prince Americas will exclusively operate and manage the produc-tion and distribution of all products and services associated with
the Prince, Ektelon, and Viking brands within North America, Latin America and South America out of the existing Prince Sports facility in New Jersey.
“We are excited to grow our relationships with our retail and man-ufacturing partners as we look to deepen and expand the Prince, Ektelon and Viking Brands through delivering quality products, ac-cessories and service,” stated Circo.
Active Brands Company is focused on advancing branded innova-tive products for athletes and outdoor enthusiasts, while Waitt Com-pany is an Omaha-based diversified investment company dedicated to investing in private companies in partnership with established management teams.
Prince Sports,Inc. filed for bankruptcy earlier this year, citing as much as $100 million each in assets and debt. The company has blamed declining demand and increased competition in recent years for its financial woes, and was also dealt with a setback in 2011 when tennis star Maria Sharapova ended her 10-year sponsorship agreement with the company. Prince currently sponsors professional tennis players such as David Ferrer, Gael Monfils, Vera Zvonareva, the Bryan brothers, and others.
BATTLE SPORTS SCIENCE ACQUIRES PRINCE SPORTS ASSETS
6 SGBWeekly.com | JULY 2, 2012
Citing "challenging trading conditions" in Europe, Australia and Canada, Billabong International, Ltd. recently lowered its earnings forecast for the fiscal year ending June 30. In another sign of difficulties being faced by the Australian-based surf giant, the company initiated a debt sale based on a sharp discount on its stock and also announced the planned exit of its chairman.
During trading in Sydney on June 25, shares of Billabong International plummeted by nearly half after the company completed a key component of its entitlement offer to sell discounted shares to raise cash to pay down debt. Trading in BBG.AX shares had been halted for two days while the company put the offer process in place.
Billabong’s financial troubles have been reflected in its stock price. During the first half of 2010, Billabong shares were trading at nearly $12 on the Australian Stock Exchange. Last week, Billabong shares plunged to a record low of 96 cents. Just four months ago, Gordon Merchant, Billabong’s founder and largest stockholder, and fellow director and shareholder Colette Paul, rejected a takeover offer by private equity firm TPG Capital of A$3.30 a share for the company, believing that A$4 a share was a discount compared to what the company's shares were worth. Merchant has recently admitted that he regrets the decision, saying that he acted as a shareholder instead of director. Last week, Merchant stated that he would be receptive to another takeover bid. "I don't have any set figure in my head, but I would consider [a lower offer than A$4 a share]," said Merchant to the Australian newspaper Australian Financial Review.
Despite the financial turmoil, Billabong's new CEO, Launa Inman, expressed confidence on her first conference call with analysts, saying that the business can be revitalized. "Billabong itself remains a strong core brand, although we need to do more to nurture it to ensure it appeals to a new generation of youth and young adults in Australia and around the world,” stated Inman, who replaced long-time CEO Derek O'Neill on May 9. “Our other brands, such as RVCA, Element and DaKine, continue to provide growth opportunities and can become global brands in their own right. We are fortunate to have three brands that between them generate more than A$300 million in annual revenue. However, as you all know, retail is a tough market around the world at present."
In order to repay debt, Billabong plans to raise A$225 million (U.S. $229 million) through the sale of new stock at a discount. Billabong also renegotiated its banking covenants. Investors can buy six shares for every seven they already own at A$1.02 each, 44 percent less than closing price on June 20. Upon completion of the offer, Billabong's debt is expected to fall to around A$100 million at June 30 from A$325 million.
NEWS
MOVERS & SHAKERS
Timberland announced Timo Schmidt-Eisenhart as its vice president and general manager for Timberland Europe. He assumes responsibility June 25. Schmidt-Eisenhart previously worked at The North Face as its European sales director and then general manager. He also held several senior product and commercial roles at both regional and corporate levels for Nike.
Amer Sports named Vincent Wauters its SVP supply chain and IT as general manager for Arc'teryx, Inc. effective June 13. Antti Jääskeläinen, Amer Sports' chief development officer, will assume leadership for the group supply chain and IT in addition to his current responsibilities. In his new role, Wauters will develop Arc'teryx to be in line with Amer Sports' strategy to grow faster in Softgoods.
Under Armour brought out Tom Brady, Lindsey Vonn and Kemba Walker at a press event in New York City to launch its new UA Spine RPM footwear collection.
Heidi Downs has joined Interactive Fitness as senior director of sales with responsibility for the Central U.S. and Canada. She will also serve as Market Manager for the Worldwide Corporate Wellness Market.
Icebreaker has appointed Air New Zealand Chief Executive Officer Rob Fyfe as a board director effective July 1.
Mizuno USA, Inc. hired Josh Creasman as VP of supply chain. Creasman joins Mizuno USA from Oregon-based Yakima Products, Inc. He will oversee all supply chain duties including supply planning, distribution and transportation while maintaining a position as a member of the Mizuno USA Management Team.
NEWS BILLABONG DOWNPLAYS FINANCIAL WOES AND LOOKS TO REVITALIZE ITS BUSINESS
JULY 2, 2012 | SGBWeekly.com 7
Foot Locker, Inc. celebrated its 100-Year Anniversary as a publicly listed company on the New York Stock Exchange. The company, whose roots date back to the legendary retailer, F.W. Woolworth, commemorated its centennial listing on the Exchange by having its CEO, Ken Hicks, ring the closing bell on Tuesday, June 26. Foot Locker is the first retailer and one of only 22 companies to achieve this milestone since the founding of the New York Stock Exchange in 1817.
“While our company has changed dramatically over the past cen-tury, the core values that Mr. Woolworth instilled in the company and its employees, to treat our customers with respect, provide them with quality merchandise at a fair price, and always act with honesty and integrity, are alive and well at Foot Locker today,” said Hicks on the day of the event.
Frank Winfield Woolworth opened the original “five-and-dime” store in 1879. It was one of the first companies to allow customers to handle and select merchandise without a sales clerk. By 1912, there were nearly 600 Woolworth’s stores around the U.S. and Canada as
▲
To view Foot Locker, Inc. at the NYSE click on the play icon
FOOTLOCKER 100 YEARS ON THE NEW YORK STOCK EXCHANGE
the company underwent its IPO on the NYSE. Proceeds were used primarily to fund the construction of the historic Woolworth Build-ing in New York. In 1963, F.W. Woolworth Company purchased the Kinney Shoe Corporation, which ultimately branched into specialty shoe stores, including Foot Locker in 1974. In 1997, the com-pany’s name was briefly renamed Venator after it moved to close its department store business to focus primarily on athletic goods. In 2001, the company adopted the name of its global banner, Foot Locker.
Hicks added, “There is no doubt that Frank Woolworth, a retail visionary, would be proud that his business and his beliefs continue to thrive. Today, we have 38,000 employees working in 3,360 retail locations in 23 countries around the world. I am pleased to note that despite the macroeconomic challenges that we are all facing, our business is on a strong trajectory and we are positioned for continued growth. The credit goes to the talent of our team, the exciting brands and products we offer across our brand banners, and the multichannel experience we deliver.”
8 SGBWeekly.com | JULY 2, 2012
CAMELBAK EDDY AN INSTANT CLASSIC
Spill-proof, BPA-Free Eddy Bottle makes it easy to stay hydrated on the go. Redesigned cap and bite valve provide faster flow and enhanced durability. Flip, Bite and Sip. No tipping required (though possible - just remove the straw!). Wide-mouth opening is easy to fill with ice and water. Hydration Capacity - 25 oz (.75 L). Comes in 3 different sizes and 8 colors.
▲
CLEAN BOTTLE INTRODUCESTHE RUNNER
The Runner by Clean Bottle is the only holder on the market that lets you use your iPod, iPhone and smartphone while you’re on the run. It fits all of the devices without needing a separate carrier. The clear front pouch gives easy access to the display screen on your mobile device. The back pocket stores carry all’s like keys, cash and credit cards. And 10 percent of all profits are donated to eco-friendly charities you vote! Clean Bottle Charity.com
ECO SPORTS BOTTLE ARRIVES IN THE U.S.
Swiss-based Eco Bottle is bringing its Sportline collection to the U.S. Made with a BPA-free liner and 100 percent recyclable materials, the interchangeable top makes it an easy lifestyle accessory because it is completely customizable. The triple lock system tightly seals the bottle with a half-turn and includes a wide mouth design. The bottle body is produced in an extrusion process from a single piece of pure aluminum (99.5 percent) to create a seamless form.
VAPUR UPDATES ITS FLAGSHIP ANTI-BOTTLE
Vapur, the California firm that has an ardent following since its launch of the Anti-Bottle in 2009, has recently introduced two new collections that improve upon its flagship product line. The Vapur Reflex and the Runway.
Both feature a reinforced grommet and an updated clip design made from ultra-durable plastic. The BPA-free lining makes the Anti-Bottles taste-free and odor resistant, freezable and dishwasher-safe. And all Vapur Anti-Bottles are made in the U.S.A.
"We remain committed to helping people kick the bottled-water habit,” said Jason Carignan, chief design officer and co-founder of Vapur. “Our ultra-portable Anti-Bottles make it easy and convenient to carry your reusable water bottle instead. These improvements to our flagship line make our Anti-Bottles even more durable, versatile and fashionable for today’s conscious consumer."
SPOTLIGHT I WATER BOTTLES
SPOTLIGHT
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• Gel reduces shear within shoe.
• Lightweight design with Coolmax® cover maximizes breathability.
The Sole of Performance™
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10 SGBWeekly.com | JULY 2, 2012
KEEN INTRODUCES LIGHTWEIGHT FEET ENHANCERS
CNXBy Thomas J. Ryan
JULY 2, 2012 | SGBWeekly.com 11
eralding it as the biggest launch in its brief history, Keen unveiled the Keen.CNX, a comprehensive low profile, and
lightweight footwear collection to debut in Spring 2013. Believing it’s bringing fresh thinking to lightweight protection footwear in the same way its original Newport model sparked the movement around hybrid outdoor footwear, CNX will span across its waterfront, multi-sport and casual categories for men, women and kids with all product weighing less than 10 ounces.
“The idea of CNX is really low-profile protection, lightweight feet enhancing, and then a great fit,” said Jeff Dill, Keen’s business unit director, Trailhead Footwear, in an interview with SGB Weekly. “Pretty much anyone can build a low-profile shoe and anyone can build a lightweight shoe. The real trick is building something that can fit well and protect your foot to still be usable outdoors without being a real bummer.”
The idea came about a year ago when Kelly Wallrich, Keen’s VP of product, became captivated by the minimalist conversation taking place and challenged her team to eliminate as much mate-rial from Keen’s Newport H2 Sandal as possible while still retaining Keen’s “brand promise” around fit and protection.
The path follows Keen's founding roots that explore "crazy questions," such as those around providing toe-protection in a sandal that inspired the Newport that can lead to "crazy answers but also industry changing solutions." Described by Keen's internal team as "lightweight foot enhancers," the goal with CNX was to most efficiently provide performance and protection in a low profile, lightweight product.
The CNX features a low profile, proprietary PU (polyurethane) mid-sole with 4mm heel-to-toe offset to position the foot in a truer stance to the ground to encourage natural movement without sacrificing support or comfort. Dill said that one key difference is the use of polyurethane that works well for low-profile applications. Said Dill, "It has a lot of resiliency and a lot of protection that you can't get from softer foam."
He said other shoe companies tend to use an EVA midsole be-cause it's less expensive and generally easier to work with.
The outsole features multi-directional, deep flex groves spread across all directions "to flex and warp to meet the ground but it also has great surface contact and great traction."
From a fit standpoint, the upper employs reverse strobel
construction that involves stitching the uppers from the inside for an extra-smooth, streamlined connection to the foot. A metatarsal toe ridge in the footbed similar to what can be found in the Newport H2, along with a contoured arch, secured heel and underfoot structure provides "just the right amount of protection without overdoing it," he added.
Dill said this technically isn't Keen's first dabbling in minimalism, noting that Keen has been working with different low-profile PU mid-soles for years and drew raves for its 9 oz. A86 trail running shoe with its similar compression molded PU midsole and 3mm multi-
directional traction lugs that was introduced in 2010. But Dill said CNX is the "first time we felt we had a solution that was good enough to put out brand-wide across all categories."
The collection runs across 150 styles. In the Waterfront category, the Clearwater CNX contains a washable polyester webbing upper with the outsole featuring razor siping on the grooves for enhanced traction on slick surfaces. The Cascade CNX sport sandal features a non-stretch synthetic upper and smooth, seamless microfiber lining.
Clearwater CNX (women's)
Clearwater CNX (women's)
H
It also features a static lace system to provide a more secure fit.In Multi-Sport, the Tunari CNX for men and the Haven CNX for
women each benefit from the multi-directional flex grooves on the outsole that provides freedom of motion and high grip contact with the ground.
On the Casual side, the women’s athletic-inspired Mercer CNX collection comes in three silhouettes: Ballerina, Lace and Mary Jane. Each features a breathable mesh and suede upper with a streamlined interior. Casual offerings extend to a women’s leather Delancey CNX available in Mary Jane, Ballerina and Lace silhou-ettes. For men, the Bleecker CNX collection includes Lace and Slip-on styles. The collection also includes six colorful CNX options for kids with winter offerings embracing the technology in the works for the following season.
and will help expand Keen distribution across all our current channels."Hill added that CNX extends Keen’s product reach as the com-
pany finds its consumers being more active and versatile in the outdoors than ever before. Noted Hill “Since they are not always focused on a single activity they invite hybrid solutions to meet their needs. As an inclusive brand, we strive to create product that
The Spring 2013 launch will be backed by a comprehensive mar-keting push that Dill describes as “really a full-on branding effort” centered on CNX and encompassing print, social and other outreach. Said Dill, "CNX will be our primary message everywhere we touch the consumer. It's something we're very proud of."
Addressing the minimal and lightweight trend, Ron Hill, VP of mer-chandising at Keen, said the new collection provides a broad oppor-tunity to extend Keen’s reach to a new crop of customers.
"We are looking to provide our current consumers with a new low profile and lightweight option to add to their existing Keen collection," Hill told SGB Weekly. "We also believe the low profile look and light-weight comfort of Keen.CNX will connect with consumers that are not drawn to the traditional Keen silhouette. We anticipate Keen.CNX foot-wear will appeal to the new generation of outdoor consumer who ex-pect streamlined and light weight in all areas of their lives."
The line will reach across outdoor, sporting goods, family and better footwear channels. Said Hill, "This collection has been well received
meets the demands of the evolving outdoor experience. Keen.CNX with its lightweight support and a lower profile protection is one way we can provide accessible product to our fans for whatever their outdoor needs may be."
Dill concurred that despite its more minimal approach, the collec-tion doesn't shift away from Keen's mantra of being "inclusive," or a shoe anyone can use. Said Dill, "As a brand we do everything we can to be as inclusive as possible. So rather than sticking to some strict definition of minimal or low profile, the idea around connecting to the outdoors is much more in line with what we're trying to get to."
But Dill also stressed that CNX retains Keen’s “promise” and repu-tation for making footwear that fits and protects. Said Dill, "There are a lot of products coming out where their primary objective is to be minimal and that will never be a primary objective here. For us, it's to make sure it fits and it protects." ■
Tunari CNX (men's)
Bleeker CNX (men's)
Mercer Ballerina CNX (women's)
Mercer Ballerina CNX (women's)
Tunari CNX (men's)
JULY 2, 2012 | SGBWeekly.com 13
GAME TIME.GAME TEETH.
SH
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AKEEM AYERSlinebackerTennessee Titans
14 SGBWeekly.com | JULY 2, 2012
THE SPORTING GOODS INDUSTRY IS ON A REBOUND ACCORDING TO THE SGMA 2012 STATE OF THE INDUSTRY REPORT
COMEBACK TRAIL
By Thomas J. Ryan
JULY 2, 2012 | SGBWeekly.com 15
n 2011, U.S. wholesale sales of sporting goods equipment, sports ap-parel, licensed merchandise, athletic footwear, and fitness equipment were $77.3 billion, according to the Sporting Goods Manufacturers As-sociation’s (SGMA) State of the Industry Report for 2012. That was a 4.2
percent increase over 2010, when sales were $74.2 billion, and marked the second straight year of gains for the sporting goods and fitness industry.
THE ‘HOT’ CATEGORIES IN THE INDUSTRY THAT DROVE THE GROWTH ARE:
• Branded Active wear, up 9.6 percent to $13.1 billion; • Golf Clubs, up 8.9 percent to $1.23 billion; • Running Footwear, up 7.6 percent to $3.56 billion; • Elliptical Machines, up 7.1 percent to $786 million; • Outdoor/Adventure Footwear, up 6.1 percent to $603 million;• Classics/Originals Footwear, up 5.6 percent to $1.79 billion;• Performance Apparel/Tops, up 5.4 percent to $584 million.
In the report, SGMA surveyed 13 categories of consumer spending. Six of the categories revealed higher consumer spending in 2011 than in 2010. The top two categories that exhibited the highest percentage of ‘more con-sumer spending’ were Lessons, Instructions and Camps and Team Sports at School.
Of those consumers who spent money on Lessons, Instructions and Camps, nearly 25 percent said they spent more in 2011 than in 2010. As for Team Sports at School, a little more than 22 percent of those con-sumers said they spent more in 2011 than in 2010. The category which
had the least amount of change, where consumers kept their spending steady, was Tennis Membership Fees, where 71 percent of those who spent money on tennis mem-berships in 2010 actually spent the same amount of money in 2011.
“It’s not surprising that team sports had a big jump in spending because it means that parents are making the athletic needs of their children a high priority,” said SGMA President Tom Cove. “Team sports are the heart and soul of athletic competition in the U.S.”
Also on the positive side, in seven of the 13 categories, more than 20 percent of the consumers from those various categories expect to spend more this year than in 2011.
“The growth and/or emergence of sports such as gymnastics, rugby, lacrosse, and field hockey are helping to fuel this spend-ing,” noted Cove.
According to the report regarding partici-pation, 217 million Americans are considered ‘active’ - or take part in at least one sport or activity for those six and older. In 2011, the number of inactive Americans ages six and older increased to more than 68 million, and the inactivity rate rose to 24 percent. Among
I
16 SGBWeekly.com | JULY 2, 2012
the reasons listed for being inactive is age, illness, lack of interest, lack of access to facilities, or minimal ability.
In most states, the inactivity rate is around 19 percent. Inactivity tends to be higher in the southern U.S., while more active popula-tions are usually located in northern and western states.
Regarding policy initiatives, SGMA officials noted that since fis-cal year 2001, it has been successful every year in getting the Carol M. White Physical Education Program (PEP) passed which supports quality, daily physical education in schools. To date, nearly $800 million in PEP grants have been distributed across the country to schools and aftercare programs by the U.S. Department of Education.
SGMA also continues to support the PHIT (Personal Health Investment Today) Act. Right now, this legislation has the support of 20 members of the U.S. House of Representatives. If PHIT were passed, activity related expenses could be deducted or paid for using pre-tax medical dollars.
This year, the sporting goods industry has had some notable success working with the federal government’s Intellectual Property Rights Center, which has successfully shut down rogue websites trafficking in counterfeit goods.
The SGMA is pursuing any opportunity to lower the cost of importing and exporting products through targeted duty relief and Free Trade Agreements.
Following the sudden announcement recently by Congress to take up a Miscellaneous Tariff Bill later this year, SGMA lined up Congressional sponsors for bills to extend tariff relief on golf bags, volleyballs, and basketballs. SGMA also helped generate legislation to provide new duty relief for golf club heads. ■
OTHER KEY THEMES FOUND IN THE STUDY:Yoga, boot-camp style training, and class-based fitness classes are the main growth categories in the fitness industry;
In 2011, 18 to 24 year-olds were more inactive than 25 to 34 year-olds and 35 to 44 year-olds;
Utah and Idaho are the two states with the highest rates of physical activity per capita;
Baby Boomers - those persons born between 1945 and 1964 are more interested in fitness and outdoor sports than Generation X – those persons born between 1965 and 1979;
Those who are physically active are more likely to vote in a Presidential election than those who are not physically active.
JULY 2, 2012 | SGBWeekly.com 17
AN UPBEAT OUTLOOK FOR 2012 SALESAn SGMA survey of 91 sporting goods insiders (representing primarily manufacturers but some retailers) revealed that the industry has a positive outlook on the year ahead. Overall, 84 percent of those surveyed are expecting domestic sales to increase in 2012 over 2011. Only 2.4 percent saw a “decrease” with 14.1 percent predicting “no change.” The survey was included in the Sporting Goods Manufacturers Association’s (SGMA) State of the Industry Report (2012).
Turning to the overseas market, 61 percent expect international growth despite the current economic challenges in Europe.
Also on an encouraging note, 40.2 percent of the manufacturers surveyed indicated they would need ‘more manufacturing capacity’ this year, with just 6.9 percent indicating they needed to decrease capacity. Of the others, 29.9 percent indicated “current capacity meets needs” and 23.0 percent said “no change.”
On the downside, material cost/availability remained a major concern according to the survey. But SGMA’s research team found that there appears to be a slight shift away from “Will there be a market?” concerns and back to “How will I compete in the market?” Slower consumer confidence and lack of consumer confidence are still the second tier of manufacturer concerns but issues surrounding the ability to provide relevant product to the market in a competitive manner are moving up the list.
THE FIVE LEADING BUSINESS CONCERNS FOR THE SPORTING GOODS AND FITNESS INDUSTRY IN THE U.S. ARE:
1. Increasing market share2. Material cost/availability3. Slower consumer spending4. Product sourcing5. Lack of consumer confidence
Regarding sourcing, 15.9 percent of the manufacturers surveyed said they planned to manufacture more products in the U.S. this year and 18.2 percent said that they planned to manufacture more products overseas. The rest indicated “no change.”
Of the 91 overall companies surveyed, nearly 60 percent indicated they sell directly to the consumer. And, of those companies that did not sell direct to consumers, nearly 70 percent plan to start selling directly to consumers this year.
For 2011, more than half (56 percent) of respondents said profitability was “up” in 2011 over 2010 (28 percent “same”, 16 percent “down”). Asked by what percent profitability was up 2011, the mean response was 38 percent. For those indicating profitability was down, the mean decline was 4 percent. ■
Reebok International, Ltd.Mitchell & Ness / Headwear Sales Director
The Sports Licensed division of the adidas Group is seeking a Sales Director for Mitchell & Ness / Headwear. The Sales Director will manage the Mitchell & Ness National Sales Team. Primary responsibilities include coordinating the development of the brand’s distribution strategy, coordinating a product segmentation strategy with the product/merchandising team...
Scott SportsSales Manager Softgoods
Scott Sports was established in 1958 and is located in Sun Valley, ID. We are a leading manufacturer of premium bicycles, outdoor, running, wintersport and motorsport products. We seek a qualified individual for the full-time position of Sales Manager for Softgoods. Candidates must possess effective leadership skills and a proven track record. A resilient personality with the ability to inspire others. The Sales Manager for Softgoods will be based in Salt Lake City, UT...
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EverActive BrandsProduct Development Manager
Product Development Manager - EverActive Brands in Mendota Heights (St. Paul), MN. Is responsible for new product development efforts for EverActive Brands. Primary responsibilities include developing innovative and effective new products for Everlast Climbing, Everlast’s StartFIT product line, and Spectrum Aquatics, executing new product research/development processes and timelines to support aggressive growth goals...
Boathouse SportsOutside Sales Rep
Boathouse Sports is making additions to its sales force in Texas. Boathouse Sports Sales Representatives call on Private Schools, Colleges, High Schools and Club Team Sports representing Boathouse Sports proprietary custom made uniforms and outerwear product all “Made in the USA.” Candidates must have strong communication, presentation and organizational skills...
Cobra Puma GolfProduct Line Manager, Footwear, Cobra Puma Golf
The Product Line Manager for Cobra Puma Golf located in Carlsbad, CA is responsible for meeting seasonal objectives within the parameters of the Puma International time line and is responsible for initiating clear strategic vision, leading and managing future global growth of the Golf product category. Primary responsibilities include conducting overall industry analysis, market research, consumer research...
Henri LloydSales Manager / Lifestyle & MarinePerformance
The Sales Manager for Henri Lloyd, North America is the lead person responsible for sales of Casual Wear and Marine Performance Apparel products. The position leads all aspects of the sales effort including sales channels, personnel resources, sales programs and marketing. Primary responsibilities include achieving or exceeding planned revenue goals, taking a leading role in the overall management of the business…
PumaMerchandise Manager, Footwear
The Merchandising Manager of Footwear is responsible for achieving merchandising performance measures including productivity and financial-based targets consistent with the overall Brand strategy. Primary responsibilities include developing a comprehensive merchandising plan that addresses the needs of the North American market including but not limited to distribution, seasonality, gender, and price point…
Columbia SportswearMaster Data Management Supervisor
The Master Data Management Analyst effectively recruits, trains, evaluates, motivates, delegates and monitors daily activities. Establishes and executes a development plan for each direct report. Provides challenging tasks and assignments to assist direct reports to achieve quarterly and annual goals and is responsible for the qualification, data analysis, data entry, data accuracy and change control…
FOR INFORMATION CONTACT 704.987.3450 OR [email protected]
SmartwoolSmartWool E-Commerce Demand and Supply Planner
The SmartWool Demand and Supply Planner uses resources to create accurate demand signal at SKU/Month level; uses demand signal to provide strong forecasts/projections/ replenishment orders; proactively looks to improve demand and supply planning processes for increased efficiency and accuracy; and manages inventory visibility via online product admin and season database updates...
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THE
RISE OF
OUTDOOR
To exhibit or attend, go to outdoorretailer.com/SGB––– SUMMER MARKET –––
“The energy at this show was tremendous
and it rebooted everything for me as I head back to my store.
Talking with the manufacturers I work with, their business results
are up. Our sales are up. People are excited.”
– Shelley O’Neill, Tooth of Time Traders
SHOW • AUGUST 2-5, 2012Salt Palace Convention Center, Salt Lake City, UT
DEMO • AUGUST 1, 2012Jordanelle State Park, Heber City, UT
