SGI - April, 5th 2010

VOLUME 2, NUMBER 14
APRIL 5, 2010

INSIDE:
Industry Profits rebound in Q4
with apparel and retail leading
the turn.
Reebok execs see brighter future.
We talk to the brass there and at
parent Adidas.
Titleist wins appeal on patent case
with Callaway.
Nike signs LeBron James to a new
seven-year contract.
Backcountry.com promotes
key execs.
Judy Spies: Wenger, Montrail
Hibbett  General Growth
Properties  Golfsmith 
Shoe Carnival  U.S. consumer
confidence  Warwick Mall 
Callaway  Cerf  Ecco  New
Balance  Orange 21  Phoenix
Footwear  Puma  Total
Apparel Group

Ultra runner and Montrail-
sponsored athlete Max King is
shown here powering his way to
a second place finish in the Way
Too Cool 50K endurance race that
was held last month in Cool, CA.
King’s resume also includes back-
to-back titles in the 2008 and 2009
XTERRA Trail Run Championships,
and he was first across the finish
line in the 2009 USATF Trail
Marathon Championship. (For
details on Montrail’s Fall 2010
trail running shoes, visit the new
product department.)
Photo courtesy of Montrail.

INDUSTRY NEWS AND ANALYSIS FOR RETAILERS
From the Editorial Team of Sporting Goods Intelligence

John Horan CHARTING NEW TERRITORY
Publisher
jhoran@sginews.com In an effort to stand out
610-459-4040 in a crowded market-
Judy Leand place and to offer con-
Editor sumers broader brand
jleand@sginews.com
perspectives, many compa-
718-858-2354
nies are rethinking their approaches to prod-
Bob McGee
Managing Editor
uct development and marketing.
bmcgee@sginews.com
508-279-3060 For example, on the product side, Wenger is
returning to its roots in the active outdoor
Robert Z. Feiner market by expanding its assortment of multi-
Advertising Director functional products, slightly modifying its
rfeiner@sginews.com logo, and aligning itself with marquee events
212-879-9200
and world-renowned Brand Ambassadors.
Jon Bogert
Meanwhile, over at Montrail, the mission is to
Associate Publisher further insinuate the brand into the core trail
jbogert@sginews.com running category by providing performance-
610-459-4040 driven footwear and by using top athletes as
Rob Maturo both product consultants and marketing vehi-
Circulation
rmaturo@sginews.com
cles. For further details, stop by the new prod-
610-459-4040 uct department.

In the marketing realm, Maverik Lacrosse
SGI Weekly Intelligence
is published by Sporting has enlisted the aid of NFL Films cinematog-
Goods Intelligence, Inc. raphers to create a new video/TV campaign
442 Featherbed Lane, Glen called “BE READY.” The detailed, super slow-
Mills, PA 19342.
motion spots feature top players in action,
©2010 Sporting Goods and showcase the sport in a new way. Check
Intelligence, Inc. all rights
reserved. it out the first of these new ads in the e-vent
department.
Click Here to
Request a Subscription As you’ve come to expect, this week’s issue
also includes the latest news and events from
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clicking!

Judy Leand
Editor

PAGE 2 APRIL 5, 2010

INDUSTRY PROFITS REBOUND SHARPLY
ON FLAT SALES IN Q4
After flushing last year’s impairment charges, restruc-
turing costs, inventory liquidations and bloated expenses,
sporting goods companies turned in a decent bottom line
performance for the final quarter of 2009. The $924.2 mil-
lion in aggregate profits compared to an aggregate loss in
the year-ago quarter but are below the Q4 2006 record of
$1,085.6 million in 2006. However, there was little help from
the topline as sales improved a modest 2%. Return on Sales
was a modest 3.76% this year compared to a loss of 0.58%
last year.

Our quarterly survey of sales and profits included the
results of 60 public companies for the quarter ended near-
est to Dec. 31. Profits are tabulated on the basis of GAAP net
income except for the section on Diversified where we use
GAAP operating profits before corporate, interest and tax ex-
penses.

Lowered SG&A and improved gross margins as a result
of leaner inventories across the board were the major factors
in improving the operating performance of Q4 over last year.
Most companies headed into Q4 trying to backpedal on their
2008 optimism that put aggressive growth plans in place for
2009. In addition, there were some massive writedowns of in-
tangibles and assets acquired during the cheap debt era from
2006-2008. With 2009 being the year when everyone tried to
build up cash and pay down debt, this was no longer an issue
by the end of the year.

APRIL 5, 2010 PAGE 3

APPAREL: This sector had one of the more dramatic
turnarounds, though it was primarily due to Quiksilver’s mis-
adventure into the equipment sector with Rossignol. ROS
improved to 3.13% from a loss of 7.35% last year. Excluding
the $194 million loss from Quiksilver, the sector would have
basically broken even last year. A near breakeven perfor-
mance at Broder also helped the sector after a $54 million
loss last year. Positive profit gains at Gildan and Under Ar-
mour were also pluses for apparel.

DIVERSIFIED: ROS based on operating profits improved
to 9.65% from7.91% for the nine divisions of diversified com-
panies covered. Operating income improved 29% on a 6%
revenue gain. The category driver was VF’s Outdoor Coali-
tion, which had a 45% gain in operating profit and accounted
for 58% of the sector’s aggregated profits. Famous Foot-
wear also had a swing from a loss to a profit, offset some-
what by a larger loss in Fortune Brands’ golf business.

FOOTWEAR: The 11 sneaker companies eked out a 1%
revenue gain for the period and a 12% profit improvement,
which brought ROS to 5.12% from 4.64%. Despite down
profit performances by both Nike and Adidas Group in the
sector, there were two notable gainers that offset the decline
of the big boys. Crocs lowered its loss considerably and Ske-
chers rebounded from a significant loss last year to a solid
profit this year as it jumped on the toning trend early. Deck-
ers also had a strong performance in a seasonally important
quarter for its Uggs brand.

EQUIPMENT: The 14 equipment companies compiled a
Q4 that was less awful than the prior year as the aggregate


loss decreased 36% on a 5% sales shortfall. ROS was –4.10
this year compared to –6.10 last year. The biggest factor in
this year’s red ink was Brunswick’s massive $124 million
loss, almost double the loss it had last year. Excluding BC,
the ROS would have been 1.52% this year against a loss of
–5.00% last year. Positives in the sector were Amer Sports,
whose profit nearly doubled, and swings from large losses
to profits at Freedom Group and Nautilus. Weak demand
continues to plague the sector, especially in high ticket items
from golf, fitness and winter sports.

RETAIL: The 17 retailers surveyed swung from a huge
loss spurred by restructuring and writedown charges back to
modest profits in its seasonally biggest quarter. Big swings at
the two biggest retailers, Dick’s and Foot Locker, accounted
for most of the improvement. Collective Brands also low-
ered its loss though it remained in the red. Only two retailers
did worse than last year: Turnaround hopeful Pacific Sun-
wear and Cabela’s.

The scorecard table follows on page 8.


Sporting Goods Intelligence Industry Scorecard
Fourth Quarter 2009
Quarter SALES(000s) % EARNINGS(000s) %
Ended Q4 '09 Q4 '08 Change Q4 '09 Q4 '08 Change
APPAREL
Broder Bros. 12/26 $ 182,800 $ 219,500 -17% $ (2,900) $ (54,000) 95%
Columbia Sportswear 12/31 $ 358,316 $ 354,910 1% $ 23,086 $ 18,557 24%
Delta Apparel 12/26 $ 91,160 $ 73,361 24% $ 979 $ 595 65%
Gildan Activewear 12/31 $ 220,400 $ 184,000 20% $ 28,000 $ 4,400 536%
Hanesbrands, Inc. 1/2 $ 988,739 $ 1,035,117 -4% $ (1,082) $ 17,881 -106%
Iconix Brand Group 12/31 $ 65,782 $ 54,259 21% $ 20,822 $ 15,333 36%
Quiksilver 1/31 $ 432,737 $ 443,278 -2% $ (5,354) $ (194,426) 97%
Under Armour 12/31 $ 222,217 $ 179,279 24% $ 15,202 $ 8,321 83%
Volcom 12/31 $ 63,495 $ 69,082 -8% $ 3,397 $ (8,749) 139%
SUBTOTAL $ 2,625,646 $ 2,612,786 0% $ 82,150 $ (192,088) 143%
DIVERSIFIED
Brown Shoe-FAMOUS FW 1/30 $ 342,700 $ 312,300 10% $ 13,900 $ (11,900) 217%
Dorel-PACIFIC CYCLE 12/30 $ 175,670 $ 157,894 11% $ 8,989 $ 3,172 183%
Fortune Brands' GOLF 12/31 $ 226,900 $ 212,200 7% $ (37,300) $ (18,300) -104%
Genesco-JOURNEYS 1/30 $ 225,356 $ 229,541 -2% $ 24,029 $ 24,464 -2%
Genesco-HAT WORLD 1/30 $ 152,403 $ 122,409 25% $ 19,979 $ 14,770 35%
Jarden-OUTDOOR 12/31 $ 517,000 $ 494,000 5% $ 50,200 $ 57,300 -12%
VFC OUTDOOR/ACTION 12/31 $ 730,883 $ 675,745 8% $ 147,018 $ 101,420 45%
VF Corp. IMAGEWEAR 12/31 $ 222,269 $ 242,688 -8% $ 26,013 $ 27,097 -4%
Warnaco SWIMWEAR 1/2 $ 50,780 $ 46,163 10% $ 2,261 $ (767) 395%
SUBTOTAL $ 2,643,961 $ 2,492,940 6% $ 255,089 $ 197,256 29%
FOOTWEAR
Adidas Group 12/31 $ 3,631,000 $ 3,387,000 7% $ 29,542 $ 71,053 -58%
Crocs 12/31 $ 136,011 $ 126,092 8% $ (11,448) $ (34,701) 67%
Deckers 12/31 $ 347,909 $ 303,506 15% $ 68,048 $ 40,340 69%
Heelys 12/31 $ 15,598 $ 11,375 37% $ (5,238) $ (1,123) -366%
K-Swiss 12/31 $ 42,020 $ 53,490 -21% $ (12,488) $ (13,714) 9%
Nike 11/30 $ 4,405,600 $ 4,590,100 -4% $ 375,400 $ 391,000 -4%
Puma 12/31 $ 723,043 $ 738,553 -2% $ 23,929 $ 10,658 125%
Rocky Shoes & Boots 12/31 $ 61,660 $ 66,045 -7% $ 910 $ (2,241) 141%
Skechers 12/31 $ 388,620 $ 298,088 30% $ 27,946 $ (20,378) 237%
Timberland 12/31 $ 387,760 $ 390,626 -1% $ 22,254 $ 13,138 69%
Wolverine World Wide 1/2 $ 312,530 $ 346,116 -10% $ 16,738 $ 24,117 -31%
SUBTOTAL $ 10,451,751 $ 10,310,991 1% $ 535,593 $ 478,149 12%
EQUIPMENT
Aldila 12/31 $ 14,726 $ 11,535 28% $ 1,003 $ (1,344) 175%
Adams Golf 12/31 $ 12,024 $ 12,490 -4% $ (6,717) $ (296) -2169%
Amer Sports 12/31 $ 713,146 $ 651,711 9% $ 54,062 $ 23,289 132%
Brunswick Corp. 12/31 $ 657,300 $ 837,700 -22% $ (124,000) $ (66,300) -87%
Callaway 12/31 $ 185,852 $ 171,272 9% $ (15,555) $ (3,154) -393%
Cybex Intl. 12/31 $ 34,811 $ 39,260 -11% $ 993 $ (10,874) 109%
Easton-Bell Sports 1/2 $ 163,700 $ 169,200 -3% $ (15,300) $ (10,800) -42%
Head Sports 12/31 $ 165,950 $ 151,355 10% $ (3,064) $ (1,629) -88%
Johnson Outdoors 1/1 $ 70,460 $ 69,756 1% $ (4,236) $ (6,900) 39%
The Nautilus Group 12/31 $ 53,672 $ 63,903 -16% $ 5,711 $ (41,234) 114%
Freedom Group Inc. 12/31 $ 185,700 $ 201,600 -8% $ 6,300 $ (37,300) 117%
Smith & Wesson 1/31 $ 89,379 $ 83,712 7% $ 2,380 $ 2,355 1%
Sport Supply Group 12/31 $ 55,529 $ 53,175 4% $ 922 $ 1,052 -12%
SUBTOTAL $ 2,402,249 $ 2,516,669 -5% $ (97,501) $ (153,135) 36%
RETAIL
Big 5 1/3 $ 237,629 $ 219,609 8% $ 6,386 $ 3,602 77%
Cabela's 1/2 $ 919,168 $ 879,430 5% $ 16,600 $ 49,447 -66%
Citi Trends 1/30 $ 169,811 $ 146,603 16% $ 11,251 $ 10,056 12%
Collective Brands 1/30 $ 741,700 $ 735,200 1% $ (10,900) $ (144,000) 92%
Dick's Sporting Goods 1/30 $ 1,336,590 $ 1,207,531 11% $ 67,360 $ (105,593) 164%
Finish Line 11/28 $ 240,056 $ 240,571 0% $ 6,593 $ (8,843) 175%
Foot Locker, Inc. 1/30 $ 1,325,000 $ 1,317,000 1% $ 23,000 $ (125,000) 118%
GSI Commerce 1/2 $ 430,248 $ 391,380 10% $ 23,601 $ 23,069 2%
Golfsmith 1/2 $ 63,850 $ 67,840 -6% $ (6,300) $ (6,487) 3%
Hibbett Sports 1/30 $ 166,819 $ 147,926 13% $ 11,752 $ 7,633 54%
lululemon athletica 1/31 $ 160,606 $ 103,921 55% $ 28,451 $ 10,938 160%
Pacific Sunwear 1/30 $ 292,562 $ 351,681 -17% $ (36,499) $ (27,042) -35%
Shoe Carnival 1/30 $ 170,790 $ 156,910 9% $ 2,554 $ (3,049) 184%
Sport Chalet 12/27 $ 95,258 $ 104,562 -9% $ (3,800) $ (32,376) 88%
Zumiez 1/30 $ 132,433 $ 125,464 6% $ 8,801 $ 6,297 40%
SUBTOTAL $ 6,482,520 $ 6,195,628 5% $ 148,850 $ (341,348) 144%
TOTAL $ 24,606,127 $ 24,129,014 2% $ 924,181 $ (11,166) 8377%


REEBOK MUCH SMARTER, BETTER
LOOKING THAN TWO YEARS AGO
With the big success of the EZ Tone and a promising
launch of Zig technology, the top brass at Reebok and its
parent are planning their next moves with a confidence that
Canton hasn’t experienced in years. They feel they have
finally cleaned up the marketplace of promotional products,
launched two concepts that can be extended on several lev-
els from a product standpoint as well as internationally and
promise a disciplined approach to the rollout.

The discipline part, of course, has not always been con-
sidered a strength for this brand. It has a history of getting
a pretty good idea like the Pump and slapping it on every
conceivable product immediately. The predictable result has
been a short-term sales spike instead of a focus on building
a long-term franchise position that gives the brand a clear
identity in the minds of its consumers. That is what the new
management says it is determined to change.

The toning category right now is basically seen as
a walking shoe with a twist. Instead of a dumbed-down
running shoe, it is actually something with a real technology
behind it. The idea of stressing muscles for walking is going
to be expanded to other categories such as indoor training
and running. A basketball product is also in the works. Ex-
Numero Uno stresses that these are not designed for compe-
tition necessarily but to help an athlete get more out of his/
her training. While sales are primarily to women now, the
new Run Tone at Finish Line is for both genders with sales
running 85/15 female, but long-term X-NU believes it can


make that ratio closer to 60/40 or 55/45. It also promises
a clear segmentation strategy by distribution channel. The
toning product for mid-tier department stores, for example,
won’t have the Air Transfer technology that’s sold in mall
specialty and sporting goods stores. There is also an apparel
launch for toning in 2010 with the product already set and
the go-to-market piece in fine-tuning.

Perhaps most interesting about toning is the po-
tential X-NU believes exists outside the U.S. Early in-
dications have been strong in all the key markets like Ger-
many, the U.K., Russia, South Korea and Japan. The Reebok
EZ Tone in Germany will get massive advertising support,
the biggest campaign in Germany by any sneaker brand ever
for a single concept, with the exception of the World Cup,
X-N.U. says. That kind of investment strongly suggests that
the brand has confidence it has resolved its supply chain is-
sues with the category. It has already said it will sell over 5
million pairs of EZ Tone in the U.S. this year, and says it will
deliver 90% on time.

As for Zig, Reebok believes it has a concept that
will sell well in sporting goods channels because it
promotes more muscle efficiency during training but
will also sell in mall specialty channels because of the
striking cosmetics of the technology. It is now posi-
tioned as a running/training product but will evolve into oth-
er categories like basketball soon. Again, X-N.U. doesn’t see
the technology necessarily going into competition product,
but maintains that even an elite athlete will use the prod-
uct because it allows longer training regimens by minimizing
stress. The idea suggests that the bigger concept being cre-


ated here is separating training footwear from competition
footwear more clearly with the objective of getting an ath-
lete to look at the workout as a separate activity requiring
specific footwear. This was also the message behind Under
Armour’s running shoe launch. Zig apparel is expected to hit
the market in Spring 2011. Like the EZ Tone apparel, Reebok
promises some functional details specific to Zig in the line
and, of course, a strong visual tie to the footwear.

As for the Adidas brand here, where executives have not
looked as handsome nor sounded as clever as the ones at
Reebok, the Big a reiterates that it will grow both in the U.S.
and internationally in 2010. Some of the growth in 2010 will
come from its traditional weakness in the mall chains, with
the Originals wall in Foot Locker and the new NBA program
in Champs. The majority is more likely to come in the sport-
ing goods channel, where it is focusing on lightweight run-
ning and, of course, football tied to the World Cup.

Adidas believes the World Cup results will exceed its re-
cord haul in 2006, despite the fact that it had a huge boost
in 2006 from having the event in its home market when it
sold 1.5 million of the German team kit alone. This year, it
expects to sell between 500,000 and 1,000,000 for the Ger-
man team, depending on the team’s performance, but points
out that it has 12 teams in the event this year compared to
only six in 2006. Some of its biggest boosts are coming from
Mexico and sales from Spain are also expected to be very
strong. A big driver in the category has been the advent of
public viewings of the games, which has brought a more
diverse audience than just hard-core fans out to enjoy the
party atmosphere.


TITLEIST SCORES VICTORY IN PRO V1
PATENT BATTLE WITH CALLAWAY
Acushnet Co. successfully argued against Callaway Golf’s
claims of infringement that technology in its Titleist Pro V1
family of golf balls was developed from 84 Acushnet patents
and was first introduced to its PGA Tour players in Oct. 2000,
well before Spalding golf ball patents were issued in 2001
and 2003. In Jan. 2006, before Callaway filed its litigation,
Acushnet asked the U.S. Patent and Trademark Office to
re-examine the four patents that would come into question
in the lawsuit. During the process, according to Acushnet,
seven separate PTO examiners each concluded they were
invalid.

In late Nov. 2008, Acushnet had asked a federal appeals
court to overturn the decision of a Delaware federal district
court that ordered it to stop selling its popular ProV1 golf
ball immediately following a jury finding that several patents
by a Spalding inventor were valid. The patents in question
allowed the ball to combine the distance of a hard cover with
the feel of a soft cover.

In commenting on the jury verdict in the U.S. District
Court in Delaware, Acushnet said it hoped the decision “fi-
nally brings this long standing dispute to a close.”


NIKE SIGNS LEBRON TO NEW
ENDORSMENT DEAL
The package extends the original seven-year, $90 mil-
lion deal that the Cavaliers star signed when he exited high
school in 2003. Speculation is that the new deal, also for
seven years, includes only a modest raise to about $100
million as sales of LeBron product still fall well below those
of Brand Jordan despite his superstar year on the court.
Moreover, at this point in the basketball market, there are
no other brands that could even entertain the idea of paying
that kind of money to a player so connected to Nike.

Among the more interesting bits in the media about the
deal is the news that the contract does not include any bo-
nus for James if he moves to a big market team, such as the
Knicks. James becomes a free agent after this season. His
original deal reportedly had a bonus clause if he moved to a
big market team.


BACKCOUNTRY.COM PROMOTES
KEY EXECS
Jill Layfield moves up to COO from VP of product devel-
opment. Elsewhere, CMO Dustin Robertson adds corporate
development; CFO Scott Klossner moves to CFO/SVP of sup-
ply chain operations and Sam Bruni, adds GM of business
unit operations.

Its sales in 2009 were estimated at about $300
million, making it by far the largest Internet-only
business in the specialty market. Backcountry.com was
ranked 92nd in 2003 on Inc. Magazine’s list of fastest grow-
ing companies when it had a 306% growth rate from 2000
to 2003. Besides the Backcountry.com site, it operates a
number of niche sites aimed at mountain biking, surf/skate
and other action sports.


WENGER RE-COMMITS TO
JUDY SPIES...
OUTDOOR ROOTS WITH
NEW PRODUCTS, MARKETING
The 116-year-old brand, best known as the “Maker
of the Genuine Swiss Army Knife,” is returning to its
original brand position as a provider of multi-functional
equipment in the active outdoor market. According to
Wenger, the strategy “is more of an affirmation of our
brand positioning rather than a change of our position.”

To embark on its new mission, Wenger has slight-
ly modified its logo and is using a “Seal
of Authenticity” and a “Corner Knife”
as brand assets that link back to the
brand’s iconic Swiss Army knife. On
the product side, the brand has ex-

The Mike Horn Knife (SRP $135) includes an The Swiss-made Nomad LED Compass
eco-friendly handle, two one-handed opening Watch (SRP $375) includes a PVD-engraved
blades, needle-nose pliers, metal saw and file, bezel, surgical steel case, integrated
can opener, and reamer. A hex-bit receptacle LED and traditional analog displays and
in the flat portion of the handle includes three luminous numerals. It is also water-
screwdriver bits. resistant to 330 feet.


tended beyond pocket knives and watches with
the addition of footwear, camping equipment and
travel gear, all of which fit into the new brand
ethos of multi-functionality.

In the marketing arena, the company contin-
ues its title sponsorship of the Wenger Pa-
tagonian Expedition Race (the 2010 event
recently concluded in February), and has
aligned itself with world-renowned Brand
Ambassadors. Global adventurer Mike
Horn, the Alinghi sailing team, and pro-
fessional mountaineer Ueili Steck are
all on Wenger’s roster.

The Wenger Patagonian Expedition
Race, which bears the tagline, “The
adventure at the end of the world,”
is touted as the world’s tough- The RangerGrip 179 Wenger Patagonian
Expedition Race knife (SRP $72.95) boasts
est race. The eighth edition of the seven implements that perform 11 different
event, which concluded in February, functions. The EvoGrip S18 model (SRP $69.95)
includes a locking 2.5-inch blade. Both offer
boasted more than 600km of trek- Wenger’s proprietary EvoGrip handle with
king, kayaking, climbing and cycling rubber inlays that enhance handling and
through the Tierra del Fuego re- performance, even in wet conditions.

gion of Chilean Patagonia. Besides
providing physical and mental chal-
lenges, the race also helped spread
a message of preservation in the
region. All of this creates an ideal
backdrop for Wenger to highlight its
brand authenticity. Toward this end,
the company recently launched the


Wenger Patagonian Expedition Race line of products. The
JUDY SPIES...
collection includes three Swiss Army knives, a Swiss-
made watch, footwear, technical packs, tents and sleep-
ing bags. The products are designed to appeal to out-
door extremists as well as enthusiasts.

Similarly, Wenger is using its Brand Ambassadors to
spread the corporate message and to help develop prod-
uct. For example, the company has partnered with ex-
plorer Mike Horn as he continues his four-year Pangaea
Expedition that launched in 2008. The journey is intend-
ed to increase awareness of man’s effect on the environ-
ment and to actively participate in conservation efforts.

Click here for a peek at the Wenger Patagonian
Expedition Race:


MONTRAIL’S FALL 2010 FOOTWEAR
ON WINNING PATH
In an effort to strengthen both its brand message and
product, Montrail signed four elite trail and ultra runners to
its 2010 roster, including national trail champion Max King
(pictured on the cover of this issue). The other three ath-
letes are Dakota Jones, Jill Perry and Mandy Hosford. Team
Montrail, which now boasts 21 members, is already playing
a critical role in the
growth of the Mon-
trail brand and the
development of the
company’s expanding
line of trail footwear.

On the product
side, Montrail is now
launching two key trail
shoes for Fall 2010:
The Sabino Trail GTX is a performance running shoe designed
the Mountain Mas- to offer stability and protection on rugged terrain.
ochist Mid GTX (SRP
$135), and Sabino
Trail GTX (SRP $120).
The Mountain Mas-
ochist Mid GTX (also
available in a low-cut
version), features a
Gore-Tex waterproof/
breathable lining, a
webbing and strap clo-


sure system for improved fit and comfort, midfoot lateral
JUDY SPIES...
and medial dual-density trail stability posts, and breathable
hydrophobic mesh uppers. A mid-height Neoprene col-
lar provides articulated support. The Sabino Trail GTX has
a lightweight synthetic leather and
nylon mesh upper, thermoplastic
midfoot shank and forefoot Trail
Shield for torsional rigidity and
underfoot protection, and a
Gore-Tex waterproof/breath-
able lining. Both models
are available in
gender-spe-
cific sizes.
The Mountain Masochist
Mid GTX offers protection
from the elements in a
lighter, less bulky package
than traditional mid-
height models.


E-VENTS
MAVERIK ‘READY’ WITH NEW TV ADS
Long Island City, NY-based Maverik Lacrosse and its
creative video production arm, Maverik Films, recently re-
leased the first in a series of super slow-motion video/tele-
vision commercials in a campaign titled “BE READY.” The
first spot, which features Major League Lacrosse star Paul
Rabil demonstrating one of his 111 mph shots, is airing
during ESPNU’s coverage of the 2010 NCAA men’s lacrosse
season now in progress.

Jay Jalbert, co-founder of Maverik Lacrosse and direc-
tor/producer of Maverik Films, worked with NFL Films cin-
ematographers to capture, in slow-motion detail, the pas-
sion that Maverik’s “Soldiers” bring to lacrosse. According
to Jalbert, the goal was to use state-of-the-art slow-motion
camera equipment to showcase lacrosse in a way not seen
before. The spots are unique in their use of Phantom HD
camera technology that films at a rate of 1,000 frames per
second, allowing for crisp, slow-motion detail.

Click here to see the first commercial in Maverik
Lacrosse’s new “BE READY” campaign.


RETAIL BRIEFS
HIBBETT SPORTS 10-K NOTES:

• Has increased store base by 11% to 767 doors over the
last two FYs.

• Approximately 75% of store base is in a strip center.

• Has identified 350-375 potential markets for future
stores in existing markets where it operates.

• Believes current distribution center can support over
1,200 stores.

• Nike represented 49.9% of purchases vs. 51.4% in the
prior FY. Second largest vendor represented 9.0% in
FY10 vs. 8.4% the year before.

• Will increase store base by 2% in FY11 vs. 3% and 8%,
respectively, in FY10 and FY09.

• Four Southeast States (AL, GA, LA and MS) account for
34% of door base. Florida and Texas combined account
for another 15% of door base.

• Gross advertising expense declined 9% in FY10 to
$5,572,000 from $6,145,000, but net advertising costs
(including reimbursements from vendors) rose 7% to
$3,304,000 from $3,091,000.

• Began accepting consignment inventories in FY10, end-
ing the fiscal year with $300,000 worth in its stores.


ABERCROMBIE & FITCH, EBAY, JC PENNEY, NIKE
and SEARS are among 23 defendants named in a Mar. 29
federal suit in Tyler, TX, by Parallel Networks LLC. The
complaint contends the defendants are infringing on a patent
for “Method and Apparatus for Client-Serve Communications
Using a Limited Capability Client Over a Low Speed Commu-
nication Network.”

GENERAL GROWTH PROPERTIES, the mall operator,
has a $6.55 billion equity capital investment from Brookfield
Asset Management, Pershing Square Capital and Fairholme
Capital to help it emerge from Chap. 11. The investment
combined with a $1.5 billion debt issuance will enable the
company emerge where it will form a new entity, General
Growth Opportunities, to oversee its real estate portfolio.

GOLFSMITH reports that Tiger Woods’ off-course issues
over the last six months have not negatively impacted sales
of his Nike-branded golf products in its 74 stores. In report-
ing “no noticeable or precipitous drops in unit sales” over the
past several months, GOLF said its unit sales of Tiger-Woods
branded golf products rose 8% for the 24 weeks ended
March 13 year-over-year to 9,564 units. TW hats were the
hottest product category during the period, rising 24% y-o-
y. Woods’ scheduled return to play next week for The Mas-
ters coincides with his next introduction of products, also
slated for this month.

SHOE CARNIVAL and Acacia Research Corp. reach a
settlement on a patent that applies to credit card fraud pro-
tection technology at the retail chain, resolving federal litiga-
tion pending in Georgia.


U.S. CONSUMER CONFIDENCE INDEX is 52.5 in
March, up from 46.4 in Feb. , as compiled by The Confer-
ence Board from a representative survey of 5,000 house-
holds. Nonetheless, there remains U.S. consumer concern
about current business and labor market conditions, the
Conference Board reported. “And their outlook for the next
six months is still rather pessimistic. Overall, consumer
confidence levels have not changed significantly since last
Spring.” In the March survey, those U.S. consumers claiming
conditions are “bad” decreased to 42.8% from 45.1%, while
those stating business conditions are “good” rose to 8.6%
from 6.8%. Meanwhile, those saying jobs are “hard to get”
fell to 45.8% from 47.3% in Feb.

WARWICK MALL, near Providence, RI, was under wa-
ter due to torrential rains, forcing it to shutter for the first
time in its 40-year history. The mall’s parking lot was turned
into a lake with water up to door level, forcing the closure of
70 odd retailers, including a Sports Authority store


ON THE MOVE
• Big 5 Sporting Goods opens a store in Tehachapi, CA,
some 35 miles east-southeast of Bakersfield.

• Dick’s SG is slated to open in a former Macy’s at the River
Valley Mall in Lancaster, OH, that already houses a
Dunham’s.

• Foot Locker CEO Ken Hicks signed a letter on March 23 to
irrevocably waive his entitlement to the cash annual bonus
for the company’s FY09 year as stated in his employment
contract of June 25, 2009.

• Sport Chalet recently signed up the millionth member to
its Action Pass reward program, awarding the customer,
Gonzalo Talavera of Saugus, CA, a $1,000 Sport Chalet
gift card.

• Global Footwear Market is projected to hit $232.1 billion
in value in 2013, representing 18.1% growth since 2008,
according to a new report from Research and Markets of
Dublin, Ireland.


COMPANIES
CALLAWAY will provide a full set of the Diablo Edge
clubs to any MLBer who hits a home run that travels at least
470 feet. There were 10 such home runs in 2009, according
to hittrackeronline.com, which collects data on every long
ball. There were also 27 homers last season that traveled
between 460 and 469 feet.

CERF PRODUCTS names outdoor industry veteran Erik
Specht, most recently the president of Mountainsmith, as
president of the former Cerf Brothers Bag Co. that was ac-
quired by Ameribag Inc. in Jan. In his new post, Specht
will oversee the HideAway, CampInn and licensed Browning
brands and product lines, directing sales, marketing, product
and budget strategies. Following his appointment, Specht
sets his executive team at Cerf. It will include Ron Hyde as
VP of sales, Lonnie Drosihn as VP of product development
and George Grabner as Emeritus advisor. Grabner, who most
recently served as Cerf’s interim CEO, was previously presi-
dent and CEP of American Recreation Products.

ECCO shoes and accessories sales declined 6% in
FY09 to DKK 4,846,352,000 ($876.8 mm) from DKK
5,129,113,000. Sales in ECCO Americas were off 9% to DKK
928,681,000 ($168.0 mm). The Danish company invested
DKK 129 million ($23.3 mm) in sales, marketing and new
store costs. ECCO ended FY09 with 901 doors and 1,278
shop-in-shops.

NEW BALANCE inks a multi-year endorsement con-
tract with Red Sox Dustin Pedroia, who will wear a special


make-up of the New Balance 1101 baseball spike, including
a version in his signature camouflage colors. Besides being
Pedroia’s official footwear and off-field apparel provider, New
Balance will team with him to support their sponsorship of
the Run to Home Base 9K to benefit “The Red Sox Founda-
tion and Massachusetts General Hospital Home Base Pro-
gram.”

ORANGE 21 had a net loss was $3,407,000 against a
loss of $15,212,000 for the 12 months ended Dec. 31. An-
nual sales declined 28% to $34,238,000 from $47,276,000
as gross margins slipped 460 b.p. to 40.4%. ORNG said it
would continue to control costs and improve operational ef-
ficiencies to minimize possible future losses.

PHOENIX FOOTWEAR GROUP net income was
$1,026,000 against a loss of $14,903,000 for the pe-
riod ended Jan. 2 due to income from the divestiture
of Chambers and a tax gain. Total sales slipped 25% to
$4,434,000 from $5,921,000. Gross margins declined 400
b.p. to 31.0%. Meanwhile, PXG reduced its FY net loss to
$6,991,000 versus a loss of $19,460,000 despite a 33% de-
cline in annual revenues to $19,939,000 from $29,571,000.
The loss from discontinued operations was $1.7 million ver-
sus $11.1 million in FY08. Over the last year, Phoenix has
reduced its cost structure by millions of dollars, bank debt
by 74% and liabilities by $11.6 million. At year-end, backlog
was up a reported 37%.

PUMA adds soccer sensation Natasha Kai to its endorse-
ment roster. The Cat says the signing is evidence of its com-
mitment to Women’s Professional Soccer and the game as


a whole. Puma intends to utilize Kai, a forward for the WPS
Champion Sky Blue FC, in its football (soccer) and fitness
marketing campaigns and, because of her crossover ap-
peal, incorporate her into the brand’s lifestyle activities too.
Hawaii-born Kai is known as much for her vibrant personality
and explosive play as her tattoos that have attracted atten-
tion both on and off the pitch. The Olympic gold medalist was
Sky Blue’s leading scorer in the league’s inaugural season.

TOTAL APPAREL GROUP reports that it has booked
over $2.5 million in product orders. TAG is continuing to
work on completing its audited financial statements so that
it may become a fully reporting company. Due to a decision
to include FY09 financial statements and Q1/10, the compa-
ny now expects to complete and file the statements with the
SEC no later than May 17.


RECALLS
SPORT OBERMEYER is recalling approximately 3,900
Vietnam-made girl’s ski jackets due to a waist drawstring
that can pose an entrapment hazard. The recalled styles
are: Lily #91549, Rose #91552, Daisy #91555 and Posey
#91558. Various boutiques and ski/sport retailers sold the
jackets between July 2009 and Feb. 2010.

ARDICA TECHNOLOGIES, a San Francisco-based im-
porter, is recalling approximately 2,600 jackets and vests
with Moshi Power Systems.

NORTH-SPORTIF INC., of New York, is recalling about
360 jackets and 360 vests due to possible drawstring stran-
gulation. The boys’ black hooded jackets were sold exclu-
sively at Burlington Coat Factory stores between Oct. 2002
and Jan. 2010.

BAUER HOCKEY is recalling approximately 67,000
youth and junior hockey sticks, shafts and blades in the U.S.
and another 60,000 in Canada due to excessive lead levels
in the paint. The recalled, China-made products were sold in
sporting goods stores between Feb. 2005 and last month.


SHORT STOPS
• K-Swiss partners with Amos Content Group and
Rhino.com to launch California Music Month.

• Fulgent Sun International, which has been making
footwear in China for the past 15 years, files an IPO for a
listing on the Taiwan Stock Exchange.

• Amon Carter donates $5,000 to Batters Up USA, which
supports start-up recreational ball programs for boys and
girls. It intends to use the donation to increase participa-
tion in inner-city recreational baseball/softball programs.

• Wolverine World Wide hires industry veteran Nick
Schwartz, most recently at Columbia Sportswear, as VP of
sales for apparel and accessories to focus on Merrell apparel.

• Ryn Footwear names Heath North as marketing man-
ager for North & South America. He was previously head
of consumer marketing for MBT.

• Nivea signs a multi-year contract as title sponsor and ex-
clusive skin and personal care product of the AVP Tour.

• International Junior Golf Tour is partnering with the
Canadian Junior Golf Association to provide playing
privileges to each other’s members at over 160 events.

• Gita Sporting Goods hires Ed Adair as a sales rep for a
newly created western territory in No. CA.

• KARHU says it will reach over 50,000 runners in the first
year of its 10+ major city half-marathon sponsorship of
the 13.1 Marathon race series.


CATALOG OF CATALOGS
Click on the logo to view the catalog.


SGI - April, 5th 2010

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