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  • June 27, 2011

    The Weekly Digital Magazine Service for the Sporting Goods Industry

  • Minimal in volume, but BIG on function!

    NEW PROFORM Ultra-Thin Insertsby

    Designed to offerLightweight, Contoured, Flexible Supportfor minimalist and natural running shoes.

    Call 1-800-877-3626 or email promo@spenco.comTo Order a FREE Sample Today!

    PROMO CODE: PFMSGBMY11Expiration date: July 31, 2011

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    Proform Fits: Designed to FIT, where other insoles can't. The deep heel cup and contoured shape, along with our multi-density materials, help provide the RIGHT amount of support and cushioning. Spenco PolySorb Proform makes any shoe FEEL like it was made for your customers.

  • WEEK 1126 | SGBweekly.com 3

    Copyright 2011 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers & 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.

    NEWS 4 PUMA Signs Julie Foudy as Brand Ambassador GENESCO Buys U.K.'s Schuh Group for $112.6M 5 RUNNING STRENGTH Drives Finish Line's Q1 Profits FLEET FEET Honors Franchises 6 NIKE Q4 Profit Rises 14 Percent, Beats The Street DECKERS To Stop Distributing Simple Shoes 8 ACQUISITION BLOTTER

    FEATURES 10 STRENGTH IN NUMBERS With A Number Of Factors Effecting The Team Buying Marketplace, Many Dealers Have Turned To The Buying Groups To Help Weather Uncertainty. 16 COLUMBIA TACKLES WET Columbia's Commitment To Innovation Continues For Spring 2012 With Technologies Designed Around Keeping Consumers Dry And Cool.

    DEPARTMENTS

    22 CALENDAR

    The Weekly Digital Magazine Service for the Sporting Goods Industry

    June 27, 2011

    Minimal in volume, but BIG on function!

    NEW PROFORM Ultra-Thin Insertsby

    Designed to offerLightweight, Contoured, Flexible Supportfor minimalist and natural running shoes.

    Call 1-800-877-3626 or email promo@spenco.comTo Order a FREE Sample Today!

    PROMO CODE: PFMSGBMY11Expiration date: July 31, 2011

    SpencoLove Your Feet R

    egis

    tere

    d a

    nd

    Tr

    adem

    ark

    of

    Sp

    enco

    Med

    ical

    Co

    rpo

    rati

    on

    . 20

    11 S

    MC

    . All

    Rig

    hts

    Res

    erve

    d

    Proform Fits: Designed to FIT, where other insoles can't. The deep heel cup and contoured shape, along with our multi-density materials, help provide the RIGHT amount of support and cushioning. Spenco PolySorb Proform makes any shoe FEEL like it was made for your customers.

    Editor In ChiefJames Hartford (704.987.3450 x104)

    james@sportsonesource.com

    Senior Business EditorThomas J. Ryan (917.375.4699)

    tryan@sportsonesource.com

    Editor/AnalystKyle J. Conrad (704.987.3450 x111)

    kconrad@sportsonesource.com

    Creative DirectorTeresa Hartford

    Graphic DesignerCamila Amortegui

    Advertising SalesCasey Vandenoever (303.997.7302)

    caseyv@sportsonesource.com

    Katie ODonohue (704.987.3450 x110) katieo@sportsonesource.com

    Circulation & Subscriptionssubs@sportsonesource.com

    TechnologyChief Information Officer, Mark Fine

    VP Research & Development, Gerry AxelrodManager Database Operations, Cathy Badalamenti

    SportsOneSource Publications

    SGB

    TEAM Business

    Sportsmans Business

    The B.O.S.S. Report

    Sports Executive Weekly

    SGB Update

    Footwear Business Update

    PSR Update

    Sportsmans Business Update

    Team Business Update

    SGB Weekly

    Team Business Weekly

    Sportsmans Business Weekly

    Footwear Business Weekly

    Outdoor Business Weekly

    Group PublisherBill Garrels

    bgarrels@sportsonesource.com303.997.7302

    SportsOneSource, LLC2151 Hawkins Street Suite 200 Charlotte NC 28203

    t. 704-987-3450 f. 704-987-3455www.SportsOneSource.com

    COVER PHOTO COURTESY OF COLUMBIA

    10Photo courtesy of Columbia

  • 4 SGB WEEKLY l JUNE 27, 2011

    NEWS

    Genesco, Inc., the parent of Journeys and Lids, acquired British footwear chain Schuh Group, Ltd. for about $112.6 million, marking its entry into U.K. retailing. Schuh runs 59 stores in the U.K. and Republic of Ireland that sell casual and athletic footwear as well as 16 shop-in-shops in Republic, the trendy teen apparel chain in the U.K.

    Genesco's president and CEO Robert Dennis, on a conference call said Schuh is similar to its Journeys Group in customer demographics and the products they offer. He particularly raved about the opportunity to build on the successful 30-year old concept.

    For the fiscal year ended March 27, 2011, Schuh's sales increased 12 percent to 164 million ($267.5mm), driven by a 10.9 percent comp inclusive of e-commerce. Total EBITDA reached approximately 19 million ($31.0mm) last year, which equates to an EBITDA margin of 11.5 percent of sales. Sales-per-square-foot were roughly 477 ($787) with inventory turning four times a year.

    Dennis said what differentiates Schuh in the market is its breadth of branded assortment with almost twice the offerings of its next closest competitor. Schuh's e-commerce revenues have also been expanding at an annual rate of over 25 percent for the last four years and now represent 14 percent of its business.

    "Given other U.K. footwear competitors, we believe Schuh, with 59 free-standing stores, has the potential to roughly double its store base to 100 to 120 freestanding stores in its current geographic market," said Dennis. "Our plan for the business is to open about 30 stores over the next 4 to 4.5 years."

    Other benefits include gaining more scale with vendors in buying, including access to exclusive product, as well as gaining a quicker read on global fashion trends. Schuh's management team, led by Managing Director Colin Temple, a 29-year company veteran will join Genesco, reporting to Jim Estepa, the CEO of Journeys.

    Genesco also provided a bullish update on second quarter sales trends. Same-store sales for its retail stores other than Schuh had increased 14 percent in the second quarter to date through June 18, with the Journeys Group up 15 percent and the Lids Sports Group up 10 percent.

    PUMA SIGNS JULIE FOUDY AS BRAND AMBASSADOR

    Puma has signed gold medalist, two-time world champion, and all-around soccer legend Julie Foudy as a brand ambassador. She joins other women soccer stars Karina LeBlanc, Alex Scott and Leslie Osborne, Marta, Amy Rodriguez, and Tasha Kai.

    As a Puma Women's Soccer Ambassador, Foudy will share her leadership expertise, soccer tips, news, and other commentary with fans over the blog at puma.com/womenssoccer and via her new Twitter handle, @JulieFoudy. Fans will have the chance to meet her in-person as well, as Puma will be hosting Foudy at brand events throughout the year.

    "We're thrilled to team up with Julie," said Tara McRae, vice president of marketing for Puma. "Our values align perfectly - hers as a role model and women's soccer advocate, and ours as a women's soccer brand. We both truly believe in the development of this game and are committed to investing in its future."

    As a component of the sponsorship, Puma will lend its support to the Julie Foudy Sports Leadership Academy, which teaches self-confidence, communication skills, and leadership to teen girls using sports as a medium, as well as the soccer immersion and development programs of Julie Foudy Soccer Camps.

    Foudy, who spent 17 years with the US Women's National Team - 13 of those as a captain - was amongst the iconic athletes who brought women's soccer to the domestic and global stage in the mid-nineties and into the early-2000s.

    Photo courtesy of Sports Illustrated Women

    GENESCO BUYS U.K.'S SCHUH GROUP FOR

    $112.6M

  • RUNNING STRENGTH DRIVES FINISH LINE'S Q1 PROFITS

    The Finish Line, Inc.'s sales increased 6.0 percent in its fiscal first quarter ended May 28, to $299.5 million while earnings from continuing operations climbed 19.7 percent to $16.4 million, or 30 cents per share.

    Led by double-digit gains in running and basketball footwear as well as ongoing strength in e-commerce, comps increased 6.5 percent in the period on top of an increase of 10.9 percent for the same period a year ago. Store conversion was up 0.2 percent, average dollars per transaction increased 2.1 percent, and store traffic increased 1.5 percent for the quarter.

    The Finish Line also said comps during the current month through June 19 were running ahead 14.5 percent on top of a 6.8 percent increase for the same period a year ago.

    On a conference call with analysts, Steve Schneider, president and COO, said footwear comps were up 7 percent, driven by strong performance in both basketball and running. ASPs were flat, due primarily to the negative impact of toning in the women's business.

    Running comps increased in the mid-teens with strength across men's and women's. For men, Nike running performed well with strong demand in Max and Free. Reeboks Zig also continued to sell well and Flex, in