With the amount of retail space continuing to shrink via store closures and bankruptcies, and consumers increasingly turning to their mobile devices to shop as they continue to demand immediacy and convenience, retailers and brands will need to be more creative, flexible and diversified in their approaches in 2017 and beyond. Read more...
Brady and Ryan are no longer opponents as they were in last night’s Super Bowl LI in Houston. In Washington, Ryan, as in House Speaker Paul, and Brady, as in House Ways and Means Committee Chairman Kevin, are playing on the same team in an emerging battle over a proposed plan to tax all imports called a Border Adjustment Tax (BAT). Two Coalitions, one for and one against the proposal that would essentially treat imports and exports differently and no longer allow corporations to use cost of goods as a tax deduction, have formed. And making the scenario unusual, corporations can be found in both camps. Americans for Affordable Products (AAP), which counts more than 100 members including retailers Dick’s Sporting Goods, Kohl’s and Macy’s and footwear manufacturers Nike, Wolverine Worldwide and Deer Stags, opposes BAT, believing any BAT will increase costs for essential items Americans rely on such as apparel, footwear, food and gas. Read More...
CEO Kevin Plank, faced with fourth quarter results that missed the mark and hit a rare sour note with investors, said the company will continue to make investments toward building a $10 billion infrastructure for a $5 billion company and simultaneously accelerate its focus on operational discipline. That said, Under Armour is forecasting $600 million in revenue growth in FY17 to approximately $5.4 billion, but a $100 million decline in operating income to about $320 million. Plank bluntly described how slower traffic and earlier and deeper promotions in the fourth quarter “commoditized” some of the brand’s basic core products and how higher consumer demand for lifestyle silhouettes caused an “out of balance” assortment and subsequent lost sales volume. Read More...
Eastern Outfitters, parent of the Bob’s Stores and Eastern Mountain Sports chains, filed for Chap. 11 bankruptcy protection on Sunday. The filing had been anticipated for weeks. Private equity firm Versa Capital Management acquired both retailers and Sport Chalet last April when former parent Vestis Retail Group went bankrupt. Subsequently, the entire Sport Chalet chain, one Bob’s door and 8 EMS locations were shuttered and liquidated.
U.K.-based and publicly traded Sports Direct International is in line to be the “stalking horse” bidder for the current bankrupt businesses, which list total assets and liabilities of $100-500 million. There was minimal inventory and 25-50 percent discounts on available merchandise at a Bob’s store in Massachusetts last week.
The top 12 trade creditors of Bob’s/EMS and its four affiliated bankrupt entities are: VF Outdoor ($768,837), Wolverine Worldwide ($635,607), Carharrt ($615,998), Under Armour ($582,119), Confluence Watersports ($373,657), K2 Corp. ($272,041), Hanesbrands ($197,619), Fownes Performance Group ($171,843), Marmot Mtn. Intl. ($167,239), Kahtola ($159,333), Dan Post Boot Co. ($157,580) and Fox River Mills ($133,781).
Dollar sales of the Classic athletic shoes rose 26 percent in 2016 to $4.4 billion, a category segment that has added $1.7 billion in sales since 2014 as trends have shifted away from performance-driven styles. Running-inspired Classics rose 36 percent in dollars; lifestyle basketball shoe sales jumped 27 percent last year; and casual athletic dollar sales rose 11 percent after two years of declines, according to data compiled by The NPD Group.
Overall, U.S. athletic footwear dollar sales, dragged down by a soft fourth quarter, increased 3 percent in 2016 to $17.5 billion with units also up 3 percent but ASPs (average selling prices) flat at $60.81.
By retail channel, the athletic specialty/sporting goods channel, which accounts for more than 50 percent of annual athletic shoes sales, grew 2 percent versus 8 percent in 2015 on a weak second half. Elsewhere, shoe chain dollar sales increased 7 percent for the year with department stores up 1 percent and national chain down 1 percent for the 12 months.
In the week leading up to Super Bowl LI, The National Operating Committee on
Standards for Athletic Equipment (NOCSAE) finalized revisions to its existing football helmet standard that limits maximum rotational forces that are involved in many concussions. Manufacturers will be required to meet the new football helmet performance standard, which incorporates rotational accelerations in pass/fail specifications, starting in June 2018. In a separate development, lawsuits filed against Riddell and the NCAA will seek compensation for thousands of former high school and college athletes who suffered concussion. The company called the case “overt lawyer self-promotion and meritless litigation” that came five years after the first such case was filed and last year’s voluntary dismissal of a similar lawsuit.
Elsewhere,
• BSN Sports completed its acquisition of 66-year old Erie Sports Store, a distributor of
team apparel and equipment that will continue under the management of the Jack
Weber Family.
• Skechers will again utilize NFL Hall of Famer and former 49er
quarterback Joe Namath in an ad campaign.
• Panini America signs NFL Draft prospect and LSU running back Leonard
Fournette to a contract for autographs and memorabilia.
Under Armour’s decision to sign a 199th pick in the NFL Draft to an endorsement deal in 2010, comes up huge again with the Patriots’ 25-point, comeback overtime win in Super Bowl LI. Tom Brady, now a five-time NFL champion and four-time Super Bowl Most Valuable Player, is showcased on the second floor of Under Armour’s new downtown Boston store that opened in early December. In early January, he and UA launched Athlete Recovery Sleepwear Powered by TB12, as part of the brand’s new Sleep and Recover System, during CES.
Minutes after the completion of Super Bowl LI, Under Armour released a special “Legend of Tom Brady” video on Facebook, Twitter and Youtube. See it above.
Other retailers and brands were quick to jump on the NFL’s team’s fifth title since 2001, which did not seem plausible in the waning minutes of the third quarter. One local Boston channel went live to Modell’s near the finish line of the Boston Marathon after the game where more than 1,000 were lined up into to purchase championship gear. Meanwhile, a ’47 printing facility cranking out caps and apparel was featured in a live shot on another channel this morning.
Finish Line and Josh Norman
Finish Line is teaming up with Josh Norman, a cornerback for the Washington Redskins for exclusive digital and in-store content, including videos and social media postings, to promote its new exclusive PureBOOST footwear release in five colorways from Adidas. The low-cut running silhouette with a Primeknit fabric upper and leather accents on the heel is available online and at select Finish Line stores.
Separately, Adidas was scheduled to launch the limited-edition “Silver Pack” UltraBOOST cleat ($180) and UltraBOOST 3.0 with Silverboost ($200) during halftime of the Super Bowl on adidas.com. The 3.0 is the brand’s most technically advanced running shoe with a full-length BOOST midsole comprised of 3,000 energy capsules and a Stretch Web outsole.
Superfeet Celebrates 40th Anniversary. The employee-owned company introduces footwear and rolls out a 3D printed insole program.
BOA introduces New Tech and Names New CEO. Nothing will constrict Boa Technology CEO Shawn Neville from helping the Denver company improve its customized fit solution.
No strings attached. The married Argentinean couple has raised nearly $20 million for Hickies, a Brooklyn company addressing how athletic shoes are closed around the foot two eyelets at a time.
The Co-founder and Managing Partner of Partners Growth, which brings premium brands into the U.S. market, talks Finnish children’s wear brand Reima.
Six-year old Altra is teaming with Utah State University to develop outdoor design talent.
Let's Go Hyperwear: Former Equinox personal trainer merges the innovative, functional fitness gear from Austin, TX company with programming for schools, camps and institutions.
Sly and Simple. BlueFox.io and its technology enable a retailer to interact with customers in store and track traffic. No beacon required. The CMO explains the benefits of the platform.
The CEO of Xenio Systems talks about the company’s new platform that tracks where shoppers spend time in physical stores and its patented hyper-positioning technology.
The director of export promotion for Mexico’s Guanajuato State government agency addresses the proposed impact of the Border Adjustment Tax by the U.S. and the possibility of a renegotiated NAFTA free trade agreement.
The founder and CEO of EyeFitU, a former investment banker, talks ‘glocal’ assortments, shoppers’ personal sizing and global web payment options.
The president and CEO of the SFIA addresses the most serious threat the industry has faced in the past half-century and the expected re-introduction of the PHIT Act by Congress.
The Italian global trade expert in footwear talks about the present and future of TheMicam trade show and the potential impact of a Border Adjustment Tax in the U.S. on imported shoes.
Dr. James Eakin, chief marketing officer and director of U.S. operations for Xenoma, discusses the Japan company’s e-skin shirt and entire wearable category.
Industry senior statesman Rusty Saunders dishes on industry leadership, pressing issues and the inactivity pandemic.
Expert Barbara Barclay, president of RightEye, talks eye-tracking technology and her company’s recent alliance with Major League Baseball and USA Baseball.
Julie Sylvester, Executive Producer at Living in Digital Times, talks trends likely to emerge at Sports and FitnessTech Summit at CES in Las Vegas.
Chris Palmer, Founder and CEO of BoxFox, talks excess inventory and solutions for vendors, retailers and distributors.
Susie McCabe, SVP of global retail for Under Armour who previously spent 16 years at The Ralph Lauren Corp., dishes on UA’s retail strategy and new Brand House in Boston.
On the eve of Election Day, we talk to three leading industry lobbyists on how the results may impact trade in the sporting goods, outdoor and apparel and footwear industries.
On the eve of Election Day, we talk to three leading industry lobbyists on how the results may impact trade in the sporting goods, outdoor and apparel and footwear industries.
On the eve of Election Day, we talk to three leading industry lobbyists on how the results may impact trade in the sporting goods, outdoor and apparel and footwear industries.
The president of Reebok Future discusses the intent of the unit and the brand’s plans to develop footwear in a new way.
TREW CEO Paul Schille dishes on the eight-year old company in the process of completing its Series A round of funding and his dual career.
Milestone Sports CEO Jason Kaplan dishes on the company’s low-cost, wearable pod and how it will help specialty retailers connect.
OOFOS marketing executive talks about the recovery footwear brand and candidly about her courageous personal health journey.
Footwear Distributors and Retailers of America President Matt Priest the likelihood of the Trans-Pacific Partnership being passed soon.
ING Source executives dish about compression technology and the Hickory, NC company’s breakthrough OS1st Brace Layer System.
Jones & Vining’s Charles Liberge addresses strategies and directions for the iconic brand.
Rockport Group senior executives talk about the brand’s fresh start under new ownership that has a major emphasis on versatility.
Mission Athletecare CEO Josh Shaw says thermoregulation is the New York company’s singular focus.
Tim Porth of Octane Fitness talks trends, Zero Runner and the company’s January acquisition by Nautilus Inc.
The principal and founder of Rising Tide Associates talks about industry advocate lobbying for the domestic textile and footwear industries.
The ‘47 brand executive dishes on the Boston company and long-time MLB licensee founded by his father Arthur and his late Uncle Henry.
Pam Gelsomini, president, and CB Tuite, VP–sales, discuss the company’s products, partnerships and what’s new for the season ahead.
The tradeshowdirector for the American Sportfishing Association casts comments on the activity’s popularity, and trends in fishing.
The principal and founder of Rising Tide Associates talks about industry advocate lobbying for the domestic textile.
The VP of sales and sponsorships for Spalding, Dave Coradini talks Shot Tracker and basketball.
The executive brand and product innovation leader dishes to F4M’s Emily Walzer on an array of topics.
Snow Sports Industries of America’s Kelly Davis talks weather, participation trends and how to handle the psyche.
Gene McCarthy, president of Asics America, speaks to Jen Ernst Beaudry on specialty run and more in the second part of the podcast.
Gene McCarthy, new president of Asics Americas, dishes to F4M’s Jen Ernst Beaudry in the first of a two-part podcast.
Saucony’s Richie Woodworth offers his views on brand’s running business and what it takes to manage through change.
Bruce Cazenave, CEO of Nautilus Inc., recently ranked 23rd on Fortune’s “Fastest Growing Companies” list.
Gary Smith has been at the helm of the Lawrence, MA firm for three years, and his 2016 strategies will broaden Polartec’s scope.
Wilson Sporting Goods, one year removed from its 100th anniversary and a major restructuring, has a renewed focus and strategy.
