Pols Step Out for Retailers, Industry

Vice President Mike Pence and U.S. House Speaker Paul Ryan were front and center at industry events last week, promising passage of pro-growth initiatives and major federal tax reform focused on a simplified, streamlined tax code that would lower corporate tax rates and benefit those employers who keep jobs stateside.

Pence told attendees at the National Retail Federation’s annual Retail Advocates Summit attended by more than 200 small retailers, national chain executives and state retail association officials that the Trump Administration knows “as retail goes, so goes America.” Later he added, in remarks that were televised on CNN and MSNBC, “…the best days for American retailers are up ahead. I promise you that.” Read More...

DEALS:
Winter Sports Brands Land New Owners

Adidas, in its ongoing quest to divest all hard goods products from its portfolio, is reportedly selling its CCM hockey equipment business to Birch Hill Equity Partners, a Canadian private equity firm with former ties to TD Capital, for about $100 million. The price tag is approximately two-thirds what Adidas sought for the business four years ago. The sale does not include the CCM apparel license. NHL players will don new ADIZERO jerseys in September, the first season of a seven-year, league partnership with Adidas that was announced in 2015.

CCM revenues fell 13 percent on a currency-neutral basis to approximately 276 million euros ($319 million) in 2016 on softer licensed apparel, sticks and helmet sales. The company, according to public filings, sold more than three million units of apparel in 2015. The sale marks the second this year of a major hockey equipment company. Sagard Holdings and Fairfax Financial acquired the former publicly traded Performance Sports Group, parent of Bauer, Mission and other brands, out of bankruptcy at the end of February. Read More...  

BREAKING NEWS:
Ortholite Being Acquired

Private equity firm Trilantic North America, which sold its majority stake in Implus Corp. to Berkshire Partners in May 2015, has inked a definitive agreement to acquire a majority stake in Ortholite, the maker of branded open-cell, foam insoles and other components. The deal, expected to close in the third quarter, is part of a management-led buyout that will see Ortholite CEO and Founder Glenn Barrett, COO John Barrett and others in senior management retain significant stakes in the Amherst, MA company that supplies its products to 250 footwear brands. Financial terms of the pending transaction, which will see Blue Point Capital Partners exit Ortholite, were not disclosed.

Trilantic, which manages four private equity funds valued at $5.9 billion, has made other investments in the industry besides Implus. They include SRAM bicycle components and a minority position in Boulder, CO-based PACT Apparel in February 2016.

Puma Momentum Strengthening

The Cat, officially reporting second quarter results on Wednesday, last week disclosed preliminary figures and subsequently lifted its full-year guidance for consolidated sales and income before taxes (EBIT).

Second quarter revenues are forecast to increase 17 percent in reported terms to the equivalent of approximately $1.11 billion. EBIT is projected to improve 258 percent to approximately $49.3 million for the period ended June 30. With the forecasted results, Puma lifted its full-year outlook. Annual currency-adjusted sales are predicted to increase 12-14 percent year-over-year. Annual EBIT is expected in the $235.1-$246.5 million range, up 7-10 percent from prior guidance.

Skechers Forecasts Significant International Growth

China is a key driver for the Skechers brand, which had 2,305 retail stores at the end of the second quarter. The Chinese market shipped 3.7 million pairs and realized triple-digit e-commerce growth for the period ended June 30. Skechers, whose total second quarter revenues rose more than 17 percent year-over-year to $1.026 billion, is forecasting “strong double-digit net sales increases” in international markets in the second half of 2017.

Back at home, domestic wholesale revenues increased 6.4 percent in the second quarter on an 11 percent gain in pairs shipped but a 4.5 percent decline in average price per pair. Domestic e-commerce sales rose 28 percent. Global company-owned Skechers’ stores generated a 28 percent gain in revenues and a 7.1 percent comparable store sales increase.

The company, which recently signed Cowboys’ quarterback-turned-broadcaster Tony Romo to a multi-year marketing agreement for its men’s collections, is forecasting flat domestic wholesale revenues and double-digit gains in international wholesale and international own retail store sales in the third quarter.

The Buzz

Golf retail has seen a weakened off-course channel across multiple product categories over the last year and a less important sporting goods channel despite significant golf ball and shoe sales there, according to the seventh edition of the Serious Golfers Shopping and Purchasing Habits Study from Golf Datatech.

June retail sales were up 2.8 percent year-over-year to $473.5 billion, according to monthly data from the U.S. Census Bureau. But sales in sporting goods/hobby/book and music stores were down 7.0 percent on an unadjusted basis to $6,796 million and off 4.7 percent for the first half of 2017 at $38,694 million.

Tubes of the Week