Retail: 67
0.31%
Retail: 201
1.78%
Monday, January 28, 2019
Volume 3, Issue No. 4

Golf, Tennis Aim to Build New Momentum

The 66th PGA Merchandise Show, which added the inaugural Racquet & Paddle Sports Show and Conference in Orlando last week, was an opportunity to highlight new projects and products for the months ahead and evaluate growing-the-game initiatives. The U.S. golf market enjoyed a mid-single digit sales increase in 2018, a gain that research firm NPD Group attributes to the growing wave of retirees. Tennis, meanwhile, is seeing positive impact from the offshoot activity of Pickleball, whose popularity is widening and igniting more retail exposure for a growing range of products from paddles and balls to specialized backpacks.

In delivering their annual “State of the Industry” report, research firms Pellucid and Edgehill, seemingly confirmed NPD’s golf assessment, pointing out that the 55- to 64-year old set was the only demographic to grow in participation in 2018 with 2 percent growth versus declines for 18- to 24-year olds (-7%), 25- to 34-year olds (-5%) and the 45- to 54-year old group (-4%).

U.S. golf rounds fell 5 percent to 427 million in 2018, a factor driven entirely by weather, according to Pellucid. The game lost 100,000 players versus 1 million in some prior seasons, but the dollars spent on equipment were up on slight increases in pricing and units. Total rounds are forecast to rebound to 450 million in 2019, but more than 13 percent below a 2000 peak of 518.4 million rounds. Most geographies are projected to rally with more players in 2019, paced by the Rocky Mountain region (+30%) with the Gulf Coast (-11%) being the biggest laggard.

The potential of golf and tennis to gain additional traction this year and beyond may well lie in the attracting more consumers—Millennials, ethnic groups, women and juniors—to the performance and fashion looks of the sport’s soft goods for every day wear, even if they never set foot on a course or court.

Among the show’s brand highlights:

• Global Merino is introducing its first merino with biodegradable polyester (65/34) for Fall 2019 in apparel from a couple of European brands.

• Polartec has established a customized, Made in the USA fleece program in New Hampshire for the Direct-to-Consumer market that only utilizes its 200-wt., fully recycled product and doesn’t infringe on material sold to its wholesale accounts.

• Stance is introducing new editions of its Jack Nicklaus socks ($14, $18 retail).

• TTB Athletics, a St. Augustine, FL start-up is looking to license its patented, Gobi-Dri material for use on athleticwear.

• Sofibella, which sold its tennis wear for eight years into specialty and pro shops, boutiques and resorts, and online in the U.S., Canada, Australia and Eastern Europe, is adding golf apparel.

• SwingDish is a women’s only golfwear brand entering its fourth season that was launched by Tricia Covel, a golfer and wife of country singer Toby Keith. In 2019, for the first time, the Made in the USA brand will have a dedicated sales force.

• Orfiks is a unisex sock brand focused on the gym, golf and racquet markets.

• Icybreeze is a new portable air conditioner/cooler product from Sweetwater, TX. The product and technology was bought from person who appeared on “Shark Tank.”

• New Balance Golf is bringing the brand’s Fresh Foam midsole material to its golf shoe line-up in 2020.

• Tasc Apparel is introducing its MicroAir technology that utilizes ultra-fine fibers in 2-yarn construction into five polos in April.

INSIDE RETAIL
Bass Pro Shops Taps New Prez; Foot Locker Powers Up

New Bass Pro Shops President Mike McDermott (right) with chain Founder/CEO Johnny Morris (center) and outgoing President Jim Hagale (left). [courtesy Bass Pro Shops]

A former chief merchandising officer for Lowe’s and previous 20-year General Electric executive is the new president of omni-channel/retail for Bass Pro Shops-Cabela’s. Mike McDermott is replacing Jim Hagale, who spearheaded the business combination of the two outdoor specialists and Bass Pro’s transformation of the former Pyramid sports arena in Memphis, TN into a destination retail location.

Johnny Morris, founder and CEO of Bass Pro Shops, called McDermott’s appointment “the beginning of an exciting new era” for the Springfield, MO company, and lauded him for his many qualifications. Among them: strong financial background, commitment to conservation and passion for serving customers.

At the home improvement chain, McDermott became CMO in 2014 and recently moved to EVP/Chief Customer Officer where he was a key member of Lowe’s senior team responsible for executing an omni-channel customer experience. He will likely tackle the same task for Bass Pro-Cabela’s.

At Foot Locker, the retailer has opened its first U.S.-based “Power Store” in Detroit, a freestanding, 8,500-sq. ft. store focused on family shopping with a women’s shop-in-shop and a Kids Foot Locker. With additional Power Stores operating internationally in London, Liverpool and Hong Kong, Foot Locker intends to expand the format by more than a dozen locations in 2019, including in New York, Philadelphia and Los Angeles. The Detroit store will offer special, localized assortments, including an adidas SPEEDFACTORY shoe designed by a Detroit native and apparel brands from local designers and personalities. The same local merchandising approach will no doubt figure into all new Power Stores.

Elsewhere, PGA Tour Superstore will enter the Boston market this spring with two doors. The first, in Northshore Shopping Mall, will debut Feb. 2 followed by a second store in Braintree, MA. Besides the Boston market, the off-course golf/tennis specialty chain intends to open stores in Miami and Sarasota, FL, Austin, TX and a second location in Denver to bring its store count to 41.

SPORTS INSIGHT / FOOTWEAR INSIGHT
Brooks’ FY Revenue Soars; Nike Locks Up MLB

Bolstered by footwear, Brooks Running Co. global revenues rose 26 percent in FY18 to $644 million as footwear sales increased 28 percent and apparel increased 7 percent. Outside the U.S., the Seattle-based company saw EMEA annual revenues jump 27 percent, sparked by the DACH region, and APLA sales rose 26 percent that was sparked by Australia.  

Sold in more 50 countries, the Berkshire Hathaway-owned subsidiary expanded its global footprint in key running markets last year, including South Korea, India and Mexico. The expansion into India included more than 20 retail location and availability on Amazon India.

In other news:

The long-anticipated Nike/Fanatics licensing agreement with Major League Baseball, instead of prior league suitor Under Armour, became official Friday, weeks before clubs arrive in Arizona and Florida for 2019 spring training. Under the 10-year contract, the Swoosh will design all on-field apparel for players, including jerseys, base layers and warm-ups, and Fanatics will make and distribute all Nike MLB products sold at retail.  

INSIDE ENDORSERS
2UNDR Nabs Rickie Fowler; Skate Icon Hawk’s New Signature Line

PGA Tour golfer Rickie Fowler (left) and skate icon Tony Hawk (right).

PGA Tour golfer Rickie Fowler, 30, who already has endorsement deals with Puma and Taylormade, has struck a long-term contract to be the global ambassador for performance underwear brand 2UNDR.

“Rickie has been a friend of the brand and has worn our product on TOUR for many years,” said Dave Williams, president and Co-founder of 2UNDR. “We are excited to tell the world about our relationship and collaborate on future product lines together.”

Elsewhere,

• CBS broadcaster Jim Nantz, who will call Super Bowl LIII from Atlanta on Sunday, has a new, signature apparel collection with vineyard vines. His football partner, former Dallas quarterback Tony Romo, meanwhile, wears and pitches for Skechers.

• Puma signs PGA Tour pro Gary Woodland to a multi-year partnership to don The Cat’s apparel, footwear and accessories on course. Ben Hogan signs top instructor Travis Fulton as a brand ambassador.

• Blizzard/Tecnica adds Hilaree Nelson and Jim Morrison, two elite ski mountaineers, to its global team.

• Cherokee Global Brand and India’s The Bantra Group rollout the first season collection of its new streetwear fashion label, Tony Hawk Signature line for Fall/Winter 2019 that hits select fashion and specialty skate stores worldwide in late June.

What's Hot, What's New?

• Adidas has teamed with Japanese streetwear brand A Bathing Ape (BAPE) on a limited-edition capsule collection of cleats, footwear, apparel and equipment that applies BAPE’s design language. The collection will be available at a Social Status pop-up store in Atlanta on Feb. 1 and worldwide on adidas.com and BAPE store on Feb. 2.

Functional Fabric Fair Set for October in Portland, OR

Functional Fabric Fair Attendee checking out new materials.

Reed Exhibitions, in partnership with Performance Days that is produced by Germany’s Design & development GmbH Textile Consult, is launching a West Coast U.S. Functional Fabric Fair powered by PERFORMANCE DAYS on Oct. 22-23 at the Oregon Convention Center in Portland, OR. The sourcing event will feature products and technologies.

Concept III Textiles will collaborate with Reed Exhibitions and Design & Development GmbH Consult on the launch event that will include curated exhibits, workshops, industry presentations and professional networking. Textile manufacturers, suppliers and service providers will present their performance materials and technical textiles for the Winter 2021 season.

For more information, visit www.FunctionalFabricFair.com. Organizers may be contacted at inquiry@functionalfabricfair.com.

In other news:

The Running Industry Association (RIA) intends to host the inaugural RIA KICK Show, June 3-6 in Denver with 26 presenting brands and space for 96 retail attendees. Day 1 and 2 of the boutique-style showcase will consist of line presentations from the Top 14 brands in the channel. Day 3, the Growth Track, will focus on additional presentations from leading accessory and emerging footwear and apparel brands. The non-profit group host, which does all of the presentation scheduling, will offer a comprehensive rebate program to retail attendees.

The Buzz

NSGA launches a “NSGA” program to recognize the most qualified, independent retailers and dealers in the sports industry. The VID originated from the trade organization’s Team Dealer Advisory Committee. For more information on the program, contact the NSGA’s Team Dealer Division Director, Marty Maciaszek, at mmaciaszek@nsga.org.

Varsity Brands is partnering with the National Federation of State High School Associations (NFHS) on the new Varsity University/NFHS Coaches Education Program focused on sport safety certification for high school coaches. Initially, the initiative will focus on five areas—Sport Safety Certification, Coaching Development, Activity Specific Courses, Fitness and Wellness, Character Development and Sportsmanship. The Sports Safety Certification effort in 2019 includes seven courses ranging from coaching basics to the safety and wellness of young athletes.

Tubes of the Week

Mon, Aug 28, 2017
Vol 1, Issue No. 33
Numbers In Play
The Sports Insight Index is our opinion of what we think are the 30 most important public companies in the industry, 15 vendors and 15 retailers. Space considerations prevent us from tracking more, but we will make changes over time.
Index base of 100 is key to the closing prices of 12/31/14
Retail
Segment’s 2019 rally extends to three consecutive weeks with a nearly 1.5 percent gain for the period, ahead of a flat Dow for the week. Eight stocks were up and seven were down. Friday’s end to the government shutdown (at least until Feb. 15) was seen as good news in economic circles where there was concern that an extended shutdown further into Q1 could erode quarterly GDP to zero growth. As for the segment specifically, Sportsman’s Warehouse, which saw rival Bass Pro Shops/Cabela’s name a new president (see story above), was the largest gainer. SPWH has appointed Martha Bejar as the eighth member on its board. Shoe Carnival and Big 5 had the biggest percentage declines.  Dick’s Sporting Goods, according to the Pittsburgh Post-Gazette, is sued for $5.5 million in damages by Battle Born Munitions, a Nevada ammunition firm. Foot Locker gets a boost via a “buy” rating from Jefferies, citing a Nike resurgence in North America and better promotion control at FL. Sports Direct Intl. founder Mike Ashley is reportedly eyeing a bankrupt, 100-store music chain in the U.K. Walmart removes its products from Google’s Shopping Actions service. The retailer, along with Target, was a flagship partner in the program attempting to stem Amazon’s rise. Nike remains a Shopping Actions partner. Massachusetts Gov. Charlie Baker (R) is pushing to require online marketplaces (Amazon and Ebay, for example) to collect local sales taxes on behalf of third-party vendors. It would make MA the ninth state to enact such a law and raise an estimated $42 million in additional annual tax revenue for the Bay State.  
Brands
Segment outperforms Dow and Retail during the period, rising more than 3 percent with 10 stocks up and 5 down. VFC is the biggest gainer; Nautilus, the biggest decliner. Under Armor now has 21 percent of 33 analysts recommending a “buy” on the stock, 27 percent recommending a “sell,” and 52 percent with a “hold” on the company’s shares, according to Market Realist. Wolverine Worldwide snares a positive outlook and a $40 price target from Baird, citing greater confidence for Q4 and FY19 upside for Merrell and Saucony. Adidas CEO Kasper Rorsted says the brand isn’t looking to add sensors to footwear like rivals Nike and Under Armour. Meanwhile, Morgan Stanley downgrades Adidas shares to “underweight,” citing the brand’s push into lifestyle products that makes it more exposed to fashion risks. Titleist had all four men’s major winners and all five women’s winners playing with its golf balls in 2018, but recently lost Rickie Fowler, 30, who defected to Taylormade for his golf ball play. Further, Fowler, who wears and endorses Puma, has signed a long-term global endorsement deal with 2UNDR underwear. Deckers Corp. is slated to report Q3 results on Thursday.  

RETAIL: 57

42.91%

BRANDS: 183

83.09%

Weekly Review

Retail Name
(Ticker Symbol)

% Change over week
Price 1/17/19 • 1/24/19

Big 5 Sporting Goods
(BGFV)

4.38%

$3.658 • $3.49

Sports Direct
LON: SPD

0.22%

$358.69 • $357.89

Camping World
CWH

2.39%

$14.24 • $14.58

Dick's Sporting Goods
DKS

2.97%

$33.33 • $34.32

JD Fashion
jD

4.06%

$564.57 • $587.51

Foot Locker
FL

3.42%

$57.78 • $55.61

Genesco
GCO

1.24%

$48.25 • $47.65

Hibbett Sports
HIBB

3.23%

$15.46 • $15.96

Kohl’s
KSS

0.70%

$68.82 • $68.34

Macy’s
M

0.97%

$24.75 • $24.51

Sportsman’s Warehouse
SPWH

5.92%

$4.90 • $5.19

Shoe Carnival
SCVL

5.20%

$41.14 • $39.00

Tilly’s
TLYS

3.00%

$11.99 • $11.63

Walmart
WMT

1.66%

$96.75 • $98.36

Zumiez
ZUMZ

0.56%

$23.16 • $23.29

TOTAL
WEEK OVER WEEK

1.4%

$1,367.28 - $1,387.33

Brand Name
(Ticker Symbol)

% Change over week
Price 1/17/19 • 1/24/19

Acushnet Holdings
GOLF

0.98%

$23.46 • $23.23

adidas
addyy

0.88%

$114.42 • $114.33

Amer Sports
AGPDY

0.23%

$44.26 • $44.16

Callaway
ELY

2.30%

$16.97 • $16.58

Columbia Sportwear
COLM

3.08%

$83.84 • $86.42

Deckers Brands
DECK

4.56%

$117.57 • $122.93

GoPro
GPRO

0.81%

$4.92 • $4.96

lululemon
LULU

2.27%

$145.14 • $148.43

Nautilus
NLS

35.17%

$11.77 • $7.63

Nike
NKE

1.66%

$79.13 • $80.44

Puma
PUMA

4.19%

$518.00 • $540.00

Skechers
SKX

3.49%

$26.95 • $26.01

Under Armour
UA

3.91%

$18.15 • $18.86

VF Corp.
VFC

13.79%

$73.24 • $83.34

Wolverine Worldwide
WWW

2.27%

$33.06 • $33.81

TOTAL
WEEK OVER WEEK

3.05%

$1,311.18 - $1,351.13

Sports Insight Extra Podcast Series