SGB WEEKLY 1145

NOVEMBER 7 2011

The Weekly Digital Magazine for the Sporting Goods Industry

wwwspencocom

Call 1-800-877-3626 to book your orders for 2012 now

RelevanceA collection of casual footwear insoles and accessories that are easy to merchandise and sellA 45 year track record of products that keep people healthy and active Great pricing Terrific customer service

Sound relevant to your business Then its time to take a second look at Spenco

Pictured The SiestaNew for spring Featuring dynamicsupport in a stylish casual shoe Available in3 colors in both men and womenrsquos styles

WEEK 1145 | SGBweeklycom 3

Copyright 2011 SportsOneSource LLC All rights reserved The opinions expressed by writers and 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 7049873450 Send address changes to SGB WEEKLY 2151 Hawkins Street Suite 200 Charlotte NC 28203 7049873450

NEWS 4 ADIDAS GROUP Ups Forecast as Q3 Beats Estimates RUGER Q3 Profits Jump As Firearm Sales Surge 5 ASICS CORP Swings to Net Loss in Fiscal Second Quarter DOREL Bike Sales Fueled by Cannondale and Wal-Mart Lay-away Promotion 6 BIG 5 Sees Third Quarter Earnings Fall on Weaker Comp Store Sales K-SWISS Falls Short of Earnings Growth Expectations 7 SHIMANO INC Third Quarter Revenue Growth Accelerates But Profits Dip MOVERS AND SHAKERS 8 GUARDS BEAT INMATES in 5th Annual Longest Yard Classic 9 PUMA Unveils African Football Uniforms SPEEDO Revenues Inch Up Slightly in Third Quarter

FEATURE 10 BRAND OF THE BRAVE Adidas Group Acquires Five Ten 14 IMPLUS Sale to Trilantic Capital Partners Should Boost European Growth DEPARTMENTS 24 JOB CLASSIFIEDS


NOVEMBER 7 2011

12Page

Editor In ChiefJames Hartford (7049873450 x104)

jamessportsonesourcecom

Senior Business EditorThomas J Ryan (9173754699)

tryansportsonesourcecom

Contributing EditorCharlie Lunan

Creative DirectorTeresa Hartford

Graphic DesignerCamila Amortegui

Advertising Sales Account ManagerKatie OrsquoDonohue (7049873450 x110)

katieosportsonesourcecom

Circulation amp Subscriptionssubssportsonesourcecom

TechnologyChief Information Officer Mark Fine

VP Research amp Development Gerry AxelrodManager Database Operations Cathy Badalamenti

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Group PublisherBill Garrels

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ISSUE 1145

ON THE COVERGabriele Moroni Climbing the Route Coup dBamboo (a 9A Climb) in his Five Ten Dragons I Photo courtesy of Five Ten

Jon Cardwell getting ready to climb in his Five Ten BlackwingsPhoto courtesy of Five Ten

4 SGB WEEKLY NOVEMBER 7 2011

NEWS

With heady growth in China Russia and North America Adidas Group reported better-than-expected third quarter results and raised their outlook for the fourth time this year Management also said it expected earnings-per-share to increase 10 percent to 15 percent in 2012

The traction we have as we turn our Route 2015 strategic vision into reality increasing our speed consistency and consumer focus has enabled us to achieve record financial results said Herbert Hainer Adidas CEO on a conference call with analysts

Net earnings in the third quarter rose 141 percent to euro303 million ($429 mm) or euro312 per diluted share Overall revenues grew 80 percent to euro374 billion ($530 bn) Currency movements again had a notable impact on sales in reported terms

Third quarter revenues grew 13 percent on a currency-neutral basis Adidas brand overall revenues (wholesale and retail) jumped 149 percent currency-neutral to euro279 billion ($396 bn) while Reebok brand revenues grew 22 percent currency-neutral to euro564 million ($799 mm)

In North America currency-neutral sales jumped 127 percent to euro855 million ($121 bn) driven by increases at all brands with particular strength at Adidas as well as TaylorMade-Adidas Golf Momentum at Adidas continued with sales rising 17 percent in the North America region led by Adidas Sport Style business which jumped 58 percent Reebok returned to growth in the quarter with sales increasing 4 percent following a 15 percent decline in the second quarter TaylorMade Adidas Golfs revenues in the region expanded 24 percent

For the Adidas and Reebok Wholesale business combined on a global basis currency-neutral sales increased 60 percent to euro258 billion ($365 bn) with growth in all geographical areas

Currency-neutral Retail sales jumped 206 percent in the quarter to euro757 million ($107 bn) driven by a 14 percent comparable store sales increase In particular Russia CIS drove the gains with comps advancing 26 percent in the third quarter From a brand and store concept perspective growth was broad-based Adidas and Reebok comps increased 14 percent each in the quarter Similarly comp store sales increased at double-digit rates in all store formats with a 20 percent growth rate in the concept stores year-to-date

Revenues in its Other Businesses segment ndash TaylorMade-Adidas Golf Rockport and Reebok-CCM Hockey ndash advanced 125 percent currency-neutral (C-N) in the quarter to euro411 million TaylorMade-Adidas Golfs revenues jumped 162 percent (C-N) to euro244 million ($345 mm) Rockports sales advanced 59 percent (C-N) to euro72 million ($102 mm) and Reebok-CCM Hockey saw a gain of 103 percent (C-N) to euro70 million ($99 mm)

With the stronger-than-expected performance in the quarter Adidas Group now expects sales to increase at a rate approaching 12 percent on a currency-neutral basis in 2011 up from 10 percent previously EPS is now projected to increase at a rate approaching 16 percent to a level around euro315 up from a rate approaching 15 percent to between euro310 and euro312 previously

Looking to 2012 management indicated that sales are projected to increase at a mid- to high-single digit rate on a currency-neutral basis based on the strong momentum of the Grouprsquos brands well as the opportunities provided by the UEFA EURO 2012 and the London 2012 Olympic Games

Increases in input and labor costs as well as currency volatility are still expected to be headwinds for the development of Group profitability as in 2011 Nevertheless due to operating leverage EPS are forecasted to increase faster than sales at a rate between 10 percent and 15 percent

ADIDAS GROUP UPS FORECAST AS Q3 BEATS ESTIMATES

Sturm Ruger Inc reported third quarter net sales increased 379 percent to $805 million compared to $584 million in the prior year quarter Company management indicated that 33 percent of sales were from new products compared to 21 percent of sales for the third quarter of 2010

Firearm sales grew 378 percent to $792 million compared to $575 million The balance of revenue was generated by the Castings business which grew 449 percent for the period

Gross margins improved 440 basis points to 362 percent of sales from 318 percent of sales in the year-ago quarter SGampA was 152 percent of sales a 70 basis point improvement from the 159 percent of sales in Q3 last year

Net income jumped 777 percent to $107 million or 56 cents per diluted share from $60 million or 31 cents per diluted share in the prior-year period

RUGER Q3 PROFITS JUMP AS FIREARM SALES SURGE


ASICS CORP SWINGS TO NET LOSS IN FISCAL SECOND

QUARTER

Asics Corp swung to a net loss in the fiscal second quarter ended September 30 due in part to sales declines in the Americas region and weaker earnings across regions outside Asia

The Japanese footwear giant posted a net loss of yen680 million ($09 mm) or yen035 yen per share versus a net profit of yen207 billion ($24 mm) or yen109 yen per share in Q2 last year Operating income was down 406 percent to yen261 billion ($34 mm) from yen439 billion ($51 mm) in the year-ago period Overall global revenues rose 28 percent to yen5857 billion ($753 million) in fiscal Q2 from yen5699 billion ($664 million) a year ago

Revenues in the domestic Japan business were up 33 percent to yen2306 billion ($297 mm) versus yen2231 billion ($260 mm) in the year-ago quarter Operating income in the region jumped 131 percent to yen126 billion ($16 mm) in the period

The Americas posted a 121 percent sales decrease in yen terms to yen1486 billion ($191 mm) in fiscal Q2 from yen1690 billion ($197 mm) in the year-ago period In US dollar terms revenues were down 30 percent for the period Operating profits in the region fell 807 percent to yen238 million ($31 mm) versus yen123 billion ($14 mm) in fiscal Q2 last year In US dollar terms operating income fell 787 percent for the quarter and was down 99 percent for the first half

In Europe fiscal second quarter revenues increased 94 percent to yen1334 billion ($172 mm) but operating income fell 662 percent to yen510 million ($66 mm) Oceania revenues increased 58 percent to yen241 billion ($31 mm) in Q2 and regional operating income declined 80 percent to yen577 million ($74 mm)

East Asia revenues increased 109 percent to yen365 billion ($47 mm) for the period and operating profit grew 228 percent to yen426 million ($55 mm)

Looking ahead Asics sees revenues reaching yen250 billion in the year-ended March 31 2012 representing a gain of 62 percent versus the prior fiscal year Operating earnings are expected to decline 50 percent to yen205 billion while net income is forecast to dip 04 percent to yen110 billion

DOREL BIKE SALES FUELED BY CANNONDALE AND WAL-MART

LAYAWAY PROMOTION

Dorel Industries Inc reported revenues increased 216 percent at its RecreationalLeisure segment in the third quarter ended September 30 as Cannondale sales to the independent bicycle dealer (IBD) channel continued to drive growth and Wal-Mart Stores Inc stocked up on bikes for its new lay-away promotion

Segment sales reached $2098 million up from $1725 million in the third quarter ended September 30 Organic revenues increased 18 percent for the quarter and are up 13 percent year-to-date The segment consists of the Cycling Sports group which sells Cannondale and other premium bikes to the IBD channel Pacific Cycle which sell bikes to the mass merchandise and warehouse club channels and the Apparel and Footwear Division (AFD) which provides cycling apparel and footwear under the Sugoi and Cannondale labels

Gross margin in the segment reached 224 percent down 40 basis points from a year earlier while operating profits slipped 50 basis points to 48 percent of revenue The stronger US dollar at the end of September shaved 100 basis points from the gross margin Segment operating profits improved by $900000 or 98 percent to $10 million but would have improved 35 percent if not for a $25 million decline in revenues at the AFD division The division took a write-down during the quarter on excess inventory as well as a one-time charge of $800000 related to its decision to outsource the manufacture of custom club and team kits

Our RecreationalLeisure segment continues to perform well and we see no change in this positive trend through year-endrdquo said Dorel President and CEO Martin Schwartz ldquoCannondale has had an excellent year and we see this growth continuingrdquo


NEWS

K-Swiss Inc reported higher sales and earnings in the third quarter but fell short of Wall Streets expectations More discouragingly worldwide futures orders were down 42 percent at the end of the period

The net loss in the quarter amounted to $154 million or 43 cents a share compared with a loss of $283 million or 80 cents a year earlier Revenues in the quarter jumped 308 percent to $805 million Analysts on average had expected a loss of 27 cents on revenue of $88 million

On a conference call with analysts company President and CEO Steven Nichols said signs of the companys turnaround would have been evident if backlogs started improving in the second half

We still see some positive trends with the performance category and international backlog up but we didnt pass the test with flying colors said Nichols Our grades if you will are a bit mixed and it appears we have more work to do

The company also said it decided to shut down the operations of FORM Athletics the mixed martial arts apparel brand it acquired in July 2010 for $16 million Said Nichols This performance was not meeting our expectations We didnt see its future laying with the rest of our business

Performance product revenues which represented 39 percent of revenues in Q3 were up 73 percent Lifestyle product sales accounting for 32 percent of revenues were up 3 percent for the quarter Other revenues contributing 29 percent of sales and representing its Palladium and Apparel lines climbed 35 percent

Domestic sales were up 21 percent in the quarter but domestic future orders were down 24 percent at September 30 Its international business rose 39 percent in the quarter and international futures improved 11 percent

K-Swiss estimated full-year revenue at $260 million which was below Wall Streets average estimate of $278 million Gross margin is expected to reach 365 percent of sales compared to 39 percent a year ago SGampA expenses are expected to be $153 million to $155 million

Said George Powlick the companys CFO Although Q1 2012 backlog was up very significantly when we reported in July we experienced a reversal in that trend as the quarter progressed We are budgeting our 2012 operating expenses so that they are appropriate for our expected revenue and have begun implementing a major cost reduction program

K-SWISS FALLS SHORT OF EARNINGS GROWTH EXPECTATIONS

Big 5 Sporting Goods which serves 12 Western states that have been among the hardest hit by the housing bust and unemployment said sales and margins improved with each month of the third quarter

The El Segundo CA - based retailer said sales rose 13 percent

to $2347 million in the third quarter ended October 2 Same-store sales decreased 01 percent for the third quarter of 2011 versus the comparable period last year when same store sales were up 2 percent Big 5 ended the quarter with 398 stores and expects to close the year with a net increase of 11 percent

After a rainy cool July comp sales rose in the low-single digits in the back half of the quarter Apparel sales rose in the mid-single digits thanks to better assortments of higher-priced branded product and clearance sales Footwear sales were up in low-single digits while sales of hardgoods fell in low-single digits due in part to a softness in golf tennis and fitness products

Net income slipped 147 percent to $58 million or 27 cents per diluted share

Big 5 said traffic and average ticket prices climbed in October and it expected fourth-quarter same-store sales in the positive low- to low-mid-single digit range Rising product costs and clearance activity will likely continue shaving margins particularly as the companyrsquos new merchandizing team clears out more SKUs to make room for higher priced branded goods aimed at attracting a more affluent customer

ldquoWe are trying to make some slight tweaks and adjustments to our model to just try to broaden our appeal to those that might be somewhat less price sensitive in this environmentrdquo said President and CEO Steve Miller

BIG 5 SEES THIRD QUARTER EARNINGS FALL ON WEAKER

COMP STORE SALES


MOVERS amp SHAKERSQuiksilver Inc has named Craig Stevenson who has served as the companyrsquos Americas region president global brand president and chief operating officer of Quiksilver Inc Rob Colby previously Quiksilver Americas chief operating officer succeeds Stevenson as Americas region president

Mizuno USA CEO and President Bob Puccini has been elected as the vice chairman of the Sporting Goods Manufacturers Association (SGMA) for a one-year term The announcement was made at the conclusion of SGMAs annual business meeting in Chicago IL held on October 18

James Van Doren co-founder of Vans Shoes passed away at the age of 72 Van Doren co-founded Vans originally known as the Van Doren Rubber Co with his older brother Paul in 1966 in Anaheim CA

Rocket Dog Brands LLC appointed Derek Bowen as managing director Europe He was most recently from Wolverine Worldwide where he acted as the Northern European sales director Heritage Brands Group

Sturm Ruger amp Co announced Randell Pence former executive director of sales will relocate to the greater Nashville TN area as their newly appointed senior sales executive

Sport Obermeyer hired Linda Rodney formerly of Burton Snowboards as national sales director

Orange 21 the parent of Spy Optic said that effective December 15 Carol Montgomery will join the companyrsquos board of directors making way for current President Michael Marckx to assume the additional role of CEO

LeMond Fitness appointed Raymond Calvert as senior vice president and chief financial officer

Superfeet Worldwide Inc lost of one of its longest-employed sales reps Roger LaRoche (1949-2011) LaRoche was part of the Superfeet family for over 20 years after joining the company as a Northern California rep in the mid-90s

SHIMANO INC THIRD QUARTER REVENUE GROWTH ACCELERATES BUT PROFITS DIP

Shimano Inc reported net sales for the third quarter rose 58 percent to yen545 billion ($700 mm) from yen515 billion ($600 mm) in the year-ago period The gain in the quarter is an acceleration from the trend for the first half of the year when revenues rose just 26 percent Total revenue growth for the nine month year-to-date period was up 37 percent to yen162 billion ($202 bn)

Gross margins slipped 280 basis points to 341 percent of sales in the third quarter and down 240 basis points for the YTD period but SGampA improved 50 basis points to 203 percent of sales for the quarter and decreased by 10 basis points for the nine-month period

Resulting operating income for the third quarter declined 144 percent to yen750 billion ($96 mm) and net income dipped 19 percent to yen470 billion ($60 mm) or yen4816 (62 cents) per share

The company which is one of the worldrsquos two premier cycling component suppliers and parent of Pearl Izumi said the economic malaise deepened in the US and Europe in the year-to-date period whereas high economic growth continued in China

Sales in the Bicycle Components business rose 70 percent to yen4445 billion ($572 mm) for the third quarter Operating income for the segment declined 144 percent to yen686 billion ($88 mm) Shimano said that while rain dampened sales in Europe and the US in June and July the market for sports bicycles in China continued to grow greatly over the prior year Sales of DeoreXT mountain bike components and Tiagra road bike components remained brisk and order uptake for Ultegra road bike components and Di2 digital shifters were ldquoupbeatrdquo

In the Fishing Tackle segment operating income jumped 128 percent to yen716 million ($92 mm) on a 11 increase in sales to yen988 billion ($127 mm) The company said fishing in markets affected by the Japanese Earthquake have yet to recover although sales of the Scorpion DC series of double-axis bait-casting reels and the Poison Glorious rod series continued to sell strongly due to the continued popularity of bass fishing Shimano indicated that despite the European debt crisis and rapid appreciation of the yen overseas sales exceeded last yearrsquos levels


NEWS

On Wednesday November 2 lsquopolitical footballrsquo again came to life in the nationrsquos capital with the 5th ldquoLongest Yardrdquo Football Classic Played out at the Watkins Recreation Center (13th amp lsquoDrsquo Street SE) in Washington DC and supported by the SGMA (Sporting Goods Manufacturers Association) nearly 30 members of Congress (ldquoThe Inmatesrdquo aka ldquoThe Mean Machinerdquo) competed in the flag football game against the Capitol Hill Police (ldquoThe Guardsrdquo)

ldquoThe Guardsrdquo won 28-14 and now lead the overall series 3-1-1 Along with bragging rights on Capital Hill the game raises money

for the US Capitol Hill Police Scholarship Fund established in 1998 to provide financial assistance to the widows and children of Capitol Hill police officers who have lost their lives in the line of duty The event also raises money for Our Military Kids which provides grants to children of deployed National Guard and Reserve personnel as well as to children of severely injured service members to cover the cost for enrichment activities and tutoring While all the accounting has not been finalized Mike May SGMAs spokesman said the game could potentially raise close to $40000 through ticket sales sponsorships and the eventual sale of the game jerseys and game shoes

To help maximize contributions to the Capitol Police Memorial Fund and Our Military Kids three SGMA member companies supported the game with the following donations

bull Nike ndash footballs shorts and receiver gloves bull Under Armour ndash game jerseysbull New Balance ndash cleats

ldquoThe Inmatesrdquo squad was a bi-partisan team of nearly 30 which featured Rep Heath Shuler (R-NC) Rep Jon Runyan (R-NJ) Rep Bill Shuster (R-PA) Donna Edwards (D-MD) and US Senator Marco Rubio (R-FL) Shuler is a former quarterback for the University of Tennessee Volunteers Washington Redskins and New Orleans Saints Runyan played 13 years in the NFL as an offensive lineman with the Oilers Titans Eagles and Chargers This year the Congressional team included a few former NFL players including Ken Harvey and John Booty who also coached the team The most notable player

in the game was 1982 Heisman Trophy winner Herschel Walker representing Franklin Sports who played for the Congressional squad Walker had a first-half leg injury and was limited for the balance of the game One other notable player on the Congressional roster was Donna Wilkinson a defensive lineman for the Washington Divas of the Professional Womenrsquos Football League Wilkinson is also a member of Team USA this countryrsquos national all-star team for women pro football players

In attendance at the game was NFL Hall of Fame wide receiver Art Monk who watched but did not play According to those in attendance the top players in the game for the Congressional squad were US Rep Jack Kingston (D-GA) who played defensive back US Rep Bob Dold (R-IL) and Congressional squad player-coach John Booty

As an organization that supports exercise and athletic activity for all Americans SGMA is delighted to support a fundraising cause such as this game which uses flag football as the vehicle to raise awareness and funds for a charitable cause said SGMA President Tom Cove

ldquoSGMA is proud to support the ldquoLongest Yardrdquo Football Classic to help those who have lost loved ones while serving our countryrdquo said Bill Sells SGMArsquos vice president of government relations ldquoSGMA applauds the Members of Congress and the Capitol Hill Police for their participation in this game It showcases their passion for football and their respect for those who protect all the people on Capitol Hillrdquo

OTHER INTERESTING ASPECTS OF THE GAME INCLUDED THE FOLLOWING

bull The Congressional team was allowed to have two ex-NFL players on the field at anytime

bull The game was held in 2005 2006 2007 and 2009 In 2005 it was a 14-14 tie In 2006 and 2007 the Capitol Hill Police won 35-7 and 28-0 respectively In 2009 the Congressional team won 32-26 in overtime

bull In 2005 and 2006 the head coach for the Congressional team was former University of Nebraska head football coach Tom Osborne who at the time was a congressman from the state of Nebraska

GUARDS BEAT INMATES IN 5TH ANNUAL LONGEST YARD CLASSIC

WITH THE AID OF THE SGMA NIKE UNDER ARMOUR AND NEW BALANCE PROVIDED GEAR FOR THE GAME


SPEEDO REVENUES INCH UP SLIGHTLY IN THIRD QUARTERWarnaco Swimwear Group which includes Speedo and Calvin Klein swimwear saw sales increase 72 percent to $393 million in the third quarter from $367 million in the year-ago period

The Grouprsquos operating loss improved 115 percent to $34 million from $37 million in Q3 last year Swimwear Group net revenues from international operations increased $21 million and from domestic operations increased $06 million The increase in international net revenues includes a $08 million increase due to the favorable effect of fluctuations in foreign currency exchange rates

Net wholesale revenues from Speedo inched up 09 percent to $296 million in the third quarter from $293 million in the year-ago period due primarily to gains in the US related to increased sales to membership clubs and mass merchandisers partially offset by a decrease in sales to team dealers and sporting goods stores

For the first time Puma has revealed the 2012 technical football kits for Pumas ten partnered African National football teams The kits were designed by ten Creative African Network (CAN) artists from the corresponding nations using inspiration from the visual and cultural motifs of their country to develop the jerseys The kit unveiled at the Design Museum in London brought together high profile football players and CAN artists from each of the ten Puma partnered teams This collaboration is accompanied by the month-long exhibition lsquoInterpretations of Africa Football Art and Designrsquo at the Design Museum in London which is showcasing the artistsrsquo design inspirations

Through Puma Creativersquos CANs program artists were commissioned to design a football jersey inspired from the countryrsquos heritage culture and traditions Ten artists worked with their home nation to create unique and inspiring designs for the official football kits Puma Creativersquos central premise was a program that brings together the individual artists and organization providing them with a platform for creative exchange and international exposure

Some of the notable football players attending included Samuel Etorsquoo of Cameroon John Mensah of Ghana and Yaya Toureacute of the Ivory Coast

PUMA UNVEILS AFRICAN FOOTBALL UNIFORMS

Photo courtesy of Puma


Five Ten Deal Gives Adidas Grip on Climbing Tech Market

ADIDAS GROUP ACQUIRES FIVE TEN

Ethan Pringle climbing Coup dBambooPhoto ccourtesy of Five Ten

By Thomas J Ryan



In a move seen as a further example just how serious it is to sit among the leaders in the outdoor space Adidas Group last week reached an agreement to acquire Five Ten the outdooraction footwear brand best known for its Stealth rubber outsole technology

The purchase price is $25 million in cash at closing and contingent payments which are dependent on Five Ten achieving certain performance measures over the next three years The deal is expected to close in the next couple of weeks

Best known for its climbing and mountain biking shoes Five Ten will remain an independent brand with the existing set up in the US remaining the same Charles Cole founder and president of Five Ten is staying on to lead the brand

Annual sales in 2011 of Five Ten are expected to reach euro16 million (approximately $23 million) excluding its distributor business in Japan and Korea

In an interview with SGB Weekly Rolf Reinschmidt senior vice president Adidas Outdoor noted that as part of its Strategic Business Plan Route 2015 the Adidas Group expects sales in the outdoor segment to exceed euro500 million by 2015 based on organic growth Only three years after its relaunch overseas the unit reached euro200 million in sales in 2010 and has reached sales of euro300 million already in the first nine months of 2011 which included its re-launch in the US this fall

The acquisition of Five Ten is consistent with Adidas long-term goal of establishing a leading position in the performance and technical outdoor sector he said Five Ten will allow Adidas to expand into a market that is complementary to our current product offering most notably the technical climbing segment We also see significant growth opportunities for Five Ten across the globe

With the acquisition Adidas also obtains the rights to Five Tenrsquos patented Stealth rubber technology and Reinschmidt expects this technology is transferable to many other applications with both Adidas Outdoor and Adidas broader product offering He further said the companies complement one another

ldquoFive Ten has continuously been at the forefront of innovation and shares the same passion for athletes as we do at Adidas noted Reinschmidt This acquisition underscores our clear commitment to the outdoors and our ambition to play a leading role in the outdoor industry going forward I am looking forward to working on this journey together with Charles Colerdquo

On its third quarter conference call with analysts last week Herbert Hainer Adidas CEO likewise highlighted Adidas success in re-entering the outdoor space over the last three years Today we are among the top 10 brands in outdoor worldwide and as part of Route 2015 we have already announced our ambitious organic goals to reach euro500 million in sales by 2015 said Hainer Momentum in the category is currently very strong being our fastest growing category at Adidas in the first nine months with sales increasing

40 percent approaching euro300 million The continuing rise in popularity of our Terrex footwear and apparel offering more than 50 percent growth in the emerging markets as well as a good start into our outdoor relaunch in the US is yielding just rewards for our investment and focus into the category

Hainer described Five Ten as a perfect example of how we can help build out a more holistic and credible offering to service the outdoor market

He added It is the brand for outdoor athletes who like to live on the edge which is reflected in its motto The Brand of the Brave Five Ten has been at the forefront of innovation in the technical outdoor market since the day Stealth a revolutionary high-friction rubber compound was created in 1985 Five Ten will among other things allow Adidas to expand into a market that is complementary to Adidas current product offering most notably the technical climbing segment We will also keep Five Ten as an independent brand integrated primarily on the back-office side with a clear focus to create synergies wherever possible

In an interview with SGB Weekly Cole said Five Tens growth had become constrained by its current structure Basically a few years ago we really refined our strategy the Brand of the Brave which was a decision to act like who we really are In our industry

Charles Cole Founder and President of Five Ten and below in 1985 the same year he founded the company


there is so much pressure to walk the same ldquocorrectrdquo line as everyone else It just wasnrsquotisnrsquot us It was clear that we had potential to do amazing things in more extreme sports like mountain biking which will be more than half of our business next year We are a tiny company we didnrsquot have the resources to grow as much as the market demanded We had a choice We could shrink and never give the public what they wanted or partner with someone who really got it and let Brand of the Brave reach its full potential

The demand is happening now we need help now added Cole If people place a lot of orders and we canrsquot deliver they might as well not place orders The biggest change people will see is in delivery We were growing so fast and we needed more help But we needed to work with a company who not only knew what they were doing but also who understood all of what Five Ten stands for The only company who got it was Adidas

Cole said Five Tens philosophy is akin to Adidasrsquo founder Adi Dassler with his focus on product quality and putting athletes and performance first Said Cole They bring in enormous resources Every year we max out what we can make dependent on cash flow We have never been able to make enough product to satisfy the market and now we can

On a personal level Cole recognized that Five Ten was ready to take its growth to the next level

It is still my baby and like all children I want it to be successful said ColeNow it is time for it to go out and get marriedhellipI guess you could say we are kicking it out to grow up although Irsquoll still be around to guide - Irsquom remaining as president I suspect Irsquoll still be the black sheep in the industry and proud of it - meaning that Five Ten will continue to be independent thinkers For me now I will have

time to pursue the things that got me interested in the company in the first place - designing shoes developing rubber I love the marketing and creative stuff - for the first 15 years of business I was the creative team Now I will be able to work on ads cool new designs and new Stealth applications and formulas

The sale comes as Five Ten has witnessed significant growth this year both in Europe the US and other emerging markets Said Cole We have seen enormous growth in bike climbing wingsuiting slack lining free-running military and amphibious What has happened is that people have realized the value of Stealth rubber And I donrsquot forget bull running - the Atlas Pamplona sold out its first run in record time

The Five Ten Elite Team consists of some of the worldrsquos top athletes - Dean Potter National Geographicrsquos 2011 athlete of the year JT Holmes champion bigmountain skier and Suz Graham the female action sports star Other sponsored athletes include Dave Graham Danny MacAskill Ellen Brennan and Katie Lambert

Five Ten also sponsors a handful of athlete expeditions It announced the CORE AWARDS for 2012 designed to help young competitive climbers with entry fees travel and training expenses ndash particularly needed with climbing recently landing on the docket as a potential Olympic sport The brand also has relationships with Hollywood Transformerrsquos 3 Mission Impossible 4 and The Twilight Saga Eclipse are among the major releases in which stuntsaction sequences were made possible with Stealth and Five Ten

While early in its re-launch Adidas Outdoor also teamed with a number of stars in the climbing space including the Huber Brothers (climbing Germany) Beat Kammerlander (climbing Austria) Barbara Zangerl (climbing Austria) and Sasha DiGiulian (climbing US) It also partnered with prestigious mountain guide school organizations such as Zermatt Alpin Center (Swiss) and Ragni di Lecco (Italy) and renewed its partnership with Italian climbing legend Reinhold Messner who wore the Adidas Supertrekking lightweight trekking shoe when he made the first Everest ascent without artificial oxygen in 1978 While the two brands both share climbing roots Cole said Five Ten will remain committed to its edgy positioning

All of our categories will still be under the Brand of the Brave around the Worldrsquos Most Exciting Sports said Cole We are interested in sports that are dangerous and making the best shoes for the worldrsquos most dangerous sports We have a lot to use with Brand of the Brave - to take the risk out of scary

Five Ten celebrates their acquisition by Adidas

RUN ONE LAP ON A BIGGER TRACK

With Speed and Distance powered by GPS Run Trainertrade system gives you the freedom to run anywhere Just press start and enjoy your run

copy2011 Timex Group USA Inc TIMEX TRIATHLON INDIGLO RUN TRAINER and HOW FAR WILL YOU TAKE IT are trademarks of Timex Group BV and its subsidiaries IRONMAN and M-DOT are registered trademarks of World Triathlon Corporation Used here by permission

HOW FAR WILL YOU TAKE ITtrade

NEW

GPS

Shannon Coates Timex Multisport Team


By Charles Lunan

Implus Sale to Trilantic Capital

Partners Should Boost European

GrowthPE Firm Recently Sold Stake In SRAM LLC for $575 Million

Rapidly growing Implus Corporation continues to outgrow investors like a teenager outgrows his shoes The Durham NC distributor of footwear outdoor and fitness accessories announced November 1 that the private equity firm Trilantic Capital Partners acquired a ma-jority stake in the company from AEA Investors which had only ac-quired control of Implus in 2008 Financial terms of the transaction were not disclosed

Trilantic will partner with founding family member and CEO Seth Richards and President Todd Vore to help finance and guide Implus as it prepares to break the $200 million revenue mark in 2012 In an exclusive interview with SGB Weekly last week Richards and Vore said the deal leaves their stake in the company largely intact and will enable Implus to take advantage of rapid growth in Europe and other overseas markets

Implus acquired its European distributor in France in 2010 and

in May moved the operation to a new 50000-square foot distribution center Companywide Implus sales are on track to reach $165 million this year up nearly 20 percent from 2010 and nearly 50 percent from 2009

ldquoWersquove had a lot of success in-ternationally where we have worked directly with retailers and replicated our US business modelrdquo said Rich-

ards ldquoIn October we had more revenue in Europe than all of last year The European business has exceeded all expectationsrdquo

Richards attributes the success to Implusrsquo business model which has been to cut out distributors and offer retailers not only its ac-

Seth Richards CEO of Implus Footcare


cessory lines but merchandizing logistics category management and marketing services that help maxi-mize turnover and profitability Im-plus categories and brands include insoles (Airplus Apara Sof Comfort and Sof Sole) shoe care products (Sneaker Balls and Sof Sole) socks (Apara Sof Sole and Yaktrax) sports monitors (Highgear and New Bal-ance ) seasonal items (Little Hotties

and Yaktrax) and fitness products (Perfect Fitness) Trilantic is a partner who will help us expand across business

lines and in new markets both in the US and overseas where we see tremendous opportunity said Richards Trilantic has proven to be a successful partner in helping the management teams of middle-market businesses grow organically and through acquisi-tions

Specifically Implus was impressed with how Trilantic helped SRAM Holdings LLC the Chicago-based maker of premium bike components grow internationally Trilantic led a group that invest-ed $2348 million in SRAM in 2008 and sold that stake in June for $575 million SRAM which is the worldrsquos second largest maker of bicycle components after Shimano Corp is now pursuing a $300 million initial public offering of stock

ldquoTrilantic has a European office and will help us expandrdquo said Vore ldquoThey have strategic relationships and 20 investment professionals there They understand the culture and the nuances of importing country by country They are also a set of eyes and ears to help us spot acquisition targetsrdquo

Trilantic focuses on taking controlling and significant minority stakes in consumer energy transport financial services business services and healthcare companies in North America and Europe Formed in 2009 by the former principals of Lehman Brothers Mer-chant Banking (LBMB) the company works with management teams entrepreneurs and families to take companies to the next level including an IPO

Implus has a strong competitive position with a proven track re-cord of growth through innovation customer expansion and strategic acquisitionrdquo said Charlie Moore partner at Trilantic and Chairman of the board of Implus which manages two institutional private equity funds with an aggregate capital commitment of $38 billion

Trilantic acquired its stake from AEA Investors a private equity firm that invested in Implus in May 2008 as it was digesting several acquisitions and laying plans for a new headquarters and distribution center just outside Research Triangle Park A year later just months before moving into the facility Implus acquired Highgear which de-signs sources and sells instruments for outdoor enthusiasts Implus has since expanded its headquarters facility by 20 percent to more than 300000 square feet

month direct response campaigns Implus can accelerate growth at the company by speeding up product development beyond two launches per year and by providing Perfect Fitness dealers ndash most of which Implus already serves through its other brands ndash best-of-breed category man-agement and fulfillment services That will involve crunching retail POS data and aligning production and fulfillment ldquoWe will make sure the right products are in stock in the right stores at the right time Richards said

In September Implus closed on its latest acquisition Perfect Fitness Founded by a former Navy SEAL the company is best known for using television commercials and other direct response channels to sell the Perfect Pushup Perfect Pullup and Perfect Situp fitness accessories

Perfect Fitness is already sold in more than 24000 doors by mass merchandisers and sporting goods retailers but its sales have been relatively flat and tapered off after the company completed its six-

Todd Vore President of Implus Footcare

ball football and other sports

EVERY JOURNEY BEGINS WITH A GREAT JOB HAVE YOU LANDED YOURSFOR INFORMATION CONTACT 7049873450 OR SPORTSJOBSSPORTSONESOURCECOM

OBJ COM

18 SGB WEEKLY AUGUST 29 201118 SGB WEEKLY AUGUST 29 2011

18 SGB WEEKLY AUGUST 29 2011

Job Classifieds

EVERY JOURNEY BEGINS WITH A GREAT JOB HAVE YOU LANDED YOURS

FOR INFORMATION CONTACT 7049873450 OR SPORTSJOBSSPORTSONESOURCECOM

OBJ COM

Independent Sales Rep ndash Resort MarketGEAR for SportsGEAR for Sports a leading designer of quality custom active wear has an immediate opening for an Indepen-dent Sales Rep in our Resort Market in multiple territories across the country The apparel brands under the GEAR for Sports umbrella include GEAR for Sports Champion and Under Armour Responsible for presenting our sea-sonal product line to resort customers (hotel gift shops tourist destinations etc) throughout the territoryhellip

Senior Buyer24 SevenOur client is a destination specialty store with a reputation for outstanding customer service and the ability to understand their customers needs and is currently seeking to add a dynamic Buyer to their non-apparel division-Golf Gift amp Tennis Primary responsibilities include managing open-to-buy process develop and direct subordinates to improve performance and achieve professionalbusiness goalshellip

Global Print Producer adidas-AshworthTaylorMade Golf CompanyCoordinate the planning design production and rolloutexecution for adidas Golf and Ashworth 2D print production projects Ensure all projects meet required levels of CIbrand guidelines budget and quality within departmental objectives and procedures Provide project leadership throughout the lifecycle of 2D projects keeping jobs on time and within budget maintaining professionalism energy and focus in a variety of circumstances

Director of SourcingLife Is Good IncReporting to the VP of Product and Design the sourcing manager will be responsible for the development management and communication of the companyrsquos global sourcing strategy for all apparel and accessories The primary focus of this role will be to work collaboratively with product development design and quality assurance to ensure that all products achieve cost technical quality and aesthetic targetshellip

Apparel Technical DesignerNew BalanceAs an Apparel Technical Designer you will be responsible for making accurate interpretations and translations of a designrsquos intent through product specifications You will complete specification packages including illustration flat sketch with measurements fabric construction details sewing instructions trim sheet and special applications In this role you will analyze the fit quality and pattern of garments ensuring that products are developed in a manner consistent with established standards You will make appropriate adjustments to patterns as necessaryhellip

Sales RepresentativeInjinji IncInjini Inc the Original Performace Toe Sock is searching for manufacturers independent commissioned reps in select territories Identify screen and open new business in all channels of trade in approved geographic territory foster relationships with existing accounts to promote growth professional and timely communication with the home officehellip

Independent Sales RepresentativeWingflyerWingFlyer a division of Catalfumo Global Distributors LLC is seeking independent sales representatives to expand distribution in the bike outdoor and specialty retail channels WingFlyer is paving a path for the new sport of step cycling by introducing innovative and high quality products for consumers to enjoy and by launching an incredibly aggressive marketing campaign to help stimulate sales at the dealer level We are seeking reps in multiple USterritories

Senior Product ManagerPrimos HuntingProvides leadership throughout the design development and commercialization of new products including both new innovation and evolution of existing products to ensure the delivery of the company-wide business goals and objectives Responsibilities include but are not limited to conceptualization translating market research and needs project management directing design teams and providing product content expertise This position is responsible for all phases of product development product designhellip

Business Systems Analyst III ndash Go To MarketColumbia SportswearIn this position you will act as the primary ISIT department contact as you partner with a variety of departments throughout the organization Although your primary focus will be aimed at the Sales Marketing andor Product Development business areas your flexibility will allow you to work in other areas This is an opportunity to use your Project Management and Business Systems Analysis experience in the field of IS systems implementationshellip

TO READ THE FULL JOB DESCRIPTION PLEASE CLICK ON JOB TITLE

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Call 1-800-877-3626 to book your orders for 2012 now

RelevanceA collection of casual footwear insoles and accessories that are easy to merchandise and sellA 45 year track record of products that keep people healthy and active Great pricing Terrific customer service

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NOVEMBER 7 2011

12Page














SGB

TEAM Business


The BOSS Report


SGB Update





SGB Weekly


SportScanInfo

OIA VantagePoint

SOS Research





ISSUE 1145




NEWS




















QUARTER









LAYAWAY PROMOTION






NEWS



















COMP STORE SALES



















NEWS






























By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



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NOVEMBER 7 2011

12Page














SGB

TEAM Business


The BOSS Report


SGB Update





SGB Weekly


SportScanInfo

OIA VantagePoint

SOS Research





ISSUE 1145




NEWS




















QUARTER









LAYAWAY PROMOTION






NEWS



















COMP STORE SALES



















NEWS






























By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM

















NEWS




















QUARTER









LAYAWAY PROMOTION






NEWS



















COMP STORE SALES



















NEWS






























By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM


















QUARTER









LAYAWAY PROMOTION






NEWS



















COMP STORE SALES



















NEWS






























By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM

















NEWS



















COMP STORE SALES



















NEWS






























By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM


































NEWS






























By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM

















NEWS






























By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM





























By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM




















By Thomas J Ryan


































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM

















































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM

































NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM




















NEW

GPS



By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM

















By Charles Lunan



























OBJ COM



Job Classifieds



OBJ COM































OBJ COM



Job Classifieds



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OBJ COM



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Documents

SGB WEEKLY 1145