BOSS_1107

The B.O.S.S. Report The Bicycle, Outdoor, and Snow-Sports Trade Newsletter Week 1107

© SportsOneSource, LLC

The Week’s Top Stories OR Winter Market: Backcountry Review Part I… (Pages 1-3) DSW Inc. to merge with Retail Ventures; raises outlook… (Page 4) Black Diamond outlines 5-year growth plans…

(Pages 4-5) Shimano nearly triples Q4 net on double-digit revenue growth…

(Page 5)

E-Commerce Sales climb 10% in 2010…

(Page 6) OIA VantagePoint: Outdoor product sales reach $10.85 billion in fiscal 2010…

(Page 7) Other Stories include Shoebacca, Bushnell, Performance Bike, Reef and much more...

February 14, 2011

OR Winter Market: Sidecountry, Innovation and Abundant Snow Fuel Sales and Optimism...

Abundant snow, brisk sell through, tight inventories and lots of innovation made for a buoyant mood in the backcountry section of the Outdoor Retailer Winter Market in Salt Lake City last month. Data released by Snowsports Industries America a week after the show showed U.S. snow sports sales broke $1 billion for the first time in December, with equipment sales leading the market with 22% increase in dollars sold and 11% in unit growth. While alpine ski equipment sales were up 27% for the August through December period, dollars sales were up more than 90% for AT/Randonee equipment, 165% for reverse/mixed camber skis and 58% for reverse camber snowboards.

“We’ve had snow all over the place so that makes us all look like we are a lot smarter,” said Mike Harttrup, director of telemark and alpine touring at K2 Sports.

Several exhibitors remarked on how impressed they were with the All Mountain Demo, which was moved from Snowbasin to the Solitude Mountain Resort within a half hour of the Salt Palace that hosts the show.

“Moving it to Solitude made a big difference,” said Scott Deur, North American sales manager for Genuine Gear Guide (G3), which was completely sold out of skis and probes by the time of the show and is now building skins to order after exhausting its inventory.

The Vancouver, BC-based company returned to the show after a one-year hiatus, during which it tried to service its dealers individually. “We were slammed,” Deur said of the demo, noting he had booked appointments with more than 100 dealers.

Continued on Page 2...

Market Report Index

2/11

2/4

Market Movers +/-

Company

2/11

2/4

+/-

BOSS

1,851.61 1,804.48

2.6%

Rocky Br

12.53

11.16

12.3%

Vendors

2,002.21 1,958.13

2.3%

Undr Armr

69.81

63.70

9.6%

App/FW

2,010.42 1,931.97

4.1%

Lululemon

84.31

76.96

9.6%

Hardlines

1,804.20 1,786.17

1.0%

LaCrosse

17.50

16.18

8.2%

Retail

1,503.89 1,464.78

2.7%

Big 5 SG

13.60

12.58

8.1%

SEW

1,708.26 1,702.75

0.3%

Volcom

18.11

16.79

7.9%

S&P 500

1,329.15 1,310.87

1.4%

Deckers

86.05

80.94

6.3%

Dow Ind.

12,273.2 12,092.1

1.5%

Blks Lsre

25.20

29.13

-13.5%

Week 1107

The B.O.S.S. Report News · Analysis · Insight

ORWM Hardgoods Cover Story Continued from Page 1...

Clean Inventories, Strong Margins Lift Pre-Season...

Many executives that spoke with The B.O.S.S. Report indicated that skis, boots and bindings were selling through at good prices and margins because dealers cleared out carry-over inventory last winter and manufacturers are offering little to no close-outs this year. That may point to strong preseason orders for the 2011-12 Fall/Winter season. It looks like there was little left on the floor leading in President’s Day weekend, historically the key weekend for seasonal inventory.

“I think the industry will exit the 2010, 2011 cleaner than it has been in my lifetime,” Black Diamond Inc. President and CEO Peter Metcalf told analysts in an earnings call last week. “And, I don't think that's an exaggeration. People have been more cautious because of the 2008, 2009 economic implosion, a couple of bad winters and this year has been good. It's been good globally.

And, the supply chains are very clean.”

In recent years, ski makers have become much more disciplined and rational about ordering and managing inventory under a new set of “more rational” owners, Metcalf said. That has created a healthier dynamic for vendors and dealers alike.

“Yes, we wish we had, had some more product in key categories and key models,” Metcalf said. “But, at the same time, it sure feels good to have people wishing they had gotten more product from us and it helps with the preseason ordering cycle that we're in now and I think it helps actually train the consumers, which is very healthy, to buy before New Year's if you want to get your coveted ski or boot.”

Several factors are driving growth. First and foremost, as usual, has been the weather. Second has been the improving economy, which has prompted the affluent-skewing ski crowd to resume spending on gear and travel after a twoyear hiatus. Hard core enthusiasts and younger skiers, meanwhile, are responding to rising prices for lift tickets by heading for the sidecountry and backcountry in growing numbers. This continues to fuel sales of not only freeride gear, but has also led to a resurgence in cross-country skiing and stoked interest in Randonee racing and uphill skinning for calisthenics in the United States, said G3’s Deur.

Another factor driving sales has been technology and innovation, which accelerated with the introduction five years ago of the Marker Duke binding that allowed North America’s alpine skiers to access the side country and backcountry powder with an unparalleled feeling of confidence, comfort and safety.

February 14, 2011 The B.O.S.S. Report is published 50 weeks per year and delivered via e-mail the first day of each business week. Articles and subscription info can also be accessed daily at : www.TheBossReport.com ***** SportsOneSource, LLC The SportsOneSource Group 2151 Hawkins Street Suite 200 Charlotte NC 28203 boss@SportsOneSource.com 704.987.3450 704.987.3455 fax www.SportsOneSource.com ***** James Hartford, Managing Editor james@SportsOneSource.com Tom Ryan, Senior Business Editor tryan@SportsOneSource.com Charlie Lunan, Contributing Editor clunan@SportsOneSource.com Kyle Conrad, Associate Editor kconrad@SportsOneSource.com

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"In the last two years the technology has changed so much," said Chico Bukavansky, national sales manager for park and accessories maker Dakine.

"There are a lot or reasons to upgrade."

Blurring of the lines between resort and backcountry skiing remained a strong them at the show with the most striking example being Black Diamond’s announcement just weeks before the show that it would become the lone hardgoods sponsor of the Subaru Freeskiing World Tour in 2011. Several industry sources said they were surprised by the announcement and one alpine retailer even called it “bizarre.” Another example was Marker-Volkl’s decision to exhibit at the show for the first time.

Continued on Page 3...

Page 2

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Week 1107

The B.O.S.S. Report News · Analysis · Insight

February 14, 2011

ORWM Hardgoods Cover Story Continued from Page 2...

Innovation Hitting New Peaks in the Snow Sports Categories...

Up until the introduction of the Marker Duke binding five years ago, North America’s backcountry skiers relied predominantly on European style bindings like the Fritschi, which were designed to be light and fast for alpine touring (AT) and Randonee racing. To cater to American backcountry skiers, European companies began beefing up their AT/Randonee bindings to handle aggressive downhill runs. Marker, by contrast, started with an alpine binding and strived to make it lighter for touring, i.e.; skinning up hills to reach the “virgin pow-pow.” This gave American freeride skiers the “torsional rigidity” they needed to handle jumps and extreme descents in the backcountry of places like Jackson Hole, Snowbird and Whistler-Blackcomb. Beefier backcountry boots soon followed with the result being that it is now common to see fat skis not only in the backcountry of the Rockies but on the showrooms of outdoor retailers.

“If you were an alpine skier, you had to drastically lower your expectations because the bindings and boots were inferior,” said Mike Hattrup, K2’s director of Telemark/Alpine Touring. “The Fritschi binding was the first one you could put an alpine boot in, but with the Marker Duke there is zero sacrifice in performance.”

Many of the new products at ORWM last month were again aimed at the sidecountry market, which is drawing resort skiers. These skiers rely on lifts to get up the mountain, do minimal skinning and therefore require different gear.

© SportsOneSource, LLC

While they still must carry a safety kit – shovel, probe and beacon - they don’t need to carry as many extra layers, food or water. Vendors are responding by trimming down packs that minimize discomfort on the lift, and using more carbon and new resins and designs to shave grams off their skis, boots, bindings, probes and shovels.

Also driving the inevitable move toward smaller, lighter, faster is growing competition for space inside the pack, which is getting fiercer with the emergence of float bags. These safety devices could be heard hissing across the floor in product demos throughout the show and seem well on their way to become standard equipment.

While U.S. companies introduced bags in well below the $1,000 price range charged by many European brands, look for float bags to take more of wallet and pack share going forward.

The trend is already causing vendors to pack more features and functions, like inclinometer, rulers and emergency litters into ski poles and other gear.

Continued on Page 5...

Page 3

Week 1107 DSW to Merge With Retail Ventures; Raises Outlook...

DSW Inc. and its largest shareholder, Retail Ventures, Inc. announced that the two companies have signed a definitive merger agreement providing for RVI to become a wholly-owned subsidiary of DSW. The transaction will be done in a tax-free exchange of shares at an exchange ratio of 0.435 DSW shares per each RVI share.

The off-price shoe chain also it expects between $2.38 to $2.42 for fiscal 2010, up from previous guidance of $2.30 to $2.40. In the prior year, it earned $2.30 a share. The company incurred charges associated with the merger transaction with RVI that impacted 2010 diluted earnings per share by approximately 5 cents a share. DSW said 2010 revenues grew 16.4% to $468.5 million. Comps were ahead 14.9% versus an increase of 12.9% in the prior year.

Ocean Container Lines See Potentially Tight Q3...

A rebounding U.S. economy will likely lead to a tight supply of vessel space and equipment during the peak third quarter shipping season, according to Transpacific Stabilization Agreement (TSA), which represents the major container shipping lines serving the AsianU.S. trade. The group said its forecast of 7-8% growth in container traffic for the Asian-U.S. trade indicates that additional ships now being delivered will be needed and well-utilized in the upcoming third-quarter, when Asian-U.S. shipping typically peaks ahead of the holiday shopping season.

“After demand growth of more than 15% in 2010, we expect further growth in the 7-8% range for 2011,” said Y.M. Kim, president and CEO of Hanjin Shipping Co. “This continued cargo growth, from a much higher base, is in our view a very positive sign of recovery.”

Kim noted that cargo activity was somewhat quieter than expected in the runup to factory closures for the Lunar New Year holiday that began Feb. 3. But he added that “advance bookings and market data suggest a return to robust trade flows by late spring and early summer, with a possibility that vessel space and equipment will be tight at times leading into the peak season.”

TSA noted that delays on new vessel deliveries, heavy demand for ships on Intra-Asia routes and other factors would slow volume growth.

The B.O.S.S. Report News · Analysis · Insight

February 14, 2011

Black Diamond Outlines 5-Year Growth Plans…

Black Diamond, Inc. is intently focused on acquiring companies with $10 million to $50 million in annual sales even as it works toward launching its own technical apparel line, according to details of a new five-year strategic plan disclosed last week.

In a Feb. 7 press release, and later in a conference call with analysts from Munich, Germany, where he was attending the ISPO show, BDE President and CEO Peter Metcalf outlined targets in the company’s newly minted strategic plan for fiscal 2011 to 2015. Chief among those was the disclosure that BDE is targeting fall 2013 as a possible launch window for an outdoor technical apparel brand to be distributed exclusively in specialty channel. Like its Finnish competitor Amer Sports (Arc’teryx, Atomic, Mavic, Salomon and Suunto), Black Diamond has concluded that apparel and footwear represent the only two categories big enough to materially impact growth over the next decade and beyond.

“The opportunity is very large and we believe that if we execute it well, we can achieve annual sales of apparel and footwear equal to or larger than our annual hard good sales and at higher margins within five years of our initial launch,” Metcalf said.

BDE expects fourth-quarter consolidated sales and full-year pro forma sales for the year ended Dec. 31 to come in at $34 million and $125 million, respectively. That’s up 10% from 2009 and near the top end of its previous guidance. While the company won’t announce final figures and earnings until KPMG completes its audit of the company's 2010 results March 1, Metcalf attributed sales growth to favorable winter weather across the globe and accelerating economy. Sales of a new line of lightweight AT ski boots performed particularly well in Europe, and helped boost sales of Black Diamond-branded skis and accessories there during the quarter.

Going forward, BDE has an opportunity to fill a vacuum that global apparel and footwear brands are creating in the outdoor specialty channel by widening their distribution in urban and suburban markets. “We expect to take our fair share of the market,” Metcalf said. “We also expect these sales to increase our average gross margins.”

BDE is actively pursuing companies with sales ranging in the $10-$50 million range, mostly with CEO founder/owners, Metcalf said. “For the most part, these companies are capital constrained but growing rapidly in the domestic market and stand to benefit from coming onto our platform,” he added.

BDE executives are speaking with both owner CEOs who are looking to cash out and those who would continue running their business as a BDE employee.

BDE has an advantage in competing for such companies not only because of its design, engineering and global distribution and sourcing acumen, but because of its reputation for integrity, its status as a leading advocate for outdoor causes and Metcalf’s extensive industry connections.

“When they're ready to do a deal, of which many are, they're looking to do a deal with someone who they can be proud of having done the deal,” Metcalf said. “For their employees they can be perceived as per se not having, quote, sold out, and by that, I mean Black Diamond is an acquirer of choice.”

BDE’s five-year plan envisions 12.5% compounded annual sales growth solely from existing categories, and calls for $13 million in incremental operating expense investments annually in areas such as a new and larger distribution facility in Salt Lake City, visual merchandising, direct-to-consumer sales and marketing, product development and infrastructure.

Continued on Page 5...

Page 4

© SportsOneSource, LLC

Week 1107

The B.O.S.S. Report News · Analysis · Insight

February 14, 2011

BDE Story Continued from Page 3...

Black Diamond Enters New Era As An Emerging Outdoor Industry Powerhouse...

About two-thirds of $7 million in spending in 2011 and 2012 will go toward expanding head count and product development, visual merchandising, North American and European sales infrastructure, and direct-to-consumer sales, said CFO Robert Peay. While the spending will dilute earnings in those two years, it will generate sustained earnings growth in the last three years of the period.

BDE expects to finance those investments out of free cash flow even as it reduces its line of credit and accumulates $20 million in cash reserves by the end of 2015. It anticipates operating margins accelerating rapidly in the last three years of the plan as it leverages its expenses.

Metcalf said the company’s fourth quarter results demonstrate the success of its merger last year with Gregory Mountain Products and the public shell corporation Clarus Corp. to create the nation’s newest pure-play, publicly traded active outdoor lifestyle company. The transaction gave Black Diamond access to public capital and Gregory access to Black Diamond’s global sourcing, marketing and distribution infrastructure to create a global growth platform. About a dozen employees have since moved from Gregory’s former headquarters in California to a refurbished, 10,000-square-foot space at Black Diamond’s headquarters in Salt Lake City. BDE began shipping Gregory product from its distribution center on the campus in early January and Gregory is now serving the European market via BDE’s European headquarters in Basel, Switzerland, where 50 employees from 13 countries speak nine languages.

“We now expect to see Gregory's revenue growth accelerate, its sourcing improve, and its distribution costs to decrease,” Metcalf said.

“We believe this is a great illustration of why our platform driven strategy is so compelling.”

Next month, BDE plans to move inventory from both brands to a larger facility in Salt Lake City that could be expanded to move up to $500 million of product a year.

In the current fiscal year, BDE expects sales to range between $135 million to $140 million, excluding the impact of new category launches or possible strategic acquisitions. Gross margins are expected to range between 36% and 39% during FY 2011 and the company expects to remain profitable, cash flow positive, and selffunding with respect to working capital needs. Gross margins would hinge largely on exchange rates and Gregory won’t become accretive to earnings until 2012.

Despite its strong cash position, BDE could issue up to $250 million in debt to fund acquisitions or expand its apparel, footwear and other category offerings, according to a shelf registration statement filed with the SEC in December. Those kinds of resources have Black Diamond dealers viewing the company in a new light, Metcalf said.

“As one retailer said to me at the close of the Outdoor Retailer trade show… ‘You know, I used to think about you as the biggest of the smaller companies. It's clear that you are now one of the smaller of the big companies.”

ORWM Hardgoods Cover Story Continued from Page 3...

While AT/Randonee gear skewed toward getting skiers between huts as quickly as possible, North American-style freeriding gear skews toward enabling skiers to bomb downhill. This is causing iconic backcountry brands like Black Diamond Equipment, G3, Garmont, SCARPA and Dynafit to move toward the alpine world with fatter, twin tip skis, beefier boots or stouter bindings, while the alpine brands focus on shaving grams off their gear. Some say, U.S. designs are now clearly driving Europe’s freeride market.

It will be interesting next season to see how outdoor specialty and alpine shops carve up the booming sidecountry business going forward. Many resort alpine shops are now carrying backcountry safety gear and brands and many outdoor shops are increasingly carrying fatter, early rise, reverse cambered skis.

“We’re entering that market more just because that's what the manufacturers are offering,” said Scott Cahoon, operations manager for Cole Sport, which operates four alpine shops in Park City, Utah. “All the traditional alpine boot companies now have backcountry/sidecountry boots.”

This winter, Cole Sport began carrying Black Diamond skis and committed to safety gear in a much bigger way. The retailer sold through most of that gear by Christmas and has been chasing it ever since.

“My kids ski Snowbird, but they may go out of bounds once in a while,” noted Cahoon. “That's who we are going after. We are not going after the guy who is parking on the side of the road and skinning up.”

For more on the snow sports coverage at OR Winter Market, look for next week’s issue of The B.O.S.S. Report.

For Breaking News every day, go to the sporting goods industry’s only continuously updated news portal at www.SportsOneSource.com

© SportsOneSource, LLC

Page 5

Week 1107

The B.O.S.S. Report

February 14, 2011

News · Analysis · Insight

Shimano Group Nearly Triples Q4 Net Income on Double-Digit Revenue Growth…

Shimano Group experienced a very strong business turnaround in 2010 after a tough 2009. But the company still remains cautious about the business moving into 2011 over concerns that the tempo of the economic recovery may slow in the European economies, the U.S. and other advanced countries, undermined by a credit crunch and high unemployment.

The Japanese bicycle component and fishing tackle manufacturer believes their domestic economy is expected to continue on a modest recovery track but is expected to remain unpredictable as “personal consumption is likely to weaken once the impact of the government’s policies wears off and a persisting strong yen will hamper export competitiveness.” Still, the company expects that China, India and other emerging economies are expected to continue to enjoy robust growth.

Full year revenues increased 14.4% to ¥213.6 billion ($2.44 bn) for the year ended Dec. 31 from ¥186.7 billion ($2.00 bn) in 2009, roughly double the forecasted growth one year ago. Operating income jumped 59.6% to ¥32.8 billion ($374 mm) from ¥20.5 billion ($219 mm) in the prior year. Net income doubled to ¥18.4 billion ($218 mm) compared to ¥9.6 billion ($103 mm) in 2009.

The company said an adjustment of the bicycle inventory worldwide that began in 2009 was completed by early fiscal year 2010 and distribution inventories resumed normal levels during the balance of the year. Shimano reported that, despite the impact of the strong yen, severe winter weather and a stalled economic recovery affecting several European countries, and the negative impact on consumer sentiment in the U.S. of the Deepwater Horizon oil spill in the Gulf of Mexico, sales outside Japan exceeded the previous year’s level, with the increase being “particularly marked” in Asia.

Shimano Group is forecasting net sales of ¥220 billion in 2011, an increase of 3.0% over the final results for 2010. Net income is expected to increase 15.1% in 2011 to ¥22 billion.

For the fourth quarter, total revenues increased 10.2% to ¥57.7 billion ($700 mm) and net income jumped 178% to ¥4.7 billion ($57 mm) for the period.

The company reported that fourth quarter sales of Bicycle Components rose 10.6% to ¥46.3 billion ($561 mm) for the year, resulting in an 8.4% decline in operating income to ¥7.06 billion ($86 mm). In Fishing Tackle, sales jumped 31.5% to ¥13.3 billion ($161 mm), while operating come fell 45.0% to ¥252 million ($3 mm) for the quarter.

Fourth quarter Japan domestic revenues increased 10.4% to ¥39.5 billion ($479 mm). Sales in North America rose 6.2% to ¥5.74 billion ($70 mm) and Asia revenues jumped 38.2% to ¥5.82 billion ($71 mm), while Europe revenues declined 6.4% to ¥5.29 billion ($64 mm) for the period.

Operating income contracted 0.3% to ¥3.69 billion ($45 mm) in Japan in the fourth quarter and fell 92.4% to ¥48 million ($582,000) in Europe. On the plus side, North America operating income jumped 220% to ¥435 million ($5.3 million) and Asia operating income increased 28.1% to ¥2.82 billion ($34 mm) in the period.

Overall fourth quarter gross margins narrowed 50 basis points to 32.8% of sales, while SG&A increased 10 basis points to 20.3% of sales.

Inventories at year-end were up 5.2% to ¥18.4 billion ($226 mm).

Page 6

Shimano Full-Year Results (in $ millions) Total Sales

2010

2009

$2,437

$1,998

Change* +14.4%

Bicycle

$1,933

$1,548

+17.1%

Fishing

$494

$435

+6.4%

Other

$10

$14

-32.1%

Japan

$1,642

$1,323

+16.4%

North America

$264

$235

+5.1%

Europe

$267

$247

+1.2%

Asia

$218

$152

+35.0%

36.3%

33.7%

+260 bps

$218

$102

+100%

Gross Margins Net Income

*Change in Yen Terms

E-Commerce Sales Up 10% in 2010...

Total U.S. e-commerce spending reached $227.6 billion in 2010, up 9% versus the previous year, according to the comScore's 2010 U.S. Digital Year in Review report. Retail (nontravel) e-commerce spending jumped 10% to $142.5 billion while travel e-commerce spending grew 6% to $85.2 billion, “2010 was a very positive year for the digital media industry, highlighted by a strong rebound in e-commerce spending , significant innovation and increased demand for online advertising, and an explosion in digital content consumption across multiple platforms,” said comScore Chairman Gian Fulgoni. “As we embark on a promising 2011, marketers must have a sound understanding of the digital media landscape and how it is changing if they hope to capitalize on key trends that can drive their business into the future.”

The report also found that social networking continued to gain momentum throughout 2010, with 9 out of every 10 U.S. Internet users now visiting a social networking site in a month, and the average Internet user spending more than 4 hours on these sites each month. Nearly 1 out of every 8 minutes online is spent on Facebook.

The U.S. core search market grew 12% overall in 2010, driven by a 4%increase in unique searchers and an 8% increase in the number of search queries per searcher.

U.S. Internet users received a total of 4.9 trillion display ads in 2010 with display ad impressions growing 23% in December 2010 versus December 2009. Social networking sites, which now account for more than one-third of all display ad impressions, were a significant driver of growth in the display ad market in 2010.

© SportsOneSource, LLC

Week 1107

The B.O.S.S. Report News · Analysis · Insight

February 14, 2011

OIA VantagePoint: Outdoor Product Sales Reach $10.85 Billion in Fiscal 2010...

In the broader retail marketplace it appears that resolute shoppers braved winter storms throughout much of the country in the four-week retail fiscal month of January, trudging through extraordinarily snowy conditions to stock up on discounted cold-weather apparel while making the most of post-holiday sales.

Many retail analysts lowered their expectations in the middle of the month as the snowiest January in six years bombarded the Northeast and South with brutal winter storms, but the broader market topped expectations and outpaced a respectable year-ago period, wrapping up a strongerthan-expected fourth quarter.

Based on retail point-of-sale data compiled by SportScanInfo for OIA VantagePoint, total outdoor product sales at retail* reached $715. 5 million for the retail fiscal month of January, a 2.3% increase versus the prior-year period.

Growth in the outdoor specialty channels, represented by the combination of the Independent Outdoor Specialty retailers and Outdoor Chain Specialty retailers, outpaced the broader market growth rate, increasing 5.2% to $195.3 million for the month.

Total fiscal 2010 sales of outdoor products in the channels tracked by SportScanInfo for OIA VantagePoint increased 4.0% to $10.85 billion for the year and outdoor specialty channels grew 7.3% to $2.95 billion for the twelve-month period ending January 29, 2011.

Outdoor Footwear Growth Outpaces Apparel and Hardgoods in January; Lags for Total YEar...

Outdoor Footwear posted the highest growth percentage of the three major product categories (Outdoor Footwear, Outdoor Apparel, Outdoor Hardgoods) in the fiscal month of January, with sales jumping 7.4% to $163.9 million across the channels tracked by SportScanInfo for OIA VantagePoint. Very strong sales (+32.9%) in the outdoor specialty channels, comprised of Independent Outdoor Specialty and Outdoor Chain Specialty, easily offset Outdoor Footwear sales declines in the Sporting Goods, Internet and Family Footwear channels.

Full year sales for the twelve-month fiscal period ending January 29, 2011 were up 3.8% to $3.72 billion. Outdoor Apparel sales in the outdoor specialty channels increased 4.5% for the year, generating retail sales of approximately $1.24 billion.

Overall Outdoor Footwear sales grew just 1.9% to $2.12 billion for the total 2010 retail fiscal year, but sales jumped 15.2% to $564.1 million in the outdoor specialty channels for the year.

Sales of Outdoor Hardgoods in the combined outdoor specialty channels, comprised of the consolidated Independent Outdoor Specialty and Outdoor Chain Specialty business, were up 1.5% to $58.4 million for the month ending January 29, 2011.

Outdoor Apparel sales inched up just 0.6% to $331.3 million for the fiscal month ending January 29, 2011 in the trade channels tracked by SportScanInfo for OIA VantagePoint. Sales in the combined outdoor specialty channels, represented by the Independent Outdoor Specialty and Outdoor Chain Specialty retailers, grew 0.9% to $103.1 million for the month.

Sales for the four-week month grew just 1.2% to $220.2 million for the period as the market starts to anniversary some of the solid growth posted at the end of the last fiscal year.

Full fiscal year sales of Outdoor Hardgoods in the channels tracked by SportScanInfo for OIA VantagePoint were up 5.0% to just over $5.0 billion for the twelvemonth period through January 29, 2011. Sales in the consolidated outdoor specialty channels were up 6.8% to $1.15 billion for the full fiscal year.

For more details about outdoor industry sales trends look for the Outdoor Industry Month Trend Report for January. Go to: www.OutdoorIndustry.org/OIAVantagePoint/ ***** Not able to track your retail sales results on a weekly basis?

You need OIA VantagePoint™, The Gold Standard in Weekly Outdoor Retail POS Sales Information. www.OIAVantagePoint.com Contact The SportsOneSource Group at 704.987.3450 or e-mail to: OIAVantagePoint@SportsOneSource.com * For the trade channels tracked by SportScanInfo for OIA VantagePoint.

Please contact SportsOneSource for a full list of reporting retailers in each channel. © SportsOneSource, LLC

Page 7

The B.O.S.S. Report

Week 1107

News · Analysis · Insight

February 14, 2011

One Source. Unlimited Solutions.

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Aisle Talk Shoebacca.com announced that Lee Harris, former head footwear buyer at Nordstrom, has accepted the position of President, effective Mar. 1, 2011...

Club Ride Apparel has appointed Backbone Media to lead its public and media relations efforts...

Motoi Oyama, the president of Asics, was elected president of the World Federation of the Sporting Goods Industry (WFSGI) for a three-year term...

GSI Commerce Inc. announced that Internet entrepreneur and investor Josh Kopelman has been elected by the company's board of directors to serve as a director of the company…

Reef appointed PJ Connell, currently Reef men's senior strategic marketing manager, as director of marketing for Reef globally…

Bushnell hired Paul Arnhold as its new public relations manager, effective Jan. 28, 2011...

Performance Bicycle announced that this April it will open six new retail stores in four states nationwide, including major markets in Sacramento and Berkeley, CA, Dallas/Fort Worth and Austin, TX, Atlanta, GA, and their first ever expansion into Idaho, with a new store set for Boise...

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