BOSS_1108

The B.O.S.S. Report The Bicycle, Outdoor, and Snow-Sports Trade Newsletter Week 1108

© SportsOneSource, LLC

The Week’s Top Stories Timberland returns to doubledigit sales growth in Q4…

(Pages 1-2)

Burton shuts off gray market (Page 2) dealers…

Jarden Outdoor sees Q4 profits soar on double-digit sales growth…

(Page 3)

Cabela’s sees retail strength and strong margins drive Q4 profit growth…

(Page 4) REI ruled liable for private label product failure…

(Page 4) Kneissl files bankruptcy; awaits new investment…

(Page 5) NRF: Container data show increase in inventories…

(Page 5) Report: January seventh straight (Page 5) month of retail gains…

ORWM: Backcountry hardgoods review, part II… (Pages 6-7) Other Stories include Patagonia, Burton, Jack Wolfskin, and many more...

February 21, 2011

Timberland Returns to Double-Digit Sales Growth...

The Timberland Co. reported fourth quarter sales rose 26.7% to $491.1 million, fueled by strong gains in men's footwear and its SmartWool business in North America. Earnings zoomed ahead 88.8% to $42.1 million, or 82 cents, handily topping Wall Street's consensus estimate of 51 cents a share. Overall revenues grew 28.1% on a constant-dollar basis, reflecting growth across North America, Europe, and Asia.

"With four successive quarters of brand-right growth, 2010 marks the moment when Timberland shifted from playing defense to playing offense," said Jeffrey Swartz, president and CEO, on a conference call with analysts.

North America revenue increased 16.8% to $252.0 million in Q4 due to improved wholesale sell-in, specifically men's footwear, and growth in SmartWool apparel and accessories. U.S. owned-retail comps increased 6.2%, driven by men's and women's footwear.

Europe revenue climbed 32.3% to $169.6 million in Q4 and increased 40.1% on a constant-dollar basis. European results reflect growth across the region, led by Germany, Scandinavia, and the Benelux region. The gains were driven by strong performances in men's, women's and kids' footwear.

Owned-retail comps grew 26% in Europe.

Asia revenue increased 58.5% to $69.6 million in the fourth quarter and jumped 48.3% on a constant-dollar basis, led by Japan, Taiwan, and China.

The region saw growth across all categories at both wholesale while comps ran ahead 28%.

By product category, fourth quarter global footwear revenue increased 31.2% to $358.8 million, driven primarily by men's but also supported by strong growth in women's and kids' in all regions. Women’s footwear was up double-digits in 2010. Apparel and accessories revenue increased 16.6% to $125.1 million, reflecting growth in every region but driven by strength in Timberland apparel sales in Asia.

Global wholesale revenue was up 30.9% to $326.6 million with double-digit growth across all regions. Worldwide consumer-direct revenue increased 19.0% to $164.5 million with retail comps ahead 17.6%. The gain also reflected the addition of ten stores, the majority in Asia.

Continued on Page 2...

Market Report Index

2/18

2/11

Market Movers +/-

Company

2/18

2/11

+/-

BOSS

1,880.29 1,851.61

1.5%

Timberland

37.08

28.91

28.3%

Vendors

2,044.68 2,002.21

2.1%

Rocky Br

14.00

12.53

11.7%

App/FW

2,061.47 2,010.42

2.5%

Cabela's

29.53

27.50

7.4%

Hardlines

1,825.42 1,804.20

1.2%

Deckers

90.03

86.05

4.6%

Retail

1,504.71 1,503.89

0.1%

Shimano

36.38

37.62

-3.3%

SEW

1,759.78 1,708.26

3.0%

Johnsn OD

15.22

15.80

-3.7%

S&P 500

1,343.01 1,329.15

1.0%

LaFuma

14.56

15.15

-3.9%

Dow Ind.

12,391.2 12,273.2

1.0%

Spt Chalet

2.30

2.40

-4.2%

Week 1108

The B.O.S.S. Report

February 21, 2011

News · Analysis · Insight

Timberland Story Continued from Page 1...

Timberland Classics Business Stabilizes; Women’s is a Target Opportunity...

Timberland ended the year with 228 Timberland-owned stores worldwide.

Fourth quarter gross margins declined approximately 205 basis points to 48.6% of sales due to increased product cost as a result of higher leather, transportation and labor costs. This was partially offset by a more favorable mix and lower close-out trends. Operating expenses increased 11% partly due to increased marketing costs but declined 400 basis points as a percent of sales.

On the call, Swartz noted that Earthkeepers generated annual sales increases in the triple-digits in every region and across all genders.

The Nature Needs Heroes campaign, along with TBL’s first ever women's marketing efforts in the U.S. and the U.K., helped more than triple Earthkeepers sales with women in every regions.

"Women's is a huge growth opportunity for Timberland and we are just beginning to scratch the surface with double-digit growth in women's footwear in 2010," said Swartz.

But Swartz was particularly enthused about the regained momentum in North America that was helped by efforts to establish its Outdoor Performance lines such as Mountain Athletic and Hiking at core sports outlets such as Dick's Sporting Goods while establishing Earthkeepers at Macy's, Nordstrom and other specialty stores. He added that the "the Pro result was terrific and the SmartWool result was spectacular," in North America.

The Classics business stabilized and returned to positive growth globally in 2010. Swartz believes the improved Classics performance is due to better success the brand is having tapping the youth market both with marketing and product.

Inventory at year-end increased 14%, driven by a 19% increase in global backlog, higher product costs and additional supplies to support future orders.

Timberland management did note that rising input costs will continue to hurt gross margins and the company would continue to aggressively reduce costs to shore up operating margins. Swartz also said that although Timberland's backlogs for spring are up 19%, open-tobuys remain constrained across retail.

The Timberland Company Full Year Results (in $ millions) Total Sales

2010

2009

Change

$1,429

$1,286

+11.2%

North America

$647.3

$610.2

+6.1%

Europe

$592.1

$528.0

+12.1%

Asia

$190.1

$147.7

+28.7%

Wholesale

$1,025

$918.8

+11.5%

Direct

$404.8

$367.1

+10.3%

Total Footwear

$1,036

$931.2

+11.2%

Total App./Acc.

$368.8

$329.1

+12.1%

Gross Margins

48.7%

46.9%

+180 bps

Net Income

$96.6

$56.6

+70.6%

Diluted EPS

$1.82

$1.01

+80.2%

Inventories*

$180.1

$149.2

+20.7%

U.S. Retail Comps

+3.1%

-8.7% * at year-end

"No retailer’s in the rejoice mode," said Swartz. "Every retailer I know is the caution mode. And so, I don't think that changes anytime soon. I think that actually favors us because we are offering big ideas with integrated marketing programs.

We have demonstrated that we can execute in terms of filling you in when you need product. And so I guess the early indications that I am seeing from Fall are good."

Burton Cuts Off Dealers Supplying Gray Market — for Good...

Burton Snowboards said it had recently terminated dealer agreements with several U.S. shops suspected of re-selling products through unauthorized channels. The move reflects Burton's ongoing efforts to protect and support its global network of specialty retailers by aggressively combating gray marketing.

A spokeswoman for privately-held Burton declined to say how many dealers were affected or answer a half dozen other questions posed in an e-mail by Sports Executive Weekly last week, saying the company’s release stands for itself. Among those questions were whether Burton would ever consider reauthorizing the dealers in the future and what steps it was taking to fight gray market activities.

"I've said it many times, and I'll say it again - I have absolutely no tolerance for gray marketing," said Jake Burton Carpenter, founder and CEO of Burton Snowboards. "I don't get why a snowboard shop in one part of the world has a right to shit on a local shop in another part of the world for short-term gains. I often think of it in the context of a Japanese dealer shipping product back to Walmart in the U.S. We want to build a global network of specialty retailers that cares about the sport, the brand, the product and each other. So we're not afraid to end relationships with dealers that gray market anywhere in the world."

Cutting off suspected dealers is just a part of Burton's latest efforts to hammer home the message that gray marketing will not be tolerated. A few months ago in mid-season, Burton took unprecedented action by canceling millions of dollars in U.S. orders that were most likely intended for the gray market in Japan. In addition to tightly monitoring orders and inventory, Burton is closely tracking product that ends up in the gray market and tracing it back to the source.

Page 2

© SportsOneSource, LLC

Week 1108

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

Jarden Outdoor Fourth Quarter Profits Jump on DoubleDigit Sales Gain...

Earnings at Jarden Corporation’s Outdoor Segment rose dramatically on a nearly 17% increase in sales in the fourth quarter and year ended Dec. 31, 2010 as charges related to acquisitions fell off dramatically.

Net sales for the Outdoor Segment reached $604.0 million during the quarter, up 16.8% from the fourth quarter of 2009. Organic growth was 13% for the period, (excluding a $7 million foreign currency exchange impact), led by winter sports brands K2, Marker, and Volkl due primarily to new product introductions, strong retail listings, and improved market conditions including good early snow conditions. During a conference call with analysts, JAH management said ell-through was strong, also pointing to strong sales for next winter.

Jarden also owns the Abu Garcia, Coleman, Penn, Rawlings, Stearns, Zoot and other outdoor and team sporting goods brands. Aero, a maker of inflatable mattresses acquired by The Coleman Company in October, contributed approximately $28 million in sales in the quarter.

Jarden said the strong sales growth reflects increased confidence and spending among employed consumers more than any big gains in market share.

“We view winter sports sales as a good barometer for consumer confidence as mid-range skis retail from around $500 and performance there was exceptionally strong, producing both record sales and EBITDA,” said company President and COO Jim Lillie. “In technical apparel, Marmot continued to execute against its aggressive growth strategy outlined to investors last year, growing approximately 30% in the quarter and over 15% for the year.”

Outdoor division segment operating earnings grew nearly seven fold to $22.4 million as reorganization and other integration costs dropped off to $7.4 million from $29.2 million in the fourth quarter of 2009.

For the full year ended Dec. 31, Jarden Outdoor Solutions sales rose 8.9% to $2.52 billion, while operating earnings rose 41.5% to $228.6 million, again because of a sharp fall off in acquisition-related one-time charges. Operating earnings reached 9.1% of net sales in 2010, compared to 7.0% a year earlier, a big step toward the company-wide goal of 15% margins by 2014. A record number of eligible employees, or 90%, will receive bonuses based on the company’s 2010 performance, said company CFO Ian Ashken.

Management said the company appears to be on track to expand gross margins by 50-60 basis points as declines in ocean container rates and price increases by Jarden offset rising commodity prices and the company passes through price increases. They expect companywide organic growth to fall in their 3 to 5 percent target range.

“The winter sports season remains strong and we're in a low- to no-inventory position in winter sports heading into the U.S. and international trade show, which bodes well for the 2011-2012 season,” Lillie said. “The bookings for Jarden team sports including our Rawlings and Worth baseball and softball brands and our Gate and deBeer lacrosse brands look strong so far. “ Jarden Chairman and CEO Martin Franklin said the company is in no hurry to acquire companies and will instead focus on using its projected $1 billion in free cash flow over the next 3 to 4 years to pay down debt.

The company ended the year with a total debt-to-equity ratio of 2.89, nearly five times the average for the Yahoo Sporting Goods index.

“We don't need to buy anything to execute our plan, so we have the luxury of not feeling any pressures to make acquisitions, said Franklin.

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

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February 21, 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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Page 3

Week 1108

The B.O.S.S. Report

February 21, 2011

News · Analysis · Insight

Cabela’s Inc. Sees Retail Strength, Strong Margins Drive Q4 Profit Growth...

Cabela’s Inc. reported improved merchandise margins, increasing revenues and lower impairment charges in the fourth quarter ended Jan. 1 drove profit up more than 14% against a year -ago period that slumped on steep charges and liquidation costs. In a conference call with analysts, management for the self-proclaimed Worlds Foremost Outfitter said margin improvement in ten of 13 sub-categories - especially in the footwear and apparel categories - drove merchandise margin 70 basis points for the quarter - marking the third consecutive quarter of margin improvement.

Total revenue for the quarter, adjusted for divestitures, edged up 1.7% to $934.4 million from $919.2 million a year ago. Earnings improved nearly four-fold to $66.3 million, or 95 cents per diluted share, from earnings of $16.6 million, or 24 cents, a year ago.

By outlet, the company rode strength from its bourgeoning retail stores, which saw revenues increase 3.2% to $478.8 million from $463.8 million and operating profit increase for the seventh consecutive quarter. Same-store sales improved 7.3% during the quarter.

CEO Tommy Milner said the company made “additional investments in store labor during the quarter, which led to improved results in footwear and at the gun counter, among other departments. Milner added that the retail segment saw exceptional sales growth between Black Friday and Christmas due to a “deep commitment to key item inventories, better in-season management, a sharper focus on advertising effectiveness and a planned increase in store labor…”

Management confirmed the planned openings of stores in Allen, TX, Springfield, OR and Edmonton, Canada In the Direct segment, revenues dip slightly to $386.9 million from $407.6 million a year-ago. Management attributed the slight decline to soft sales of ammunition in the Direct segment along with “greater than expected challenges” related to the revamped cabelas.com website and a new CRM system at the retailer’s call centers. “While the customer issues are largely behind is now, at times in the fourth quarter, our customers experienced longer than average wait times and slow response times while placing orders,” said Milner. Milner added that the company experienced planned declines in its catalog business, which was partially offset by double-digit gains in its internet businesses. Going forward, Milner said the “real opportunity” in the higher margin Direct segment would continue to come from e-commerce, which the company has invested heavily in over the past couple of years.

Cabela’s, Inc. Full Year Results (in $ millions)

Revenues

2010

2009

Change

$2,663

$2,632

+1.2%

Direct

$999.8

$1,059

-5.6%

Retail

$1,413

$1,389

+1.7%

Financial

$227.7

$171.4

+32.8%

Gross Margin

40.8%

39.1%

+170 bps

Net Income

$112.2

$49.6

+126%

Diluted EPS

$1.62

74¢

+119%

Inventories*

$509.1

$440.1

+15.7% * at year-end

For the Financial Services segment, revenue increased 27.8% to $57.8 million from $45.2 million a year ago as the business recorded lower bad debt reserve releases.

In related news, subsequent to the quarter, World's Foremost Bank and the Federal Deposit Insurance Corporation (FDIC) agreed in principle to settle all matters related to the 2009 compliance examination. Cabela’s said it now expects the net impact of restitution and penalties to be $8 million pre-tax. The company recorded an $18 million pre-tax liability in the first quarter of 2010 related to this matter; therefore, the company reduced that liability in the fourth quarter by $10 million pre -tax. The liability reduction had a favorable 9 cents impact to reported earnings per share of 95 cents in the quarter. Excluding this item, earnings per share were 86 cents in the quarter.

Court Rules REI Liable for Failure of Private Label Novara Fork...

In a ruling that could have wide-ranging implications, REI must take responsibility for an allegedly defective fork that caused a Novara bicycle to collapse in 2007 and left a woman with permanent injuries, a Washington appeals court ruled last week.

The ruling came only a few days after the plaintiff, Monika Johnson, was killed in an unrelated backcountry accident in Snoqualmie Pass in Washington.

Johnson sued REI when a carbon fiber fork on her Novara failed, throwing her face down onto a sidewalk, according report in the Seattle Times. The accident broke her jaw, her several teeth and caused her to suffer head injuries cuts and abrasions, according to her lawsuit.

bike to a cost and

REI had argued that manufacturers of the Novara's fork, not REI, should be responsible for any defects.

Page 4

Johnson's attorneys argued REI was responsible because it had branded the bike as its own.

The part was manufactured by Aprebic Industry, but sold under REI's private label brand name Novara, according to Courthouse News Service. The appellate court agreed with the trial court's ruling that REI has the liability of a manufacturer under the Washington Product Liability Act. “Recreational Equipment, Inc. (REI) is not entitled to seek to allocate fault to the manufacturer of the defective product that REI branded as its own," the appeal court’s Feb. 7 ruling reads.

REI has not yet determined whether to appeal the ruling to the state's Supreme Court. Johnson's attorney said they would pursue the lawsuit through her estate.

© SportsOneSource, LLC

Week 1108

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

Kneissl Files Bankruptcy; Awaits Investment...

Kneissl, an Austrian maker of bicycles, skis, tennis racquets, apparel and accessories filed for bankruptcy Feb. 8 after its majority owner in Saudi Arabia did not meet a court deadline to inject more capital into the company, according to several media reports.

It marks the second time since 2003 that the company has filed for bankruptcy. Kneissl listed €23.3 million in debts. The company is credited with being the first company in the late 1990s to market skis with curved edges to make turning easier.

Kneissl filed bankruptcy in 2003 after acquiring Raichle, Dynafit and Marker in 1996. All those companies have since changed ownership. Mammut now owns Raichle, Salewa owns Dynafit and Amer Sports owns Marker.

JJW hotels & Resorts Group, which is controlled by Saudi investor Mohamed al-Jaber, acquired a 60% share in Kneissl in 2008, according to Austriantimes.net. In February 2010, he appointed his oldest daughter, Masheal Al Jaber, a co-manager of Kneissl Holding in Tyrol in what Kneissl CEO Andreas Gebauer then described as a strong sign of the family’s bond to the Kneissl brand.

Last week, al-Jaber said he will invest another €1.2 million in Kneissl once its bankruptcy plan is worked out with creditors.

Data Show Wholesalers Building Inventory in 2011...

Container cargo volume at the nation’s major retail container ports is expected to rise by 11% this month, 6% in the first half of 2011 and 7-8% in 2011 over the comparable periods in 2010, according to a forecast released by the National Retail Federation.

The growth indicates brands, wholesalers and retailers continue to up their orders in response to the rebound in consumer spending. It corroborates government statistics showing the wholesale inventory to sales ratios in the apparel sector were about 18% higher on an adjusted basis in December than a year earlier. The Federal Reserve Board, meanwhile, upped its GDP growth estimate for 2011 last week to 3.9% and said growth will edge up in 2012 and 2013.

“Strong growth in 2010 has retailers cautiously optimistic that the economic recovery is finally taking hold,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Retailers are encouraged by six consecutive months of retail sales gains and improved consumer confidence.”

The first half of 2011 is forecast at 7.3 million TEU, up 6% from the first half of 2010. That compares with 17% growth in the first half of 2010 over the first half of 2009. For the full year, 2010 totaled 14.7 million TEU, a 16% increase over 2009, when imports reached their lowest level seen since 2003.

February 21, 2011 January Was 7th Straight Month of Retail Growth...

With consumers showing spending power beyond the holiday season, January marked the seventh straight month of retail sales gains. According to the Commerce Department, retail industry sales (which exclude automobiles, gas stations, and restaurants) for January increased 0.2% seasonally adjusted from December and 3.5% unadjusted year-over-year.

“In spite of the economic uncertainties that still exist, consumers are clearly demonstrating their desire to spend on discretionary items once again,” said NRF President and CEO Matthew Shay.

“The industry is certainly benefitting from the renewed confidence we’re seeing in shoppers, although sustained growth in 2011 will largely rely on improvement in key economic indicators like employment and housing.”

Sporting goods, hobby, book and music stores sales decreased 1.3% seasonally adjusted month-to-month and increased 0.4% unadjusted year-over-year.

Lululemon to Purchase HQ Building...

Lululemon Athletica will complete the purchase of the building in Kitsilano, Vancouver, where its corporate headquarters is housed. The move will enable the retailer to settle in the community where it started.

The purchase of the building, at 1818 Cornwall Ave., will be completed on or around March 1, the company said late Tuesday.

The facility is roughly 130,000 square feet in size, with about 70,000 square feet already occupied by 300 Lululemon employees. The building was originally a bottling plant before being converted to office use in the 1980s.

“Kits has always been our home and we are thrilled that it once again will be,” said Christine Day, Lululemon's CEO. “To work in one of the most beautiful communities in Vancouver - within walking distance to amazing yoga studios, fitness facilities, the Seawall and beautiful beaches - is what inspires us every day.”

“Our caution is that the rate of growth seen in 2010 will not be repeated, said Ben Hackett, of Hackett Associates which tracks container imports for NRF. “We are projecting that annual growth will be in the 7 to 8 percent range.”

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

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Page 5

Week 1108

The B.O.S.S. Report

February 21, 2011

News · Analysis · Insight

OR Winter Market Backcountry Hardgoods Review Part II...

The relentless march toward lighter, stronger, faster continues in the backcountry equipment market as evidenced by products exhibited at last month’s Outdoor Retailer Winter Market. Below we provide specific examples in a second installation of The B.O.S.S. Report’s occasional series on what was new and important at the show. For an overview of larger trends driving the backcountry equipment business, see last week’s issue of BOSS (BOSS_1107).

BOOTS: Dynafit’s weighed in with the 1,750-gram Titan Ultralight (MSRP $869.95), a super-stiff Freeride Touring boots suitable for long tours. Ultra-stiff Pebax mix and a carbon fiber heel booster increase support and performance in the most challenging terrain. The alpine overlap construction combined with micro adjustable magnesium buckles allows for wide range of motion for walking, climbing and skinning.

Garmont’s four new Freeride Tour boots feature a rear plate that can be adjusted with a hex nut to offer three forward lean positions and a new water seal gasket to join the shell over the foot.

The line includes the Delirium for men and Asylum for women, its stiffest freeride boots to date for the sidecountry market. The Delirium weighs in at about 2,400 grams and features a wide forefoot for bunions and bone spurs. The Asylum features Garmont’s new EZFIT liners that can be skied without thermoforming. Both skis use a snug heel and a stiffened lower shell for enhanced leverage. ***** SKIS: This category is filled with alpine companies making lighter, narrower skis and backcountry companies making fatter, heavier skis. Rockered skis, originally developed to keep tips up for skinning and skimming powder, were represented in most lines because they make it so much easier to turn and the rocker can be adjusted to help even the fattest skis negotiate all snow conditions.

Black Diamond introduced its new Power Series of skis, which it says reflects its “mission to united freeride power with backcountry-inspired agility.” The eight-ski collection is aimed at lift assisted runs on powder, piste or hard snow, making it clear BDE expect to meet its goal of quadrupling annual sales to $500 million in the next five years in part by pushing further into the resort alpine market. The Zealot (MSRP $849.00) and Verdict (MSRP $819.00) skis, for instance, add a layer of Titanal metal sheets for “terrain absorbing dampness through any snow conditions.” The 110 mm-waisted Zealot is optimal for 50% soft snow and 50% hard snow, while the 102mm waisted Verdict is good for 30/70 mix.

At 140/116/127, G3’s 2011/12 version of its top selling Highball (MSRP $769.95) will be the fattest ski ever offered by the backcountry brand. It features G3’s progressive Sweet Rise Camber, which combines rocker for soft snow conditions with a camber for loads of edge pressure on firmer snow and is aimed at the freeride market. It too uses Titanal deck sandwich construction and weighs in at 4.5 pounds per ski. “We been a guide oriented company so we are catching up with the market,” said Scott Deur, North American sales manager for G3. “The guides like more cambered, traditionally European touring ski, but the sidecountry wants more rocker. ***** BINDINGS: Dynafit’s Radical FT12 (Freeride Tour) (MSRP $599.95) is an example of how the European backcountry brands are catering to the more aggressive North American Freeride skier. The 599-gram binding with DIN 12 setting features toeside “power towers", allowing for quick binding entry, increased power transfer, and greater side impact resistance. It comes with an anti-torsion plate for big jumps and lateral rigidity, a speed step climbing bar, and 75mm width and 130 m brake for your fatter skis.

Continued on Page 7...

Page 6

© SportsOneSource, LLC

The B.O.S.S. Report

Week 1108

News · Analysis · Insight

February 21, 2011

ORWM Hardgoods Review Story Continued from Page 6...

PACKS: Air bags were the big development in this category and now seem destined to become standard issue for serious backcountry skiers. “These have been around 25 years but there has been a big push recently because there has been more testing and real world data proves they pretty much work,” noted David Furman, hardgoods category manager for Mammut, which launched its own line of air bag systems at the show. “If you are caught in an avalanche slide, you have a 50% chance of being buried without a bag. With a bag, that goes down to somewhere near 5%. I think this is a really important topic in avalanche safety and will really grow.”

Mammut will enter the business next season with a 22- and 30-liter pack (MSRP $679-$699) that uses a modular air bag and venturi (inflation) system that can be moved between packs. Refillable cartridges are available for $175.

"In the future you will be able to move our air bag between a 15- and 40-liter backpack as you move between yo-yo skiing and backcountry," Furman said of the system, which is being licensed from fellow Swiss company Snowpulse.

Backcountry Access introduced the Float 18 (MSRP $685) and Float 36 (MSRP $785) on either side of its existing Float 30 (MSRP $750), which has been a big hit with backcountry skiers and snowmobilers alike. The Float 18 is aimed at “slackcountry” skiers who yo-yo up and down the mountain using lifts and snowmobilers looking for a lower profile pack. These enthusiasts still need to carry shovels and probes, but don’t need as much room in their pack for extra layers and food. BCA has had a lot of success with the Float 30 because it’s priced well below European competitors, in large part because of the company’s just patented venture system, which allows it to use much smaller 2,700-psi compress air cylinders that can be refill cheaply at SCUBA, paintball and select outdoor retail shops. ***** SHOVELS: K2 introduced its first complete line of backcountry tools at the show, including shovels, probes, climbing skins, poles and packs. The company has emphasized versatility. It’s shovels for instance have slot that allow them not only to be used as a dead man anchor but be combined with its skis and poles to construct an emergency litter.

The shovel’s handle can be configured for hoeing rather than shoveling. The company improved the stiffness of its probes by 30% and integrated inclinometers into its poles so users can quickly gauge the angle of a slope without removing gear from their pack.

BCA’s completely redesigned its avalanche shovels with a more contoured, industrial look that makes them more compact, stronger and gives them more shelf appeal. The Arsenal line features an integrated 240-cm probe and 35-cm saw, while the Bomber series (B-1, B-2 and B-3) features a contoured design and more shallow neck that sheds weight and makes them more packable. ***** BEACONS: Here manufacturers are still searching for the right balance of features, ease of use and price. Mammut, for instance, introduced the Pulse Element Barryvox (MSRP $350), a slimmed down version of the Pulse (MSRP $490), which was introduced in 2006 for the professional market. The Pulse uses signal separation, which allows rescuers to distinguish between separate signals in a mass burial situation. Some have rejected the feature as too complicated and time consuming given the rarity of multiple burials, so Mammut introduced basic and advanced user profiles in the beacons in 2009. For 2011-12, Mammut will take it a step further by stripping out the motion detector, the analog mode and the user profile settings to create a less expensive and easier to use Pulse Element. “You can add all the features in the world,” Furman noted. “But if people don't want it, you can't sell it.” ***** PROBES: G3 cuts its probe SKUs in half and their individual weights by 15% with the introduction of its new line of aluminum and carbon Speed Tech probes, which come in 198, 328, 248, 3080 centimeter versions (MSRP $54.95-$84.95). All the probes are etched their entire length with 5mm lines and feature a new single-pull, quick deployment handle to shave seconds of rescue times and add stiffness. G3 lowered its probe prices by about $15 a piece.

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Page 7

The B.O.S.S. Report

Week 1108

News · Analysis · Insight

February 21, 2011

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Aisle Talk Patagonia, Inc. hired Lee Turlington as vice president of global product and Paul Zadoff as VP of global sales…

Lance Armstrong has retired from professional cycling, according to the Associated Press…

Penguin Brands, Inc. hired Bridgit Lombard to the position of executive vice president of sales and strategy…

Burton Snowboards has chosen insider Philippe Gouzes as the company’s first SVP of international business…

Jarden Corp. has recouped its original minority investment in Rossignol, the French ski brand spun off at a loss by Quiksilver in 2008, Jarden Chairman and CEO Martin Franklin told analysts this week..

A team of bipartisan U.S. Senators and Representatives has reintroduced the Ski Area Recreation Opportunity Enhancement Act of 2011 to change permitting rules for ski areas on Forest Service land to allow for summertime recreation and increased tourism-and the influx of year-round business they bring…

American Whitewater, the nation’s leading voice for headwater rivers, applauded the America's Great Outdoors Initiative report released Wedneday by the Obama Administration for listing river recreation as among the top ten priorities of a new federal action plan for reconnecting people with nature through human-powered outdoor recreation…

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Compass Diversified Holdings, the equity owner of Fox Racing Shox and Liberty Safe, announced that Joe Massoud, its chief executive officer, has requested, and the Board has approved, a leave of absence…

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Birkenstock USA has beefed up its sales force by hiring six new territory managers and four new field service reps…

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Several companies are in talks to acquire Germany's Jack Wolfskin brand from two European private equity firms, according to an unconfirmed report in Financial Times Deutschland and picked up by the Bloomberg news service…

A man from South Jordan, Utah has been charged with stealing thousands of dollars of climbing and other gear from exhibitors at last month's Outdoor Retailer Winter Market, according to a report in the Salt Lake City Tribune. He faces one thirddegree felony count of theft and two misdemeanor counts of theft.

Goode Ski Technologies is moving production of all its snow skis from China to its headquarters in Ogden, UT...

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