SGB WEEKLY 1139 by SportsOneSource

SEPTEMBER 26, 2011

The Weekly Digital Magazine for the Sporting Goods Industry

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ISSUE 1139 SEPTEMBER 26, 2011

Group Publisher Bill Garrels bgarrels@sportsonesource.com 303.997.7302

The Weekly Digital Magazine for the Sporting Goods Industry Editor In Chief James Hartford (704.987.3450 x104) james@sportsonesource.com Senior Business Editor Thomas J. Ryan (917.375.4699) tryan@sportsonesource.com Contributing Editor Fernando J. Delgado Creative Director Teresa Hartford Graphic Designer Camila Amortegui Advertising Sales Director Casey Vandenoever (303.997.7302) caseyv@sportsonesource.com Advertising Sales Account Manager Katie O’Donohue (704.987.3450 x110) katieo@sportsonesource.com Circulation & Subscriptions subs@sportsonesource.com Technology Chief Information Officer, Mark Fine VP Research & Development, Gerry Axelrod Manager Database Operations, Cathy Badalamenti

Page 14 NEWS

SportsOneSource Publications SGB TEAM Business Sportsman’s Business The B.O.S.S. Report

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BASS PRO SHOPS Challenges EEOC Racial Discrimination Allegations CONGRESS Recommending Full PEP Funding FINISH LINE'S Profits Climb on Double-Digit Comps NIKE, INC. Posts 15 Percent Revenue Growth in Q1 NIKE Officially Debuts the LeBron 9 Sneaker SGMA STUDY: Sports Participation Bounces Back

Sports Executive Weekly SGB Update Footwear Business Update Outdoor Business Update Sportsman’s Business Update Team Business Update

FEATURES

SGB Weekly

SportsOneSource Research

8 BSN SPORTS Looks to Give Back to Communities Through Victory Grants 14 SGMA Works to Break Down Trade Barriers

DEPARTMENTS 18 JOB CLASSIFIEDS

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ON THE COVER Photo courtesy of BSN Sports Copyright 2011 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers & 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; 704.987.3450. Send address changes to SGB WEEKLY, 2151 HAWKINS STREET, SUITE 200, CHARLOTTE, NC 28203; 704.987.3450.

WEEK 1139 | SGBweekly.com

NEWS

CONGRESS RECOMMENDING FULL PEP FUNDING

BASS PRO SHOPS CHALLENGES EEOC RACIAL DISCRIMINATION ALLEGATIONS The federal government is suing Bass Pro Shops over alleged racial discrimination in its hiring practices in its retail stores. The Equal Employment Opportunity Commission, a federal agency charged with enforcing antidiscrimination laws in employment, filed a lawsuit in U.S. District Court in Houston on Wednesday. According to the suit, the EEOC alleges that Bass Pro managers repeatedly refused to hire nonwhite workers as clerks, cashiers or managers in stores in Houston, Louisiana and other locations. The suit also alleges that Bass Pro management used discriminatory language to explain their actions. The commission also alleges that Bass Pro destroyed documents related to applications and internal discrimination complaints and retaliated against those who spoke up. The charges, some dating back to 2005, have been under investigation since 2007. The suit was filed after settlement negotiations broke down last year. The lawsuit alleges that qualified African-Americans and Hispanics were routinely denied employment at Bass Pro stores and that managers of stores in Houston and Louisiana made derogatory racial comments acknowledging the practice. In a prepared statement, Bass Pro Shops countered the claims detailed in the federal government's lawsuit. "This investigation and the EEOC's conduct demonstrate a troubling tendency by the EEOC to stereotype those who love outdoor sports and support conservation as people who unlawfully discriminate or oppose equal opportunity for all," said Mike Rowland, Bass Pro Shop’s VP of human resources. Rowland contends that during its investigation, EEOC investigators suggested that Bass Pro is more likely to discriminate against minorities because the company sponsors a NASCAR race team. The company said it has cooperated with the EEOC throughout its investigation, providing extensive documentation and numerous witnesses," Rowland said, adding that Bass Pro "vigorously denies" the allegations in the EEOC lawsuit. 4

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In a victory for physical education funding, the full U.S. Senate Appropriations Committee has followed the recommendation of the Labor, Health and Education Subcommittee and included $78.8 million in funding for the Carol M. White Physical Education Program (PEP) for the 2012-2013 school year. The House Education and Labor Committee had proposed the elimination of PEP, citing duplication on PE in other 'physical activity' programs. The House Appropriations Committee has yet to take up Education funding. The next step in the funding process will be the U.S. House of Representatives Education budget. In recent years, the Senate and the House have approved similar funding levels for PEP and compromised on the final funding figure. "The quality physical education provided with the PEP grant is critical to the physical well-being, academic achievement and social development of young people. Without dedicated PE funding, schools will not have the resources necessary to train teachers and purchase equipment needed for quality PE," said Bill Sells, SGMA's vice president of government relations. "The Senate's inclusion of PEP funding is a huge victory for the physical education community and a crucial step forward in securing 2012-2013 PE funds. SGMA is committed to ensuring PEP continues to receive federal support."

FINISH LINE'S PROFITS CLIMB ON DOUBLE-DIGIT COMPS The Finish Line climbed 24.4 percent its fiscal second quarter ended Aug 27 as comps grew 11 percent on strength in both its running and basketball footwear categories and robust e-commerce growth. On a conference call with analysts, company Chairman and CEO Glenn Lyon noted that the company increased comp sales and earnings within its core business for the eighth consecutive quarter. "We are firing on all cylinders when it comes to growing our core Finish Line brand business," said Lyon. EPS of 38 cents a share beat Wall Street's consensus estimate by a penny. The comp gain, which compared to a 2 percent lift in the 2010 quarter, reflected a 3.3 percent improvement in store conversion and a 4 percent increase in average dollars per transaction. Store traffic was down just slightly for the quarter. On a category basis, footwear comps were up 11.4 percent and soft goods increased 8.2 percent. Digital sales vaulted 60.6 percent to about 9 percent of total sales, up from 6 percent last year. In men's footwear, comps were up more than 14 percent. Running was up in the high teens. Said Steve Schneider, president and COO, "The story in both men and women's running is all about the lightweight trend, which shows no sign of slowing down." In men's running, comps were up in the high teens as Nike Free, Reebok Flex, Adidas ClimaCool, and Under Armour Impulse performed "exceptionally well." Technical running also performed well in men, with standout brands including Asics and Brooks. In women's running, high-single-digit comps were driven by strong sales from Asics, Reebok, Brooks and Nike. Overall women's footwear comps were down in mid-single digits due to the negative impact of toning, which represented less than one-half of 1 percent of total footwear sales in the fiscal second quarter. Basketball footwear marked 11 consecutive months of sales increases in the category with a strong double-digit comp gain in the quarter, led by Brand Jordan. Adidas, led

by Crazy Light, was also a "significant contributor" in basketball. Athletic casual was down in fiscal Q2 as anticipated but Adidas was a bright spot. Kids footwear "continued to be sensational during the back-to-school season, generating comp sales in the high-teens," and was led by Reebok lightweight running and Reebok Zig. Softgoods comps were up in high-single digits, driven primarily by accessories, led by socks, sunglasses, and watches. Apparel sales picked up in August with branded graphic tees from Nike and Under Armour selling "extremely well," according to Schneider. The bottom line benefited by a 200 basis point improvement in gross margins. Product margin net of shrinkage was up 60 basis points due to increased sell-throughs at full retail prices while the sales leverage on occupancy accounted for the rest of the margin improvement. Comps in the current month through Sept. 19 increased 9.0 percent on top of a 6.2 percent increase for the same period a year ago. WEEK 1139 | SGBweekly.com

NEWS

Nike chief executive officer Mark Parker

NIKE, INC. POSTS 15 PERCENT REVENUE GROWTH IN Q1 Nike, Inc.'s earnings jumped 15.4 percent in the fiscal first quarter ended Aug. 31 as double-digit revenues gains, led by the Nike brandâ&#x20AC;&#x2122;s North America region, offset margin pressures from rising input costs. The Q1 results, along with Nike brand backlogs that were up 13 percent, excluding currency fluctuations at quarter-end, prompted the company to increase revenue guidance for the year. Revenue in the 2012 fiscal year through May 31, 2012 is now expected to increase in the low- to mid-teens percentage range, above a high-single to lowdouble digit forecast given in June. "We all know the the economic uncertainty that we're seeing in the world today is putting pressure on consumers, around the world," said company President and CEO Mark Parker on a conference call with analysts. "Yet, in most countries, we continue to see solid growth in footwear and apparel sales, which tells me the growing middle class in developing markets is increasing consumption and that consumers 6

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everywhere are ready to buy when they feel good about what they get for their money." Fiscal first quarter EPS came in at $1.36 a share, easily besting Wall Street's consensus estimate of $1.21 a share. Revenues jumped 17.5 percent to $6.1 billion. Revenues in constant-currencies increased 11 percent and were better than expected due to strength around the world, particularly in North America. The impact of currency exchange fluctuations was also higher than management's previous guidance due largely to the strength of the yen and emerging market currencies. Excluding the impact of changes in foreign currency, Nike brand revenues rose 12 percent with growth in every geography except Western Europe, which was flat due to the negative impact from changes in the timing of shipments and comparisons to last yearâ&#x20AC;&#x2122;s World Cup. Overall, Nike brand revenues rose 18.5 percent to $5.3 billion

in U.S. dollar terms. Of particular strength was the Nike brand's Direct-to-Consumer segment, which saw sales increase more than 20 percent for the fiscal first quarter, including over 30 percent growth in the brand’s online business. Comp store revenue growth was strong at both factory and in-line locations. By region for the Nike brand, revenues in North America climbed 15.6 percent to $2.20 billion and were up 15 percent on a currencyneutral basis. Footwear sales grew 12 percent to $1.44 billion and were also up 12 percent currency neutral. Apparel sales in the region jumped 22.7 percent to $632 million, or 22 percent currencyneutral. Equipment sales rose 26.3 percent to $125 million and were up 15 percent currency-neutral. Futures were up 16 percent overall and up 15 percent on a currency-neutral basis. On the call, Nike officials said the top-line and futures strength in the region reflected broad-based growth across categories, product types and channels. Direct-to-Consumer (DTC) operations were particularly strong as improved store productivity drove a 17 percent increase in comps. Charlie Denson, president of the Nike brand, said on the call, "There are many factors at work here - our innovative product, the strength of our DTC business which posted 23 percent growth for North America in Q1, and our continued momentum in running, basketball, and men's and women's training." Overal, Denson highlighted the Nike brand's success in running, basketball, apparel and women's training. Running revenues and futures were up double-digits in the quarter, coming on top of growth of 30 percent in fiscal year 2011. Basketball in the U.S. and around the world saw high-single digit growth in the quarter "and the business continues to accelerate with double-digit futures growth," said Denson. Denson was also bullish that demand would continue despite the NBA lockout issues. He said, "Basketball never stops. It's truly becoming a global game. Between international leagues, national team play, the upcoming Olympics, the college game here in the US, we see basketball continuing to grow." Performance apparel for Nike brand was up double digits in the quarter, led by the success of Nike Pro. Said Denson, "In the U.S., Nike Pro continues to be the leading baselayer brand for women and over the last month, we've continued to close the gap in men's." In women's, Nike Brand saw double-digit growth in footwear and apparel, and increased revenue in every geography. Globally, women's training was up strong double digits, with a particularly strong Q1 in North America. Revenues in the Other Businesses segment increased 9.8 percent to $762 million, including 2 percentage points of benefit from changes in currency-exchange rates. The gains were driven by double-digit growth at Converse. Nike Golf also saw double-digit growth and Cole Haan increased in single-digits. Hurley and Umbro both saw declines, with Umbro's declines reflecting difficult World Cup comparisons versus the prior-year period.

NIKE OFFICIALLY DEBUTS THE LEBRON 9 SNEAKER Nike revealed plans to launch LeBron James' ninth signature shoe, the LEBRON 9, in October at a suggested retail price of $170. That's about $10 more a pair than the NBA superstar's last signature sneakers. It's also the highest price for any basketball shoes sold at Nike's online store with the exception of a pair of Jordan shoes that sell for $175. The LEBRON 9′s have a Max Air 180 unit in the heel with a Zoom unit in the forefoot. The shoe is the first to combine Flywire technology and Hyperfuse construction to create a nearly seamless, lightweight upper that’s still supportive. The sneakers will drop in China on October 1 and then hit the U.S. in the limited edition "Cannon" color scheme October 15. The primary black/red/white color scheme will arrive in U.S. stores October 25. For the first time ever, LeBron’s signature shoe will be available on NIKEiD.com.

NEWS

SGMA STUDY

SPORTS PARTICIPATION BOUNCES BACK By Thomas J. Ryan

According to SGMA's just-released study, "U.S. Trends in Team Sports Fall 2011," niche sports like lacrosse, rugby, track and field and ultimate frisbee are seeing double-digit increases in participation. More encouragingly, baseball, basketball, soccer and tackle football all saw single-digit increases in both total and core-level participation, marking a turnaround after two years of negative participation growth for most mainstream team sports. In the report, Tom Cove, president and CEO of the SGMA, said younger teens are a main driver for some of this increase. "They are gravitating to organized sports programs which will bode well for many of the local recreational-oriented programs that are established throughout this country," said Cove. "Rec programs need to turn part of their attention to early teens, to bring them back to team sports in some cases, or keep them playing after their elementary school years." Given the budget cuts seen in middle school sports programs, Cove cautioned that local recreation programs as well as elite player teams may have to be counted on to become a larger conduit for varsity level high school sports. He also added that while there's clearly pressure on school and municipal budgets nationwide, booster clubs and other innovative fundraising activities are filling gaps as most sports remain accessible in most communities. "America's commitment to sports, especially in high schools and elite clubs, remains energized," stated Cove. "A growing concern, however, is for economically disadvantaged communities without access to private resources to contribute to these programs." Among mainstream sports, basketball was by far the most-widely participated sport in 2010, with 26.3 million participants between the ages of 6 and 17. That's up 9.6 percent from 2009 participation levels that had showed a slight decline versus 2008. Over the last ten years, basketball participation is up 0.3 percent. Core participants in basketball (those playing more than 13 times a year) increased 7.5 percent to 17.7 million in 2010 versus 2009. 8

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Baseball, the second heaviest participated sport, saw its participants among the 6-17 year-old group grow 5.2 percent, to 14.6 million, following declining participation rates over the previous two years. Overall, baseball's participation levels are down 8.1 percent over the last ten years. Following closely behind baseball is outdoor soccer, which tallied 14.1 million participants in 2010, up 2.8 percent from 2009. Both baseball and outdoor soccer saw modest gains in core participants year-over-year. In football categories, tackle football's overall participants grew 1.6 percent to 6.9 million with core participants in tackle footwear (+26 times a year) ahead 5.8 percent to 3.9 million. Touch football's overall participants declined 6.6 percent to 8.4 million in 2010 while flag football players grew 3.3 percent to 6.8 million. Among more niche sports, lacrosse participation added another 37.7 percent to reach 1.6 million participants in 2010, and the sport's player numbers have grown by 218.1 percent over the last ten years. Lacrosse's core participants (+13 times a year) increased 33.1 percent to 897,000 and is expected to go over the one million core level participants in the current year. On a smaller scale, rugby total participation increased 50.7 percent to 1.1 million. Field hockey increased 21.8 percent to 1.3 million, registering the highest participation in three years. Gymnastics also rebounded (up 19.7 percent to 4.8 million participants) although the activity's overall participation rate is still down 0.3 percent over the last ten years. By far the most popular sports for children under age 13 are

OTHER FINDINGS IN THE REPORT:

U.S. TRENDS IN TEAM SPORTS FALL 2011 The SGMA’s Annual Report on the Health of Team Sports in America

TO VIEW A SAMPLE OF THE SGMA REPORT OR TO PURCHASE THE FULL REPORT CLICK HERE

gymnastics (48 percent of those played) and outdoor soccer (42 percent). Also showing increased participation levels in 2010 were cheerleading and beach volleyball. On the downside, indoor team sports like ice hockey and indoor soccer have cooled off after two years of strong participation performance. Ice hockey managed a 0.5 percent increase in participation levels to 2.1 million year-over-year; indoor soccer inched up 0.3 percent to 4.9 million. Both sports are said to be very dependent on facility availability and given the participation growth of the past two years, the ice time, fields and court time may not have been available to accommodate any new growth at the current time. Wrestling participation is also showing a steady decline, losing nearly a third of participation numbers from 2009 to 2010. Declines were seen in both fast-pitch softball (down 9.4 percent year-over-year) and softball slow-pitch (down 1.1 percent). Track & Field likewise showed a modest decline year-over-year. The findings came from a total of 38,742 online interviews nationwide by Sports Marketing Surveys USA taken place during January and February 2011. A total of 15,086 individual and 23,656 household surveys were completed.

• 66 percent of American children ages 6 to 17 are playing team sports, and teenagers are significantly more likely than younger children to be participants. Fewer than 1 in 4 American children under age 18 do not participate in a team sport. • As children age from 6 to 17, their participation rates decline in outdoor soccer (-17.7 percent) and baseball (-12.8 percent), remain flat in flag football, and increase in tackle football (+8.9 percent), basketball (+6.3 percent) and court volleyball (+6.2 percent). • When removing cheerleading and track and field - which get much of their participation from scholastic teams and require higher levels of organization, the average casual team sports participation is 51 percent. • Cheerleading (+333 percent), gymnastics (+169 percent), court volleyball (+47 percent), fast pitch softball (+18 percent) and grass volleyball (+9 percent) are the sports where there are still more female participants than male participants. The highest number of female participants are in volleyball (all), 9.1 million; soccer (all), 6.8 million; basketball, 6.5 million; and softball (all), 4.7 million. • The survey once showed that those playing team sports in their youth were more likely to stay active as they get older. Team sports participants are also significantly more likely to earn $75,000 per year or more, as compared to the general population (43 percent versus 11 percent; US Census, 2008). WEEK 1139 | SGBweekly.com

800.527.7510 BSNSPORTS.com

BIG BOOK • FALL 2011

LOOKS TO GIVE BACK TO COMMUNITIES THROUGH VICTORY GRANTS By Thomas J. Ryan

BSN Sports, formerly Sport Supply Group, revealed bold plans to a one million dollar commitment by the company to provide free double its road sales force and revenues over the next five years. And equipment and uniforms to school athletic programs and recreation while some of that growth will be driven by even more acquisitions leagues in need. of team dealers, it's also expected to be stimulated by several moves Blumenfeld said the commitment – by far the largest in the 800.527.7510 FALL 2011 BSNSPORTS.com designed to further its commitment to serving local communities. company's 39-year history – addresses the fiscal challenges of its That includes officially changing its corporate name from Sport many customers, including not only schools but leagues, YMCAs, Supply Group to BSN Sports, Inc. by the close of this year, reflecting churches, boys and girls clubs and other organizations supporting the catalog for which it is best known; and the company’s recent team play. Said Blumenfeld, "As this economy churns on and move to combine its athletic catalog and field sales operations either goes nowhere or goes in the wrong direction, we have been under the company's flagship BSN Sports brand. The initiatives are constantly thinking about how can BSN Sports can play a leadership also underscored by a new tagline: "Feel the Strength." role in helping some of these cash-strapped organizations." "'We want local communities to 'Feel The Strength' of one On an even wider scale, the program speaks to the fight against organization, one name, with one commitment, which is to childhood obesity. "This is a great way for us to put free equipment passionately serve our customers on the field and create game- and free uniforms to use in organizations to get them up and running changing solutions for them," said Adam Blumenfeld, chairman and to get kids physically active - not just at the high school level but and CEO of BSN Sports, in an interview with SGB Weekly. also at the elementary and the early childhood level," said Blumenfeld. But the symbol of its drive to better serve local communities But for the company, Victory Grant marks BSN Sports’ shift to is the official launch of the Victory Grant Program, representing take on a larger leadership role in driving change at the local level. 10

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Victory Grant Program

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Blumenfeld likened the program to the communitydriven efforts orchestrated by New Balance and admits to being inspired by Jim Davis, New Balance's long-time chairman. "In some small way I suppose this is BNS Sports’ way of stepping up to the plate in this industry and acting as a leader," admitted Blumenfeld. "But in all fairness it's taking what I've learned by watching Jim Davis and watching New Balance do good things in communities over the years and trying to put that into practice in our business. It's been fun to watch how New Balance has taken what they've developed and given back." Indeed, Blumenfeld said the program represents a "natural extension" of what BSN Sports has been doing since 1972 in serving local markets with "quality, fair-priced" sports equipment and team uniforms. Said Blumenfeld, "It's about making specific grants to help programs that really are having a tough time getting off the ground or keeping them going. I look at it as a natural extension of what we do in terms of making BSN Sports not just relevant but make it a true leader." Programs nationwide are invited to apply for Victory Grant consideration via BSN Sports' 250 local field reps or online at www.BSNSPORTS. com/sponsorme. The program will involve an internal grant committee, which will sort through the applications. The Victory Grant program – aimed at the 6th grade through college – will

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Our new Victory Grant Program supports communities where our sporting goods are needed most. Ask your local sales pro about an equipment or apparel grant today.

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On September 15 BSN Sports announced the official launch of the Company's Victory Grant Program. This is an unprecedented $1 million commitment to provide free equipment and uniforms to school athletic programs and recreation leagues in need.

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be complemented by a "Fit Funds" grant program run by its U.S. Games division, which focuses on elementary school and early childhood programs. Grants will be allocated on a rolling basis and are open to all organizations. The grant process is expected to start over the next 30 to 60 days although no timeframe has been set for when the grants will be handed out. More notable grants will likely be reported as they are made and detailed in the company's catalogs. The program was soft launched in the BSN Sports mid-July catalog and the company has already received a number of applications, including tornado- and drought-impacted regions, said Blumenfeld. He added that that while the company has no budget for revenue benefit from the program, management expects to "create goodwill in the communities that we're serving but we intend to do that every day anyway." He also sees the program as an opportunity to help its road force give back to the local community each serves while helping the entire organization rally around a positive cause. "We have 900 employees and to give our employees a common cause is a very valuable thing because they like giving back too," said Blumenfeld. "They feel good about their jobs and feel good about what they're doing in their communities. This is a great tool to do it." The program parallels the companyâ&#x20AC;&#x2122;s move to combine its athletic catalog and field sales operations under the company's flagship BSN Sports brand that is designed to bring the organization together "under one name and not 15 names," according to Blumenfeld. He noted that consolidating the company's many properties under BSN Sports will also make it easier for its more than 1,500 vendors and 125,000 customers. He elaborated, "We're trying to create real cohesion so that the outside folks feel like they're working with the inside folks under one tent, one name, and one common vision." Asked how BSN Sports' business was fairing, Blumenfeld said the company does not detail its performance since going private with its sale to ONCAP II LP in August 2010. But added that the company was "certainly pleased with what's been going on over the last 12 to 24 months from a business perspective. We're very happy to be members of the ONCAP family. They've been tremendous partners for us in growing the business and we continue to look for ways to grow the business." He noted the company is a $300 million business and recently internally developed a plan to double the size of its business within five years, partly through a goal of doubling its 250-person road staff. "We are committed to increasing the size of the sales force," said Blumenfeld. "We think involvement in the local community is the key to success and it dovetails directly with the Victory Grant program. BSN Sports is not a catalog company; it is a comprehensive solution to local communities across the United States. We intend to become a true one-stop-shop for equipment and uniforms as well as fundraising solutions for local communities 12

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everywhere. And that's why the Victory program is such a great tie-in to how we're developing this business and where we're taking this business over the next 3 to 5 years." Some of those road associates will come from acquisitions, such as the lateJuly acquisition of Bethlehem Sporting Goods in the Pennsylvania market. Said Blumenfeld, "We are an organic grower but we're also an acquisitive company. When we can find great people like George Kline and great sales forces like Bethlehem Sporting Goods that we can bring into fold, we intend to do it." Moreover, he noted that key to any acquisition is often retaining the management and sales force of the acquired firms. He called it a "tremendous feather in our cap" that many of the owners of team dealers it has acquired in the past have stayed on to play prominent roles within the company. "I think one of the reasons that you've seen the Dickmans, the Caravatis, the Salkelds, Eric Kattus, Jim Fischer and George Kline - all of these people – not only stay but play meaningful management roles inside our business is because they've been in this business for two, three or four decades," said Blumenfeld. "They know what they're doing. They know what it means to serve local communities. In many instances we won't even entertain acquiring some of these businesses unless their leadership agrees to stay on and shares the culture and passion that we do. And I think they enjoy it because they know we're doing something special. We are not distributors of sporting goods equipment and uniforms; we believe we are generally changing the game for how local communities are served." In 2010, the company acquired Kattus Pro Team Sports, Coaches Sports Corner and Greg Larson Sports while acquiring Har-Bell Athletic Goods, Gus Doerner Sports and Webster's Team Sports in 2009. Its team dealer network also includes Dixie Sporting Goods, Orlando Team Sports (OTS), Kesslers Team Sports and Salkeld Sports. Asked about the arrival of Genesco through its Lids division into the team arena, Blumenfeld said "any competition is good because it makes your organization more focused and better." But he also said there are a number of competitors in the marketplace, including local team dealers, catalogers and larger chains. "We do not look at Genesco or Lids participating any differently than we look at other companies or that we do at new entrants into the space,” said Blumenfeld. “There's nothing particularly unique about the Genesco model other than yes, we consider them our competition and yes, we like the fact that it helps us all focus on what we need to do best." Touching on team channel challenges, Blumenfeld said schools and municipalities are waiting until the last minute to buy, putting pressure on both distributors and vendors. The 'pay-to- play' trend continues with schools either requiring an activity fee or requiring the parent to pay for the equipment and uniforms for their kids. This drove BSN Sports to create My Team Shop at www.bsnteamsports.com to help schools raise money for any shortfalls as well as simplify the process of parents paying for gear. Blumenfeld said that it's not just athletic and physical education budgets getting cut, but reduced funding for teachers, lunch or bus fare winds up drawing money from extra-curricular activities. "Things are tough," he said, "Certainly parts of the country are feeling it more than others, but even Texas is feeling it. For a good 3 or 4 years the state was able to defend itself against the pain of the fall in property values and the tax base. But Texas is feeling it in a different way than it was 12 or 24 months ago. It’s a national issue." ■ WEEK 1139 | SGBweekly.com

SGB WEEKLY SEPTEMBER 26, 2011

SGMA WORKS TO BREAK DOWN TRADE BARRIERS By Thomas J. Ryan

At the World Trade Organization (WTO) Public Forum last week in Geneva, Switzerland, SGMA President Tom Cove argued that despite the well-proven benefits of physical activity in improving health, countries continue to institute barriers in the form of import tariffs and anti-dumping duties limiting access to sports and fitness products and suppressing participation in physical activities.

Photo courtesy of WTO

Cove noted that the World Health Organization, (WHO), just last year concluded that "an integrated approach to the causes of decreasing levels of physical activity will contribute to reducing the future burden" of NCDs (non-communicable diseases) like heart attacks, strokes, cancers, diabetes and chronic respiratory disease. "We would like to see exactly such an integrated approach, by linking progressive trade policy to ongoing efforts to improve global health," stated Cove. "Ending restrictive trade regimes will facilitate the movement of sporting goods to a greater number of citizens and promote an active lifestyle and infrastructure in every country. We should not allow any tariff structure that effectively serves as a barrier and denies access to products that promote health." He added, "There is little controversy within the global sporting goods industry regarding the universal elimination of tariffs on sports equipment products. The World Federation of the Sporting Goods Industry is on record strongly supporting the Zerofor-Zero proposal for sports equipment and a broadening of the scope to also include sporting footwear and apparel. We look forward to the day when it can be enacted and implemented." Cove noted that the WHO has identified increased physical activity along with improved diet, reduced tobacco use, and lower alcohol abuse as the keys to reversing the increased incidence of NCDs. Physical inactivity alone is estimated by the WHO to be the fourth leading cause of death globally with rising rates of obese and overweight

WEEK 1139 | SGBweekly.com

WTO Director-General Pascal Lamy speaking at the WTO Public Forum 2011 "Seeking answers to global trade challenges." Photo courtesy of WTO

people across the globe. He noted that it has been estimated that people being overweight and obese costs the U.S. economy $270 billion every year, partly to health care costs. At the same time, he illustrated how "worker productivity, educational achievement and socio-economic advancement are also negatively impacted when individuals suffer from obesity and sedentary lifestyle-related diseases." Beyond minimizing illness, Cove pointed to a growing body of research showing the positive correlation of physical fitness and academic performance. "We know fit children make better learners," said Cove. "The old adage of a 'Sound Body, Sound Mind' remains a foundation for educating young people. And physical activity benefits every child. It's not about being a superstar athlete, but rather having the opportunity to experience the joy and values of sport for a lifetime." On the positive side, he underscored that inventions such as in-line skates or snowboards introduced millions to new sport and recreation opportunities and emerging technologies such as heart rate monitors promise to inspire another new generation to get active. At the same time, he said sporting goods products

SGB WEEKLY SEPTEMBER 26, 2011

don't have to be sophisticated or expensive to help improve the well-being of communities. Said Cove, "We've seen time and time again how bringing basic products like sport shoes and balls can invigorate and energize young people in a vulnerable community, whether located in an impoverished urban center or parched desert. The key is to make products and activities accessible." He concluded, "We welcome the obligation to work with governments and NGO's (non-governmental organizations) to encourage citizens to engage in healthy physical activity. And to this end, we endorse the goal of integrated global development, and believe trade policies that increase access to sports and fitness products will have a positive, universal impact on their own, and contribute to greater effectiveness of other efforts to improve health. WTO member nations can play a critical role in improving the worldwide economic and social environment going forward by adopting trade policies that will improve global health. Trade barriers on sports and fitness equipment hinder progress toward a healthier population and need to be removed." ■

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Job Classifieds TO READ THE FULL JOB DESCRIPTION, PLEASE CLICK ON JOB TITLE

Key Account Manager Kidrobot, Inc.

Technical Sales Representative – New York Newton Running

Reporting directly to the V.P. of Sales, the Key Account Manager will be a leader in the sales function of the business and a critical member of the sales management team. Responsible for fostering and furthering relationships with our top reseller customers through the implementation of best practices in all facets of the sales, order management and customer service functions within the organization…

Tech Rep needed to provide technical support and assist with sales in specialty running stores in New York. We encourage you to apply if you love Newton Running products; can represent the Newton Running brand from a personal experience; have experience in sales and sports medicine; human performance, kinetics, bio-mechanics or related field; have the ability to travel extensively…

Regional Business Manager – West Nestle Nutrition

Product Testing Manager Reebok International

This position is home-based in the West coast in any of the following states: CA, AZ, OR, CO. The Regional Business Manager - West, will attain and/or exceed current and long-term sales, distribution and merchandising goals in alignment with PowerBar sales targets, programs and budgets for Sports Specialty accounts by fully leveraging PowerBar Sales and Marketing business capabilities…

The Product Testing Manager will lead a team within the Product Testing and Engineering Department to ensure Reebok Footwear and Apparel products meet or exceed the functional demands and quality expectations of consumers. You will oversee global testing processes and timelines for the product testing function and ensure the team conducts fit and wear testing of footwear and apparel throughout the development and commercialization process…

Senior Retail Marketing Advertising Manager Cabela's

International Sales Director ElliptiGO

Manage the development, communication, and execution of Cabela's multi-faceted advertising campaigns in the United States and Canada to drive store traffic and achieve retail sales and profitability goals. This position is based in our corporate offices in Sidney, NE…

This person must be a motivated self-starter who can work independently and is willing and able to perform the many different tasks required to create the sales infrastructure necessary to sell globally…

Business Development Representative Diamondback Fitness

Seeking Business Development Representative assigned to prospect and open new specialty fitness, sporting goods, and other fitness segment accounts. Once opened, provide ongoing support for each account and ensure monthly quota attainment and complete product line support...

Sales Neus Trading Inc. / High Peak USA High Peak USA seeks an experienced contract sales person with 8+ years of experience in the outdoor and camping industry with a proven track record with product introductions, strong understanding of channel development and analysis …

Sales Consultant GameWear Team Sports GameWear is actively seeking energetic, resultsoriented Direct-to- Consumer Sales Consultants with proven track records for succeeding in a sales territory. Currently we are looking for Sales Consultants for Connecticut, Illinois, and Ohio…

EVERY JOURNEY BEGINS WITH A GREAT JOB HAVE YOU LANDED YOURS? FOR INFORMATION CONTACT 704.987.3450 OR SPORTSJOBS@SPORTSONESOURCE.COM

SGB WEEKLY AUGUST 29, 2011

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