SGB Weekly 1148 by SportsOneSource

NOVEMBER 28, 2011

The Weekly Digital Magazine for the Sporting Goods Industry

ISSUE 1148 NOVEMBER 28, 2011

Bill Garrels

Group Publisher bgarrels@sportsonesource.com 303.997.7302

Editor In Chief James Hartford (704.987.3450 x104) james@sportsonesource.com

The Weekly Digital Magazine for the Sporting Goods Industry

Page

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 Account Manager Casey Vandenover (303-997-7302) caseyv@sportsonesource.com 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

SportsOneSource Publications SGB TEAM Business Sportsman’s Business The B.O.S.S. Report Sports Executive Weekly SGB Update

NEWS 4 5 6 7 8 9

NEW ERA Opens Store in Chicago DICK'S SPORTING GOODS Tallies Stronger Q3 Results Despite Weaker Traffic MOVER'S & SHAKERS SKECHERS Braces for FTC Fine Over Toning Claims FRANKLIN SPORTS Founder Irving H. Franklin, Sports Innovator and Marketer, Passes Away At Age 93 FOOT LOCKER Posts Strong Q3 Results HIBBETT SPORTS Raises Guidance Again on Strong Third Quarter FINANCIALS

GIVING BACK

10 BSN SPORTS Awards Victory Grant to Liberia YMCA

Footwear Business Update

FEATURES

Outdoor Business Update

14 18 20 24

Sportsman’s Business Update Team Business Update SGB Weekly

SportsOneSource Research SportScanInfo OIA VantagePoint SOS Research

2151 Hawkins Street • Suite 200 • Charlotte • NC • 28203 t. 704-987-3450 • f. 704-987-3455 www.SportsOneSource.com

RE-CONDITIONING RULE HEAD FIRST Prevention of Concussions and Injuries Remains Top Priority for Makers of Football Helmets GOING FOR THE SAFETY Form-fitting technology takes center stage in protective gear for 2012 FINDING THE RIGHT BALANCE Manufacturers Are Using Technology To Provide Football Players With Better, More Well-Rounded Shoulder Pads In 2012

DEPARTMENTS

26 JOB CLASSIFIEDS

ON THE COVER Photo courtesy of Adams Copyright 2011 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB WEEKLY are not necessarily those of the editors or publishers. SGB WEEKLY is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB WEEKLY may not be reproduced in whole or in part without the express permission of the publisher. SGB WEEKLY is published weekly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB WEEKLY, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450

WEEK 1148 | SGBweekly.com

NEWS

NEW ERA OPENS STORE IN CHICAGO New Era opened its 10thÂ flagship store globally in Chicago. The two-level, 4,500 square-foot store, located at 207 S. State Street in the heart of downtown Chicago, is New Era's largest location to date. The store is also New Era's first owned and operated retail presence in the Midwest. Chicago will serve as a test market for new retail formats the brand is rolling out. Following the large-scale flagship, the brand will open numerous locations comprised of small-scale company stores and outlets throughout the greater ChicagoÂ area through 2013. "The blend of sport culture, art and fashion in Chicago offers New Era a perfect testing ground for new retail formats. Our extended presence in the market offers us several major touch points to connect to our evolving consumer base," said Cal Lawson, New Era's director of retail operations. "The New Era brand now has more flexibility to circulate unique product in the marketplace through our expanding retail." 4

SGB WEEKLY NOVEMBER 28, 2011

MOVERS & SHAKERS

DICK'S SPORTING GOODS TALLIES STRONGER Q3 RESULTS DESPITE WEAKER TRAFFIC

With the aid of strength across most categories, healthy new store productivity and improved margins, Dick's Sporting Goods, Inc. reported earnings that handily beat internal expectations in the third quarter, prompting it to again raise its guidance for the year. Excluding costs related to a partial reversal of litigation settlement costs, net income in the quarter was 32 cents per share, which represented an increase of 45 percent compared with the third quarter of 2010 and exceeded its original expectations of between 24 to 26 cents a share. Revenues in the third quarter grew 9.3 percent to $1.2 billion. Consolidated same-store sales advanced 4.1 percent. The Dick's Sporting Good's chain same-store sales increased 3.8 percent, driven by a 4.8 percent increase in sales-per-transaction, partially offset by a 1 percent decline in traffic. Golf Galaxy comps increased 2.4 percent, and the e-commerce business increased 16.8 percent. "Virtually all of our categories contributed to the sales increase, including our Lodge hunting business, which produced slightly comp positive results following the modifications to our ad strategy," said company Chairman and CEO Ed Stack on a conference call with analysts. Gross margins improved 120 basis points to 29.7 percent of sales versus 28.5 percent of sales in the year-ago period, driven primarily by a 47 basis points increase in merchandise margins on better inventory management, as evidenced by less clearance activity compared with last year, and a shift in product mix. Clearance inventory per-square-foot was down 20 percent in the quarter. Occupancy leverage contributed 79 basis points of the improvement. SG&A margin was slightly reduced to 23.3 percent of sales from 23.7 percent primarily due to a decline in store payroll that was partially offset by higher advertising. For the full fiscal year, Dick's now expects adjusted earnings of $2.01 to $2.03 per share, excluding one-time items. Previously the retailer forecasted $1.94 to $1.96 per share. Consolidated comps are projected to increase approximately 2 percent, the high-end of its previous expectations of between 1 percent and 2 percent. For the fourth quarter, Dick's expects EPS of 87 cents to 89 cents per share. Analysts on average expected 87 cents per share. Fourth quarter comps are expected to be flat to up to 1 percent.

The Finish Line, Inc. has hired Chris Ladd as EVP, chief digital officer. Ladd was SVP, global e-commerce at Lululemon. Lululemon Athletica, Inc. appointed Emily White to the company's board of directors. White's appointment expands the retailer's board to 10 members. Sherbrook SBK Sport Corp. announced the resignation of Marc-Andre Watson as director and CFO of the company. Mike Edwards, former CEO of Lucy Activewear, has been named chairman of Wicked Quick Industries, Inc. Holly Li, currently VP and general manager North China for Adidas AG, will assume the CEO role at Esprit's Chinese operations as of February 1, 2012. White Sierra, Inc. has tapped Granite Marketing, Inc. to represent the brand in the Rocky Mountain region and Southern Central states, including Arkansas, Colorado, Louisiana, Utah, New Mexico, Oklahoma, and Texas. Li Ning Co., Ltd. confirmed that Chief Product Officer Xu Maochun has left the company for "family matters." Dynamic Brands has added two veteran sales representatives to its team. Mark Morrissey will cover Iowa and Nebraska and Mark Whritner will cover Southern California for the company. Escalade Sports announced that it is adding a network of team dealer sales agencies to complement their in-house sales team.

WEEK 1148 | SGBweekly.com

NEWS

SKECHERS BRACES FOR FTC FINE OVER TONING CLAIMS

Skechers USA, Inc. indicated that it expects it will get hit by a fine from the Federal Trade Commission equal to or greater than the $25 million Reebok had to pay in its settlement for allegedly deceptive advertising claims that its toning footwear could tone both the buttocks and calf muscles. In its 10-Q filed with the Securities & Exchange Commission, Skechers noted that based on discussions with the FTC staff, the company expected to settle the issue through payment to the regulatory entity, or litigation. Alluding to Reebok recently reaching a $25 million settlement with the FTC after a similar dispute, Skechers said, "It is reasonably possible that [we] could be subject to a comparable, or higher, exposure as a result of these proceedings ... [and] it is possible that costs associated with them could have a material adverse impact on the company’s consolidated earnings, financial position, or cash flows." The filing noted that Reebok's total cost included an additional $4.6 million in attorneys’ fees. Analysts said that given that Skechers has a larger share of the toning market and entered the category earlier, the fine is expected to be higher. Skechers said it intends to defend this matter vigorously and "will be meeting with each commissioner in the fourth quarter to present evidence and arguments against filing a complaint."

FRANKLIN SPORTS FOUNDER IRVING H. FRANKLIN, SPORTS INNOVATOR AND MARKETER, PASSES AWAY AT AGE 93

SGB WEEKLY NOVEMBER 28, 2011

Irving H. Franklin, who co-founded Franklin Sports in 1946 with his brother Sydney Franklin, and was the innovator of the baseball batting glove, passed away on November 10 at the age of 93. Franklin died peacefully in his sleep in Falmouth, MA, according to his son, Larry J. Franklin, CEO of Franklin Sports and Chairman of the Sporting Goods Manufacturers Association (SGMA). Irving Franklin was said to be a true visionary, both in producing the prototype of the batting glove that is still used today, as well as in establishing product lines for superstar athletes including Phillies star third baseman Mike Schmidt and New York Jets quarterback Joe Namath. Born on August 2, 1918 in Brockton, MA, from modest beginnings, Irving Franklin launched the company to manufacture a line of youth sporting goods, which grew into a major brand in the global market of sporting goods. Irving Franklin and Franklin Sports became best known for innovating and designing the first batting glove made specifically for major league players. The breakthrough for Franklin and the batting gloves came when Phillies Hall of Fame third baseman Mike Schmidt and Irving Franklin teamed up to create the basic design that is still the preferred glove of most major league hitters. Soon after, Franklin became "Official Batting Glove of Major League Baseball." Franklin today is the industry leader as the premier batting glove company, and custom fits batting gloves for over 150 MLB players. The first Franklin product was a stuffed football because of rubber restrictions due to the war. After the war, when his brother Sydney joined with him, the company began to manufacture footballs, shoulder pads and other sports equipment. Irving Franklin was in charge of sales and marketing, while Sydney ran the factory. Irving Franklin is survived by his wife, Barbara, and sister Sylvia Aven; his children, Larry Franklin and Arlene Franklin; stepchildren, Lynne Brayman Buchong, Kenneth L. Braymand and Jules Brayman; and grandchildren Adam Franklin and Jared Franklin.

FOOT LOCKER POSTS STRONG Q3 RESULTS Shrugging off any affects of the NBA lockout, Foot Locker reported earnings climbed 26.9 percent in the third quarter to $66 million, or 43 cents a share, besting Wall Street's average estimate by 4 cents a share. The period marked the company's seventh consecutive quarter of sales and profit growth. Total sales increased 8.9 percent but would have risen 7.3 percent excluding the effect of foreign currency fluctuations. A 7.4 percent comp store sales gain for the quarter came on top of an 8.1 percent gain in the third quarter of 2010. Comps improved in every month, rising mid-single-digits in August, upper-single-digits in September, and just below double-digits in October. Comps for the month of November through November 16th were up high-single-digits, with solid growth both domestically and in all of its international divisions. On a conference call with analysts, Foot Locker CFO Lauren Peters said November's early results were particularly encouraging since it represents the companyâ&#x20AC;&#x2122;s toughest monthly comparison of the fourth quarter. Fourth quarter comps are still being planned in the range of a mid-single-digit increase given tough year-ago comparisons. "Almost all parts of our business continued to perform well in the third quarter, leading to the strong overall sales results," said Peters. "Just as was the case in the first half of the year, the strongest sales gains in the third quarter came from our U.S. businesses." The Eastbay division's revenues grew over 20 percent for the third consecutive quarter. But the DotCom divisionâ&#x20AC;&#x2122;s store banner websites

continued to deliver the strongest comparisons within the directto-consumer segment. CCS.com produced a negative quarterly comp. Among store divisions, Champs Sports' comps were up well into the double-digits on top of a similar gain last year. Foot Locker U.S. was the second strongest store performer in Q3, with a high-single-digit comp gain, followed by Footaction, which delivered "another solid performance," said Peters. Internationally, Foot Locker Canada led Foot Locker Europe and Foot Locker AsiaPacific. Both had comp gains in the low single-digits. Lady Foot Locker saw negative comps. Among categories, footwear gained mid-single-digits while apparel and accessories continued their run of double-digit gains. Within footwear, men's and kids posted strong gains. Women's was flat with growth in lightweight and technical running offsetting the decline in toning sales. Basketball, Running, and Casual all saw gains overall across footwear. Apparel comp gains were in the teens, and in the high-teens in the U.S., similar to the second quarter. On the analyst call, company Chairman and CEO Ken Hicks said "despite the NBA lockout, the company is on track to sell more basketball shoes this year in its Foot Locker and Footaction divisions than in any year in their history. We see a strong basketball product pipeline from our vendors, such as Nike and Adidas, and solid enthusiasm for basketball silhouettes by our customers. As a result, our basketball business continues to provide solid growth." WEEK 1148 | SGBweekly.com

NEWS

HIBBETT SPORTS RAISES GUIDANCE AGAIN ON STRONG THIRD QUARTER Hibbett Sports raised its fiscal year profit forecast for the third time this year after reporting third quarter earnings jumped 26.9 percent on a 6.6 percent comp store sales gain. With strong footwear and apparel sales, as well as improved inventory management, the Birmingham, AL-based sporting goods chain marked its eighth consecutive quarter of comparable store sales increases and a record third quarter operating margin. The company now expects earnings for the current year to range from $2.05 to $2.11 per share with an expected comp sales increase in the mid-single-digit range for the fourth quarter. In August, Hibbett projected EPS between $1.90 to $2.00 per share for the year. Third quarter EPS reached 59 cents per share, topping Wall Street's average estimate of 51 cents per share. Gross margins increased 135 basis points on top of a 125 basis point improvement in the previous year. More than half of the improvement was in product margin, as age and shrinkage rates improved and the chain was less promotional. On a conference call with analysts, company President and CEO Jeff Rosenthal noted that the comp sales gain came on top of a 12.5 percent increase in the year-ago quarter. For the first 19 days of the November period, comps were up 8 percent on top of an 18 percent gain 8

SGB WEEKLY NOVEMBER 28, 2011

in the three weeks last year. Said Rosenthal, "We are encouraged by those results and trends; however, the biggest volume is still ahead of us." Among categories, apparel had strong double-digit comp growth in the quarter. The branded businesses, led by Under Armour, Nike and The North Face, drove results across all genders. The licensed apparel business produced low-single-digit comps in the quarter, helped by a Rangers/ Cardinal World Series win near the end of the quarter. The headwear category is "very healthy and we can expect that trend to continue into the next year," said Becky Jones, Hibbett’s SVP of Merchandise and Marketing. Accessories delivered high-single-digit comps, with growth in socks and backpacks during back-to-school selling. Footwear saw mid-single-digit comp sales gains with kids experiencing notably strong growth. "Running platforms across all genders were very healthy," said Jones. “Lifestyle footwear has been more challenging with the shift in business to performance footwear. Basketball footwear is showing promise this season as well." Equipment managed a flat comp in the quarter. Football comps were up low-single-digits, Basketball was up high-single-digits, and Soccer was slightly below expectations. Jones said the Fitness category "continues to be challenging with a lack of innovation to drive interest."

FINANCIALS

the parent company of Remington, Bushmaster, DPMS/Panther Arms, Marlin, Mountain Khakis, EOTAC and Dakota Arms brands, among others, reported total net sales for the third quarter declined 4.6 percent to $198.0 million in the period ended September 30. Both firearm sales and ammunition sales were impacted by the consumerâ&#x20AC;&#x2122;s move to value in the continued tough economic environment that tends to hit this consumer group hardest. Adjusted EBITDA for the segment rose 7.0 percent to $18.4 million, primarily due to increased sales of higher margin centerfire products and handguns.

ORANGE 21 was able to grow its sales 33 percent on a

PERRY ELLIS INTERNATIONAL'S

SHOE CARNIVAL, INC.

FREEDOM GROUP, INC.,

earnings slid 9.7 percent in the third quarter to $6.5 million, or 40 cents a share, far short of Wall Street's average estimate of 61 cents a share. Revenue climbed 23 percent, to $248.4 million. Earnings were hurt by shipment problems in Europe as well as heavy markdowns in women's better sportswear and its Rafaella and Perry Ellis collections. Earnings are now expected to be at or above $2 per share for the current year, down from its prior forecast of $2.45 to $2.52 per share.

pro forma basis in the three months ended September 30 thanks to solid performance by its core Spy Optics brand, which sells sunglasses and goggles into the action sports market. Still, the company said losses more than tripled to $3.0 million in the period as it marked down sunglasses sold under licensed fashion brands and increased spending on sales and marketing for Spy branded products.

was able to deliver higher comps and improved margins in the third quarter as strength in categories such as running were able to offset the downturn in toning product. Net earnings rose 15.4 percent to $10.5 million, or 78 cents a share, in line with a projected EPS range between 77 and 81 cents a share provided by the family shoe retailer in August. Â A 2.8 percent comp store sales gain missed on guidance calling for a gain between 3.4 and 4.4 percent although it came on top of a 7.2 percent gain last year.

WEEK 1148 | SGBweekly.com

A BSN Sports employee in Dallas signs off on weight lifting equipment bound for Liberia.

Doc Lawson pictured here in September 2011 in an empty fitness room at the Liberia YMCA in West Africa. Two containers of sports equipment are shipping in December to help outfit the space.

AWARDS VICTORY GRANT TO LIBERIA YMCA BSN Sports, formerly Sport Supply Group, Inc., plans to donate 25,000 pieces of athletic equipment to the Liberia YMCA in West Africa. The donation is the largest to date as part of BSN Sports' Victory Grant Program. In September, BSN Sports announced the official launch of the Victory Grant Program, which represents a $1 million commitment by the team sports dealer giant to provide free equipment and uniforms to school athletic programs and recreation leagues in need. In early November, The St. Philip's School & Community Center in Dallas received a $5,000 "Victory Grant" for equipment to bolster its athletic programs. Donations to the Liberia YMCA in West Africa include nine weight lifting machines for multiple fitness facilities and more than 2,200 soccer balls from BSN Sports. Facilitating the shipment is Adolphus "Doc" Lawson, a Liberian native and a long-time Dallas resident and past collegiate, Olympic, and professional U.S. men’s soccer player. Lawson led the Dallas Sidekicks to a league championship in 1986-87. Through his organization Donami Sports, Lawson is in the initial stages of developing and implementing sports and recreation programs in his native country. Founded in 1881, Liberia YMCA now serves over 10,000 members. With nine facilities, the YMCA of Liberia seeks to unite, develop and empower young people and others, thereby strengthening communities. "Two civil wars have left 65 percent of Liberia’s population under the age of 19," said Lawson. "The power of athletics and sports is enormous. All children need safe spaces that are clean and family10

SGB WEEKLY NOVEMBER 28, 2011

friendly. The YMCA’s philosophy of promoting youth development, energizing healthy living and inspiring social responsibility is at the core of all Donami activities." To that end, Lawson has begun a 10-year, $100 million project partnering with the YMCA in Liberia, a 130 year-old institution. Lawson has long been affiliated with the YMCA of Metropolitan Dallas, and as a result he is an advocate of YMCA values. "The YMCA is a customer of ours, so when a man as dedicated as Doc Lawson asked for help, we knew his ideals matched the goals of our Victory Grant program," said Adam Blumenfeld, chief executive officer of BSN Sports. "To build the first National Soccer Program in a country so devastated by civil war is a testament to the power of one person." Lawson will oversee the shipment of two 40-foot containers of sports equipment and t-shirts to Liberia later this month. "The children of Liberia will be playing s occer early next year, thanks to this generous donation from BSN Sports," said Lawson. Programs nationwide are invited to apply for Victory Grant consideration via BSN Sports’ 250 local field representatives or online at www.BSNSports.com/sponsorme. Grants will be allocated on a rolling basis and are open to all organizations. Athletic programs at the elementary school level can apply for U.S. Games Fit Funds program at www.usgames.com/sponsorme. Founded in 1972, BSN Sports' dealer business includes Kesslers Team Sports, Dixie Sporting Goods, Orlando Team Sports and Salkeld Sports. While based in Dallas, BSN Sports operates in 40 offices and through 250 local sales representatives nationwide.

WHERE STRATEGIC DECISIONS BEGIN

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NEWS

FALL DEALERS MARKET 2011 EDUCATE. INFORM. INFLUENCE.

This is the mission of The SportsOneSource Group and TEAM Business Magazine. When Carolina-based sales reps Chuck Overman, Don Leonard and Matt Navarro approached the company with ideas about building support for their nascent regional rep show based in Charlotte, NC, it wasn’t hard to see how the concept fit firmly within the company’s mission. The Team Dealer Market, which will expand to at least two additional markets in 2012, is a combination of rep show for team dealers, a networking event, and education and training for the team dealer roadmen. The three-day event, October 25-27, offered the reps, factory principals, team dealers, retailers and team roadmen the perfect venue to mix and meet while pre-lining new team sports products for Fall 2012 in advance of the upcoming buying group shows. One-hour seminar sessions offered vendors the opportunity to train roadmen to sell the new product. For more information on future Team Dealer Market venues, contact Katie O’Donohue at The SportsOneSource Group at 704.987.3450 (x110) or KatieO@SportsOneSource.com.

Left to Right: Chuck Overman, (Overman & Associates), Don Leonard, (Crown Sport Sales), Katie O’Donohue, (The SportsOneSource Group), Matt Navarro, (Wilson Sporting Goods)

Sponsored by

SGB WEEKLY NOVEMBER 28, 2011

1 2

5 3

7 1. From L to R - Barry Carter (DHS Associates) with Jason Skladan (New Bern Sporting Goods) 2. From L to R - Jeffrey Hopkins and Alan Johnson (All Star Sports, Florence, SC) 3. From L to R - Matt Haines (Bases Loaded Sports, Mooresville, NC) with Matthew Norris (All Star Sports, Florence, SC) 4. Ed Tobergte, President & CEO, Gear 2000 conducts a seminar 5. Chuck Overman (Overman Associates) with James Hartford, President & CEO The SportsOneSource Group 6. From L to R - Henry Jumper, Brian Smith and Jeffrey Dockter (Todd & Moore, Columbia, SC) 7. Xenith conducts a Team salesmanâ&#x20AC;&#x2DC;s seminar 8. From L to R - Robbie Davis, Walter Elmore and Donnie Mills (T&T Sporting Goods, Columbia, SC) with Derrick Cole (Cole-Seely).

WEEK 1148 | SGBweekly.com

RECONDITIONING RULE By Fernando J. Delgado

In light of the recent rule change for reconditioning used helmets, SGB Weekly surveyed industry experts, team dealers and athletic trainers to get a better understanding of how youth football players and schools may be affected.

SGB WEEKLY NOVEMBER 28, 2011

Photo courtesy of Schutt

The safety of young football players has been a hot-button issue for the past several years. With concussions affecting every age group, from retired NFL players all the way down to the youngest levels of youth football leagues. Protective safety is a major priority for athletes, parents, coaches, schools, and manufacturers. Earlier this year, an association based in Spokane, WA issued a change in policy which could impact more than 100,000 young football players over the next few years. Examining the ramifications of this development reveals an unknown future both for football helmet usage and the economic outlook of school athletic programs. In early March of 2011, the National Athletic Equipment Reconditioning Association (NAERA) - a trade group that oversees the reconditioning and refurbishing of used equipment - announced that as of September 1, 2011, helmets 10 years or older would no longer be accepted. Ed Fisher, executive director of NAERA, clarified the rule and the reasoning behind it. “Our policy states that for any helmet that has been manufactured or is over 10 years old that comes in for reconditioning or recertification, we will reject it. “The safety of the athlete is first and foremost when we do the reconditioning of helmets. We feel that the helmets that have been produced since 2003 are better than the helmets that were manufactured and have been used prior to 2002.” As a person who has his finger on the pulse of the sporting goods industry, Tom Cove, president and CEO of the Sporting Goods Manufacturers Association (SGMA), is able to offer insight on the implications of the new rule. “It’s an interesting question because it’s so layered, The reconditioning process is so central to ongoing football helmet use, and most products are not in that same position. This is a completely different product than almost anything else in the sense that it is regularly refurbished.” Some initial confusion resulted from the announcement of the rule, as observers mistook the reconditioning policy for used helmets as an official mandate for national helmet standards in general. National governing bodies of high school and youth football require only that helmets emerge from the factory passing the standard set by the National Operating Committee on Standards for Athletic Equipment (NOCSAE). “It’s not about whether you can play with a 10-year-old helmet or not - that’s a misconception,” said Cove. “The rule only addresses that a helmet older than 10 years cannot be reconditioned, and once it is turned in for reconditioning, it has to be taken out of the stream of play. A potential gap in coverage may be that an older helmet that never gets sent in for reconditioning could be used again and again. That’s a difference that many people don’t understand. It doesn’t mean that no helmet can be used after 10 years, it means they can’t be reconditioned.” Cove went on to say that the economic impact of the rule on school athletic programs may be faced with an unexpected surplus of outdated helmets is unclear at the moment. “With regard to its impact, I think it’s too early to tell I think that this, over time will take some older

helmets out. We at SGMA, along with other experts - NOCSAE, NAERA, USA Football - have spent a considerable amount of time over the last two months trying to figure out how many helmets are older than 10 years old. There’s no real data that can tell us. Its impact over time is probably that there will be more helmets sold over time, but in the short-term, it’s not at all clear. Because it’s not at all clear that there are that many old helmets anyway.” Surveying various members of the industry involved in the sale, reconditioning, and usage of helmets brought to light differing expectations surrounding the new NAERA rule. Ryan Jeffs, partner at Jeff’s Sporting Goods in San Gabriel, CA, works with several local schools as clients and offered his opinion from the team dealer perspective. “Absolutely, schools will be affected,” said Jeffs, whose store services schools in Los Angeles County. “There will be some schools for sure that will have a big bill next year because they will need to order a lot of helmets as a result of old helmets being rejected. We’ll find out soon enough if the rule affects the schools we deal with.” He added that his store provides reconditioning for about 6 schools, and that his clients typically order anywhere from 6 to 20 helmets in a given year for an average-size school. Jeffs anticipated WEEK 1148 | SGBweekly.com

that those numbers will increase as a result of the NAERA 10-year rule. “Some schools will be at more than 10 percent outdated inventory, some will be less,” he stated. “You’ll have some schools that will have 30 percent or even 40 percent of their inventory being outdated.” Mike Miros, owner of First Team Sports in Greenville, SC, also offered his initial experiences with the rule in his dealings with schools. “I feel that the school that was buying 6 to 10 helmets before maybe now at 12 to 20. “In my area, I don’t think too many schools will get caught with too many bad helmets.” He also added that it will be possible to get a better idea of the impact of the rule starting in mid-November, when teams will be winding down their seasons and looking to start spending in anticipation of next season. While it is difficult to accurately predict how the new rule will play out across the country in the near future, it is clear that not all schools will be affected similarly. Many schools, whether public or private, are directly responsible for their own budgets, while other public schools in certain states across the country are funded by school districts. Offering an interesting perspective from both the high school and manufacturer standpoint was Nick Pitruzzella, athletic trainer at Gilman High School in Baltimore, MD, where he works with the area’s top-ranked Gilman football team. Not only has Pitruzzella directly overseen the purchasing of helmets and other equipment, but he has also worked as a sales representative at football helmet manufacturer Riddell for three years. “Most of the private schools in Maryland - because they have the budgets have athletic trainers on staff, as well as possibly even equipment managers, who work to help keep those items maintained. They’ll probably have a more hands-on approach to getting old helmets thrown out sooner than the 10-year-rule.” Pitruzzella explained that a variety of factors will affect schools differently, especially depending on where the school is located, how large its budget is, and what kind of economic resources it has available. Pitruzzella also explained how proper maintenance, organization, and budgeting will go a long way toward helping athletic departments avoid economic stress caused by a surplus of helmets which will be rejected by the new rule, while recognizing that other schools that fail to budget correctly will pay the price. “Each year, schools should buy a certain number of helmets - 5 to 10, let’s say - every year, no matter what,” Pitruzzella said. “What happens is that you’ve got those helmets spread out from year-to-year, as opposed to other schools who went through the practice of buying 20 or 30 in one year. Then what happens is that in 8, 9 or 10 years, you’ve got those 20 or 30 helmets that may not be good anymore. That’s what’s going to happen. So you’re going to have your schools that - if they purchased 16

SGB WEEKLY NOVEMBER 28, 2011

a large number of helmets in any particular year - they’re going to take a huge hit. Because whoever is buying things is not budgeting very well. If they budget well, they’ll have it in their budget to buy 5 or maybe 10 helmets every year.” This leads many to ask the question: will schools ultimately have to make budget cuts in other areas to compensate for the increase in new football helmets? It seems that the only definitive answer is that it is too early to tell. Ultimately, it will take some time before the effects of the rule can be clearly understood. SGMA’s Cove believes that it will likely take two or three years before the schools that will be adversely affected can be identified. He stressed that before worrying about budget cuts to other areas of school athletic programs, or budget cuts to football programs themselves, it will be necessary to closely monitor the situation before making conclusions. “Frankly, we’re seeing very low numbers of old helmets,” Cove stated. “Over time, will there be a greater number of helmets bought? Yes. Finally, the question of - where’s the money going to come from? What we see in America today is a significant restriction on school budgets and an ever-growing threat to school sports budgets. But what we have not seen yet is any kind of bottom line impact on football and football protective gear that would restrict the amount of product being bought. Other sources of funding such as booster clubs and corporate donations are continuing to fill the gap for most schools, districts, and leagues.” ■

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HEAD FIRST

Prevention of Concussions and Injuries Remains Top Priority for Makers of Football Helmets By Fernando J. Delgado

1. Schutt’s AiR XP Elite Helmet features premium accessories including a Quarter Turn Release system, ION HC Chin Strap, and AiR Maxx (TPU) Jaw Pads. MSRP $315 2. Schutt’s ION 4D Helmet includes the Schutt Energy Wedge Faceguard attachment system integrated into the shell. MSRP $300 Photo courtesy of Schutt

Despite few major changes in football helmets in recent years, protecting the most important part of the football player continues to be the number one concern in looking ahead to 2012.

SCHUTT will be offering an array of new helmets, featuring sturdier construction, technologic improvements, and eye-catching aesthetic designs. The AiR XP Series uses TPU cushioning to create increased impact absorption, while the ION 4D helmet has a unique shell styling and an integrated faceguard which is stronger than classic faceguards. Rob Ball, Schutt’s product director, said that the DNA Pro+ is one of the safest helmets on the market. “The DNA is our highest performing as far as shock absorption,” explained Ball. “The design of the shell allows for more TPU cushioning.” 18

SGB WEEKLY NOVEMBER 28, 2011

3. Schutt’s DNA Pro+ Helmet provides impact absorption, heat management, is highly resistant to mold, mildew, fungus and bacteria, and provides a barrier against MRSA and staph concerns. MSRP $190

The helmet has a strong reputation for concussion prevention, as the DNA Pro+ received the highest marks among 16 competing helmets in a 2009 NFL Impact Study. Schutt’s Aqua Tech graphics offer a dazzling water graphic option to accentuate many available designs, adding style to substance.

RIDDELL continues to be a leader in football helmets, and 2012 will once again feature the Revolution and 360 helmets. The Revolution, a staple since 2002, offers a reshaping of the helmet to protect the mandible and zygoma along with energy-managing material to better protect the entire skull. The 360 - introduced last year - incorporates the same features of the Revolution, but also provides new protective features such as a unique facemask and an attachment system that redirects energy away from the head upon impact. Xenith’s X2 Helmet features the same Xenith Adaptive Head Protection system as the X1with a more customizable fit. MSRP $220

Xenith’s X1 Helmet features traditional football helmet styling with a low profile and outstanding ventilation. MSRP $330

As a relative newcomer to the football helmet category, XENITH has gained notoriety with its increasingly popular helmets and innovative approach to research. Concussion-prevention and safety are the foundation of the company. The X1 and X2 helmets will once again anchor its offerings in 2012, as the Xenith Adaptive Head Protection® technologies employed by both helmets reduce sudden head movements and help prevent concussions. In addition, the company stresses the importance of educating players. “Xenith has been on the forefront of concussion education and awareness,” said Hillary Rose, business development coordinator for Xenith. “We believe it takes more than safer equipment to reduce the risk of concussion. It is just as important to raise awareness of the injury.” In order to foster awareness, Rose said that Xenith has developed an online resource that educates coaches, parents, and players about proper tackling technique, concussion management, and safe interaction with other players.

1. Riddell’s 360 Helmet includes the same features as the Revolution helmets plus provides a protective facemask and attachment system redirecting energy away from the head upon impact and allows quick and easy removal. MSRP $420 2. Riddell’s Revolution Helmet incorporates an extension and reshaping of the helmet to cover the mandible and zygoma, utilizes energy managing material to the inside of this extension, and more space around the skull. MSRP $185

RAWLINGS, meanwhile, will offer its NRG line of helmets, which includes the Quantum and Momentum models. The Quantum helmet, available for both youth and adult players, relies on a unique protection system of communicating channels that dissipates impact force. The Momentum youth helmet also offers protection highlighted by a high impact shell and interior cushioning system - in addition to excellent peripheral vision.

1. Rawlings NRG Momentum Youth Helmet combines a high impact ABS shell with a dual density impact cushioning system, and features a front design which maximizes peripheral vision. MSRP $100 2. Rawlings NRG Quantum Adult Helmet offers an impact absorption system and impact management system with a scientifically designed spacer material for instant and long-lasting protection. MSRP $200

3. Rawlings NRG Quantum Youth Helmet answers protective needs and exceeds performance expectations with a customized fit. Constructed with a unique protection system of communicating channels that dissipates impact force. MSRP $160

WEEK 1148 | SGBweekly.com

GOING FOR THE SAFETY

Form-fitting technology takes center stage in protective gear for 2012 By Fernando J. Delgado

Photo courtesy of Shock Doctor

Just as with helmets and shoulder pads, football players want protective gear that offers the most protection while sacrificing as little movement, comfort, and performance as possible. Thanks to various technological advances, protective manufacturers will be offering items in 2012 which pack a form-fitting punch. Protective leader SHOCK DOCTOR will once again boast stateof-the-art technology in order to provide football players with a performance edge. Front and center will be the ShockSkin™ line of protective gear, a technology which features a patented system of integrated fabric and foam that moves naturally with the body, allowing for greater comfort and range of movement. Among the various featured ShockSkin™ gear will be the Velocity Football 7-Pad Cap Sleeve Shirt, Forearm Guards, and 3-Pad Impact Short with Pads. Additionally, the Nano 3D mouthguard, a small, light, selffitting guard, will return in 2012.

Football players can rely on McDAVID in 2012 for innovative proctective items that combine injury prevention and enhanced athletic performance. McDavid HexPad® Technology, which is a patented padding system that permanently bonds dozens of individual athletic pads into fabrics, will be a prominent feature of McDavid’s football offerings. HexPads in such items as the HexPad® Girdle with HexMesh™, HexPad® 5-Pad Body Shirt with HexMesh™, and HexPad® Forearm Sleeves conform to the shape of the body in order to provide more coverage - with less restriction - than traditional pads. Compression fabric in McDavid shirts and shorts helps prevent muscle pulls and fatigue since the close-fitting garments support large muscle groups. McDavid’s approach to sports medicine is also evident in the M102 Protective Knee Guard, which protects against injury by deflecting forces away from the knee without restricting player movement.

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1. Shock Doctor’s Velocity ShockSkin™ 7-Pad Cap Sleeve Shirt is new for 2012 and features ShockSkin™ technology, a system of integrated fabric and foam that moves naturally with the body. MSRP n/a 2. Shock Doctor’s ShockSkin™ Forearm Guards have integrated fabric and vented foam pads to move and contour with the body for ultimate comfort and protection. MSRP $25 3. Shock Doctor’s ShockSkin™ 3-Pad Impact Short with Integrated Thigh Pads features integrated fabric and vented foam pads that move and contour with the body for ultimate comfort and protection. Constructed with supportive four-way stretch and anti-microbial fabric that wicks moisture away from the skin. MSRP $45 4. Shock Doctor’s Nano 3D Mouthguard is known for its lower profile, closer fit, and lighter weight compared to typical mouthguards. The Nano 3D is thought to increase strength and athletic performance by creating a separation of the Condyle jaw joint, making it ideal for football players who desire streamlined and effective protection. MSRP $50

1. McDavid's M102 Protective Knee Guard features a polycarbonate single pin hinge for simplicity and freedom of movement. 100% latex-free Neoprene attachment cuffs and Velcro closures hold the Guard in place with minimal migration. MSRP $74 2. McDavid's HexPad® Girdle with HexMesh™ protects the thighs and hips, is lightweight and breathable, and conforms to the body for continuous protection. MSRP n/a 3. MCDavid’s HexPad® 5-Pad Body Shirt with HexMesh™ is a pro-style compression shirt with HexPad® protecting the shoulders, spine and ribs. MSRP n/a McDavid’s HexPad® Forearm Sleeve is a breathable, comfortable, and protective sleeve which protects the arm against impact. MSRP $30

EVOSHIELD, an

emerging player in the protective field, is expanding its football offerings for 2012. Highlighting EvoShield’s new items in the lineup are the Protective Rib Shirt and the 5-Piece Girdle. Both items utilize Custom-Molding Protection, featuring Gelto-Shell technology allowing both the Rib Shirt and Girdle to mold to the player's body in 20-30 minutes. The resulting shields offer high impact protection, dispersing impact better than foam and plastic. “Heading into 2012 with strong momentum, we are poised to release our most innovative football product line to date,” said Justin Niefer, product development manager for EvoShield. “We are excited to be the first brand to introduce to football the low impact-meetshigh impact story with our new protective girdle and rib shirt.”

EvoShield’s Protective Rib Shirt features Gel-to-Shell Technology and comes with 2 Custom-Molding Rib Shields that mold to the body in about 20-30 minutes. The Custom-Molding Shields offer high impact protection, dispersing impact better than foam and plastic. MSRP $89 Photo courtesy of EvoShield

ADAMS will also offer high-performance protective gear with its AXG Girdle and MMS Monster Man Shirt. The AXG Girdle has breathable mesh side panels and EVA padding for comfort, and a contoured foam thigh pad for greater range of motion. The Monster Man Girdle features moisture management material with a comfortable fit and flexibility in movement.

Changes in design are a key component to SCHUTT’S 2012 protective gear. New items will include the White Protective Shirt, ProTech Apparel Pants, Longsleeve Elbow Pad, and Lightweight Rib Protector Shirt. “We’ve changed the design of the Protective Shirt to provide more flexibility, and changed the configuration of the padding to provide more protection,” said Schutt’s product director Rob Ball. As evidenced by the design changes, flexibility and protection are the ultimate goals for manufacturers and football players in 2012.

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1. Schutt’s XP White Protective Shirt looks like a classical compression shirt but features state-of-the-art technology; an anatomical design that offers extra protection, including gel protection over the AC joint. Breathable mesh fabric allows excess sweat to wick away from the body. MSRP $58

1. Adams MMS Monster Man Shirt is a 90% polyester, 10% spandex shirt constructed with moisture management material and breathable EVA padding. Contoured side pads allow for increased flexibility, and the compression fit is designed for maximum range of motion. MSRP $55 2. Adams AXG Girdle 2099 is a 7-piece integrated football girdle. Breathable mesh side panels and breathable EVA padding combine with contoured foam thigh pad and knee pad for comfort. MSRP $42 3. Adams YMG-304 Youth Mouthguard with Strap features top quality dental vinyl for greater strength, comfort, ease of speech, and breathing. MSRP $1

2. Schutt’s Long Sleeve Elbow Pad offers thick cushioned padding for better shock absorption and is deal for all impact sports. MSRP $16

3. Schutt’s ProTech Apparel Pants are new for 2012. MSRP n/a

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FINDING THE RIGHT BALANCE Manufacturers are using technology to provide football players with better, more well-rounded shoulder pads in 2012 By Fernando J. Delgado

“Less is more” is the most appropriate mantra when it comes to football shoulder pads in 2012. As elite athletes continue to seek out the best way to maximize protection and performance while also decreasing the weight of their protective gear, manufacturers are offering more streamlined pads without sacrificing safety. Kevin Bull, national sales manager at DOUGLAS PADS, believes that striking the right balance between protection and performance in shoulder pads is essential. “For the athlete, the game is moving toward ‘less is more’, so we’ve got to walk a fine line with how much ‘less’ we let them have, while still providing them with the protection that they need,” explained Bull. He also points out that technological improvements are a vital part of their offerings, as the game is played at a faster and more powerful level than ever before. Douglas shoulder pads such as the Custom Pro Series feature a lightweight design combined with a state-of-theart air management system to disperse the energy of hits.

Douglas Custom Pro Mr DZ Shoulder Pad is a flat, low profile pad for full unrestricted arm mobility. Constructed with built-in, top-redundant cushions for maximum protection when blocking and tackling. MSRP $300

Other standout items in the shoulder pads category for 2012 include RIDDELL’S RipKord™ Shoulder Pad Removal System, which is designed to ensure the most effective medical management, diagnosis, and treatment of suspected head and neck injuries to football players at all levels.

1. Gear Pro-Tec’s X2 Air® Shoulder Pad provides a traditional design with the added benefit of a moisture management foam system for enhanced cooling while maintaining maximum protection. Features perforated moisture management foam and anti-microbial interior fabric. MSRP $140 2. Gear Pro-Tec's Z-Cool® Shoulder Pad provides ultra-light protection that is 35% lighter than traditional pads. A patented (patent #7,168,104) moisture transfer technology provides unsurpassed cooling and superior performance. MSRP $220

GEAR PRO-TEC is excited to offer the cutting edge, patented Z-Cool® technology among its shoulder pads for 2012. "The old air management pad designs are very hot and trap sweat," says Ed Tobergte, national sales director for Athletic Connection Co. on behalf of Gear Pro-Tec. "Z-Cool is new and helps transfer sweat away from the athlete." The Z-Cool shoulder pads are 35 percent lighter than standard pads, providing superior impact absorption - made possible by specialized Brock® Foam - along with an air circulation system that helps wick away moisture from the body of the athlete. Also new are the X2 Air and Gamer shoulder pads, which both likewise offer moisture management and maximum protection.

Riddell’s Custom Power Extreme (CPX) Shoulder Pad with RipKord™ Shoulder Pad Removal System combines lightweight, low-profile, fully customizable CPX shoulder pads with the RipKord™ System allowing athletic trainers and medical professionals to treat severe injuries during a critical window of time for immediate access to the chest and airways. MSRP $395 (CPX), MSRP N/A (RipKord)

ADAMS,

meanwhile, is excited to offer the BlitzMAX Series of shoulder pads, a line which offers protection without sacrificing mobility and which features open cell foam to maximize air ventilation .

Schutt’s AiR Maxx Flex Shoulder Pad is new for 2012. MSRP $290

Technology is also a point of emphasis in the SCHUTT 2012 lineup of shoulder pads. Rob Ball, product director at Schutt, believes that independent testing has led to an improved product. “The biggest new products that we have in 2012 are the Air Maxx Flex Shoulder Pads, which take our TPU technology and bridge it over into shoulder pads,” shared Ball. He explained that Schutt has recently held internal testing in their own labs - since there is currently no industry testing nor certification for shoulder pads - to get a handle on impact absorption, and found that TPU cushioning in shoulder pads absorbed about 6 to 9 percent more impact than traditional pads. “We think it’s going to be a hit with D-I to D-III colleges,” said Ball. “The players love how lightweight it is, and they notice the protection that it gives them while still being streamlined.”

Adams BlitzMAX 1 Shoulder Pad is lightweight and provides hitting protection without sacrificing speed. Perforated EVA and open cell foam maximizes air ventilation. MSRP $92

WEEK 1148 | SGBweekly.com

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Sock and Textile Designer Smartwool

Sr. Product Manager / Product Manager The Coleman Company, Inc.

Cycling Sports Group (Cannondale, GT) is seeking a Design Engineer to develop bicycle frame and component designs from conception to mass production using 3D modeling software. The ideal candidate will use knowledge of mechanical engineering to determine the ideal manufacturing process, and work with suppliers to bring product to market…

The SmartWool Sock and Textile Designer incorporates the brand vision, seasonal design themes and product line direction to design commercially compelling sock and knit accessories that achieve both brand and quantitative goals. Responsible for seasonally allocated cross-categorical textile design in socks, knit accessories, sweaters and fabrics. Create the sock design tech packs and close communication with the sock development team…

The Product Manager is responsible for the overall maintenance of assigned product category and part of a cross-functional team who interacts directly with Sourcing, Engineering, Sales and Finance to continue category growth and leading-edge innovation. The primary accountabilities include understanding the new product development cycle and identifying new product opportunities, interacting directly with customers…

Outside Sales International thinksport

Category Manager – Camping / Marine Big Rock Sports

POP Manager Columbia Sportswear

Big Rock Sports, the leading distributor of hunting and fishing supplies in North America, has an immediate need for a Category Manger – Camping/Marine.The Category Manager will be responsible for developing and implementing merchandising strategies to maximize sales opportunities within assigned categories…

Create Global in-store marketing programs to support the Columbia family of brands and targeted category/ product initiatives. Collaborate with Senior Manager, InStore Marketing to seek out and build innovative and comprehensive Columbia Sportswear product launch programs. Manage all aspects of retail brand marketing initiative development from conception through production. Proactively seek out new and innovative instore programs…

Territory Manager / Illinois, Michigan, Indiana, Ohio, Kentucky High Sierra

Commercial Director Salomon

Design Engineer Cycling Sports Group

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We are looking for Outside reps or Sales rep groups both domestically and internationally who are interested in assisting on finding co-branding opportunities. Our products sell into a wide footprint of retail establishments from sporting good stores, outdoor specialty, natural products, yoga studios, fitness centers, running stores and more…

Electronic Data Integration Supervisor Sport Supply Group This position is located at our Corporate Headquarters in Farmers Branch, TX. Responsibilities include the overall quality and data integrity of the exchange of information between Sport Supply Group vendors and SAP. Managing and making the necessary decisions for creation of and maintenance of the vendor bridge. Work with internal and external technical groups to define the requirements to create successful vendor EDI conversions. Specific responsibility for developing electronic methodology and frequency for acquiring vendor product file…

Must have a dynamic track record for managing all sales functions, financial planning, store clinics, projection and tracking monthly sales and inventory needs. Thorough knowledge of industry prospecting and territory planning. Be a self-motivator and possess the skills to motivate others…

Portland, Oregon based role. Reporting to President of Apparel. Develop and implement the snowboard and Action Sports activity, in coordination with the Apparel and Gear category global commercial strategy. Deliver the annual sales and EBIT identified in the strategic plan.Insure commercial clarity for National Sales Managers, providing KPI’s…

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