SGB Weekly 1232 by SportsOneSource

ISSUE 1232 AUGUST 6, 2012

The Weekly Digital Magazine for the Sporting Goods Industry

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Group Publisher Editor In Chief James Hartford james@sportsonesource.com 704.987.3450

ISSUE 1232 AUGUST 6, 2012

Senior Business Editor Thomas J. Ryan tryan@sportsonesource.com 917.375.4699 Contributing Editors Aaron H. Bible, Fernando J. Delgado, Charlie Lunan, Matt Powell Creative Director Teresa Hartford teresa@sportsonesource.com 704.987.3450 (x105)

The Weekly Digital Magazine for the Sporting Goods Industry

Graphic Designers Camila Amortegui camila@sportsonesource.com 704.987.3450 (x103)

Sebastian Restrepo sebastian@sportsonesource.com Special Projects Manager Dao Huynh dao@sportsonesource.com 704.987.3450 (x109) VP Business Development / East Barry Gauthier barry@sportsonesource.com 774.553.5312 VP Business Development / West Barry Schrimsher bschrimsher@sportsonesource.com 503.784.6267 VP Marketing / Product Development Gregg Hartley ghartley@sportsonesource.com 561.543.7789

Advertising Sales Account Manager / Northeast Buz Keenan buz@sportsonesource.com 201.887.5112

Advertising Sales Account Managers / Midwest Barry Kingwill & Jim Kingwill bkingwill@sportsonesource.com jkingwill@sportsonesource.com 847.537.9196 Advertising Sales Account Manager / Southeast Katie O'Donohue katieo@sportsonesource.com 828.244.3043 Circulation & Subscriptions Subs@sportsonesource.com

NEWS

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SportsOneSource Publications Print Magazine: SGB, SGB Performance Digital Magazines: SGB Weekly, TEAM Business Newsletters: The B.O.S.S. Report Sports Executive Weekly Weekly Updates: SGB, Footwear Business, Outdoor Business, Sportsman’s Business, TEAM Business SportsOneSource Research SportScanInfo, OIA VantagePoint, SOS Research

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TevaSphere Speed signature shoe for men and women. Available in two colors. MSRP $120

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BY THE NUMBERS BSN SPORTS Acquires Holiday Sporting Goods; Adds Three To Management Team LIDS Acquires Nine-Store Team Shop in Seattle MOVERS & SHAKERS SGMA To Launch Industry Leaders Summit in September 2013 TPG INTERNATIONAL Makes Another Bid for Billabong

SPOTLIGHT

8 10

FEATURES

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THE CAMPING LIFE Camping and Backpacking Withstand the Heat So Far This Year TEVASPHERE Teva Brings Minimal to Heel Strikers

I AM… SGB Brian Moore, VP of Global Footwear The North Face

DEPARTMENTS

MCDAVID Launches New Brand Identity TIMBUK2 Unveils Power Supply Bags RUSSELL ATHLETIC To Make Super-Hero Fan Gear EVERLAST Unveils 2012 USA Olympic Boxing Gear

Copyright 2012 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

AUGUST 6, 2012 | SGBWeekly.com

NEWS

BY THE NUMBERS

$1.18 billion

HanesBrands, the parent of Champion, reported sales were $1.18 billion, an increase of 1 percent over last year’s quarter, and earnings per diluted share were 67 cents, a decrease of 14 percent. The decrease in EPS was primarily due to substantially higher cotton costs, although the Innerwear segment had 18 percent growth in operating profit on strong sales of men’s underwear, children’s underwear, and women’s panties and bras.

Garmin, Ltd. announced total revenue of $718 million, up 7 percent from $674 million in second quarter 2011, for the fiscal quarter ended June 30. The company posted revenue growth in every segment, with significant growth outdoor and marine during first quarter. Americas revenue was $392 million compared to $358 million, up 9 percent, while gross margin improved both sequentially and year-over-year to 59 percent for second quarter 2012, up from 51 percent in first quarter 2012, and 48 percent in second quarter 2011.

Columbia Sportswear Co. reported sales increased 8 percent in the second quarter, to $290.4 million, compared with $268.0 million a year ago. Net sales of the Columbia Brand grew 9 percent, or twice the rate of premium sister brand Mountain Hardwear. That growth offset a decline for Sorel. Columbia's net loss shrunk to $7.9 million, or 23 cents a share, from a loss of $13.6 million, or 40 cents, a year earlier.

56.2%

Cabela's Inc. reported second-quarter earnings jumped 56.2 percent to $33.9 million, or 47 cents a share, compared to $21.7 million, or 31 cents, a year ago. For the quarter, total revenue increased 11.6 percent to $627.3 million; Retail store revenue increased 16.9 percent to $384.7 million; Direct revenue decreased 0.7 percent to $158.5 million; and Financial Services revenue increased 12.8 percent to $79.3 million. For the quarter, comparable store sales increased 4.7 percent. 4 SGBWeekly.com | AUGUST 6, 2012

BSN SPORTS ACQUIRES HOLIDAY SPORTING GOODS; ADDS THREE TO MANAGEMENT TEAM BSN Sports, Inc. acquired the assets of Holiday Sporting Goods, located in New Iberia, LA. Holiday brings 30 years of market experience serving school and team customers in Louisiana, Mississippi and Florida. The Holiday team will complement BSN’s growing footprint in the southern U.S. under the direction of Michael Caravati, VP South Division. The Holiday transaction marks BSN Sports’ fourth acquisition in the last 12 months. “Our most valuable asset at BSN Sports is our people,” stated Adam Blumenfeld, chairman and CEO of BSN Sports. “We are thrilled to welcome Danny and his team to BSN Sports, and look forward to building upon the platform they are creating in the South." BSN Sports also announced the addition of three new senior managers in strategic locations. Matt D’Orazio, two time former Arena Football League MVP, will be managing BSN Sports’ Columbus, OH sales operation and expansion. Jim Bistrow becomes director of sales for the state of Florida. George Jones based out of Atlanta, was appointed Southeastern director of sales support and operations. “These three gentlemen, along with our existing staff of highly talented regional and executive sales managers, make up what we believe is the strongest management group in the team sporting-goods industry," said Blumenfeld.

LIDS ACQUIRES NINE-STORE TEAM SHOP IN SEATTLE The LIDS Sports Group retail division has reached an acquisition agreement with JAS Sports, Inc., the Seattle-based retailer of officially licensed Washington collegiate and Seattle professional sports team merchandise. The purchase consists of nine brick-and-mortar properties operating under the Seattle Team Shop, The Dawg Den and SODO Sports brands, as well as the mobile concession operations near Safeco Field and Century Link Field. In addition, the purchase consists of multiple online shops which include wazzugear.com, soundersgear.com, thedawgden.com and seattleteams.com. "In looking for growth opportunities with added value for our retail division, we found the JAS Sports portfolio to be a great fit that not only met our business criteria but our multi-channel customer experience model as well," commented LIDS Sports Group President Ken Kocher. "We are pleased to have expanded the scope of our reach in the Greater Seattle area with this addition." Among the many ways LIDS will further develop the existing customer base will be the introduction of its LIDS Club loyalty card program in each store. Members earn points with each purchase, which can be redeemed for rewards such as exclusive discounts and promotional offers, as well as access to special products and events. The LIDS Sports Group, operating within Hat World, Inc., is comprised of the LIDS retail headwear stores, the LIDS Locker Room specialty fan retail chain, the LIDS Clubhouse retail stores, the LIDS Team Sports wholesale team sports business, and multiple e-commerce sites.

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MOVERS & SHAKERS Icebreaker promoted David Marsala to U.S. sales operations manager – sporting goods, where he will lead Icebreaker’s expansion into the sporting goods channel. Freedom Group, Inc. (FGI) appointed Ross J. Saldarini as SVP of accessories and lifestyle. He will continue to serve as president of Mountain Khakis, the high end mountain-inspired lifestyle apparel brand also owned by FGI. Wayne Elsey, founder and former CEO of Soles4Souls, has launched Wayne Elsey Enterprises, a full service branding, marketing and communications agency for companies and non-profit organizations. Keith Jones is planning to step down as CEO of JJB Sports, the U.K. sporting goods chain. EMU Australia appointed Scott Sible as CEO of North America. Sible joins the company with 25 years of experience in the footwear and apparel business. Freewaters Footwear announced that well known industry executive John Vance has joined the company as president and CEO. Vance joins Freewaters after eight years at Sanuk where he served as president and CEO and played an integral role in the recent sale of the company to Decker's Outdoor. Fischer Skis U.S., LLC named Tyler Beck as national alpine sales manager, where he will be in charge of managing the sales rep force and retailer relationships. Cramer Products, Inc. has promoted Adam Huckeby to senior product manager, and Rob Mogolov to director of marketing. Brett McCann has been hired as Cramer’s regional sales. manager for the southeastern part of the U.S., while Chad Stephens has joined Cramer as a product manager. CamelBak announced two promotions within its executive team as part of a strategic initiative to drive significant domestic and international growth. Layne Rigney has been elevated to senior vice president of global sales, while Mike Moore has been promoted to senior director of North American sales. 6 SGBWeekly.com | AUGUST 6, 2012

SGMA TO LAUNCH INDUSTRY LEADERS SUMMIT IN SEPTEMBER 2013 The Sporting Goods Manufacturers Association (SGMA) will launch its inaugeral Industry Leaders Summit in late September 2013 in the greater Washington, D.C./Baltimore area. The summit will feature sessions ranging from managing geo-political risk, emerging market analysis and the future of sourcing to forecasting the merger and acquisition environment and the convergence of technology in sports. This 36-hour event is designed to provide a unique opportunity for some of the most highly regarded executives in the sports and fitness industry to find solutions to “what keeps them up at night” while also networking with customers, partners and peers. “Our industry is constantly evolving, and success will be based on a commitment to innovation and adapting to the rapidly changing global environment," said Kevin Plank, CEO of Under Armour, who has committed to speak at the event. "I am excited about the opportunity to participate in this inaugural event, which should be an invaluable resource to executive leaders and to the industry as a whole." Unanimously endorsed at the SGMA Board Meeting in June, the Industry Leaders Summit is the newest addition to SGMA’s growing collection of thought-leadership initiatives. Other events include National Health Through Fitness Day, the Litigation and Risk Management Summit, the High School & University Equipment Rules Conference and SGMA’s monthly Thought Leadership/Research Webinar Series. “We are committed to delivering an Industry Leaders Summit that is both compelling and forward-thinking,” said Tom Cove, SGMA President and CEO. “The future of our industry and how it is impacted by technology, societal trends, politics, innovation, sustainability and corporate/social responsibility, emerging markets and global influences are themes that will be weaved throughout the agenda.”

TPG INTERNATIONAL MAKES ANOTHER BID FOR BILLABONG Billabong International, Ltd. said it received an indicative, non-binding and conditional proposal from U.S. private equity firm TPG International, LLC to acquire the company for A$1.45 per share in cash. The deal is valued at about US$714 million. Earlier this year, the firm had rejected an offer from TPG after its Board considered the revised price of A$3.30 per share as still not reflecting the fundamental value of the company in the context of a change of control. However, the company has seen an erosion in stock price. The latest offer represents a 32 percent premium to Billabong's share price of A$1.10 before the offer was made public.

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SNPEOWTSL I G H T MCDAVID LAUNCHES NEW BRAND IDENTITY McDavid, Inc. announced a new brand identity to reflect the company’s mission to be an essential part of every athlete’s training, motivation and success. McDavid’s new tagline, “First on. Last off,” reflects the company’s dedication to superior protection and every athlete’s determination to be the best. “Our goal was a new look that athletes will relate and respond to and one that reinforces the confidence that McDavid products instill,” said Bob McDavid, president and CEO. “McDavid has a long-standing connection and collaboration with athletic trainers and we want them to be among the first to experience our new brand.” McDavid products emblazoned with the new brand identity will debut at major sporting goods retailers in early 2013. McDavid’s product line includes braces for individual parts of the body, such as knees and ankles, plus protective apparel featuring its patented HEX technology. The company has also launched the brand on its new web site. “The new brand really allows us to celebrate athletes and demonstrates our deep understanding of how our products help them reach their goals,” said Mary Horwath, McDavid’s vice president of global marketing. “We’ve identified our brand update as ’30 Years New.’ This theme speaks to three decades of McDavid innovation and passion, while pushing forward with a confident voice of renewed energy and attitude.” Click to play McDavid's new brand identity video

TIMBUK2 UNVEIL POWER SUPPLY BAGS Timbuk2 has partnered with Joey Energy to offer the first series of purpose-built bags with a power supply to charge a variety of electronics while on the move. Two bags - the Power Commute and the Power Q – to be unveiled at the Outdoor Retailer show will integrate a Joey T1 power supply that provides two full cellphone charges. The power supply, contained in a water resistant case, is wired to specific gadget compartments within the bag and charges devices via USB. The Power Commute messenger bag and the Power Q backpack both have plenty of compartments and side pockets to organize your gadgets, and each has a dedicated laptop compartment. Both bags come in black, gunmetal, and algae green, and will be available on Timbuk2's site for $199 starting in October. Both devices will be available from retail stores starting February 2013. "There are a few 'battery' and power bags on the market, however none are from existing or trusted manufacturers in a lightweight, simple and compact format that also charges different brands and types of technology while on the go," said Timbuk2 CEO Mike Wallenfels. "Timbuk2's core consumer has a nomadic lifestyle. It made sense for us to partner with Joey Energy to offer the most innovative charging capabilities designed to keep consumers moving in two of Timbuk2's top selling bag styles." 8 SGBWeekly.com | AUGUST 6, 2012

SPOTLIGHT

RUSSELL ATHLETIC TO MAKE SUPER-HERO FAN GEAR Russell Athletic has partnered with Marvel Entertainment, LLC on a Marvel Super Hero-Russell Athletic Collegiate apparel program. The program will reach up to 200 colleges across the country. The items can be found in college bookstores, arenas, sporting goods retailers and mid-tier stores beginning this month. The program will include t-shirts and hoodies featuring world-renowned Marvel Super Heroes including Spider-Man, Captain America, Iron Man, Hulk, Thor and Wolverine. The characters will appear in each college’s respective school colors along with their mascots and logos. Some of the nation’s largest universities will be participating in the program including UCLA, Michigan State, Baylor, Kansas State, Mississippi State, UNLV, Ohio State and University of Iowa. The innovative co-branded partnership marks Marvel’s continued expansion into the sports category and helps extend the reach of its popular Super Heroes to new audiences and retail channels. Current Marvel co-branded sports apparel programs include the NBA and the Dallas Cowboys. “We are very excited about partnering with Marvel Entertainment on this project,” said Gary Barfield, EVP, Russell Brands. “The Marvel-Russell Athletic Collegiate collection is a fun, innovative way to offer our consumers another opportunity to connect and celebrate with their favorite schools.”

EVERLAST UNVEILS 2012 USA OLYMPIC BOXING GEAR Everlast, exclusive partner of the USA Olympic Boxing Team, unveiled the official team competition apparel and footwear for the 2012 London Olympic Games. The collection features a tank top, boxing shorts, footwear, personalized walk-out robe and warm-up jumpsuit. Each member of the coaching staff will also wear the USA branded warm-up suit. The 2012 Olympics are the first Games to recognize women's boxing as an official sport and the U.S. Boxing Team qualified three women competing in each of the official weight classes. Nine men will compete across nine weight classes for elusive Olympic medals, Everlast will be outfitting at the Games.

THE CAMPING LIFE CAMPING AND BACKPACKING WITHSTAND THE HEAT SO FAR THIS YEAR By Aaron H. Bible

f it’s not the economy, it’s the weather. If it’s not the weather (and related fires and low flows), it’s conglomeration of distribution channels. If it’s not conglomeration, it’s price competition and slimmer margins. Well, in the first half of 2012, it’s been all of the above, plus quite a bit of good news thrown in to boot. Camping and backpacking make up a majority share of many outdoor retailers’ business, and we surveyed industry leaders on both the retail and supply side to see how 2012 is shaping up. One of the best indicators of national retail trending comes from regional brick-and-mortar specialty shops that also compete in the online arena. This diversification allows them to make decisions armed with knowledge of what is happening nationally as well as in their own back yard. They are also less subject to regional weather variations. Spokane, WA-based Mountain Gear has been in the retail business since 1983, the catalog business since 1993, and the online business since 1995. According to Mountain Gear merchandise planner Travis Nichols, the company is well aware of weather trends and has been watching closely since last fall. “Has it impacted sales, yes; to what extent is anybody’s guess,” Nichols said. He believes that with so many factors in the marketplace it’s impossible to pinpoint weather related trends. “The economy continues to be part of it, but not as much as it was two years ago, as well as product and availability at the right price,” Nichols said. “Distribution channels are changing. The number of distributors as well as conglomerations are affecting the industry.”

12 SGBWeekly.com | AUGUST 6, 2012

When it comes to online retail, few are more acquainted with national buying trends than Backcountry.com. Matt Enloe, Backountry. com divisional merchandise manager for camping and hiking, rings in on the weather. “It's a difficult question to answer because it can vary from region to region, however overall I would say that the weather this year has not been the driving force we expected,” he said. “With a low-snow year there was an expectation of a robust start to the camping season. Things were still positive, just not to the level expected.” Enloe, like others, points to sleeping bags, camp furniture, and stoves as the retail winners of the summer. “The warm spring weather certainly provided stronger retail performance in many of the outdoor categories earlier in the year,” agreed Brad Bates, director of sales for Osprey Packs in Cortez, CO. “This helped offset the losses realized from the previous winter season. The challenge most retailers faced was managing their open-to-buy dollars due to the daunting inventory position of winter goods carried over.” “The early spring provided many retailers the opportunity to recoup the needed cash to manage their spring more efficiently. We saw fantastic performance and continue to be right in stride with our sales projections for 2012,” continued Osprey's Bates. “Our pre-season order file remained healthy and strong throughout the first half of 2012 and was equally supported with in-season reorders. February was strong, March was one of the biggest shipping months in the history of the company, followed by a quiet April seen at retail and a surging May and June.

AUGUST 6, 2012 | SGBWeekly.com

The early spring meant we were accessing our ASAP inventory earlier than planned and a few styles or colors may have been exhausted earlier than planned but there have been alternatives in most cases. I know it is a very competitive environment at retail and we really appreciate the support from our retail partners.” “From our perspective the weather has not been a hindrance on sales,” explained Sharon Gauding, vice president of sales and marketing at Oboz, the comparatively small footwear brand based in Bozeman, Mont. “I know a lot of retailers were hit hard in some categories with the lack of winter but for the most part, our hiking and backpacking categories have performed even better than planned for the first half of the year.” “Having an early spring has actually helped us overall. Of course this varies slightly by region, but overall it was great to get an early read on spring product,” Gauding said. “Several of our accounts are impacted by the fires and we anticipate this translating to some adjustments in the near future. We were able to donate shoes to some of our key accounts in these regions for them to share with their employees and customers who have been devastated by the fires.” So what is the overall specialty retail scene in footwear? “Growing with a lot of competition,” said Luke Eldrige, sales manager for Crescent Sock/Fits Sock Company. “We are experiencing rapid growth.” “The warm winter had some effect, but we were very close to 14 SGBWeekly.com | AUGUST 6, 2012

achieving our sales goal for the year. There is certainly a lot of inventory still on the shelves from the winter. This is true not just for socks and we are trying to be respectful of that in working with our retail partners,” Eldridge said. "We also try and make it easy to do business with us. For example we are happy to swap inventory left over from the fall/winter and replace it with our running socks for summer.” According to retail point-of-sale data compiled by SportScanInfo for OIA VantagePoint, sales of backpacking and camping equipment sales were up 3.6 percent to $641.3 million for the five-month fiscal yearto-date period through June. Technical pack sales were up 6.5 percent for the period while camping gear sales grew 3.3 percent through June this year. “May was a monster month for outdoor gear sales after a very strong and early start to the season, but growth has slowed heading into the summer months,” said James Hartford, CEO and chief market analyst at The SportsOneSource Group, which manages the OIA VantagePoint platform. Hartford went on to suggest that product geared towards the day hike, whether it is trail shoes or technical daypacks, are out-performing the market trend. Technical daypack sales were up in the mid-single-digits for the year-to-date period, according to the OIA VantagePoint data. The data also points to kid carriers as a major growth opportunity for retailers, with sales doubling this year as more specialty retailers invest in the category.

One person with a lot of brands and territory to cover is Adrian Pearson, central region territory manager for American Rec in Boulder, CO, parent company of Kelty, Sierra Designs, Ultimate Direction and Royal Robbins, as well as Slumberjack, Wenzel, Mountain Trails, Rokk, Isis and Instabed. Pearson agrees that the early spring was difficult to pinpoint as good or bad in terms of camping sell through. “It’s been a mix,” Pearson explained. “The poor winter definitely hurt the overall inventory position for many of my guys, forcing some to reduce incoming orders or push them back. The early spring was both a boon and a curse. The nice weather allowed them to sell through what summer-oriented stuff they had on hand, but the excess inventory still made it difficult for many to re-order when they wanted and as much as they wanted. My shops that deal with boats, as well as camping, still seem to be doing alright, as the heat is still pushing many to the rivers where possible.” “I think we’ll start to see a lull from now until fall, as the weather has gotten stiflingly hot,” Pearson continued. “It’s similar to what I see happen down in Texas. Camping goes on during the spring and fall, it’s too hot in the summer.” Speaking of heat, fires have devastated several areas this summer, especially in Colorado, combined with lack of rain and low-flowing rivers. According to Pearson, for some the impact was immediate, specifically retailers in Colorado Springs and Ruidoso, NM. “For others, they haven’t had an impact yet per se, but with the way the media has reported on them, saying stuff like ‘Colorado Burning,’ I bet there will be a dip in tourist dollars as we get later into the summer,” Pearson said. “I was already hearing rumors at the shows about reservations being cancelled for later in the summer and phone calls from concerned travelers.” According to Denver’s specialty outdoor retailer Wilderness Exchange, backpacking, camping and climbing are all selling extremely well despite negative publicity. Wilderness

Exchange sales lead and buyer Jeff Welch said sales have been consistent across the board in all three categories. As for what products are working, American Rec’s Pearson agrees: packs and camping accessories. “Packs and accessories are what I’ve been hearing the most success stories on this year,” he said. “Products such as folding coolers, chairs, and lighting have been especially strong. Kelty packs continue to be solid. For many of my non-mountain retailers, watersports have also been a solid growth area.” According to Matti Wade of Frisco, CO Ten Mile Creek Kayaks, the early spring has had a major impact on sales. “It’s apparent, for sure, in this area,” Wade said. “Because of the low snow pack it was an early season and because of the mild winter, business started early but has fallen off a bit for the summer.” Wade also cites the early spring as a positive on his local retail business, with people looking at boating gear earlier than ever before. That said, like other retailers, it was a

mixed bag. “It was a negative because most of my new gear was not in yet and lots of companies were late or did not have gear that was shown at OR ready,” he continued. With water levels dropping faster than anyone can remember and fires raging across the state at press time, retail business in Summit County was speculative at best. “It puts a cloud over people that had planned on coming to Colorado,” Wade said. “People have called my shop to ask if the fires are close to here, which I have never experienced before.” That said, there are still plenty of products working well at retail: longboards, stoves, and stand up paddles and boards to name a few. “When you account for SUP paddles and boards, there’s a big pick up there,” Wade said. “Because of the low water, but the fact that there’s still water in many reservoirs and lakes, it’s a good way to cool off and anyone can do it.” Jeremy Dakan, owner of Pine Needle Mountaineering in Durango, CO, agreed it has been an interesting year. “Winter ended pretty abruptly here in southwest Colorado AUGUST 6, 2012 | SGBWeekly.com

and our local clientele seemed confused on what to do to say the least. The local trails dried up really early so we had a fairly strong spring with day-hiking (hydration packs, hiking shoes, trekking poles),” Dakan said. “Unfortunately that did not translate to more backpacking and multi-day gear sales. Most backpackers don’t plan trips down here early; on a typical year they could be slogging through snow well into June.” “Overall sales in the camping department were slightly down this spring,” Dakan continued. “The only sub-category within camping that is significantly up is water.” Pine Needle’s real summer business kicks off July 1 so some data is yet to be determined. “The current fire situation and the negative media behind it make us all very concerned,” he said. “We hope that the rain shows up, the media quits, and the usual tourist activity stays on track.” The National Oceanic and Atmospheric Administration (NOAA) announced last month that the first six months of 2012 accounted for the warmest January-through-June period on record for the contiguous U.S. National temperatures averaged 52.9 degrees, "4.5 degrees above the long-term average." "Most of the contiguous U.S. was record and near-record warm for the six-month period except the Pacific Northwest." East of the Rockies, 28 states were "record warm," according to NOAA. The past year also registered as the hottest 12-month period on record in the contiguous U.S. NOAA predicts hot temperatures will stay above normal for the remainder of the summer. One of the country’s larger specialty retailers and one not easily

16 SGBWeekly.com | AUGUST 6, 2012

affected by heat is Salt Lake City, Utah’s Kirkham’s Outdoor Products. The shop features a strong mix of camping and backpacking, as well as winter sports, apparel, and accessories. They boast 26,000 feet of retail space, 68 years of experience, and their own tent line: Springbar canvas tents. According to owner Jack Kirkham, the last two years’ weather has combined to even things out. “Sales have been a little up and down, but probably overall just about flat,” he said. “The first quarter was definitely soft, but that was more a reflection of the winter that never was.” Like many retailers, second quarter, with its early spring, helped even out winter losses…as well as losses from last year’s overly wet spring. “Last spring people put stuff off, so we’re selling a lot of tents and camping accessories,” Kirkham said. “Accessories are doing really well.” He said everything from water bottles to first aid kits to chairs, solar showers, “everything camping,” is selling out. According to camping icon GSI Outdoors, it may be too early to draw any real conclusions. “Since our ‘sell in’ has been good, we don’t know if the re-orders will be better or worse than expected,” explained GSI president Ian Scott. “To date sales have not been negatively impacted because of weather. Different parts of the country have had abnormal conditions but overall sales seem to average out for areas having great conditions versus poor conditions.” Whether the mild winter and arrival of an early spring affected sell-through is a difficult question to answer. “Some retailers probably were not able spend as much on camping as they wanted if they were left with too much winter soft goods and hardware. Others retailers probably got a jump on the camping season,” GSI’s Scott said. ■

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Teva Brings Minimal to Heel Strikers

or Spring 2013, Teva is planning to enter the minimal conversation with a twist. The focus of its TevaSphere collection is on the heel. Four years in development and done in collaboration with extensive testing from sports science and human performance institute P3 (Peak Performance Project), TevaSphere promises to be the first outdoor cross-trainer to offer a spherical heel and pod-based arch support system to provide more natural position of impact, efficient transition and stability on varied terrain. “Teva has been providing innovative footwear for the outdoors since pioneering the sport-sandal category almost thirty years ago,” said Teva’s President Joel Heath. “We are, once again, putting our stake 18 SGBWeekly.com | AUGUST 6, 2012

By Thomas J. Ryan

in the ground; with TevaSphere we are delivering a technology-based solution that addresses the shortcomings of both minimalist and over-supportive athletic shoes.” In an interview with SGB Weekly, Chris Hillyer, innovation manager at Teva, said the brand’s first introduction to minimal was actually the Zilch, its super-thin sports sandal launched last year that bends and flexes naturally with the foot. But the more-expansive TevaSphere project was initiated after Teva began looking for a trail/multi-sport shoe to address the growing number of younger “action outdoor” customers who face a diverse range of terrain Teva's President, Joel Heath and obstacles in their outdoor pursuits. Participation in non-traditional outdoor sports such as adventure racing, obstacle courses and mud runs are steadily on the rise and the young are foregoing the multi-day backpack trips they’re parents enjoyed.

The TevaSphere collection includes the TevaSphere Speed, TevaSphere Trail eVent, TevaSphere Trail, TevaSphere Trail Mid eVent

“In a way, they want to rewrite the rules,” said Hillyer. “So we just want to be there when they find their passion in the outdoors.” At the same time, TevaSphere offers a middle-ground solution for outdoor athletes between built-up traditional athletic shoes that are stiff and unnatural and the new barefoot/minimalist footwear that is unsupportive and encourages consumers to change their stride to adapt. Teva’s design team couldn’t ignore how the minimalist movement was radically altering construction around running shoes and spreading its way into other outdoor footwear categories. While recognizing the value of strengthening the foot that results from a more natural running stride, Hillyer believes the “pendulum swung too far” for many runners with Vibram’s FiveFingers’ launch in 2005 followed by Nike Free, Newton and other “extreme” models. “Strengthening your foot is a fantastic idea and we’re not going to position ourselves to disagree with the idea that having stronger feet is going to give you a better experience in life and health,” said Hillyer. “But I think the problem is when people are going out for 10 mile runs wearing shoes that don’t support their feet properly, they get injured.” He added, “It’s an unfulfilled prophecy in some ways. The product is out there, the hype is there, and everyone is telling you to land differently when you run and to buy these shoes to do it. And yet

at the end of the day, they can’t really wear them. They’re just not properly supportive.” Early on, Teva partnered around developing TevaSphere with P3 (Peak Performance Project), the Santa Barbara, CA-based leader in sports science that has made a name for itself by training elite athletes, including players from MLB, NBA and the NFL. P3 applied 3-dimensional forceplates, second and third degree motion capture tracking, and high-speed video to capture how people walk and run across varied surfaces. In particular, P3’s open running platform tested TevaSphere’s prototypes versus a range of other shoes when walking or running up and down hill. Much of current footwear testing is done on a treadmill that only offers readings on flat surfaces that isn’t a realistic depiction of what it’s like to be on a trail or hill. “Anytime you’re in the outdoors, you’re going up or down,” said Hillyer. “In fact, people stay away from flat hikes.” Teva also made modular shoes so components of the shoe, including the pods and foam densities, could be changed to work for optimum efficiency through the stride. In all, 22 prototypes were tested, leading to the collection of more than 35,000 points of data. In working on the Teva project, Geoffrey Gray, doctor of physical therapy at P3, said his team questioned or outright disputed some of the theories circulating around minimalist doctrine. AUGUST 6, 2012 | SGBWeekly.com

For one, runners weren’t necessarily changing their strike based on the shoe they wore. And despite all the attention to forefoot or at least midfoot striking, research showed that where the foot hits the ground doesn’t necessarily change the impact patterns on the body. Said Dr. Gray, “We don’t know what is the right answer as far as footstrike patterns. But I think a lot of the research has either been done in haste or not fully examined.” Perhaps more surprisingly, a study by P3 of 100 runners found that over 90 percent of them heel-striked and many runners were heel striking without injuries. Dr. Gray said people “run differently” on treadmills and a 30-second test of a runner on a treadmill offered little clue to what a runner’s true strike was when they got comfortable in their run. The footstrike pattern also tends to break down longer in the run as the athlete gets tired. “The majority of consumers continue to land on their heels whether running or walking,” added Hillyer. “We felt compelled to create a technology that allowed people to transition through their stride in a natural way without expecting the consumer to change.” P3 was also already recognizing some of the shortcomings of some of the more minimal shoes that basically resembled racing shoes that hit the market in the seventies. Dr. Gray said some professional baseball players were bringing more extreme models to their training facility and quickly getting injured. Said Dr. Gray. “They were fine when jumping or running in a straight line, but the second they tried to rotate or move laterally on their foot, it just did horrible things to their body and their alignment. So we kicked them out of the gym.“ At the same time, the study provided fresh evidence of some of the drawbacks around traditional running construction. For example, while some footwear brands are obsessed with making ultrasupportive shoes to eliminate all pronation, a degree of pronation is fine as long as it isn’t excessive, Dr. Gray found. The key feature of the TevaSphere is the patent-pending spherical heel and pod-arch system. The spherical heel brings the athlete closer to the ground and provides a more natural point of impact. The heel sits 24mm from the terrain compared with an average 40mm in a square foam heel. During a natural stride, the foot brakes before it accelerates, adding strain to the body. The TevaSphere design reduces the magnitude of braking and results in a more efficient transition from heel-to-toe when compared to square-heeled shoes intended to control motion, and even running barefoot. The pod-arch system provides specific support only where needed, offering stability without restricting freedom of movement or adding unnecessary weight to the shoe. “With the nice rounded heel that the TevaSphere has, it actually diminishes breaking forces as compared to the squared off type heels,” said Dr. Gray. “And with this pod set up, you get as much stability out of a minimal shoe as you would out of a straight-lasted, motion-control shoe.” 20 SGBWeekly.com | AUGUST 6, 2012

• TevaSphere Speed signature shoe for men and women available in two colors. MSRP $120 • TevaSphere Trail eVent for men featuring eVent breathable waterproof membrane, sturdy design and toe bumper for added protection. MSRP $140 • TevaSphere Trail built for women who prefer the benefits of a sturdy trail shoe and can forgo waterproof features. MSRP $120 • TevaSphere Trail Mid eVent in a mid-cut height for men and women that is available only in selected international markets. MSRP n/a The system enables the TevaSphere to work for all types of users, whether their feet pronate normally, over-pronate or sub-pronate. In instances of over-pronation, the pods are engaged when the foot rolls over and pushes it back into optimal alignment. It works the same way for sub-pronation. Until now, the classic model for motion control has been to use higher density foam to push the foot back to “normal” pronation. The result is a very stiff shoe that is built too high - thereby losing the natural feeling of the ground. TevaSphere is ideal for unhealthy pronation since it offers the benefits of motion control, without having an overbuilt, clunky shoe. Borrowing from some of its other technologies, TevaSphere’s outsole is composed of Spider 365 rubber that provides strong traction on various terrains. The collection also features non-sew synthetics, flexible mesh and vibrant colors. Hillyer said Teva’s team believes it’s created a versatile running shoe that will take athletes wherever they want to go. “It really ties into the nature of our brand. We give the athletes the freedom to be ready for anything the outdoors offers,” he said. ■ Note: According to SportScanInfo, Teva sales are up in the low teens year-to-date.

ÂŠ 2012. Yupoong and Flexfit are registered trademarks of Yupoong Inc. All rights reserved. USA Patent #5715540 E.U. Patent #0639338 Australia Patent #671359 Canada Patent #2092362 France Patent #9406840 Korea Patent #082922

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II AM... AM... SGB SGB

BRIAN MOORE VP of Global Footwear The North Face Moore, formerly VP men's footwear at Timberland, recently became VP of footwear at The North Face, a new position for the brand. Moore was among the SGB 40 Under 40 honorees in 2009

WHAT WAS THE SPORT YOU PARTICIPATED IN GROWING UP? I was always a runner and ran track in high school, college and post collegiately. YOUR PROUDEST ATHLETIC MOMENT? Putting a race on to raise money for a friend. He was an exceptionally courageous freshman that I met when I was a senior in high school and he showed great promise as an 800m runner, was incredibly tough and the other upperclassmen and I all took him under our wing. After his senior season, where he won the Massachusetts Class A mile championship, he had his left foot amputated due to a cancerous tumor in his arch. Instead of giving up he started to train and race as a disabled athlete. The race raised money for a racing prosthesis and he went on to win the 800m at the Paralympic Games in Barcelona in 1992. WHAT WAS YOUR DREAM CAREER? To make shoes. I grew up in Brockton, MA in the 1970s, which was a shoe factory town. I used to draw my own sneakers and put "B’s" on the side and would change the color with model paint and markers. In high school I worked at a run specialty store and mailed a letter to every brand asking what I should study in college. Only one came back explaining that my best choice would be "engineering." Not being a math whiz, I threw my hands up and thought, "Forget that!" The retail job and my track background led to opportunities at New Balance, first in marketing and then in product. I've been in footwear product creation ever since. WHO WERE SOME OF YOUR MENTORS ALONG THE WAY? Growing up in a working class town, my parents taught me the value of integrity and perseverance. My highschool track coach taught me the importance of focus and determination, as well as humility. And early in my career, the then president of Saucony taught me the importance of planning for success while preparing for any eventuality. I would not be where I am today without the four of them. YOU RECENTLY SHIFTED FROM TIMBERLAND TO THE NORTH FACE. WHAT MAKES YOUR NEW JOB PARTICULARLY APPEALING? While our footwear business is smaller than some, the upside and consumer permission we have is enormous. In my career I've worked in performance running, action sports, outdoor performance and lifestyle casual but never under one roof with one brand that has full license and authenticity to compete in those varied categories. That coupled with the dedication of the The North Face leadership/VF Corp teams to really move footwear forward makes this a very unique and exciting opportunity. And the footwear team is so talented. WHAT SPORTS OR OUTDOOR ACTIVITIES DO YOU PARTICIPATE IN TODAY? I still love to run although I think I may have wrapped up my final indoor track season this past winter. I'm now getting much more time on my road bike, on my snowboard and when I can, I still try to get into the water to surf. This past month we had an amazing experience backpacking in the San Rafael Swell in Utah where we put in a few good days off the grid. Now that we are living so close to Yosemite and Lake Tahoe I hope to get more days in hiking and climbing with my family. WHAT WOULD YOU BE DOING IF YOU DIDN’T FIND YOUR FOOTWEAR CALLING? Coaching and/or teaching. I have been so lucky to have had such great coaches and teachers in my life and really love helping individuals and teams meet their potential. There is something great about seeing someone who you have worked with for so long, and has worked so hard, post a personal best - or even accomplish a goal like running a first marathon or even finishing their first 5k. WHO'S YOUR FAVORITE SUPERHERO? It sounds cliché with all of the hype around the Avengers movies, but Captain America has always been my favorite. In the 80s when steroids hit sports hard, there was a series of Marvel comics where he had to come to terms with the fact that his "super soldier serum" meant that he had been juicing. In one series he underwent a procedure to take it out of his system which meant that any advantage he would have from that point forward would have to come from him training harder than anyone else - that the only "super power" he had was his work ethic and willingness to put it all out there. I always thought that was cool.

22 SGBWeekly.com | AUGUST 6, 2012

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