SGB WEEKLY 1213

ISSUE 1213 MARCH 26, 2012

The Weekly Digital Magazine for the Sporting Goods Industry

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ISSUE 1226 MARCH 26, 2012

James Hartford

Editor In Chief james@sportsonesource.com 704.987.3450 x104

Managing Editor Thomas J. Ryan (917.375.4699) tryan@sportsonesource.com

The Weekly Digital Magazine for the Sporting Goods Industry

Page 18

Editors At Large Aaron Bible Fernando J. Delgado Mackenzie Lobby Eugene Buchanon Creative Director Teresa Hartford Graphic Designer Camila Amortegui Advertising Sales Account Manager Katie O’Donohue (704.987.3450 x110) katieo@sportsonesource.com Circulation & Subscriptions subs@sportsonesource.com Technology Chief Information Officer, Mark Fine VP Research & Development, Gerry Axelrod Manager Database Operations, Cathy Badalamenti

SportsOneSource Publications SGB TEAM Business SGB Weekly SGB Performance Team Business Digital The B.O.S.S. Report Sports Executive Weekly SGB Update Footwear Business Update Outdoor Business Update Sportsman’s Business Update Team Business Update

NEWS

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BY THE NUMBERS LULULEMON Reaches $1 Billion Milestone TALYLORMADE-ADIDAS GOLF Snaps Up Adams Golf MC SPORTS Announces Vendors and Reps of the Year VIBRAM FIVEFINGERS Sees Growth Slowing MOVERS & SHAKERS

WHAT'S NEW IN RETAIL 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

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WOLVERINE WORLDWIDE Company Store Earns Accolades COLUMBIA SPORTSWEAR Opens Harajuku Location REI to Land in San Antonio and Jacksonville DSW to Add Two More Stores in Manhattan RETAIL SHORTS

FEATURES

14 SGMA’S National Health Through Fitness Day - An All-Star Effort to Fight Obesity

18 SUP Market Continues to Shine

20 BOATS - The Year’s Best

DEPARTMENTS

22 JOBS CLASSIFIEDS

ADVERTISERS

2 SPENCO

5 SOFSOLE

9 GOALRILLA

11 CORDURA

13 FILA

23 OIA VANTAGEPOINT POWERED BY SPORTSCANINFO

24 OUTDOOR RETAILER MARKET 2012/2013

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

MARCH 26, 2012 | SGBWeekly.com

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NEWS

BY THE NUMBERS 8.4% Recreational Equipment, Inc.'s sales grew 8.4 percent to $1.80 billion in 2011, but net income was relatively flat at $30.2 million as accelerating investments in new stores and warm winter weather ate into margins.

REI opened eight new stores last year, which helped draw nearly 842,000 new members, up 7 percent from 2010.

27.0% Hibbett Sports, Inc. reported earnings rose 27.0 percent in the fourth quarter ended January 28, to $15.8 million, or 59 cents a share, from $12.5 million, or 44 cents, a year ago. Revenues increased 10.1 percent to $190.7 million compared with $173.2 million. Comparable store sales increased 7.2 percent. Net sales for the 52-week fiscal yearended January 28, 2012, increased 10.2 percent to $732.6 million compared with $665.0 million for the 52-week period ended January 29, 2011. Comparable store sales increased 6.8 percent.

25.0% Shoe Carnival's earnings slid 25.0 percent in the fourth quarter to $3.3 million, or 24 cents per share, as comparable same-store sales slid 3.0 percent and gross margins eroded to 28.3 percent of sales from 30.0 percent. Overall, sales inched up 1.1 percent to $181.9 million.

24.9% Zumiez, Inc. reported net income in the fourth quarter of fiscal 2011 increased 24.9 percent to $18.7 million, or 60 cents per share, from $15.0 million, or 49 cents, in the fourth quarter of the prior fiscal year.

Total sales increased 17.7 percent to $183.9 million from $156.2 million a year ago. Comparable store sales increased 9.7 percent on top of a comparable store sales increase of 13.0 percent in the fourth quarter of fiscal 2010.

11.7% Nautilus, Inc. reported net sales for the fourth quarter ended December 31, 2011 totaled $60.0 million, an increase of 11.7 percent as compared to net sales of $53.7 million for the same quarter in 2010. For the full year-ended December 31, 2011, net sales increased to $180.4 million, an increase of 7.1 percent as compared to net sales of $168.5 million for the same period in 2010.

27% Dreams, Inc., the owner of Fansedge.com, expects to report total revenues of $141.7 million, increasing 27 percent for the year-ended December 31, from $111.4 million in 2010. E-commerce revenues are expected to reach $113.0 million, up 33 percent versus 2010.

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Photo courtesy of Lululemon

LULULEMON REACHES $1 BILLION MILESTONE Lululemon Athletica, Inc. said it hit $1 billion in revenue for the fiscal year-ended January 29 and expects to add another 30 percent on top of that in the current fiscal year to reach revenues in the range of $1.3 billion to $1.32 billion.

"Reaching a billion dollars in revenue is clearly an important milestone that as a company we can all be very proud of," said Christine Day, Lululemon’s CEO. "But far more important than the number itself are the beliefs, values, culture and people that achieved it. We really are so much more than our numbers; it is the everyday actions of our dedicated team that translates into an unparalleled guest experience and allows us to achieve our ultimate goal of elevating the world."

In the fourth quarter, revenues jumped 51.4 percent to $371.5 million with comparable stores sales ahead 26 percent on a constant dollar basis. Earnings ran up 34.1 percent to $73.5 million, or 51 cents a share, from $54.8 million, or 38 cents, a year earlier.

For the first quarter, Lululemon expects net revenue to be in the range of $265 million to $270 million based on a comparable store sales percentage increase in the low 20s on a constant-dollar basis. Diluted earnings per share are expected to be in the range of 28 to 29 cents per share for the quarter, which compares with 22 cents earned in the year-ago quarter.

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TALYLORMADE-ADIDAS GOLF SNAPS UP ADAMS GOLF Adidas Group’s TaylorMade-adidas Golf unit has entered into a definitive agreement to acquire all of the outstanding shares of Adams Golf, Inc. for $10.80 per share in cash. The transaction value is approximately $70 million (€53 million), which represents a premium of approximately 71 percent to the share price prior to Adams Golf's announcement that it was examining strategic alternatives on January 4. TaylorMade-adidas Golf is expected to maintain Adams Golf's headquarters in Plano, TX. Adidas said the addition of Adams Golf enables TaylorMade-adidas Golf to broaden its product range and to extend its presence across a wider array of golfers.

"This acquisition reflects our commitment to continued growth in the golf category," said Adidas Group CEO Herbert Hainer. "The

proposed combination of Adams Golf and TaylorMade-adidas Golf brings together two highly complementary sets of brands, combining Adams' focus on game-improvement as well as senior and women golfers with TaylorMade-adidas Golf's focus on the younger and the low-to-mid handicap golfer."

"This merger provides strong opportunities for our employees, suppliers and partners," said Barney Adams, interim CEO of Adams Golf. "The Adams Golf brand will fit nicely into TaylorMade-adidas Golf's stable of brands, and together we will be able to increase our reach and better serve our customers by leveraging a wider set of resources.”

The Board of Directors of Adams Golf has unanimously approved the transaction. The transaction is expected to close mid-2012.

MC SPORTS ANNOUNCES VENDORS AND REPS OF THE YEAR For 2011, MC Sports recognized Escalade Sports as its Hardlines Vendor of the Year while Under Armour earned the Midwest-based sporting goods chain's Softlines Vendor of the Year. Scott Bilodeau from Easton Sports was named the Hardlines Representative of the Year while Bruce Wagner with GoldToeMoretz was named Softlines Representative of the Year.

Each year, MC Sports recognizes one vendor and one manufacturer’s representative from both the hardlines and softlines categories. Candidates were evaluated based on a variety of metrics including sales, GMROI, turn, responsiveness, and partnership from sell-in to sellthrough.

"Both Escalade Sports and Scott Bilodeau from Easton Sports were instrumental to the Hardline Division's performance in 2011,” stated Scott Schuette, hardlines divisional merchandise manager 6 SGBWeekly.com | MARCH 26, 2012

for MC Sports. "It's a tremendous benefit when both manufacturers and representatives are committed to your success beyond the initial sell-in. We are thankful for vendors like Escalade Sports and representatives like Mr. Bilodeau who demonstrate true partnership throughout the year."

"An important focus for MC Sports in 2011 was improving our supply chain strategies," noted Mark Lundvick, softlines divisional merchandise manager for MC Sports. "Both Under Armour and Bruce Wagner from GoldToeMoretz were instrumental in driving significant changes in how we manage our business. Their partnership in forecasting and order management drove sales increases, improved our return on investment, and set the benchmark for others to follow."

Headquartered in Grand Rapids, MI, MC Sports currently operates 78 stores.

MOVERS & SHAKERS Jochen Zeitz, the former long-time CEO of Puma, will step down as head of PPR's Sport & Lifestyle division and chief sustainability officer of PPR, as well as a member of the executive committee, in October in order to take a bigger role in overseeing PPR's sustainability initiatives.

Competitor Group, Inc. named Scott Dickey president and chief executive officer. He was previously president and chief operating officer.

Mattel, Inc. appointed Trevor Edwards, vice president, global brand and category management for Nike, Inc., to its board of directors.

VIBRAM FIVEFINGERS SEES GROWTH SLOWING

Contrary to conversations circulating around the market, the Vibram FiveFingers "barefoot" business remains in growth mode, according to company management. Vibram FiveFingers sales reportedly doubled in 2011 and are performing ahead of internal projections so far in the current year, according to Michael Martin, VP of sales for Vibram FiveFingers.

But due to a few factors, particularly the flood of alternative natural, minimalist and barefoot footwear options hitting the marketplace over the last year, Vibram's dizzying growth pace since it was first launched in 2006 has slowed. Also, partly because Vibram was able to finally adequately stock inventory levels at retail this past year, sell-through rates have been running down for retailers as they sell against deeper inventories. Adding in the impact of a challenging retail economy, Vibram is expecting FiveFingers sales to be up modestly in 2012. (Sales doubled in 2011 to approximately $100 million, Tony Post, CEO of Vibram USA, previously told INC. Magazine.)

Yet Vibram remains optimistic about the prospects for FiveFingers and the overall barefoot/minimalist movement.

In an interview with SGB Weekly, Martin said an eventual slowdown from the blistering revenue growth rate at FiveFingers was expected and shouldn't be a sign of any slowdown in the overall "rapid rate" of growth seen in the barefoot/minimalist footwear category. He believes the number of other brands entering the barefoot/minimalist category – including several traditional running brands that at first ridiculed the movement – further legitimizes the opportunity for the category.

"It's healthy," said Martin of both the overall category trend and FiveFingers' business. "2011 was really a break-out year for the category. A lot of brands launched products in the spring and more brands launched product in summer and fall. And even with all of that coming into the space, we still doubled our business."

Note: To read the full story log on to SportsOneSource.com/admin/execSplashTrial.asp

VF Corporation announced that Candace S. Cummings, vice president – administration, general counsel & secretary, and a member of VF’s Operating Committee, will retire on April 30, after more than 17 years of service to the company. Laura C. Meagher, vice president & deputy general counsel, will be named vice president, general counsel & secretary and join VF’s Operating Committee effective May 1.

Moosejaw Mountaineering named Eoin Comerford, the architect of the retailer’s quirky "Moosejaw Madness" marketing voice, as president and CEO. Dancin' Dogg Golf appointed Joe Moses as VP of international sales.

Bushnell Outdoor Products hired Vince Abrams as the new senior product manager for Bushnell Outdoor Accessories.

Tyr has appointed founder and former owner, Steve Furniss, as director of team sales and Ryan Dolan to the position of director of sports specialty sales. In conjunction, Brent Smith has assumed the position of team sales and sponsorship manager and will report to Furniss.

Dakine has hired Mark Welsh as its new snow team manager, where he will manage all functions related to Dakine’s snow team.

American Rec has added outdoor industry veteran Dan Eubank to their inside team of dedicated territory sales managers.

W H AT ' S N E W I N R E TA I L

WOLVERINE WORLDWIDE COMPANY STORE EARNS ACCOLADES The Wolverine Company Store, opened last September in downtown Grand Rapids, MI, was recognized as a "Top Retail Store Design" by Chain Store Age magazine in the "Up to 5,000 Square Feet" category.

Additionally, the concept was awarded a Gold ADDY by the American Advertising Federation of West Michigan and recently received a design award from the Association of Retail Environments.

The Association of Retail Environments also recognized the design of the Wolverine Company Store concept, highlighting the individual design element on the store’s main wall. Combining Wolverine’s outdoor style into the retail concept, designers created marketing elements and signage with a vintage industrial flair that pays homage to the company‘s heritage. An imperfect brick wall became the backdrop for the store’s new, distressed logo, which was stenciled onto the brick to look as if it had been revealed when the drywall was removed.

The 800 square-foot retail space, located at 40 Monroe Center NW in downtown Grand Rapids’ historic Peck Building, showcases leadingedge designs from across the company’s brands, including Merrell, Hush Puppies, Sebago, Wolverine, Cushe, Chaco and CAT. The store 8 SGBWeekly.com | MARCH 26, 2012

experience also includes objects rich in character from Wolverine Worldwide’s nearly 130-year history. Every fixture in the store was reclaimed or repurposed – including workbenches, chairs, cabinets and columns – and each has a connection to the company’s past.

"These awards are special honors for the company and our retail group," said Blake Krueger, chairman and CEO of Wolverine Worldwide.

"Chain Store Age recognizes only the very best design innovations.

For our team to receive this prestigious recognition is truly significant, especially when you consider the list of other winners, many of whom collaborated with global design firms."

He added, “As a company, we are very proud of our heritage and the long history we have here in West Michigan. Creating a unique retail experience that showcases this heritage and the very best products in the Wolverine Worldwide family of brands in our home market seemed like a great idea. As consumers look for brands that have a history, are steeped in core American values and stand for something larger, we felt the timing could not be better for creating this store. Our brands fit perfectly into these global consumer trends and preferences.”

W H AT ' S N E W I N R E TA I L

REI TO LAND IN SAN ANTONIO AND JACKSONVILLE

COLUMBIA SPORTSWEAR OPENS HARAJUKU LOCATION Columbia Sportswear Co. recently opened its newest branded store in the heart of Tokyo's famous Harajuku district. The new store, comprising approximately 2,400 square feet on three floors, showcases Columbia brand's outdoor apparel, equipment and footwear.

"In addition to being located within Harajuku, one of the world's renowned fashion capitals, Cat Street has become the hub of Tokyo's outdoor industry," said Massimo Lazzari, general manager Japan, Columbia Sportswear. "To take advantage of this prime location, we created a store with high-visibility architectural features to showcase Columbia's innovative products to the millions of shoppers from around the world who visit Harajuku each year. We are confident that this store will quickly become one of our best performers."

Columbia operates 24 branded retail stores and 12 outlet stores in Japan, which, when combined with sales to wholesale customers throughout the country, has established Japan as one of the company's largest markets outside the United States.

"Our new Harajuku store is a great representation of the strength of the Columbia brand in Japan," noted Bill Tung, VP of the company's Latin America/Asia Pacific (LAAP) region. "Columbia is well-positioned to capitalize on the increasing popularity of outdoor lifestyles and activities throughout Japan."

REI (Recreational Equipment, Inc.) announced plans to open its first store in San Antonio, TX in the fall of 2012 as well as its first Florida location in Jacksonville in the spring of 2013.

The San Antonio location will occupy 27,500 square feet at Huebner Oaks and the nearly 23,400 square-foot store in Jacksonville will be located at The Markets at Town Center.

“Texas and Florida offer an abundance of ways to enjoy the outdoors, and REI is eager to bring our quality products, helpful advice and hands-on classes to our current members and aspiring adventurers,” said Rachel Ligtenberg, REI’s regional vice president, East Region. “Through our expert employees, outdoor programming and local relationships, we want to inspire more people to live an active lifestyle.”

The company currently operates 122 retail stores in 29 states. The new store in San Antonio joins seven other REI stores in Texas, the first of which opened in Austin in 1989 and was later relocated in 1995.

Other locations opening this fall include Cincinnati, OH, Woodbridge, VA and Medford, OR. A new store in Indianapolis, IN opened on March 16. REI opened eight stores in 2011, including its first Manhattan store.

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W H AT ' S N E W I N R E TA I L

R E TA I L S H O R T S Athleta, the activewear chain owned by Gap, Inc., plans to open its first Chicago store on April 4. The 3,800-square-foot store will be located in Lakeview.

Athleta operates 10 stores with locations in California, New York, Minnesota, Pennsylvania and Washington, D.C. Two more stores - one in Houston and the other in Manhasset, N.Y. - are scheduled to open this spring. Gap plans to operate 35 Athleta stores by the end of this year Vibram USA is planning to open its first flagship store in the U.S. on Newbury Street in Boston. The proximity to the 1200-square-foot store to Vibram USA headquarters in Concord is expected to enable employees there to work in the store and more closely with customers.

Gander Mountain Co. is planning to open a 52,000-square-foot store in Valdosta, GA, that’s expected to serve as a model for a smaller concept to reach small-to-mid-size markets across the country.

Gander Mountain stores average from 50,000 to 60,000-square-feet, although some superstores reach 80,000-square- feet.

Moosejaw announced plans to open stores in Kansas City and Boulder, CO. It recently opened a store in Natick, MA and now has eight operations, largely in Michigan and Illinois.

DSW TO ADD TWO MORE STORES IN MANHATTAN DSW, Inc. opened its newest store on 34th Street in Manhattan. The family shoe chain also announced plans to open a store on the Upper West Side at 79th and Broadway in early summer 2012.

“When combined with our existing Manhattan store at Union Square on 14th Street, these stores will allow DSW to cover a much larger geography and to serve many more New Yorkers,” stated Mike MacDonald, President and CEO, DSW. At over 33,000 square feet across three floors, the 34th Street store is the one of the largest in the DSW chain. The DSW store at 79th and Broadway will also be very large, measuring over 32,000 square feet.

As of March 8, DSW operated 327 stores in 40 states.

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Modell's Sporting Goods opened three new locations in Brooklyn, N.Y., Fresh Meadow, N.Y. and Wayne, N.J. on March 8.

Adidas will operate the Nets Shop in the Barclays Center, which will open in Brooklyn next year. The store will be Adidas' first store in Brooklyn, New York City's largest borough with more than 2.6 million people.

Peak Sport, one of the leading sporting goods companies in China, opened its first store in the U.S. at 8250 Melrose Avenue in Los Angeles.

Edwin Watts Golf Shops announced the acquisition of a Golf Headquarters in Cedar Rapids, IA, establishing the first-ever Edwin Watts store in that state. Edwin Watts has over 90 domestic retail locations.

janko tipsarevic /// fila.com

MARCH 26, 2012 | SGBWeekly.com

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AN ALL-STAR EFFORT TO FIGHT OBESITY HIGHLIGHTS SGMA’S NATIONAL HEALTH THROUGH FITNESS DAY

By Fernando J. Delgado Photos courtesy of SGMA 14 SGBWeekly.com | MARCH 26, 2012

Health and fitness took center stage on Capitol Hill recently, as more than 125 leaders from the sports and fitness industry teamed up to talk with Congress as part of the Sporting Goods Manufacturers Association’s (SGMA) 13th Annual National Health Through Fitness Day in Washington, DC. Kicking off the schedule of events on Tuesday, March 6th was the National Health Through Fitness Day Awards Reception. At the reception, held at the Capitol Hill Visitor Center, SGMA recognized Representatives Kevin Brady (R-TX) and Mike McIntyre (D-NC) for their dedication to physical education and activity, as well as former NFL players Jon Booty and Ken Harvey for their many years of support.

Many of the celebrity athletes who would spend the following day lobbying on Capitol Hill were in attendance, joined by physical fitness advocates, sporting goods industry representatives, and members of Congress.

The lobby day itself started with the Breakfast Briefing at The Madison Hotel on the morning of Wednesday, March 7th. SGMA President and CEO Tom Cove commenced the briefing by thanking the entire audience for their support and involvement, especially the 17 celebrity athletes who committed to spending the day lobbying for

Celebrity athletes pose for a group photo at the breakfast briefing.

SGMA President Tom Cove speaks at the National Health Through Fitness Day Reception on March 6.

the cause. He noted that the event had grown substantially from its inaugural year in 2000, when only four or five athletes were part of the lobbying group, including former NFL star Herschel Walker, who was once again in attendance this year. Other notable athletes included Hall of Fame golfer Gary Player, who later gave an impassioned speech, former Wimbledon and U.S. Open tennis champ Stan Smith, NFL wide receiver Steve Smith of the Carolina Panthers, former Major League Baseball pitcher Tommy John, former NHL star and current ice hockey commentator Jeremy Roenick, and WNBA star Tamika Catchings, among many others. “This is the only major advocacy event of the year that the entire sporting goods industry and its partners come together for,” said Cove at the briefing.

“It is powerful, it is impactful, and we use all of the assets of our business, our people on the ground in terms of our physical education community, and our athletes - one time, one place, one day to make a point which is proving to be remarkably successful. Almost 800 million dollars has been appropriated to physical education since we started the PEP Bill, and it’s primarily due to the success of this day and this event.”

Cove went on to recognize the event’s more than 40 sponsor companies before giving a brief presentation which detailed the obesity problem in the United States and the solution of physical fitness. Presentations detailing

research relating to the benefits of physical education followed, in addition to overviews of the two key initiatives for the day: the Carol M. White Physical Education Program (PEP) and the Personal Health Investment Today Act (PHIT). (Please see sidebar on page 16 for details on each initiative) SGMA offered a critical acknowledgment for the PEP Bill – that funding was at risk.

According to SGMA, the recently-proposed Obama Budget proposes to consolidate 6 programs, including PEP, under a single program. As a result, states would compete for Block Grants to fund all 6 programs, leading to the possibility that physical education for certain state districts could be underfunded or overlooked altogether. SGMA Vice President of Government Relations Bill Sells emphasized that the PHIT Act, meanwhile, would make physical activity more

affordable by providing financial incentives for all Americans. Ultimately, SGMA offered two primary objectives for the meetings with members of Congress: to continue PEP funding – maintaining a level budget of about $79 million - for quality physical education in schools, and to co-sponsor PHIT initiatives (see below) in the House of Representatives and the Senate.

SGMA’s Requested Congressional Action for PHIT Act: U.S. House of Representatives Co-sponsoring the PHIT Bill (H.R. 2649) and/or The Family & Retirement Investment Health Investment Act of 2011 (H.R. 2010) U.S. Senators sponsoring the PHIT Bill or co-sponsoring The Family & Retirement Investment Health Investment Act of 2011 (S. 1098) MARCH 26, 2012 | SGBWeekly.com

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2012 SGMA NATIONAL HEALTH THROUGH FITNESS DAY INITIATIVES THE CAROL M. WHITE PHYSICAL EDUCATION PROGRAM (PEP) According to SGMA, PEP is a competitive, federal grant program that has provided almost $800 million in funding directly to local school districts and community-based organizations, such as the YMCA, to provide quality physical education. The money is spent in two ways: teacher training in innovative physical education methods, and the purchase of equipment. PEP began in 2001, with $5 million in federal funding for P.E. Since that time, the program has grown due to its success, realizing higher funding of $50 million in 2002, $60 million in 2003, $69 million in 2004, $73 million in 2005 through 2007, $75 million in 2008, $78 million in 2009, and $79 million in 2010 through 2012. More than 1,000 PEP grants have been awarded across the country, providing funds for thousands of children to get quality physical education.

Funds have gone towards the purchase of everything from in-line skates, climbing walls, kayaks, tennis rackets, heart rate monitors, treadmills, elliptical machines, fitness assessment computers and many other items.

THE PERSONAL HEALTH INVESTMENT TODAY ACT (PHIT) The PHIT Act would increase physical activity in America by making it more affordable. Families or individuals could deduct or get reimbursed with pre-tax dollars for expenses related to physical activities. According to SGMA, PHIT would help reverse the trend toward more sedentary lifestyles, reducing the incidence of obesity and related chronic illnesses by encouraging investments in prevention of illness - rather than treatment once an individual becomes sick. Families could deduct physical activity costs once they reach the 7.5 percent threshold for writing off medical expenses or by placing up to $2,000 annually in existing pretax Flexible Spending Accounts (FSA), Medical Savings Accounts (MSA) or other medical reimbursement arrangements. Qualified expenses under PHIT include participation in organized, individual and team sports, fitness and exercise programs, recreation, and other physical activities.

The Centers for Disease Control and Prevention (CDC) states that almost two out of every three Americans are obese or overweight, and such individuals are more likely to suffer from 35 major diseases including diabetes, heart disease, stroke, cancer, and arthritis.

The United States spends 17 percent of its GDP on healthcare, a significantly higher percentage than any other country, and the CDC projects that the U.S. will spend 20 percent of its GDP on healthcare in 2015. SGMA believes that the PHIT Act would help Americans save money in an effort to become more physically active and ultimately save on future healthcare costs.

16 SGBWeekly.com | MARCH 26, 2012

Hall of Fame golfer Gary Player speaks at SGMA's National Health Through Fitness Day Breakfast Briefing.

Sells briefed the audience on what to expect in their meetings with members, offering suggestions and key points for meeting the day’s objectives. He then gave way to golfing legend Gary Player, who provided one of the highlights of the day with a rousing speech in which he pointed out the problem of obesity in America. Mixing his sense of humor with a message of urgency, Player implored those in attendance to make an effort to help change an unhealthy culture in which two out of every three Americans are obese. He stressed that the only way to solve the problem is through the parenting and education of the country’s youth. “[Nelson Mandela] said that sport and exercise can change the world, and how correct it is,” stated Player. “He said that where despair existed, it can be eliminated if people take part and make their concerted effort. The youth are the trustees of a nation. And we’ve got to make sure to put our effort into the youth of this country.”

Following Player’s inspiring speech, the delegation headed to Capitol Hill and broke into about 17 groups. Each group would take several meetings with Congressmen and Senators throughout the day, using information from the briefing and applying it to their lobbying efforts. In all, the groups took part in more than 130 meetings, 90 of which had a U.S. Senator or U.S. Congressman present.

SGMA’s Cove attended about seven meetings throughout the day, visiting a diverse cross-section of both Congressmen and Senators, including Democrats and Republicans. Two types of meetings typically took place: “Ask” Meetings and “Thank You” Meetings, deemed as such by SGMA. “Ask” meetings were geared towards raising awareness of the PEP Bill and PHIT Act with members who had not previously supported the two key pieces of legislation, while “Thank You” meetings were designed to thank the members who had supported the initiatives in the past and update them on progress being made. In the meetings with members of the House of Representatives and Senate who had not previously supported the initiatives, the celebrity athletes often emphasized their personal connection to fitness and the impact it had in their lives before their group would ask the member for his or her support in approving the PEP Bill and PHIT Act. “A critical element of this lobbying is knowing who your supporters

Senator Tom Harkin, Democrat, of Iowa

are,” shared Cove. “It’s important to reinforce the people who are really going to go out there on the line for you.” Cove acknowledged Senator Tom Harkin (D) of Iowa in particular as one of the key supporters of the day’s initiatives. “Senator Harkin is as singularly important to the PEP Bill as any person in the United States because he personally has been the leader in driving the funding,” he explained. A group led by Olympian Jenny Simpson – who was born in Iowa – Cove, other SGMA representatives, and sporting goods industry leaders thanked Harkin for his efforts and encouraged his continued resolve in passing the PEP Bill.

“We were extremely happy with the way the day went,” said Cove in an interview SGB Weekly in the days following the events. “It was one of our best events in terms of putting together a strong group of messengers. The message that inactivity is part of the problem and creating opportunities for activities is part of the solution was well received. We’re very upbeat coming out of a remarkable set of meetings over the course of the day.”

Cove believes that the celebrity athletes have been a huge help to National Health Through Fitness Day efforts. “I’m always favorably impressed with how the athletes can speak from their personal experience to this issue, and how they can mix the glamour that they bring with the power of the message of activity for all,” said Cove. “I think we’re really lucky to have the people we’ve had coming in because they’re the cream of the crop when it comes to being ambassadors for sports.”

For now, SGMA and the many advocates of physical education and fitness who took part in National Health Through Fitness Day will

A group led by WNBA star Tamika Catchings meets with Congresswoman Eddie Bernice Johnson (D-30th District-TX)

have to wait to see if their hard work will pay off with desired budget approvals. Even though such results may not be known for several months, the impressive showing on Capitol Hill and the ever-growing annual participation in the event is an encouraging sign for the future of health and fitness in the United States. ■ CELEBRITY ATHLETES WHO ATTENDED NATIONAL HEALTH THROUGH FITNESS DAY Herschel Walker, former NFL star and former U.S. Olympian Gary Player, Hall of Fame golfer Stan Smith, former Wimbledon & U.S. Open tennis champ Steve Smith, current NFL wide receiver for the Carolina Panthers Tommy John, former Major League Baseball pitcher Jeremy Roenick, former NHL star and current ice hockey commentator Tamika Catchings, WNBA star and Women’s Sports Foundation Board Member John Booty, former NFL star Cara Castronuova, boxer Johnny Miller, former U.S. Open/British Open golf champion Lindsey Harding, WNBA star Torrey Smith, current NFL wide receiver for the Baltimore Ravens Monica Abbott, Team USA softball star and Women’s Sports Foundation Board Member Ken Harvey, former NFL star Jenny Simpson, U.S. Olympic middle distance runner Stacy Lewis, LPGA superstar Aaron Beasley, former NFL star MARCH 26, 2012 | SGBWeekly.com

17

SUP MARKET CONTINUES TO SHINE

By Eugene Buchanan

W

hassup with SUP? Plenty, if you ask players in the paddlesports arena. While fears of the stand-up paddleboard niche eating into traditional boat sales are valid, most feel that the standup scene represents a complementary addition to the line-up rather than a cannibalizing one.

“We continue to keep an eye on this category,” said Sara Kneis, marketing director for Johnson Watercraft, whose brands include Old Town Canoe, Necky Kayaks, Ocean Kayak, Carlisle Paddles.

“Most SUPs are composite and we have two rotomolded hybrid kayak/SUPs which we feel occupy a nice niche in the marketplace.

As for cannibalizing sales, I look at the rise of SUP as a positive thing, much the way the snowboard industry injected positive energy into the snowsports market.”

Legacy Paddlesports COO Bill Medlin agreed. “It doesn't appear that SUP is cannibalizing boat sales from our internal sales figures,” 18 SGBWeekly.com | MARCH 26, 2012

Photo courtesy of Werner Paddles

he said. “We’re seeing overall growth in every category of product and we've seen some really explosive growth in our one SUP offering.

Among our particular customer base I think it’s a complementary form of engaging water. But our base is different than the core SUP base.”

Perhaps no one can speak to the two categories better than Corran Addison, president of SUP company Imagine Surf and former co-owner of Riot Kayaks and Savage Designs, another kayak company.

“The average SUP consumer is a moving target,” he said. “Just two years ago it was the aging surfer turned paddleboarder. Now it's predominantly costal flatwater recreational use in the 40-years-and-older group, with a notable participation in the 30-plus crowd, particularly women. At the same time, the surfing end of it is getting younger. In the next few years we'll see the inland recreational segment grow and overtake the costal users in numbers.”

Still, traditional paddlesports players are being ginger about

Photo courtesy of Imagine Surf

embracing the category. “We decided to avoid being where everyone else is and went our own way with the Versa Board,” said Legacy’s Medlin of the company’s hybrid sit-on-top/SUP. “Hindsight confirms that was a good choice. The Versa Board is one of our overall topselling models. It’s an easier sell for our dealers to a broader audience compared to mainstream SUP products. It’s also fully margined for the dealers, which is a great bonus compared to where most SUP products retail. Our dealers also don't have to worry about stranded inventory and season-ending closeouts, which can be a problem for mainstream SUP products in the distribution channel we sell into.”

Medlin added that their entry into the category is also a work in progress. “We haven't seen peak sales yet for the Versa Board so we are still learning a lot about what plays and perhaps won't play for us,” he said. “But one thing is for certain -- we won't do anything that doesn't enhance the Versa Board concept.”

Traditional whitewater and rec kayak companies are also watching the SUP category with growing interest. “The SUP category is part of our future, but we don't have any product for the 2012 season, so it’s not a factor this year,” said Eric Jackson, president of Jackson Kayak. As for his take on SUP usurping traditional boat sales, he feels it’s only growing the entire watersports category. “Did rec boats cannibalize whitewater?” he asked. “I don't think it’s an important question; it’s a category that is growing and people enjoy.

It’s simply another fun way to enjoy the water.”

And for many, it’s been a leader in sales. “With more outdoor and

Team paddler Adrian Garcia on one of the most challenging waves in the world, Gas Chambers.

Photo courtesy of Werner Paddles

paddlesports specialty stores coming on board, the growth of SUPing has been a driver for us,” said Werner Paddles marketing director Jim Miller. “These retailers know the Werner brand and our commitment to quality, delivery and not selling direct-to-consumer. SUP is an increasingly important part of our business. We are promoting SUP as an 'and' not an 'or' to the returning customer.”

Miller added that the category also brings in new customers who are crossing from fitness activities like running and yoga. “Our dealers are seeing both traditional paddlers coming in for a board and paddle as well as newcomers to paddling who are intrigued by the sport and the attention it’s receiving in the media,” he said.

Still, such rampant growth also leads to growing pains. “Most companies had a hard time delivering product last year,” said Imagine’s Addison. “Already the demand exceeds the global capacity to produce, at least for epoxy boards, and the demand is continuing to expand rapidly while supply is only growing incrementally. Alternative methods of producing boards the traditional epoxy way is going to be key.”

And Addison noted that, bottom line, it’s good for the paddlesports industry as a whole. “Kayakers and canoeists are getting into standup paddling as it’s fresh and original and has that whole "surfing" image to it that kayaking lacks,” he said. “And there are even more people who were neither surfers nor kayakers who are getting into it. Something about SUP appeals to this demographic that kayaking did not.” ■ MARCH 26, 2012 | SGBWeekly.com

19

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THE YEAR’S BEST-BOOKED BOATS

By Eugene Buchanan

What boats are selling best as the paddlesports season heads into the 2012 season? We went to a handful of manufacturers to get the top of their crop for the upcoming season. Following is a brief sampling of what you'll likely find on the water this year.

Dagger Mamba 8.1 Creeker is beefier and redesigned for 2012, with more volume (and better volume distribution), and a new rocker configuration engineered for more speed and crisper carving. Additional safety improvements include a repositioned bow grab handle, an additional grab handle near the cockpit, and a molded-in stern foam wall holder. MSRP $1049 Already sold out for the 2012 season, Mad River’s Serenade is a hybrid solo canoe that merges the best attributes of a canoe and kayak to create a versatile and capable solo canoe. At 13 feet, the shallow hull is stable, versatile and suited for single or double-bladed paddling – perfect for recreational paddlers who prefer to go solo. MSRP $1499 for aluminum, $1719 for wood The Wilderness Systems Tsunami 135 PRO and 140 PRO are ultra-light, fast composite kayaks made up of Coremat and fiberglass for responsiveness, stability, and tracking. The Tsunami PROs offer the stability of a rec boat and the comfort, speed and tracking of a touring series, with the composite construction reducing weight (44lbs and 47lbs) while increasing efficiency. MSRP $2099 (135 Pro) and $2199 (140 Pro) Fluid’s new 8’10” Do It Now is a revolutionary whitewater sit-on-top kayak that takes the fear out of being confined inside a cockpit while providing the hull whitewater paddlers crave. The company expects it to be its best seller this year, while changing the way beginners are introduced to the sport. MSRP n/a Perception Expression 14.5 and 15.0 have an up-swept bow and peaked deck to shed water, providing more speed and performance than a typical touring kayak. They also have a progressive rocker for 20 SGBWeekly.com | MARCH 26, 2012

maneuverability and handling. Weighing 54 lbs and 57 lbs, respectively. They’re for adventure-seekers who want the best of both rec and sea kayaks. MSRP $999 Ocean Kayak’s Trident Ultra 4.3 (14’1”, 59 lbs) is the follow-up to its popular Ultra 4.7, first introduced in New Zealand and Australia. Fast and nimble, the fishing kayak is designed to handle ocean swells and glide through calms and features four flush-mounted rod holders, a reversible center hatch cover that includes attachment points for fish finders and other accessories, and a transducercompatible scupper that accommodates a variety of sizes. It also comes with a new Comfort Zone™ seat back, Click Seal bow hatch, 5” rear hatch, oversized tank well and replaceable wear strip on the tail fin. MSRP $1,600 With moderate rocker, the Necky Rip 12 (12’, 50 lbs) features a long waterline, narrow beam and sharp keel that translate into a lively kayak for glide and tracking. A large cockpit affords easy entry and exit, while soft padded thigh pads provide handling and control. It also comes with a padded Comfort Flex seat with contoured foam seat base and lower back pad, Quick Seal stern hatch with bulkhead, and deck bungees for maps to dry bags and bilge pumps.

MSRP $700 Versatile and family-friendly, Old Town’s Heron 11 (11’, 47 lbs., $450) and 11 XT ($530) kayaks represent a new generation of affordable recreational kayaks, offering stability, tracking and large cockpits for easy egress. Other features include adjustable foot braces, padded Comfort Flex seat with seat back, molded-in handles and cup holder. The XT version includes a rear hatch, paddle keeper, comfortable thigh pads and additional seat padding.

Building off the successful launch of the Saranac 146, Old Town’s Saranac 160 XT (16’, 89 lbs) has a greater carrying capacity and longer waterline, making it easy to paddle for families. With an

Mad River’s Serenade

Wilderness Systems Tsunami 140 pro

Fluid’s Do It Now

Perception Expression 15.0

Ocean Kayak’s Trident Ultra 4.3

upswept deck line for traditional look and feel, it comes with contoured seats with seatbacks, center bench with storage compartment, cup and rod holders, storage trays, and molded-in carrying handles.

MSRP $750 AIRE’s best sellers for 2012 include its line of 183 rafts, 143D rafts and Outfitter IIs. The 183 (220 lbs) measures 18’4” long and 8’3” wide, with tube diameters of 22 inches, while the 143D (146 lbs) measures 14’3” long and 6’8” wide, with 20-inch tubes. MSRP n/a Aire 143D

Old Town’s Heron 11 XT

Old Town’s Saranac 160 XT

Necky Rip 12

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

SAGRA NW LLC.

SAGRA NW LLC.

Recovery Pump

Sporting Goods Retail Store Manager

New Product For Independent Reps

Job requires management of retail store, training people and being comfortable doing outside presentations in the following categories - archery, guns, footwear, athletic wear, water sports, hunting, fishing, and apparel. Must possess school sports and purchasing experience for all categories and be customer oriented, organized, self-motivated, team oriented with a high level of persuasiveness. Must be an avid hunter…

We are looking for reps that are selling to teams, sports clubs and individuals directly as well as selling to businesses on a wholesale basis. Great income opportunity on a commission basis. The Recovery Pump is used by pros and amateurs, serious athletes and weekend warriors, men and women, young and old.

Anyone serious about their fitness and performing at their best needs a Recovery Pump…

Eastbay is searching for a Buyer with experience in Team products to research and merchandise branded apparel and hard goods, to partner with Team Sales, and to provide the best selection and mix of product for sales growth and profitability. Candidates must know assortment planning, financial control, vendor management and negotiation…

Maurice Sporting Goods

Smartwool

New Balance

Account Executive – 3 Positions

Director of Sourcing and Logistics

Associate Manager, Licensing

We have three exciting career opportunities for sales/ account management professionals who possess extensive knowledge of the outdoor sporting goods product categories - specifically fishing and hunting: National Account Executive - Walmart (based in Bentonville, AR); National Account Executive - The Sports Authority (based in Denver, CO); Regional Account Executive - Academy Sports (based in Northbrook, IL)…

Primary responsibilities include direct the sourcing strategy for materials and products; lead team members who manage all sourcing relationships; administer the SmartWool Quality Assurance strategy; direct the Operations team members responsible for QA and partnering with VF QA resources. VF’s Customer Fulfillment Team provides the distribution center and transportation logistics support…

New Balance is looking for an Associate Licensing Manager who will be responsible for business development including prospecting and securing ‘best in class’ licensees for top priority categories, negotiating financial and contractual terms and facilitating contract administration. You will also be responsible for establishing sales and growth targets for licensees, prospecting and securing ‘sourcing’ for non-license categories…

Columbia Sportswear

Outdoor Research

Senior Product Line Manager – Mountain Hardwear

Front-End Web Developer

Henderson Sport Group

As a Senior Product Line Manager, Outerwear you will work with the VP of Global Apparel and other Product Line Managers to establish the vision, strategies and seasonal concepts for the Outerwear portion of the global apparel business. You will be responsible for introducing innovative, profitable, new products that will entice our target consumer. You will be responsible for identifying long-term trends and opportunities…

This position's primary objective is to execute all aspects of the Outdoor Research websites and related digital projects with a heavy focus on the Magento Enterprise framework. Essential duties and responsibilities include translating design comps accurately into standardscompliant Web code and cross-browser compatibility; maintenance and upkeep of current site(s) including seasonal product changes, email marketing…

Foot Locker.com/Eastbay Buyer-Team Sales

Sales & Marketing Manager / Action Sports Reporting to the VP of Sales and Marketing you will work closely with the in-house CSR team, Art, Video and Social Media departments. The successful candidate should be able to demonstrate the ability to find the balance between personal points of view and being a great collaborator with others from Marketing, Sales, Finance, and...

FOR INFORMATION CONTACT 704.987.3450 OR SPORTSJOBS@SPORTSONESOURCE.COM

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2012

2013

AUGUST 2-5, 2012 Salt Palace Convention Center Salt Lake City, UT

JANUARY 24-27, 2013 Salt Palace Convention Center Salt Lake City, UT

Open Air Demo AUGUST 1, 2012

All Mountain Demo JANUARY 23, 2013

VISIT OUTDOORRETAILER.COM OR CALL 949/226-5722 FOR MORE INFORMATION.

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