LINK
REI will distribute $58 million to its active members through the annual patronage refund based on the co-op's 2006 sales of $1.18 billion. For the year, REI's operating income increased 22.8% from $86 million to $105.5 million, and net income increased from $32.7 million to $40.3 million, or 23%. REI's comp store sales remained high in 2006 at 9.5%, marking two consecutive years of 9.5% or higher. The company's direct sales channel, which includes online and catalog sales, gained 19%. These record financials mark the second consecutive year where sales rose more than 15%.
Based on 2006 results, the outdoor retailer will dedicate $3.6 million through its grants program in support of conservation and recreational access around the country in the coming year.
LINK
Monday, February 26, 2007
Growing...
We finally brought a couple of new faces on-board after growing the company significantly over the past year. It will be nice to have some more help with the on-line reporting and Tom Ryan certainly has the background to bring us up the the next level. I worked with him this week and he's a quick study and an excellent reporter.
I have yet to meet Stephen Jones, but I know our ad sales staff has a ton of momentum behind it right now and was looking for some new talent.
Welcome aboard to both of you.
Sam Wender was promoted to Publisher of of all print, newsletter and online properties. Sam has really been stepping up and taking on a ton of responsibility on the publishing side and its great to have him heading the team.
Judy Leand, our editor in chief of all of the print magazines, was also promoted to editorial director in charge of the entire media group. Working with Judy over the past six months has been an educational experience for all of us and she has really pushed us to the next level in print. I'm looking forward to her input on the on-line and newsletter side of our editorial development.
I've had a lot of questions about who is doing what. Just to clarify, the rest of the team has responsibilities that span across all of our publications. Nearly all of us contribute is some way, shape or form to every publication. I'll have the entire list up shortly...
I have yet to meet Stephen Jones, but I know our ad sales staff has a ton of momentum behind it right now and was looking for some new talent.
Welcome aboard to both of you.
Sam Wender was promoted to Publisher of of all print, newsletter and online properties. Sam has really been stepping up and taking on a ton of responsibility on the publishing side and its great to have him heading the team.
Judy Leand, our editor in chief of all of the print magazines, was also promoted to editorial director in charge of the entire media group. Working with Judy over the past six months has been an educational experience for all of us and she has really pushed us to the next level in print. I'm looking forward to her input on the on-line and newsletter side of our editorial development.
I've had a lot of questions about who is doing what. Just to clarify, the rest of the team has responsibilities that span across all of our publications. Nearly all of us contribute is some way, shape or form to every publication. I'll have the entire list up shortly...
Thursday, February 22, 2007
Politics and Ethics...
seem to be like oil and water...
LINK
House Speaker Nancy Pelosi called for tighter ethics rules in federal agencies Wednesday after government officials approved the purchase of a $980,000 vacation home by a top Justice Department lawyer with an oil company lobbyist.
Pelosi's criticism followed an Associated Press report last week that department ethics officials did not object when Sue Ellen Wooldridge, then head of the environment division, was buying a South Carolina beach house with Donald R. Duncan, the top Washington lobbyist for ConocoPhillips.
LINK
Wednesday, February 21, 2007
Monday, February 19, 2007
This Week in The B.O.S.S. Report
TOP STORIES:
--------------------------------------------
o Amer Sports sees warm winter weather impact equipment sales.
o Garmin fourth quarter sales and income double.
o Interbike looks at timing and venue options.
o Coleman continues growth under Jarden umbrella.
o GSI Commerce sees on-line merchandise sales nearly double.
o SSL adds new members.
o American Skiing Co. sells off two more resorts.
o SIA sees weather impact sales at specialty retail.
o Other Stories include Sugoi, Boa Technologies, Adventure 16, Crocs, Johnson Outdoors, and many more...
Some Excerpts:
--------------------------------------------
o Amer Sports sees warm winter weather impact equipment sales.
o Garmin fourth quarter sales and income double.
o Interbike looks at timing and venue options.
o Coleman continues growth under Jarden umbrella.
o GSI Commerce sees on-line merchandise sales nearly double.
o SSL adds new members.
o American Skiing Co. sells off two more resorts.
o SIA sees weather impact sales at specialty retail.
o Other Stories include Sugoi, Boa Technologies, Adventure 16, Crocs, Johnson Outdoors, and many more...
Some Excerpts:
Salomon Q4 sales increased 11% to €282.1 million ($363.8 mm) versus €255.2 million ($303.6 mm) last year. The company saw a 6% increase in winter sports hardgoods during Q4 to €188.6 mm ($243.2 mm). Apparel sales were the strongest during the quarter, with a 30% increase to €67.3 million ($82.1 mm)...
Amer’s management dedicated the majority of their presentation to analyzing the current conditions in the snow sports market given the warm weather and varying levels of inventory at retail. According to their analysis, most mountain retailers were able to move through the majority of their pre-season inventory. While some urban retailers have been able to clear out these pre-season orders, most of these retailers – in both the U.S. and Europe - have been hit hardest by the weather. Because of this, Amer’s management feels that it is evident that the industry will see lower pre-season bookings in 2008...
During the tenth annual Bicycle Leadership Conference, Interbike hosted a breakfast presentation titled "Guiding Our Future" in which show director Lance Camisasca shared post-Interbike survey results. The roundtable discussion that followed covered several issues that are crucial to the future venue and timing of Interbike. The survey provided some interesting data points - 69% of retailers would prefer Interbike to be held between September 1 and October 31; when asked to identify which city would best suit their business needs, 61% of retailers chose Las Vegas while 50% of exhibitors chose Salt Lake City, Utah....
The warm weather retailers and vendors have been talking about finally worked its way through the food chain and showed up in SIA’s monthly retail audit. With almost no snow in the Eastern and Midwestern regions during December – the month that accounts for roughly half of the seasonal SnowSports revenue – both chain and specialty SnowSports sales declined...
“Coleman, in our view, has been a company that [has] been stripped - asset stripped for years before we came into the business, and again... it's ready to go from defense to offense. I think there's going to be a multiple layer of benefits that will come from making positive acquisitions in that business, and we're actively working in that area,” Franklin said. “On the Outdoor Solutions front, (we will be) pushing into the specialty channel."
Thursday, February 15, 2007
What does it take...
to grow from a $1 billion company to a $1.8 billion company in one year? According to Garmin's CEO, Dr. Min Kao, who just pulled this off this year, quite a bit.
We added 1700 associates in 2006, including 250 in engineering; 950 in manufacturing, mostly for the new factory; and 175 in marketing, including customer support for our second call center to handle the increased call volume...
We added 1700 associates in 2006, including 250 in engineering; 950 in manufacturing, mostly for the new factory; and 175 in marketing, including customer support for our second call center to handle the increased call volume...
Tuesday, February 13, 2007
This Week in The B.O.S.S. Report
o VF Corp. continues organic growth and looks for big deals.
o OR Hardgoods go green too.
o Climbing continues growth.
o Quiksilver cuts guidance while K2, Inc. Raises.
o Oakley Q4 sales climb; margins fall.
o Timberland restructures.
o Timberland Q4 impacted again by boot business.
o OIA supports new NPS budget.
o Moosejaw takes on new private equity partner.
o Sport Chalet continues expansion; will enter Utah.
and much more...
Some excerpts:
VFC Outdoor Coalition total revenues were up 32% to $453 million during the fourth quarter. Domestic revenues in the ODC grew 34% in the quarter, while international revenues rose 28%. Operating income increased 36% in the quarter, and operating margins rose in spite of additional investments into infrastructure. The North Face saw double-digit revenue increases during the quarter with “solid sell-through” in spite of the unseasonably warm weather. TNF backlogs for both spring and fall are up over 20% and in line with VF’s expectations. TNF Americas revenues increased “more than” 35%. The brand opened four new full-price retail stores during the quarter and retail sales were said to be “as strong as the wholesale business...
LINK
Quiksilver, Inc. has adopted a more cautious outlook for the remainder of this year and next year's early season due to the unseasonably warm winter and poor snow conditions in the U.S. and in Europe. ZQK now expects first quarter fiscal 2007 revenue to be $540 million and diluted EPS to be four cents compared to previously expected revenues of approximately $550 million to $555 million with diluted EPS of nine cents for the period ending January 31...
Just hours after Quiksilver issued their warning, K2 Inc. announced that they would be raising their expectations for fiscal 2006. The company now expects adjusted diluted earnings per share for the full year to be in the range of 87 cents to 88 cents, exceeding K2's previous guidance of 83 cents to 86 cents...
LINK
In conjunction with reporting its financial performance for the fourth quarter and the year (see page 9), Timberland announced the departure of the company’s COO, Ken Pucker, who had been with the company for 15 years. TBL said his departure had been anticipated for nearly a year and the executive team had been working on a succession plan which included a major shift in the company’s management and reporting structure...
LINK
Timberland Apparel and accessories revenue expanded 26.1% during the quarter to $130.1 million, supported by the addition of the SmartWool brand and growth in Timberland brand sales globally. Smartwool sales increased for the full year to approximately $53 million globally, up 27% on a comparable basis and ahead of TBL’s performance goals...
LINK
Sport Chalet’s plan for calendar 2007 is to open six to eight new stores and complete two major remodels during the year. The new stores will primarily be focused on adding density to existing markets in Arizona, Southern California, and Nevada with the majority in Arizona. The company will be entering one new market during the 2007 calendar year, Utah. The new store will be located in Jordan Landing, which is in the greater Salt Lake City area...
LINK
o OR Hardgoods go green too.
o Climbing continues growth.
o Quiksilver cuts guidance while K2, Inc. Raises.
o Oakley Q4 sales climb; margins fall.
o Timberland restructures.
o Timberland Q4 impacted again by boot business.
o OIA supports new NPS budget.
o Moosejaw takes on new private equity partner.
o Sport Chalet continues expansion; will enter Utah.
and much more...
Some excerpts:
VFC Outdoor Coalition total revenues were up 32% to $453 million during the fourth quarter. Domestic revenues in the ODC grew 34% in the quarter, while international revenues rose 28%. Operating income increased 36% in the quarter, and operating margins rose in spite of additional investments into infrastructure. The North Face saw double-digit revenue increases during the quarter with “solid sell-through” in spite of the unseasonably warm weather. TNF backlogs for both spring and fall are up over 20% and in line with VF’s expectations. TNF Americas revenues increased “more than” 35%. The brand opened four new full-price retail stores during the quarter and retail sales were said to be “as strong as the wholesale business...
LINK
Quiksilver, Inc. has adopted a more cautious outlook for the remainder of this year and next year's early season due to the unseasonably warm winter and poor snow conditions in the U.S. and in Europe. ZQK now expects first quarter fiscal 2007 revenue to be $540 million and diluted EPS to be four cents compared to previously expected revenues of approximately $550 million to $555 million with diluted EPS of nine cents for the period ending January 31...
Just hours after Quiksilver issued their warning, K2 Inc. announced that they would be raising their expectations for fiscal 2006. The company now expects adjusted diluted earnings per share for the full year to be in the range of 87 cents to 88 cents, exceeding K2's previous guidance of 83 cents to 86 cents...
LINK
In conjunction with reporting its financial performance for the fourth quarter and the year (see page 9), Timberland announced the departure of the company’s COO, Ken Pucker, who had been with the company for 15 years. TBL said his departure had been anticipated for nearly a year and the executive team had been working on a succession plan which included a major shift in the company’s management and reporting structure...
LINK
Timberland Apparel and accessories revenue expanded 26.1% during the quarter to $130.1 million, supported by the addition of the SmartWool brand and growth in Timberland brand sales globally. Smartwool sales increased for the full year to approximately $53 million globally, up 27% on a comparable basis and ahead of TBL’s performance goals...
LINK
Sport Chalet’s plan for calendar 2007 is to open six to eight new stores and complete two major remodels during the year. The new stores will primarily be focused on adding density to existing markets in Arizona, Southern California, and Nevada with the majority in Arizona. The company will be entering one new market during the 2007 calendar year, Utah. The new store will be located in Jordan Landing, which is in the greater Salt Lake City area...
LINK
Yeah... This is a Marketing Expense...
From the Press Release issued Yesterday:
Volcom, Inc. has completed its purchase of a house located directly in front of the world famous Pipeline surf break on Oahu's legendary North Shore. The residence will accommodate Volcom's surf team riders during the winter surf season and will be the location for various Volcom marketing functions throughout the year.
"Steeped in history, this house is a surfing landmark," said Richard Woolcott, Volcom's president and chief executive officer. "This is an unbelievable opportunity for our marketing program and it is an honor to have Volcom associated with it."
Volcom, Inc. has completed its purchase of a house located directly in front of the world famous Pipeline surf break on Oahu's legendary North Shore. The residence will accommodate Volcom's surf team riders during the winter surf season and will be the location for various Volcom marketing functions throughout the year.
"Steeped in history, this house is a surfing landmark," said Richard Woolcott, Volcom's president and chief executive officer. "This is an unbelievable opportunity for our marketing program and it is an honor to have Volcom associated with it."
Monday, February 12, 2007
Disposable retail...
These days, retailers are adopting the concept of a pop-up store with gusto. A pop-up store opens up at an empty retail location for a few days in a major city, or a mall, with great fanfare. And then, poof! It's gone. Last year, in November, Nike opened a pop-up store in Soho for just four days for the sole purpose of selling 250 pairs of the Zoom LeBron IV NYC basketball shoes, named after the popular 22-year-old NBA All-Star LeBron James. The special edition shoes were priced at $250 each.
LINK to Business Week
More on The Good Ole' State of NC
A business acquaintance just sent this to me...
I moved here from Northern Virginia in 1990. There are a few things here that will take some getting used to, especially from a Northerner:
1. Fast food is not so fast here.
2. The left lane on the highway is for cruising here, not passing. No, flashing your lights and honking doesn't seem to work so folks often pass on the right.
3. Turn signals are for hanging scented pine tree items here - they aren't used.
4. Drivers come to almost complete stops before turning onto side roads - I think they're balancing a mint julep drink on their knee.
5. There are no 1 syllable words here. Hey, becomes hey-aaay, etc.
Friday, February 09, 2007
Like Dominoes...
Well, retailers at SIA may not have been complaining about the weather, but the impact has surely worked its way up the food chain. Could Quiksilver, Inc. be the first of many early earnings warnings on the horizon?
- Robert B. McKnight, Jr., Chairman of the Board and CEO of Quiksilver, Inc.
LINK
"Conditions in many of the world's snow resorts were affected by what has proven to be one of the warmest winters on record. This has impacted our in-season business in the first quarter, and we anticipate that it will create industry-wide softness in next year's early season as retailers work through hold-over inventory, adjust pre-season buys and plan more cautiously."
- Robert B. McKnight, Jr., Chairman of the Board and CEO of Quiksilver, Inc.
LINK
Thursday, February 08, 2007
Quote of the week...
(Acquisitions) continue to be our number one priority as we said. We've got tremendous cash flow and that is the number one priority we have... I would expect to see some small tuck in acquisitions as we go forward, but we are continuing to look at larger, more transformational types of acquisitions...
- Mackey McDonald - VF Corporation - Chairman, CEO
Tuesday, February 06, 2007
This Week in The B.O.S.S. Report
This week is the first week of our annual show review. While some folks may not think that the on-going greening of our industry warrants a cover story, walking around the show floor certainly hammered this message home - at OR, if you are not telling an environmental story with you product, you are not in the game.
Here are some excerpts from our review:
Here are some excerpts from our review:
Patagonia made headlines around the world with the announcement that they will be accepting all Polartec garments ever made into their polyester recycling program, which was created in conjunction with Teijin. This means that any of the millions of TNF Denali Jackets hanging in collegiate dorm closets, and the thousands of Cloudveil Gridlock Jackets and Arc’Teryx Delta AR Jackets could be recycled into Patagonia products as early as next year...
TNF president of the Americas, Steve Rendle, said that the company will be looking at more eco apparel construction and “working to bring our environmental message up to the same level as our social message.” Currently, the company already has some unique programs, such as working with Conservation Fund’s “Go Zero” program, which offsets greenhouse gas emissions by reclaiming urban land and planting trees...
Topo Ranch continues to expand their line, which started off as a simple offering of funky tees. With over 100 SKU’s, the company is now offering their first fully-merchandised women’s line. At the same time, they are moving their lines towards organic and sustainable fabrics, with 65% of their offering currently organic. The end goal is to have every piece telling some kind of sustainable story...
Timberland is expanding their apparel line even as the company transforms itself into an environmentally-friendly holding company, giving authentic eco-friendly brands the capital and infrastructure needed to expand beyond the start-up phase. In addition, the company showed up at OR this year with a new booth made of 98% repurposed materials by re-using shipping containers and recycled materials...
Kulczycki said that he wanted to be careful not to “Patagonia-ize” Filson, but he would be exploring ways for the brand to leave less of a footprint with its manufacturing and product development...
Static Mountain had a larger presence in the climbing area of the show than they had at previous shows. The six-year-old company has been specializing in climbing and yoga apparel with bamboo as a key material throughout much of the line...
Blurr is also continuing to ramp up its organic offering...
prAna more than doubled the size of its wind power initiative and added all of its U.S.-based factories to the program. prAna still manufactures the majority of its line domestically...
Monday, February 05, 2007
Moosejaw Takes on Private Equity Partner
Looks like some retailers are riding the wave and ready to get some cash out of all of the success...
Moosejaw Takes on Private Equity Partner
SportsOneSource Media Posted: 2/5/2007
Parallel Investment Partners has completed the recapitalization of Moosejaw Mountaineering and Backcountry Travel, Inc.
Moosejaw Takes on Private Equity Partner
SportsOneSource Media Posted: 2/5/2007
Parallel Investment Partners has completed the recapitalization of Moosejaw Mountaineering and Backcountry Travel, Inc.
Friday, February 02, 2007
The New Eco-Conscious OR...
There is one downside of this trend. Nearly every booth I went into at the show had some sort of "green" story and now I am running out of synonyms for "environmentally friendly" in my show review...
Thursday, February 01, 2007
The Crocs Strategy Clarified
Well, I guess I should have figured this out earlier, but I was too busy trying to decipher why people were actually buying Crocs in the first place...
It appears that the folks at Crocs are actually looking ahead and figuring out that this trend of bright colorful EVA footwear can't possibly sustain itself long-term. So, they have decided to build a holding company that leverages their manufacturing resources. The company is shipping millions of pairs of EVA footwear each quarter and with operating margins in excess of 20% the company is generating loads of cash.
What will it do with that cash?
Well, there's no dividend (yet) and they certainly don't need to invest in building the Crocs brand. So, they are buying up small niche sport brands like FURY HOCKEY and most recently Ocean Minded, a skate and surf "green" brand.
So, while the Crocs fad may not be entirely sustainable at its present growth rate, I think we can all agree the current shift towards more environmentally friendly practices will be around for a long time. If Crocs can push Ocean Minded through just a portion of its current 14,000 door distribution network, I think we will see this company around for a long time...
It appears that the folks at Crocs are actually looking ahead and figuring out that this trend of bright colorful EVA footwear can't possibly sustain itself long-term. So, they have decided to build a holding company that leverages their manufacturing resources. The company is shipping millions of pairs of EVA footwear each quarter and with operating margins in excess of 20% the company is generating loads of cash.
What will it do with that cash?
Well, there's no dividend (yet) and they certainly don't need to invest in building the Crocs brand. So, they are buying up small niche sport brands like FURY HOCKEY and most recently Ocean Minded, a skate and surf "green" brand.
So, while the Crocs fad may not be entirely sustainable at its present growth rate, I think we can all agree the current shift towards more environmentally friendly practices will be around for a long time. If Crocs can push Ocean Minded through just a portion of its current 14,000 door distribution network, I think we will see this company around for a long time...
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