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

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."

Livin' the good life...

The NY Times had a nice feature on our friend Penn...

LINK

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.

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?

"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

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

Fan Mail...

Now this is an interesting String...

LINK to The Piton

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:

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...

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.

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...

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...

Now This is Interesting...

At the OIA industry breakfast, Bainbridge Graduate Institute announced the addition of an Outdoor Industry Concentration to its MBA in Sustainable Business program. Now, this would normally look like a small college simply trying to market itself, but take a look at some of the industry folks who are advising on their Sustainable Business program:

* Steve Rendle, President, Americas of The North Face
* Sarah Severn, Director of Horizons, Corporate Responsibility of Nike
* Gary Smith, President/General Manager of Timberland Outdoor Group & SVP Global Supply Chain of Timberland
* Rick Ridgeway, Vice President of Communications and Environmental Initiatives & Mountaineer of Patagonia
* Sheryl O'Loughlin, CEO of Clif Bar
* Diana Simmons, Sustainability Manager of Clif Bar
* Jared Fischer, Director of Escape Adventures
* Brooke Williams, Executive Director of the Murie Center
* Chris Van Dyke, President & CEO of NAU
* Matt Hyde, SVP Marketing and Merchandising of REI
* Kevin Hagen, Program Manager of Corporate Social Responsibility of REI

LINK

This Week in The B.O.S.S. Report

The annual SIA show review took up most of our real estate this week - and it was a very good show. In spite of the lack of snow, retailers were relatively up-beat.

here are some excerpts:

Black Diamond made their official debut at SIA after several years of absence. The company feels that it has been evolving into more of a ski company for the last several years...

Head’s business increased nearly 14% in the U.S. market according to the company’s North American management team...

Movement Skis was creating quite a buzz on the show floor due to their premium backcountry and freeride skis... The company uses rather exotic woods in the cores of its skis, which it buys off of a tree farm that specializes in high-end sailing decks...

Salomon is preparing to move its headquarters to Utah sometime in June or July, with much of the current Oregon-based team deciding to remain behind...

Marker created two all-new bindings this year, catering to two similar markets. For the park & pipe skier, the Jester offers a 16 DIN setting and park-specific features like low rotational weight to make spins faster and easier. This same binding platform was incorporated into a backcountry AT set-up for the park & pipe skier who wants to take his or her skills into the big mountains...

On the snowboard side of the show there were more skis than ever. Black Skis was launched this year by Sapient snowboard’s parent company AMS. The brand is a low-price, high performance line of freeride skis and was described as “our response to ski companies making cheap snowboards.” The line starts at $70 wholesale...

Bonfire now claims to be the “solid” number two snowboard apparel brand behind Burton, and even out-sold Burton in pants this year...

Holden is going into its fifth year and was the second most progressive company on the floor when it comes to environmentally conscious design, with the first being Patagonia...

Here's a LINK to the rest

OR Day1-2-3

Super busy show for me this year. Not too much time to update the blog, but here's a few classic photos...


Here's Mr. Neptune himself at Julbo's Party...


Black Diamond's latest contribution to the ice climbing world...


DMM will be launching the world's lightest carabiner this spring. Next to it is an interesting stainless steel belay device.


I figured since everyone else had published a photo of NTN I should too...



Pete Takeda - a very close second place in the big wall cook off (Jim Bridwell won...)

Kim Miller After One Year with Scarpa N.A.

Gabcast! Kim Miller Interview




Kim talks about what Scarpa has been able to accomplish in the year since he took over.

Here and Nau...

Gabcast! Here and Nau...

An interview with Nau co-founder Ian Yolles

This Week in The B.O.S.S. Report

We had some pretty big news happening this week, but that usually happens right before trade show season starts.

o Environmental Concerns drive technology for vendors
and retailers alike.
o SIA Retail Audit: Global Warming is Impacting Retail Sales...
o Five Regional Magazines Form Alliance.
o Lowa Boots Acquires X-Socks U.S. Distribution.
o Peregrine Opens New Western Warehouse.
o Cloudveil Parent SBI Sells Off Fila Business...
o Colorado Sees Record Skier Visits.
o Malden Sale Hits a Potential Roadblock.
o Yue Yuen gets China lift.
o Other Stories include OIWC, Sugoi, Spy, Optic Nerve,
Osprey, Nikwax, Icebreaker, and many more...

The Malden story was by far the biggest news.

But the cover story on "green design" was equally as important to the industry.

...However today, the majority of the advances seem to be taking place in footwear. Simple has created their line of eco-friendly shoes, dubbed the Green Toe initiative; Timberland is putting FDA-style “Green Index” labels on all of their footwear and powering their warehouses with solar energy; Teva is launching their “curbside collection” made out of recycled plastic bottles; and Merrell has licensed the Patagonia name and launched their own “green” footwear line.

In addition, Simple and Deckers are hosting the first ecoETHICS forum at the WSA show on February 3rd, 2007. The forum is designed to bring all footwear companies together to share best practices in green design and marketing....

Back in Las Vegas...

...Again. Last night I went to the SIA fashion show, and just like last year, it impressed me.

I'll try to get pictures and notes up shortly...

If the shoe fits...

"Crocs is one of the most forward-thinking companies we have ever seen," says Michael Goldberg, Zimmerman's Chief Marketing Officer. "They're not just committed to bringing the world good products. They're also committed to doing a world of good with those products. That combination can be a powerful force on a global level, and we wanted to play on their team."

LINK

He's Back...

It looks like Chris Denny is back with his own PR firm, Denny Ink.

Two clients so far, Pistil Designs and Powderhorn.

Let the bidding war begin...

Second Company Bids on Malden Mills

A private equity firm has made a bid for Malden Mills Industries Inc., a textile maker that employs more than 800 workers at its plants in Lawrence, Mass., and in Hudson. Philadelphia-based Chyrsalis Capital Partners on Friday said it was offering $44 million, an offer similar to a tentative deal the textile maker reached with Boston-based Gordon Brothers Group before filing for bankruptcy protection.

GoBlog's Newsletter

This just came into my In-box today - I'm not too sure what they are trying to accomplish with this.

Cloudveil Parent Sells Off FILA

SBI Sells Fila Business to Fila Korea
SportsOneSource Media Posted: 1/16/2007
Fila Korea Ltd. and Sport Brands International Ltd. (SBI) have entered into a definitive agreement for the sale of the global Fila footwear and apparel business to Fila Korea for an undisclosed purchase price.

The sale is structured as a sale of SBI's subsidiary, Fila Luxembourg, which holds the rights to the worldwide use of the brands and trademarks of FILA. SBI will retain Cloudveil Mountain Works, Inc. and Motionwear, Inc. following the sale.

Mr. Yoon-Soo (Gene) Yoon, the Chairman of Fila Korea who, in 2005, completed a successful management buyout of Fila Korea stated "We are very excited to acquire the world-wide Fila business. Fila is widely recognized as one of the premier global sports brands and we believe it has tremendous untapped potential. We look forward to working closely with Fila's talented management team and regard the existing employees as a valuable asset of the business."

LINK

What I love About North Carolina...

This post was inspired by Dougald's post over at The Mountain World on what he loves about Colorado.

While Colorado is getting record snowfall, we are seeing record high temperatures. This weekend it was over 70 degrees and our average temperature in in the high 40's. So instead of complaining about no snow, I decided to take advantage of the weather, and make the best of it.

I was lucky enough to get away to Stone Mountain State Park in northern NC and get a little steep friction climbing in. For those of you who have never climbed on Stone Mountain granite, it is about as close to pure friction climbing as you can get. The 500 foot tall dome has some featured routes, but anything over 5.7 is pretty much a blank face and you need to rely on the friction of your sticky rubber entirely.



Stone Mountain is also notoriously run-out.



20 foot run-outs are standard and nearly every route has at least one 40 footer. This weekend I was watching a very "southern" climber and his wife/girlfriend climb a 5.9 just to the left of where my friend and I were getting ready to start our climb. He was about 25 feet out from his bolt and 45 feet off of the ledge where we were all hanging out.

As he pulled into the crux moves, he smeared his left foot up high, and as he shifted his weight and lifted his right foot up for the next non-existent foothold, he started sliding down - on one foot. He dropped five of six feet and then just stopped - for no apparent reason other than some strange glitch in the laws of physics

He looked down at his wife/girlfriend and without any fear or trepidation said, "Well that was strange, wasn't it honey."

I thought he was talking about the fact that he didn't fall and completely ledge-out but apparently he was talking about the fact that he didn't do the crux move. He promptly climbed back up to his high point and tried again, and slid back down five or six feet again.

"Well damn, I just don't understand," he said as he climbed right back up to his high point again. At this point I thought he was pressing his luck, but he chalked up, took a few deep breaths, and fired off the move.

I don't think there are too many other places where you can say you fell twice, from the same spot, 25 feet above your last piece, and still got the on-sight.

This Week in The B.O.S.S. Report

Each year ICR (Integrated Corporate Relations) hosts a massive conference dedicated to consumer goods companies. CEOs, CFOs, and any number of other C(X)Os show up with power point presentations in-tow and talk about their business plans for the coming year. After their presentations, they are bombarded with questions from financial analysts and the media, all searching for the keys to the company's future financial performance.

As a journalist covering this event, it is a massive undertaking, sifting through dozens of presentations and Q&A sessions to find the right information for the right audience. The end result is this week's BOSS Report and Sports Executive Weekly. Next to our trade show issues, you won't find more information about the state of the industry today. Also, you won't find most of this information anywhere else, unless you attended the conference yourself.

This year we covered:
VF Corp (VFC)
Quiksilver (ZQK)
Royal Robbins (PXG)
Crocs (CROX)
K2, Inc. (KTO)
Zumiez (ZUMZ)
Volcom (VLCM)
Oakley (OO)
Wolverine World Wide (WWW)
Deckers (DECK)
Sport Chalet (SPCHA)
Cabela's (CAB)
and many more...

LINK to BOSS

LINK to SEW

A couple of interesting facts I learned...

...while I was covering the ICR XChange Conference.

VF Corp brings over 800,000 SKUs to market each year.

Quiksilver expects Rossi apparel to grow from $50 million to $100 million in total by 2008, and then to $150 million in 2010.

B.O.S.S. Add on...

We ran a story on OR's Backcountry Base Camp on the cover of BOSS this week, and Kenji just wrote us with some thoughts:

Only a few things I would have added....BBC is at its core a VIP event, so we are only interested in core winter hardgoods buyers/media attendance increases. We've negotiated half price tix at 5 resorts in the Wasatch, so general show-goers have many options for riding/skiing before and after the show...that's some good news too. Lastly it's worth mentioning the Base Camp Bash, the apres party at the Alpine Rose at Brighton.

Anyway thanks for the press coverage, and hope tp see you in the aisles at OR!

Kenji at OR

Coming to a Mailbox Near You...

The new and improved Outdoor Business will be hitting mailboxes shortly. As usual, I'm interested in any form of constructive feedback from anyone who's seen it.

Looking for an Ad agency?

I'm sure the Nepalese tourism board is. They recently launched a tourism promotion campaign with the tag line "Have You Seen Nepal?"

The only problem is that they made posters with this picture:




You'll notice the shot on the right is Machu Picchu in Peru...

Not Again...

Malden Files for Chapter 11 to Facilitate Sale of Company
SportsOneSource Media Posted: 1/10/2007
Malden Mills Industries, Inc.'s board of directors has unanimously voted to approve the sale of the Company to Gordon Brothers Group of Boston, Massachusetts for $44 million. Malden Mills will continue normal manufacturing operations at both its facilities in Lawrence, Massachusetts and Hudson, New Hampshire.

LINK

Recycled Nylon 6?

It looks like the most commonly used synthetic fabric in the world is now recyclable...

Toray Industries Develops Recycled Nylon
SportsOneSource Media Posted: 1/9/2007
Toray Industries has developed a line of recycled fibers and fabrics called Recyclon. In addition to recycled polyester products, Toray is introducing recycled nylon 6 fibers for the first time, and a collection of new textiles based on these fibers.

In this new process, Toray uses the off-spec yarn generated during its virgin nylon production to create post-industrial recycled content yarn.

LINK

Coming Soon to a Mailbox Near You...

It looks like the New Telemark Norm could have some advantages for boot makers...

From Scarpa's Press release

For more than 50 years SCARPA has been a innovator in the world of alpine sports, and for Fall 2007 it will be part of the most-talked-about current effort in the telemark world by introducing the Terminator X for the NTN (New Telemark Norm) system. The Terminator X will also be compatible with alpine-touring bindings, bringing to reality the oft-talked-about concept of one boot for both telemark and AT systems.

NTN was designed from the outset to address the existing short-comings and design-limitations that are inherent with the current 75mm norm: awkward walking, sloppy binding interface, and its primitive technology – especially compared to alpine standards.

The SCARPA Terminator X is a tall three-buckle boot that’s equally at home touring in the backcountry or ripping the ski hill. The tall upper creates power for driving big skis, while the lower boot has an internal Torsion Frame optimizing lateral stiffness with tour-friendly flex. The boot retails for $649 and can be demoed at the Outdoor Retailer Backcountry Base Camp.

From a telemark standpoint, the most notable feature of the Terminator X is its lack of the traditional squared-off millimeter sole that is the hallmark of most telemark boots. Instead, the NTN binding clasps the more standard rounded front of the sole as well as a specialized lip underneath the front of the arch of the boot, creating a very rigid interface that transfers more power to ski edge than other bindings.

Not having the 75 mm. toe found on most telemark boots also allows the Terminator X to be designed so it is compatible with alpine-touring bindings. The Terminator X includes tech fittings that make it compatible with the lightweight Dynafit binding, while the bellows necessary for the telemark turn add to the boot’s tourability in an AT setup.

This Week in The B.O.S.S. Report

... I spoke with Alan Yiu, the co-founder of Westcomb. Like most of the company founders, CEO's and presidents I speak with in the outdoor industry, he's a bright, and very driven individual. He's also doing something very different with his brand. Here are some excerpts:

When we started, we really noticed that a lot of the top brands were, I don’t want to say compromising, but they weren’t using the fabric technology that was available to them. So, I guess there’s no way around it, they were compromising their technology. So, we made a point of partnering with the top materials innovators to make sure our fabrics really perform...

...being different and taking risks, we have to do that all of the time, because right now there are a lot of people asking, ‘what are you all about?’ If we can’t answer that then we can’t win them over....

People ask me, “Why would you forgo sales over image?” Well, once your image
is gone, that’s it...

Also this week,

o Backcountry Base Camp shows promise in 2007.
o Urban Climber parent company acquires Climbing magazine.
o Conservation Alliance ad auction sees early success.
o OIA challenges industry to travel green.
o NJ Rock Gym wins amusement lawsuit.
o Garmin has a busy first week in 2007.
o West Marine Q4 comps slip.
o Zumiez December comps increase 11.5%.

LINK

Rumor Confirmed...

Urban Climber Parent Acquires Climbing Magazine
SportsOneSource Media Posted: 1/5/2007

Skram Media LLC, a platform company led by Mark Crowther, the publisher of Urban Climber Magazine and UCTV, announced today that it has completed the purchase of Climbing Magazine and climbing.com from PRIMEDIA, Inc. Terms of the transaction were not disclosed.

Climbing Magazine Editor-in-Chief Jonathan Thesenga will continue to serve in his role from the current location in Carbondale, Colorado.

LINK

Rumors...

Just heard that Urban Climber acquired Climbing Magazine...

The Sound of Rolling Doom

In case you don't have children, or aren't ever around them, Heelys happened over Christmas. In the days following the holiday, a trip to the mall or the grocery store saw few children if any actually walking around. No, they were rolling. This sight, of course, brought up the following conversation with my wife:
"How is it that they all manage to roll around like that and never fall?" she asked. To which I replied, "Well, its not like its hard, all you have to do is put down your toes to stop. I would imagine no one ever falls on those things."
In case you're wondering, even as I said those lines, my mind generated glorious visions of a kid eating it while rolling through the mall.
That night, my visions came through. Journeying along to the nearest Blockbuster, we found a movie and were stuck in line behind a mother and her two sons who found the tile section around the main counter to be their own personal Heelys park. I'm pretty sure everyone else in line was having the same though I was, "Wreck...Come on, destroy some stuff..."
Well as the mother moved up to pay for her movie, brother #1 came screaming around the counter expecting to stop near where his mother was in line, not where she was much closer at the register, which lead to his attempting what I can only assume was a rollerblade instinct stop as he promptly fell right on his butt. I stifled my laughter as he looked up, around, and put on the strong face. He arose and quietly rolled towards the exit, ready to leave the site of his fall.
His older brother, though, was not to be outdown. With a shout of "I can go faster," he careened around the edge of the counter and only then realized where mom was at. Trying to stop quickly, he opted for a spin move, which flung his arms into a candy display, knocking it on the ground, and spun him directly into a pillar that supported the rope for the line, which he took in the stomach, doubling over with an "oof!"
That's when I lost it, laughing uncontrollably. Mom lost it, too, berating the child and dragging him on his heels straight out of the video store.
So all this brought up the real question regarding Heelys in my mind, will a child ever again be able to dig his, or her, heels in the ground to stop what they dont want?

Skis go Retro...

"At SFr3,300 ($2,700) a pair, their price tag may raise a few eyebrows, but then again zai skis are no ordinary planks. The classic old-school wood-and-metal exterior exudes understated quality, hours of creative design, painstaking craftsmanship and first-class materials."

LINK
and
LINK

Holland, the land of my ancestors...

...

...

New Magazine North of the Border...

Happy New Year!

We're back at it after a week away and hope everyone enjoyed their Holidays...

It looks like at least someone on Wall St. has finally seen the light...

The Worst Stock for 2007: Crocs

By Matt Koppenheffer

December 21, 2006

Let me start out with a couple blasts from the past:

• Pet Rock
• Platform shoes
• Jelly shoes
• Slap bracelets
• L.A. Gear
• Beanie Babies, Reebok Pumps, Bellbottoms, Lava Lamps, Koosh balls &

Organic, Fair Trade, and Locally Grown...

I had been planning on writing a post about an article I read in The Economist while I was waiting for my flight to be canceled in Portland, but it looks like Drew beat me to it.

Anyway, here are my two cents. The Economists made some great points, especially concerning locally grown produce. For example, They found an interesting fact that more than 50% of fuel used in food transportation is used by consumers driving to the market. Therefore, driving further to buy locally grown produce at a farmers market uses much more fuel than driving down the street to the supermarket. As it turns out transporting large quantities of food in 18-wheelers is the most efficient model for fuel economy.

However, their arguments against organic produce and fair trade produce cancel each other out, in my opinion. On one hand, The Economists claim that organic produce is worse because it is inefficient and uses too much land. On the other hand, they claim fair trade produce doesn't work because it rewards farmers who are already creating an over-supply of their crops. Wouldn't going organic create some inefficiencies and stop the over-supply problems?

I am sure there are some pieces to the puzzle I am missing, but then again, the arguments against organic farming in the Economist did not take into account the massive algae bloom in the Gulf of Mexico (caused by synthetic fertilizers) that is killing most of the sea life and destroying the shrimp industry...

Off to Portland...

...to check out the latest from Merrell.

What a great city - even if it is raining.

Rumor Confirmed...

Columbia Pulls Out of OR, MAGIC, & WSA
SportsOneSource Media Posted: 12/12/2006

Columbia will not have a booth at OR, MAGIC or WSA in 2007. According to a company spokesperson, this decision was made because buying is happening earlier in the season and at a faster pace, so the timing of OR no longer coincides with Columbia's selling window. The company will have a meeting room for PR and Investor Relations meetings but no booth.

OIA Scores...

Congress has approved legislation that for the first-time provides a permanent source of funding for local parks and trails. The precedent-setting legislation establishes a direct source of funding for the Stateside Land and Water Conservation Fund that would not be subject to the whims of the appropriations process.

Outdoor Industry Association (OIA) has achieved two major trade victories for the outdoor industry. In the closing hours of the 109th Congress, the House and Senate passed trade legislation containing several OIA-crafted provisions that would eliminate import tariffs on certain kinds of athletic footwear.

The legislation would also grant permanent normalized trade relations (PNTR) for Vietnam. Both were top priorities for this first year of the OIA trade program. The twelve footwear tariff relief measures will apply to certain footwear that incorporates a laminated or coated textile fabric. Ten eliminate tariff rates on these products, some as high as 37.5%, and two would reduce tariff rates to 12.8 and 15.2%.

Link

Scooped?

Mitch over a TelemarkTips.com recently blanked out his news section to hype a piece of news that he claimed will be talked about "a decade from now." The news went live at midnight (MST) on Friday December 8th and as it turns out, Black Diamond is working on a telemark boot/binding interface that is step-in, and releasable. TelemarkTips claimed it is the "Holy Grail" of telemark, and indeed, I would have to agree. Anyone who has stooped over with frozen hands struggling to get into a telemark binding while your alpine skier friends clip in with a single stomp knows how important a system like this could become.

I have to say, Mitch's plan was absolutely brilliant. It was an old trick, but it played out perfectly.

And apparently someone named Tyrone is pissed that he got scooped.

This Week in The B.O.S.S. Report

The news was short but sweet this week. Here are some excerpts.

Overall outerwear sales from the retailers covered by SportScanINFO are up in the mid-20’s for the month of November, including “Black Friday.” All of this increase came from outdoor inspired outerwear. The outdoor outerwear category saw sales increase in the upper 60% range

Snow Sports outerwear saw sales decline in the double-digits for the month, however, this category remains more evenly distributed between brands. Columbia controls the largest part of the market share, but Spyder Active Sports, TNF, Pacific Trail, Arc’Teryx, and Burton are making considerable strides in both sales and market share in the category.

Since OIA acquired Outdoor University in January, the organization has been working with retailers, manufacturers, and sales reps to see how best to shape this program to meet the needs of the industry. Previously the program was designed exclusively to help retail floor staff learn about gear and retail floor sales strategies. Now the program will be re-focused to fill a vital gap in the talent pipeline between floor staff and management.

LINK

Quote of the Week

"First of all, The Mervin Snowboard factory near Canada on the Olympic Peninsula in Washington State only makes snowboards. We do make a huge variety of different models. The snowboards you are referring to are longer and much narrower than traditional snowboards. People who ride them mount ski bindings on them and ride two of them at a time, one per leg. We call them Lib Tech NAS which stands for “Narrow Ass Snowboards.”

Greg Hughes
Mervin Mfg

EPA Honors (a few) outdoor companies

The EPA announced award recipients for several green energy market leaders. Among the companies honored were prAna, Aspen, and Vail. While several big outdoor and snowsports names were noticeably absent from the list, there was one bit of good news in the release.

According to a new report released this week by the U.S. Department of Energy's National Renewable Energy Laboratory, at the end of 2005, more than 2,000 megawatts (MW) of new renewables capacity was being used to supply green power markets. This represents a 10-fold increase from the year 2000.

LINK

The Poseur's Guide to Snowboarding

This means nearly everything you wear to the mountain should be made specifically for use while snowboarding or skiing. If the store has underwear for skiing or riding, buy it, wear it, and tell all your friends. Plaster name brands like Rossignol, Salomon, and Burton all over your person.

LINK

An Interview with Frank Yohannan, President & CEO of the Sea Otter Classic.

Frank discusses Sea Otter's recent strategic partnership with Eurobike.

Howies Speaks

LINK

"Even though we had been lucky to find some funding through Finance Wales, we both felt getting further Venture Capital would put too much pressure on us to grow and, maybe, force us to start cutting corners that we would have found hard to live with.

So the answer for both of us was clear and that was to find a like-minded company to help howies become brilliant at being howies."

This Week in The B.O.S.S. Report

We spoke with nearly all of the major outdoor e-commerce folks to see who was selling what and when.

Here's the Link

We also had the Howies story mentioned below. This company has been on a few radars for quite a while now and it should be interesting to see what Timberland does. The announcement of this acquisition sure silenced anyone who though TBL was looking to sell off to a private equity company. I'm still not convinced that an MBO isn't a possibility though. The bottom line is that Mr. Swartz is building an impressive holding company focused on eco-friendly brands. Howies is certainly a welcome addition.

other stories included:

o Garmin acquires Dynastream.
o Quiksilver inks JV in Mexico.
o Zumiez November comps jump 12%.
o U.S. Supreme Court hears CO2 regulation case.
o Eurobike partners with Sea Otter Festival.
o Easton-Bell Sports integration progresses.
o Thule's Sportrack acquisition changes Canadian
distribution.
o Orange 21 struggles with LEM acquisition.
o TSA lands eight Copelands leases.
o Oakley acquires military eyewear company.
o OIF searches for Outdoor Idols.

Timberland Acquires Howies

The Timberland Company has acquired Howies Limited, an active sports brand founded on the idea of designing and manufacturing clothing for the inspired action sports and outdoor customer. Howies was created to serve as a voice and mechanism for communicating a core environmental and social conscience, to ask a different question and show the world that there is another way to do business. Howies will continue to be led by its local management team in Cardigan Bay, Wales, U.K.

"We are excited and inspired by the brand potential we see in Howies and are pleased to welcome them to the Timberland family," said Jeffrey Swartz, Timberland's President and CEO. "We look to invest in like-minded brands that are focused on innovation, authenticity and integrity, and Howies encompasses all of these core values. Together we will leverage our complementary strengths to bring our brands to new consumers and new markets."

David Hieatt, Howies' co-founder, shared, "Following our initial contact with Timberland, we had a clear vision of the compatibility between the companies. Timberland is progressive, committed to the concept of making a difference in all that they do and their values matched ours. They understood why we do business our way. It's their way too."

Check out this week's BOSS for the full story...

Quote of the Week

“We sell more units of the men’s and women’s Denali jacket than any other item we have by a ratio of 20 to one. I wouldn’t say that those are being sold to our target audience though. The hard-core participant that we target isn’t buying those. At some point there will be too many kids on campus wearing The North Face and they won’t want to wear it anymore. We’ve seen a few of the College papers writing about it and basically bashing that look. That’s basically an early indicator that at some point, that look is going to go away. It may be next year or the year after. When that happens, it’s going to be a huge shift in all of our businesses. Basically its four SKU’s that make up a big part of our business that will just fall out of favor.”

- Anonymous Outdoor Retailer

EuroBike Strikes Again...

I know I said the InterBike killer was dead, but it looks like its ready to go for it again.

EuroBike just inked a "strategic partnership" with the Sea Otter Classic Festival.

"Messe Friedrichhafen is committed to raising its profile in the United States," says CEO Klaus Wellmann. The Eurobike team will first concentrate on creating a partnership framework with the Sea Otter Classic Festival. "We'd like to harmonize the trade show with the sporting event for the spring start of the cycling season, in order to reach manufacturers, retailers, the media and consumers more consistently," explains Wellmann.

North Carolina Climbing at its best....

Lost In Space on Hawksbill in the Linville Gorge.

Cloudveil for sale?

It looks like Cerebrus, the PE fund behind Cloudveil's parent company, SBI has hired Goldman Sachs and Rothschild to come up with a valuation for SBI. Is a sale in the works, and will they break out Cloudveil and Fila separately?

I know there is a major shortage of premium brands in the outdoor industry for sale these days, and I'm sure the bidding war over Cloudveil will be heated. If it's actually for sale.

Potential Buyers? I could see Quiksilver (ZQK) getting in on the action as well as Armor Holdings (AH) (Gregory's parent company), Liz Claiborn (LIZ), ORC Industries and a number of PE firms. Also, lets not forget about the possibility of an MBO.

Retailer Update

It looks like Mammut is partnering with IME in New Hampshire to renovate their store...

Link

...ExOfficio is launching a new Bellvue store...

Link

...and, a hunting retailer in PA was busted for selling weapons to Russia, Kuwait, Germany and Japan.

Link

Winter Without Snow...

I've been looking into this recently and it is pretty clear that the global ski industry is getting hit hard by warming temperatures. Several World Cup events have been cancelled this year, the most recent was in Val D'Isere. This is a resort with terrain above 10,000 feet, similar to most of the Utah resorts. It's not only hitting the resorts but also retailers. Hardgoods sales are particularly vulnerable.

The Ski Industry has formed a non-profit to address this issue called Keep Winter Cool. They have this NASA Photo that illustrates our predicament nicely.

This seems to be a key issue impacting bot the ski industry and the outdoor industry. Perhaps its time to cross borders and start working together on this. Right now it seems as though the only folks supporting this are the National Ski Areas Association and the Natural Resources Defence Council.

Armstrong the Business Mogul

Forbes just published an interview with Lance. here are a few excerpts...

It's all about hard work and commitment. On the bike and in business, it's about being consistent, making your case, having the best people around you and telling the most compelling story. But there are real differences. In racing, you put in the effort, test yourself and you have a really good shot at success. While that's also true in business, fundraising and research, it can all be made more difficult by the political process. Success in those areas isn't measured in miles or a weekend race. It can take a really long time to succeed.

The political process is so cutthroat. I'm not sure why you'd subject yourself to all of that, possibly win and then find out all you really have is a full time job! [Laughs] That said, public service is one of the highest forms of nobility you can aspire to. I just don't know if it's for me.

Link

The Interbike Killer is Dead...

According to Bike Biz:

The 'Interbike killer' is no more. At least not until 2008. Maybe. There was an underwhelming reaction from the US bike industry when the Friedrichshafen-owned Eurobike show said it wanted to stage a September trade show in Portland, Oregon.

Word on the street...

Bike Europe is reporting that Bianchi may be sold in the near future...

Retailer Update

With a new apparel line coming out this year and the ability to outfit folks in head to toe "M" branded gear, is Wolverine World Wide ready to pursue its own Merrell retail strategy?


Merrell to Open Second U.S. Retail Store

Merrell opened its second U.S. retail store on Friday, November 24 at the Forum on Peachtree Parkway located on the northern perimeter of Atlanta in Norcross, GA. The opening of the Atlanta store follows the opening for the first Merrell retail store in Huntington, N.Y. last December...

The Piton Honored by OIA?

Drew over at Wicked Outdoorsy is suggesting that OIA may be honoring The Piton as the Outdoor Innovator of the year. I would have to agree with him, The Piton has shaken things up quite a bit over the past two years.

BR&IN is reporting that BMX Business News is no more.

B.O.S.S. This Week

Even with the holidays right around the corner we had a busy news week.

Cascade Designs Moves on with New Leadership...

Joe Mc Swiney, the new president of Cascade Designs, sat down for a conversation with The B.O.S.S. Report to discuss his goals for the company. Cascade Designs is facing some challenges that several maturing companies in the outdoor industry are looking to address. Many of the classic outdoor brands were founded during the backpacking boom of the mid to late 1970’s and today, are faced with sustaining the energy of the brand in the absence of the founders.

"It's my intention that the organization last a very long time, and I consider that to be one-hundred years plus," said Mc Swiney. "So it is essential that we transition beyond the original founders. Organizations tend to get their core purpose from their founders, the reason for existence, and sometimes organizations take that for granted. So, it's important to manage that transition. This is not a today or tomorrow thing, John Burroughs is going to be around for quite a while, but it’s something to set up so the transition happens smoothly."
LINK

Timberland Sale Rumors Swirl in the Press…

Wall Street and the business media were all abuzz last week after the Wall Street Journal published a story suggesting that The Timberland Company was exploring strategic options for the company, including a potential sale. Timberland is reportedly valued at nearly $2 billion. The Journal, Reuters and others cited "people familiar with the matter" as their source for the information.

WSJ said that Goldman Sachs had been called in to assist the company with the sale and Timberland has been reaching out to potential buyers. The Times of London also fueled the speculation writing that, “The company is believed to have held 'preliminary and informal' talks with at least three potential buyers, all of which were private equity firms.” Timberland officials contacted by The B.O.S.S. Report declined to comment on what were described as "rumors."
LINK

Other Stories include:

􀂄 Johnson Outdoors improves nearly all metrics in fiscal Q4… (Page 3)
􀂄 Gander Mountain swings to profitability in Q4… (Page 4)
􀂄 Eddie Bauer Q3 loss grows; inks deal to go private… (Page 4)
􀂄 Dick’s SG beats Q3 guidance, raises full year estimates…(Page 5)
􀂄 Royal Robbins sees record Q3… (Page 6)
􀂄 Zumiez Q3 margins hit by new stores… (Page 6)
􀂄 Easton Bell integration rolls on with strong Q3 results… (Page 6)
􀂄 Mammut acquires German headlamp brand… (Page 7)

New York City

Well, I've been absent from the blog world for the past two days - on the road in New York to finalize everything for the December issue of Outdoor Business and Sporting Goods Business. I have to admit, I'm pretty excited about these issues. Other than transferring some data from one server to another, the integration is done and we are rolling ahead full steam. This will be the first round of magazines where Lou and I have had any real input. Its also the first round where we've been able to communicate the new focused direction of the magazines. Its great working with the group up there. Having so many talented editors, - and an art director - its a fun time to work here.

I think everyone will be able to see the difference in the next issue. And, this is just the first step. January will be even better.

Merrell Apparel

It looks like Merrell will be officially launching their first apparel line at Winter Market. The folks at Wolverine have been telling the Wall Street analysts about this for over a year now and it should be interesting.
Supposedly they brought in designers from places like Juicy Couture...

RSN Has a Few New Owners

And one of them is John Cumming.

Resort Sports Network, RSN, will be sold to private investors with extensive expertise in the media and resort industries...
The investor group consists of private investors with extensive media, resort and acquisition expertise. Some of the key individuals are Mark A. Burchill, a cofounder of 24/7 Media (Nasdaq: TFSM) an Internet advertising company; John Cumming, CEO of Powdr Corp. which owns ski resorts including Park City Resort, Alpine Meadows, Mt. Bachelor, Las Vegas Ski & Snowboard Resort and a founding partner of Mountain Hardware; Len Conway, a former equity partner in Telluride Ski and Golf Corp.; and John Cooney, an owner of EUE Screen Gems, Ltd., one of the largest film production companies in the US.

There's Oil in them thar Hills!

Whether you believe John Dalton's technique really could get oil from shale, or if you'd be better off burning a box of cornflakes, the gov't feels we've reached a point where environment be damned, we need to try. As usual, the oil guys say everything will be fine, while everyone who isn't labeled as a line item in their ledgers says there's definitely not been enough research done to see what effects their work will have on the local wilderness.

http://www.msnbc.msn.com/id/15712936/

From msnbc.com via AP

Of course lost in the discussion is that since we need to get the oil from the shale and the ground will no doubt have to be torn up, we'll need to take down those forests and remove those minerals. But that's ancillary really and not worth worrying about...

Blog Marketing

Tim Jackson over at Shut Up and Drink the Kool Aid linked to an interesting pdf of marketing execs talking about why they blog. Certainly some good stuff.

Link

Word on the street...

...is that Timberland has hired Goldman Sachs to pursue strategic alternatives...

This could be a very interesting strategic buy for several companies in the outdoor industry. VFC probably has the cash to do it, but so does Nike.

However, judging by some of the recent Timberland conference calls with Wall Street analysts and the media that I have listened to, I would bet management wants to take the company private, so look for a large PE firm to step up to the plate.

Retailer Update

Chalk up another store for Sport Chalet. That's 44 now.

Number 6...

BaseCampComm.com just ranked us as the number 6 most influential Blog in the outdoor industry.

Considering we've been at this for less than three months, I'm pretty happy with that.

Although I think he forgot a few...

11. The Mountain World Dougald really knows just about everything there is to know about climbing - the industry and the sport.

12. ShanesLogic - Everything about steepcreeking in the South from a real whitewater industry perspective.

13. National Parks Traveler Kurt gets around the country more than anyone I know. And he has news on everything there is to know about National Parks.

14. FeedTheHabit.com Want gear reviews? want show reviews? they've got it.

15. GapingVoid Is there a "best of" blog list that doesn't have GapingVoid? It's not outdoor specific, but if you are a student of blog marketing, it's a must-read.

Retailer Update

lucy Opens San Fransisco Store

and

Eddie Bauer was acquired.

Although not by VF, like some folks were speculating.

The funny thing about this deal is that the PE firm that owned E.B.'s parent company before E.B. was spun off as its own public company (three months ago) was also one of the firms that just acquired it.

ROI moves ahead with a new name and mission statement

Retailers of the Outdoor Industry has acted as the most successful outdoor industry buying group since 1990 when several retailers decided to join forces and compare
best practices at the Outdoor Retailer trade show. The group has grown considerably since then and now, Dave Matz, R.O.I.’s president since 2001, is taking the
organization to the next level with a name change and a completely new mission statement. R.O.I. will now be called the Grassroots Outdoor Alliance....

Check out this weeks' B.O.S.S. for the full story.

plus:

o Head grabs winter sports market share…
o Sport Chalet swings to fiscal Q2 profit…
o Retail in Australia sees a shake-up…
o Rocky sees sales decline in several areas…
o LaSportiva aims for zero waste…
o Black’s Leisure sees tough environment for Millets outdoor retail in U.K.
o Vietnam to join WTO…

While the rumors may have been denied...

Timbuk2 just announced the appointment of Perry Klebahn as New CEO...

Looking to get involved with wind power?

Be careful...

On October 24, 2006, a United States District Judge for the Northern District of Illinois, entered orders of Final Judgment against U.S. Wind Farming, Inc. and William L. Telander. The Final Judgments permanently enjoin Wind Farming and Telander from violating several sections of the Securities Act.

The Final Judgments also bar Wind Farming and Telander from participating in penny stock offerings.

The Court also ordered Telander to return any shares of Wind Farming stock in his possession, custody or control to Wind Farming, and ordered Wind Farming to cancel all shares that defendants in this matter are ordered to return.

Somebody's happy...

"Pombo's defeat is not just a victory for the people of California's 11th-district. This is a moment to be savored by anyone who loves Yosemite National Park or the California coast or Giant Sequoia National Monument, places Pombo worked to mine, drill, or log. On the issue of energy policy in particular, America is extremely fortunate to be replacing someone who's energy priorities were dictated by Big Oil with a man who is an expert on renewable wind power and who has the vision to help our nation develop smart new energy technologies and jobs."
-Sierra Club Executive Director Carl Pope

So will Tuesday's results Help the Bicycle, Outdoor, and SnowSports Industries?

Environmentalists on Wednesday hailed Democratic victories in United States congressional elections as a possible harbinger of change in the global-warming policies of the world's top polluters.

"This is a good thing for environmentalists who want more give and take on how national policy is developed."

GOP Rep. Richard Pombo, the powerful chairman of the House Resources Committee, plunged to stunning defeat at the hands of an almost unknown Democrat, Jerry McNerney, as Democrats wrested control of the House from the GOP...


Or Hurt them?


“The Democratic Party ... will protect the interests of small and medium American enterprises and labor and that could produce an impact on China-U.S. trade relations,” Zhang Guoqing of the state-run Chinese Academy of Social Sciences said

Free trade concerns after Democrat wins in US

Quote of the Week

"Name any climb in North Carolina and I can give you at least one reason it should have an R next to the grade."

-Phil Hoffman, NC Climbing Guide

Word on the street...

It sounds like Spyder is launching a new apparel brand

and

Giro is launching something in hardgoods (other than helmets)...

Biofuel or Fuel Efficiency

Here's the main reason the "Biofuel instead of fuel efficiency" argument doesn't work for me...

Exploding U.S. Grain Demand For Automotive Fuel Threatens World Food Security And Political Stability

Judge gives a flat to fixed-gear bike riders

Can you believe we're wasting court time on this...

Link

The latest round in the struggle between Portland traffic officers and fixed-gear bicycle riders went in favor of the police Monday as a Multnomah County Circuit judge found four cyclists guilty of riding a bike without a brake.

First, North Carolina wins the Stanley Cup...

...and now we have the first ski resort on the east coast to open.

Link

Retail Update

There are a few new store openings today:

The Walking Company

Topo Ranch General Store

Sport Chalet

On top of that, Copeland's is selling most of its assets to TSA

It may be the McFleece of the outdoor industry...

but it is also one of the most successful jackets ever.

The Piton is showing the myriad of colors the Denali comes in this year.

Our Research shows that the Denali pulled in well over $6 million in sales... in October alone.

REI Gives Seed Money to Launch Ahnu...

From this morning's BOSS Report


Van Dine and Partners, which is comprised of many of the former managers at Keen Footwear, plan to launch a new footwear brand that will make its debut in April
of 2007. Ahnu, taken from “Anu”, the Celtic goddess of well-being, is expected to be targeted at outdoor specialty.

...

One interesting twist is that REI will provide seed investment to support the company’s start-up costs, giving it a minority stake in Ahnu. A unique requirement
of the investment is that any profits REI may realize above its initial investment and related administrative costs will be donated to a non-profit that has a clear
mission of introducing people into the outdoors and protecting natural lands. The non-profit will be mutually agreed upon by both companies.

For the full story...

well, you need to subscribe.

Every Climber should Read This...

From Black Diamond Equipment

Thanks for the link Dougald

Troubles with SGI?

It looks like SGI the magazine no longer exists...

Pie Charts

After all of the money speak yesterday, I felt we needed some pie charts to lighten the mood...

Interesting Post from Cyclicio

Eurobike, Interbike, PR and Crisis Management

It is interesting how VNU has handled this news especially with their blog postings.

It is also interesting how Eurobike is handling their PR around the announcement. The story has appaeared in Bike Europe first and then appeared in, BR&IN, Velo News and Outdoor Business UPDATE.

There was no big PR push in the U.S. and there is no mention coming directly from Eurobike.

To me it seems as if they are just testing the waters with an announcement that is sure to make some news. By announcing the dates so close to InterBike, they certainly shocked the industry. At the same time they created an uphill battle for themselves. It's going to be very hard to convince any marketing department to drop InterBike for an unproven show, even if it is in Portland (which, in my humble opinion, is a much better location than Vegas).

Anyway, we'll be keeping our eyes on both parties to see how the game plays out...

Monthly Retail Report

The monthly sales for the 40+- public companies that we cover on a regular basis came in today. We've been reading press releases and publishing stories since 6:30 am. In the heat of things we don't really get much time to digest the information, but now that things have slowed a bit I can get a 10,000 foot view of what's going on out there. Most of the companies we cover are more pertinent for the Sporting Goods Industry than the outdoor industry, but there are a few that offer some interesting insights.

It's pretty clear that Zumiez is mopping up the action sports crowd, and PacSun is paying the price. It's interesting to see the impact that adding a hardgoods department has on sales. Even if hardgoods are just a small part of Zumiez business, it adds so much more authenticity to the shops that PacSun just can't compete.

We also look at Big Dog Holdings regularly. Why? BDOG owns The Walking Company which is basically an outdoor footwear mall-based shop. TWC is posting some impressive double-digit comp-sales results and basically saving BDOG from some serious losses.

Some big-picture results include Wal-Mart - sales were basically flat for the month, and the company's outlook for November is the same. Some would say this is a clear sign of slowing retail, but Target, Costco, and Kohl's are all posting much better results. Is it possible that Wal-Mart is seeing some consumer backlash?

Finally, DSW, which carries a surprisingly large selection of Merrell footwear, is also seeing some positive results this month.

The public companies that do business in the Bicycle, Outdoor and SnowSports arena seem to be doing well. Even the small specialty shops that I talk to regularly are pretty positive about this season. Sure, we have the occasional complaint about "teflon greased close-out channels," but overall business seems to be up this month.

Burton's John Lacy Tells All

Gabcast! Burton's John Lacy Tells All

Lacy talks about the winter 07/08 line and where the new fashion trends are going...

Letters...

Looks like I need to clarify what the Oil 150 is all about, since I myself misunderstood.

"Oil 150 is not an industry organization or affiliation. We are a committee, not a board, administered by the Oil Region Alliance. The Oil Region Alliance is the non-profit organization that manages the federally designated Oil Region National Heritage Region, and the state designated Pennsylvania Oil Heritage Region. The Oil 150 Steering committee is celebrating the Drake Well discovery and our proud heritage as the birth place of the petroleum industry. "

- Lois McElwee, Oil 150 Coordinator

Congrats John!

K2's Technical Apparel Platform Names Cooley Director of Strategy Development

Eurobike is Coming to the U.S.

Posted this morning in Outdoor Business UPDATE

Messe Friedrichshafen, the Owners of Europe's largest bicycle trade show, Erobike, will be launching a new trade show in the U.S. to compete directly with InterBike. Officials from EuroBike have reportedly met with Portland city officials to discuss hosting the show at the The Oregon Convention Center, with a two day outdoor demo in Ski Bowl or near Hood River.

“I was interested to hear the news of Eurobike’s proposed show,” said Lance Camisasca, Interbike's group show director. “We welcome competition, as it will help us do a better job. However, we are also greatly concerned about the dividing effect Eurobike’s announcement may have on the industry. Many will remember the time when the industry suffered through multiple shows resulting in additional expense and heartache. We hope the industry will continue to support the Interbike show and we promise to continue to do everything we can to make Interbike the best show for the North American market.”

Other reports have recently surfaced claiming that Eurobike surpassed Interbike in terms of size and attendance this year. According to published numbers, Eurobike saw Trade visitors up 6% per cent to 31,810 including bike retailers from 76 countries, 5 continents and 44% attendees coming form from outside Germany. 1,064 journalists from 32 countries were at the show.

In comparison, Interbike hosted 22,000 individual exhibitors, manufacturers’ representatives, buyers and members of the media, which represents a 12% increase versus 2005 attendance. Buyer attendance was close to 10,400 individuals, which equates to a 6% increase versus 2005 and represents a little more than 3,100 stores. "Close to 450" working media attended Interbike, representing a 15% increase versus 2005 attendance.

“We understand the Interbike show may not be perfect,” Camisasca said. “But we have always tried to listen to retailers, exhibitors and advocacy groups to improve the show and to help the industry grow. For example, when the industry wanted more space, all on one floor, we moved the show to Las Vegas. We have also kept exhibiting costs below the tradeshow industry average to maintain affordability for exhibitors both large and small.”

The new U.S. version of Eurobike is still waiting on an official name and the EU based company is still hiring a team to organize and run the show, which will reportedly take place sometime next September.

Now, when will the Friedrichshafen OutDoor Show make the jump accross the pond...