SBD/15/Sponsorships Advertising Marketing

HAS THE SPORTING GOODS RETAIL INDUSTRY LOST ITS "APPEAL"?

     Fourth quarter results of several publicly traded sporting
goods chains indicates that "most sporting goods retail stocks
have tailed off significantly during the past few months,"
according to the May issue of SPORTING GOODS BUSINESS.  But while
some industry analysts "suggest the industry has lost much of its
appeal," they differ on the long term forecast.  Some larger
retailers blame a slow holiday season, and slumps in sales of
licensed goods and skis for the soft results.  Others suggest
that the larger publicly traded chains "are not able to react
quickly enough to market shifts," and that if revenue is down, it
does "not necessarily mean the whole industry is down."  While
chains such as Sport Mart and Sports & Recreation have seen a
substantial stock value drop, some industry insiders "suggest the
declines are part of Wall Street's general negative outlook on
retail," and many dealers are optimistic of a healthy '95 due to
the return of Michael Jordan, and the end of the baseball strike
(SGB, 5/95 issue).

     
TOP 10 SPECIALTY SPORTING GOODS RETAILERS
1. Foot Locker
$2.25B
  6. Sportmart
$500M
2. Sports Authority
$1.1B
7. REI
$489M
3. L.L. Bean
$800M
8. Athlete's Foot
$450M
4. Champs Sports
$675M
9. FootAction
$440M
5. Sports & Recre
$612M
10. Play it Again
$420M
TOP 10 FASTESTGROWINGCHAINS (Projected Growth in '95)
1. Just For Feet
62.50%
  6. FootAction
29.40%
2. Sports & Rec
59.70%
7. Play it Again
24.60%
3. Fitness Ware.
46.80%
8. Hibbett Sports
22.20%
4. Sports Author.
31.10%
9. All About Sports
21.90%
5. Gander Mountain
30.10%
10. Modell's Sports
20.60%
(SPORTING GOODS BUSINESS, 5/95 issue).
OTHER RETAIL NOTES: The opening of large retail outlets on Manhattan's 5th Avenue, such as Nike Town, is analyzed by Trip Gabriel in the N.Y. TIMES. Nike spokesperson Kevin Kutcher: "Our object with the store is both financial and image-oriented. There's a dual goal there" (N.Y. TIMES, 5/14)....Herman's Sporting Goods approved a reverse stock split that will reduce the number of holders of the company's Common Stock preventing Herman's from becoming a public reporting company (Herman's).
Return to top

Related Topics:

Foot Locker/Venator Group, Nike

Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug