Nike said Tuesday that it will enter the "rapidly
growing snowboard industry through a partnership" with UT-
based snowboard and ski binding maker Marker International,
according to Lisa Levenson of the Portland OREGONIAN. Under
the agreement, research and design teams from both companies
will together make snowboards, apparel, boots and bindings.
Apparel, priced from $175-400, will hit retailers this fall,
with snowboards available in late '99. Nike spokesperson
Vizhier Corpuz said that Nike "had been looking for a way to
get more involved in the snowboard category 'for some
time.'" Corpuz added, "[W]e will be manufacturing the
boots, and we'll use Marker's expertise in manufacturing
boards and binding systems." Marker CEO Hank Tauber said
that Marker will continue to make ski and snowboard products
under its own name. Analysts tell Levenson that Nike's move
into snowboarding "makes sense as part of the company's
overall diversification strategy." John Rogers of Jensen
Securities: "They view equipment as a natural extension of
their business or the third leg of what an athlete needs"
after shoes and apparel (Portland OREGONIAN, 7/23).
NOT RIDING HIGH: WA-based snowboard manufacturer Ride
reported a second-quarter loss Tuesday of $2.25M, or $0.21 a
share, compared to a profit of $411,000, or $0.04 a share
for the same period in '96. Second-quarter sales of $2.5M
were down 81% from $13.5M last year. Ride also said Tuesday
that it purchased Smiley Hats for $550,000 in cash and
320,000 shares of common stock (SEATTLE TIMES, 7/23).
