Nike's Bauer Unit Not Expected To Command Large Sum

With Nike shopping its Bauer hockey unit, industry execs said that it is “doubtful the division will sell for more than $150[M] -- less than half of what Nike originally paid for it,” according to Rick Westhead of the TORONTO STAR. Nike, which paid $395M for Bauer-maker Canstar Sports in ‘94, said that the hockey unit posted sales of “about $160[M] a year ago, and several industry officials said they estimate the division generated a profit of $20[M].”  But retailers, distributors and competitors said that Nike "struggled to navigate many obstacles,” as retailers returned "an inordinate number of skates to Nike because they didn’t fit comfortably” and Blue Jackets C Sergei Fedorov -- then with the Red Wings -- “reportedly cut ties with Nike over similar concerns.”  Nike “maintains it’s the leading company in the hockey equipment business with 35[%] of a market some estimate is worth $480[M].”  NikeBauer President & CEO Mark Duggan said, “We’ve done nothing wrong. This company has never performed better.” He said that even though Reebok is the exclusive provider of NHL jerseys, Nike has ties to “some of the sport’s top stars” such as bothers Hurricanes C Eric Staal, Penguins C Jordan Staal and Rangers D Marc Staal.  Duggan said, “The reality is hockey’s a declining market in the U.S.” (TORONTO STAR, 10/9).

Nike Plus Spurring Company's Growth In Running Shoe Market

NIKE PLUS: TIME’s Sean Gregory writes with Nike Plus, the company has “combined the world’s top sporting-goods brand with the world’s most beloved gadget [the iPod nano], all while cleverly capitalizing on the social networking craze. … The result is a product that could completely transform the way we run.” The digital community has “changed the way Nike thinks about innovation. To Nike, you’re no longer just buying a sneaker. You’re joining a global jogging club -- and keeping up with fellow runners will, the company hopes, motivate you to buy more Nikes.”  This month, the company will release the Nike Amp Plus, a wristband that “serves as a remote control for your nano.” Nike may also “expand the Plus concepts … to other sports.” While competitors New Balance, Asics and adidas have “lost market share in running shoes,” Nike captured 56.7% of the $3.6B U.S. running-shoe market through the seven months ending August ’07, up from 47.4% in ’06. SportScanInfo analyst Matt Powell said, “No question, Nike Plus is one of the primary drivers of the company’s running growth this year.” However, according to NPD Group market research, consumer tastes are “shifting away from that type of shoe" (TIME, 10/15 issue).

SKATEBOARDING: Nike’s skateboarding division, Nike SB, rented out the Commodore in Vancouver, a “popular downtown music venue that seats 1,000 people,” for the Canadian premiere of its first skateboarding movie, “Nothing But The Truth.” It was the only Canadian stop in a tour of select cities around the world (CP, 10/9).