Group Created with Sketch.
Volume 24 No. 156
  • Created with Sketch.
  • Created with Sketch.
  • Created with Sketch.

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

     Fourth quarter results of several publicly traded sportinggoods chains indicates that "most sporting goods retail stockshave tailed off significantly during the past few months,"according to the May issue of SPORTING GOODS BUSINESS.  But whilesome industry analysts "suggest the industry has lost much of itsappeal," they differ on the long term forecast.  Some largerretailers blame a slow holiday season, and slumps in sales oflicensed goods and skis for the soft results.  Others suggestthat the larger publicly traded chains "are not able to reactquickly enough to market shifts," and that if revenue is down, itdoes "not necessarily mean the whole industry is down."  Whilechains such as Sport Mart and Sports & Recreation have seen asubstantial stock value drop, some industry insiders "suggest thedeclines are part of Wall Street's general negative outlook onretail," and many dealers are optimistic of a healthy '95 due tothe 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 onManhattan's 5th Avenue, such as Nike Town, is analyzed by TripGabriel 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'sSporting Goods approved a reverse stock split that will reducethe number of holders of the company's Common Stock preventingHerman's from becoming a public reporting company (Herman's).