Has the Paddlesports Industry Found Its New Home?

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Has the Paddlesports Industry Found Its New Home? WEEK IN REVIEW VOLUME 1 | ISSUE 21 NEWS, ANALYSIS AND INSIGHT FOR THE ACTIVE LIFESTYLE EXECUTIVE DECEMBER 5, 2016 Photo courtesy Canoecopia HAS THE PADDLESPORTS INDUSTRY FOUND ITS NEW HOME? Following trade-show operator Emerald Ex- Bush said Paddlesports Retailer will fo- with the industry’s fun culture. “It will be a positions’ announcement that it will move its cus on the trade side of the business, which much more intimate event.” Outdoor Retailer Summer Market trade show to felt disenfranchised by Outdoor Retailer’s Still, some of the industry’s largest players, in- June, a group of paddlesports retailers revealed decision to move up its 2018 Summer Market cluding Confluence, say they are very keen on plans to establish their own trade show focused show to June — a month where many pad- the show, and Bush said he was surprised to get on the category. dlesports retailers are too busy to attend quite a few calls from European brands as well. Darren Bush, owner of Wisconsin-based and many vendors aren’t ready to exhibit the He said he has verbal commitments from “a doz- Rutabaga Paddlesports, and Sutton Bacon, following year’s products. Emerald is attempt- en or so domestic manufacturers,” and contin- chairman of North Carolina-based Nantahala ing to soften the blow by establishing an area ues to get more daily. “My No. 1 goal is to reach Outdoor Center, said they have secured focused on outdoor and paddlesports at its out to all the brands, ask them each who their September 12-14, 2017 in Madison, WI at Surf Expo show in Orlando, starting with the top 25 buyers are and get a total of about 400 the Alliant Energy Center to host the new September 6-8, 2018 show. buyers to come to the show,” he said. Paddlesports Retailer show. But Surf Expo “isn’t our industry’s culture,” This wouldn’t be the first time the industry The show will be one “for paddlers, by pad- Bush said. “Surfboards and girls in bikinis in a has attempted to split on trade shows. In 2010, dlers” at “half the cost of Outdoor Retailer,” soulless city dominated by a giant mouse just Canoe and Kayak Magazine unsuccessfully tried Bush told SGB. “You don’t have to make boats isn’t us. There is something important about to establish a new paddlesports trade show in to come, just need to support the paddlesports location.” Minneapolis, MN. Bush said those efforts failed lifestyle.” Bush declined to estimate how many people because the group didn’t have the logistics set The speed at which the group was able to put the group hoped to attract to the new show, that he has thanks to Canoecopia. together a new show comes in part from Bush’s but said there are 900 hotel rooms within “We’re not attempting … we’re doing,” he said. proven success in growing the consumer pad- walking distance of the venue, with another Bush added that he doesn’t view the group’s dlesports show Canoecopia, which takes place 9,000 in Madison. He said he never expects efforts as a “split” from Emerald, who he said in March at the same venue. The event is one of Paddlesports Retailer to get as big as Outdoor he has been in contact with. “We’re not saying the nation’s largest in the industry, and support Retailer, but that isn’t the point. He added that don’t go to Outdoor Retailer or Surf Expo, but from Nantahala Outdoor Center, as one of the he hoped to hit the middle ground between we are offering another option. We’re not in nation’s premier paddlesports outfitters, adds Outdoor Retailer and Grassroots Outdoor this for the money, we’re in it for the health of more chops. Alliance as far as a show that mixes business the industry.” © SportsOneSource, LLC by “gains in the retailer’s men’s, accessories and juniors’ categories, while footwear and WEEK IN REVIEW hardgoods comped down for the quarter.” NEWS, ANALYSIS AND INSIGHT FOR THE ACTIVE LIFESTYLE EXECUTIVE From a regional perspective, North America net sales increased 7.8 percent to $202.9 million while international sales Group Publisher & Creative Director Teresa Hartford rose $14.6 percent. [email protected] Despite the decline in dollars per trans- 303.997.7302 action, Zumiez was able to bump up prod- Editorial Director Photo courtesy Zumiez uct margins, resulting in a 10-basis-point David Clucas [email protected] increase in gross margin as a percentage of 303.578.7007 sales to $34.4 percent for the third quarter Senior Business Editor ACTION SPORTS RETAIL versus a year ago. Coupled with SG&A ex- Tom Ryan GETS A BOOST, BUT ZUMIEZ penses as a percentage of sales remaining [email protected] 917.375.4699 CEO REMAINS CAUTIOUS flat at 26.8 percent, quarterly net income came in at 10.7 million, or 43 cents per di- Senior Business Editor Charlie Lunan Action sports lifestyle retailer Zumiez luted share, versus net income of 9.7 million, [email protected] (Nasdaq:ZUMZ) echoed its peers in the cat- or 36 cents per diluted share, a year ago. 704.996.4463 egory with better-than-expected results on Zumiez officials said the growth has contin- Associate Editor | Sports & Fitness Editor increased sales and profits for its fiscal third ued through November with its same-store sales Jahla Seppanen [email protected] quarter ended October 29, 2016, but CEO for the month up 5.7 percent for the four-week 303.578.7008 Rick Brooks isn’t ready to start the holiday period ending November 28, on a 10.3-percent Associate Editor | Copy Editor party just yet. increase in net sales to $69.3 million. Carly Terwilliger The company, which has more than That’s a significant improvement from a year [email protected] 303.997.7302 650 stores in North America and 30 stores ago, when same-store sales slid 13.8 percent overseas in Europe and Australia, reported during the same period in 2015. Art Director Chris Loving-Campos same-store sales up 4 percent during the [email protected] quarter (it had expected at most a 2-percent Proceeding With Prudence Media Sales increase), boosted by an 8.4-percent in- Part of that caution from Brooks involves Buz Keenan | East crease in sales to $221.4 million with 35 new a plan for slower store growth, while still [email protected] 201.887.5112 stores versus a year ago. That includes five viewing “physical-store expansion as an im- new Fast Times stores, which the company portant piece of the customer omni-channel Circulation & Subscriptions acquired to enter the Australian market. experience,” he said. New stores are expected [email protected] Despite the positive news, Brooks said the to further slow for North America in 2017, 303.997.7302 company was moving ahead with prudence. while there is more opportunity to grow in SGB Media “While these top-line results are a great sign Europe and Australia, he said. Print Magazine: SGB Magazine Executive Newsletters: SGB Executive of our brand strength and a testament to As of October 29, 2016, inventory rose Email Magazine: SGB Today the strong execution by the Zumiez sales 12.7 percent to $150.6 million, including Email Updates: SGB Update, SGB Apparel, teams, we are cognizant that headwinds an increase in inventory per square foot. SGB Footwear, SGB Outdoor, SGB Sports & Fitness persist throughout the retail industry and “Though inventory has grown in excess of challenges associated with muted mall traf- our square footage growth, we feel confident SSIData SSIData.com fic and macroeconomic uncertainly are still in the general quality of the inventory and bringing unpredictability across the retail have seen our aged inventory, defined as Career Services SGBJobs.com sector,” he told investors on the company’s inventory older than four months, decrease December 1 conference call. “Accordingly, as a percent of total inventory year over we are proceeding cautiously and tightly year,” Work said. controlling expenses to protect profitability.” Looking ahead, Zumiez projected its fis- SGB Executive is subject to copyright and other intellectual property protection in the U.S. and other countries. SGB Executive is a registered cal fourth-quarter same-store sales, ending trademark of SportsOneSource in the U.S. and other countries. Any attempt to distribute, copy, alter or otherwise transfer content of this material More Frequent, Yet Smaller Purchases January 28, 2017, increasing 3 to 5 percent, beyond the addressed subscriber is strictly prohibited. The latest quarter was boosted by with net sales in a range between $258 million Powered by increased transaction volume, offset by a and $263 million. Its fourth-quarter gross decline in dollars per transaction, suggest- margin is expected to improve by 50 to 1075 E. South Boulder Road • Third Floor • Louisville • CO • 80027 ing that as with other retailers, particularly 100 basis points, in part due to easier com- SportsOneSource.com | 303.997.7302 in the West, the retailer saw increased traf- parisons from a year ago, when the company fic following the closures of the bankrupt took a $1.2 million charge to clear inventory. Sports Authority and Sport Chalet. Zumiez Diluted earnings per share for the quarter are CFO Chris Work said net sales were driven expected between 60 cents and 66 cents. 2 SGB EXECUTIVE | DECEMBER 5, 2016 © SportsOneSource, LLC The Right Talent Is Easy To Find If You Look In The Right Place Employers, Post Your Jobs On SGBjobs.com Apply Promo Code SGBEXECFALL and Receive 15% Discount on all Job Packages Offer Expires December 31, 2016 Photo courtesy Journeys JOURNEYS SEES PROMOTIONAL HOLIDAY QUARTER Genesco Inc.
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