MAY 25, 2005 -- Robert Orlando, president of Teva, is leaving Deckers Outdoor effective May 24 in order to pursue other interests. The company is actively searching for a successor.
In the interim, Angel Martinez, Deckers' CEO, will assume all his responsibilities. COB Doug Otto, stated, "I would like to personally thank Bob for his significant contributions over the years and wish him well in his future endeavors. Teva remains one of the most recognized performance brands in the outdoor industry, and we are committed to fully capitalizing on our leadership position in the market."
Martinez, commented, "I believe that Teva is an incredible brand that is still only scratching the surface in terms of its potential. Going forward, we will focus on significantly enhancing our design and product development efforts, broadening our marketing initiatives and more aggressively pursuing the tremendous opportunities that exist for the brand overseas. We are dedicated to further improving our operating platform and maximizing our prospects for growth."
Shares of TSA Rise On Strong Earnings
Shares of The Sports Authority on Wednesday rose 2.05 to close at 34.78 after its better-than-expected first quarter earnings came out late Tuesday.
Net income in the first quarter rose to $8 million, or 30 cents per share, from $4.2 million, or 16 cents per share, a year ago. Excluding pretax merger integration costs of nearly $9 million, previous-year net income was $9.4 million, or 36 cents per share.
The company's first-quarter earnings exceeded both the company's and analysts' forecasts. The company was looking for income of 24 cents to 26 cents per share, and analysts surveyed by Thomson Financial expected earnings of 25 cents per share.
In a research note, Susquehanna Financial Group analyst John Shanley said a positive outlook for same-store sales, supply chain improvements and a strengthening balance sheet point to higher profits for Sports Authority this year. He rated the stock "Net Positive," equivalent to a "buy" recommendation.
Shanley raised his earnings estimate for this year to $1.97 per share from $1.87 -- at the high end of Sports Authority's own range of $1.90 to $1.97 per share. GSI Acquires Spanish E-Commerce Site
Nike's Starter Subsdiary Hires VP/GM/Product And Design
Exeter Brands Group, a subsidiary of Nike that operates the Starter and Shaq brands, has named Todd Blumenthal to the newly created position of VP/GM/product and design, overseeing the group’s portfolio of Starter, Team Starter, Asphalt, Shaq and Dunkman brands.
He will report to Exeter Brands president Mary Gleason. Blumenthal joined Exeter from Nike, where he most recently was global merchandising director of Nike footwear. Blumenthal has 20 years of experience in product creation and merchandising with companies such as The Limited, Gap and Polo Ralph Lauren. He joined Nike in 2000.
Nautilus Responds To Dismissal of Icon Suit
Nautilus, Inc. provided the following response to a decision by the Federal Court in Seattle to dismiss Nautilus' patent infringement claims against Icon Health and Fitness:
"On May 26, 2005 the federal district court in Seattle dismissed the remaining claims in Nautilus' patent infringement case against Icon Health and Fitness. Therefore, the patent infringement case has been dismissed and will not proceed to trial on June 20, 2005 as previously scheduled."
"This case is one of three cases Nautilus has on file against Icon Health and Fitness. Nautilus will appeal this case to the Federal Circuit Court of Appeals, which has previously ruled in our favor in two separate appeals on this matter. In addition to appealing this patent case, we will continue to prosecute the two trademark infringement cases against Icon Health and Fitness."
"We believe this matter will have no bearing on the success of our operating plans or our operating results. Nautilus is driving growth by bringing innovative branded fitness products to consumers wherever they shop and exercise and we are fully committed to protecting the intellectual property of our innovative brands. We believe vigorously protecting intellectual property is fundamental to any company committed to bringing a fast pace of innovation to their customers and industry."
Lamkin buys Royal Grip from Royal Precision
Lamkin Corporation, the San Diego-based manufacturer of golf grips, has purchased the Royal Grip brand of golf grips from Royal Precision, a Torrington, Connecticut, manufacturer of steel and graphite shafts and golf grips.
Bob Lamkin, president of Lamkin Corporation, said a major reason for the purchase was because of the outstanding branding of Royal Grip in the Asian market.
"The Royal Grip brand is very strong in Japan and this opportunity will allow us to introduce new Lamkin products under the Royal Grip brand, giving us considerably greater avenues for new product distribution," Lamkin said. "We will develop current and future projects in Japan using the strength of the Royal name." Royal Precision and Lamkin Corporation, both 80-year-old companies, have recently enjoyed tremendous growth in the international golf market.
"Royal Grip products have been used to produce some of the world's best-selling golf clubs, and this transaction uniquely positions and strengthens both of our companies," says John Lauchnor, Royal Precision president and chief executive officer. "Lamkin is one of the very few grip manufacturers that can maintain the high level of quality and innovation golfers have come to expect from the Royal Grip brand, so we're very pleased to pass the 'Royal torch' to them."
Royal Precision also manufactures Rifle, a leading brand in golf for premium steel shafts, and Saber graphite shafts.
"This agreement provides Royal Precision with a great opportunity to focus 100 percent of our resources into the shaft market," said Lauchnor.
GSI Commerce Acquires Spanish E-commerce Provider
GSI Commerce has entered into a definitive agreement pursuant to which it has acquired control of privately-held Aspherio, S.L., a Barcelona, Spain-based provider of outsourced e-commerce solutions (http://www.aspherio.com). GSI Commerce expects to begin working strategically with Aspherio to offer its international e-commerce capabilities to GSI Commerce's existing partners and prospects. Aspherio provides international outsourced e-commerce solutions for partners that include Hewlett-Packard and Logitech.
GSI also has the right to acquire, and the shareholders of Aspherio have the right to sell to GSI, all of the outstanding shares of Aspherio. If consummated, the purchase price for the acquisition of control and for the acquisition of the shares of Aspherio would be approximately $4.0 million plus an earnout based on the performance of the Aspherio business. Of the $4.0 million, $2.7 million would be paid in cash and $1.3 million would be paid in cash or GSI common stock, at GSI's election. The acquisition of Aspherio's shares, which is subject to certain conditions, is expected to close in late 2005 or early 2006. GSI does not expect that the acquisition would have a material impact on its financial results for fiscal year 2005 or 2006. Other terms of the transaction were not disclosed.
The Aspherio platform currently operates online stores in 15 countries and in nine languages. The platform is fully integrated and compliant with major European currencies, payments systems and taxation requirements. Aspherio provides logistics and customer care through integrating its core technology platform with a network of third-party providers and by connecting directly into the infrastructure of its partners.
"GSI Commerce serves an increasing number of multinational companies and international e-commerce is growing at a rapid pace and becoming a strategic priority for our partners," said Michael Rubin, COB/CEO of GSI. "It is a logical extension for GSI Commerce to offer its multinational partners the opportunity to extend their e-commerce operations internationally. At the same time, we recognize there are significant differences between the North American and international markets. We are very excited to have found a partner in Aspherio that shares our passion and vision for outsourced e-commerce and has meaningful international operating experience. Through this strategic initiative we add an important capability to our platform, while at the same time remain on track to achieve our financial targets. Longer term, we believe the international markets represent a significant growth opportunity for GSI Commerce."
SHORTS
Wolverine World Wide hired Stephan Krug as its new sales director for the CAT brand. Krug will be responsable for the German speaking countries, the British Isles, France, Spain, and the Netherlands. Krug has worked for various sports brands such as Timberland, Mexx and Clarks (Source: SAZ)
ING has signed on for title sponsorship of the ING Miami Marathon and Half Marathon. Having only begun in 2003, this Race Event has grown into one of South Florida's biggest single-day sporting events and has become a major destination race for runners throughout the U.S. and Latin America, according to the ING. ING Miami Marathon Race Weekend will take place on January 27-29 2006, with a full schedule of events for beginning and expert runners, kids and entire families. This 4th annual weekend of events is expected to draw over 12,000 runners and walkers.
