While space colonization isn’t likely to occur in our lifetime, the space economy is booming (space suits represent a $20-$25 million annual market) and big name retailers like Reebok (ADDYY) & Y-3 (ADDYY) want in on the action. Reebok teamed up with space outfitter David Clark Company to release the first updated space boot in 50 years, the SB-01. The boots, which use Reebok’s patented Floatride foam, “will accompany the final space suit that will shuttle astronauts to and from the International Space Station”.
Work It! How Reebok, Adidas, and Y-3 Will Dress Future Space Explorers
Fan Marino: How did Reebok go from Dave & Dan to Neil Armstrong in 25 years?
Adidas (ADDYY) has sold CCM, its hockey equipment brand, to a Canadian PE firm for +/-$100 Million, a significant drop from the $150 Million they were asking for in 2013. The sale continues a trend for Adidas, selling off subsidiaries like TaylorMade, to focus on their core footwear business. Adidas, which owns the NHL apparel license will be replacing the CCM logo on NHL uniforms with the Adidas logo. The CCM logo will remain on player helmets and sticks.
Adidas laces up $100M hockey brand sale
Fan Marino says: Great timing. The NHL is releasing new jerseys for this season, and hasn’t begun selling them to the fans yet. If you buy an authentic jersey for a few hundred dollars, it should come with the logos they actually wear on the ice.
Howie Long-Short opines: CCM is no Bauer, in the opinion of this one-time hockey player. Seeing an Adidas logo on hockey jerseys will feel bizarre. Not very meaningful for the quarter #, and analysts/investors will definitely look through it. $100MM is a drop in the bucket.
Nike (NKE) co-founder Phil Knight said in an interview that aired on Wednesday (6/28) on Bloomberg TV, that despite Tiger Woods’ enormous success and popularity, “we lost money for 20 years on equipment and balls”. The company exited the golf equipment space in 2016, while Woods has since signed an equipment deal with TaylorMade. Adidas (ADDYY) sold TaylorMade Golf earlier this year, to PE firm KPS Capital Partners, for $425 Million.
Nike lost money on golf equipment for 20 years, according to co-founder Phil Knight
Howie Long-Short opines: Nike poured money into R&D in golf’s version of an arms race for years. The space is finally rationalizing, which should be good for those left.
Fan Marino says: I can’t help but think that Tiger’s little 2009 Thanksgiving incident, wasn’t exactly the catalyst Nike needed to turn a profit on golf equipment.
Nike (NKE) reported Q4 ’16 profits and revenue on Thursday, that exceeded analyst expectations ($.60/share vs. $.50/share and $8.68 Billion vs. $8.63 Billion, respectively). The company said international geographies and its direct to consumer business fueled the growth. Analysts and investors were told to expect mid to high single digit growth in 2018.
Nike tops Wall Street expectations; confirms deal with Amazon
Howie Long-Short opines: The beauty of low expectations. Under Armour (UAA) and Adidas (ADDYY) have been cutting into Nike’s market share recently, but this is a good start.
Fan Marino says: Nike started selling Air Jordans in 1985 and the company is reporting Jordan Brand saw strong growth in 2016. Can you imagine Steph Curry still selling shoes for Under Armour in 2046? Yeah, me neither.
Under Armour (UAA) has hired former Aldo CEO Patrik Frisk to run the company’s day to day operations as President & COO. Founder Kevin Plank will remain as CEO. The move comes just 2 months after April’s announcement that the company had its first losing quarter since going public in 2005.
Under Armour brings in new president; Plank remains CEO
Howie Long-Short opines: This looks long overdue.
Fan Marino says: If we’re talking sneakers; I’ve got Nike, Adidas and Reebok (ADDYY). If we’re talking athleisure; it’s Lululemon (LULU) Rhone and Aesthetic Revolution. Mr. Frisk has his work cut out for him.
Nike (NKE) has agreed to join Amazon’s (AMZN) brand registry program, in an effort to curb counterfeiting and non-licensed selling within the e-commerce marketplace. The partnership will also enable Nike to sell sneakers directly to Amazon customers, through the parent company site. Competitors, Adidas (ADDYY) & Under Armour (UAA) already have direct-sales deals in place with the company.
Bloomberg: Amazon Will Sell Nike Shoes Directly Through Brand Registry
Howie Long-Short opines: Better late than never for Nike. This is not such great news for Foot Locker (FL).
Fan Marino says: Love this. Now I can have both my locally sourced produce and my new paid of J’s delivered via drone.