Dick’s Sporting Goods continues to expand its “private brands” strategy, announcing Monday at the annual Bank of America Securities Investor Conference that they have inked a deal with Reebok to design, source, market, and sell Reebok athletic apparel under the RBK brand.  DKS will use the brand as its in-house fitness apparel vehicle, replacing the Fitness Gear label for men and the Ativa label for women that were the retailer’s own private label brands.  In a question and answer session with investors and analysts, DKS chairman and CEO Ed Stack said the RBK apparel is expected to reap margins rates 600 to 800 basis points higher than the branded business.  The RBK product is expected to be in stores for spring 2008.


 


In his prepared remarks Mr. Stack also provided more details regarding the DKS licensing deal with Nike for the ACG brand.   “It is a brand that Nike never really did an awful lot with in the United States,” said Stack.  “It is more of a rugged outdoor brand, and Nike has never, ever let any retailer make this switch before.”  Stack said the ACG product had just gotten into the stores for fall and suggested they were “really very pleased” with the early sell-through.


 

“We are pleased that Nike USA has entered a strategic partnership with Dick’s Sporting Goods to license the ACG brand for the U.S. market,” a Nike, Inc. spokeperson told SportsOneSource Media. “This new relationship will strengthen and grow Nike’s Outdoor Nike ACG product offering and continue to differentiate Dick’s Sporting Goods’ offering to its customers. This agreement enables Dick's Sporting Goods to develop its own exclusive Nike ACG Apparel, which extends to outerwear, socks, hats, and gloves in the U.S. only. The initial product under this partnership is in all Dick’s Sporting Goods stores now and additional product will appear throughout the Fall season.”

 

Mr. Stack also outlined a bit more about their deals with adidas for baseball equipment as well as their deals with Slazenger, Umbro, and Field & Stream.  He indicated that they have achieved their goal of producing 15% of sales through private label, but hinted the number could certainly go higher as the new “private brands” strategy takes hold.






 

For more on the Dick's Sporting Goods presentation at the BofA conference, including an outline for growth strategies in Florida, Texas and California, look for this week's issue of Sports Executive Weekly.