Retailers tracked by Sports Executive Weekly saw a reversal of fortunes in the fiscal 2007 fourth quarter as the ‘must haves’ that drove gains in the prior year period failed to materialize this past Holiday season.  While vendors were still capitalizing on the sell-in side to post a surprisingly strong fourth quarter (SEW_0813), it appears that  the consumer changed the conversation in the mall.  As a whole, industry retailers saw sales increase in the mid-single-digits for the period, but gross margin declines cut into the profit line.  Return on Sales for the retailers covered in the chart on page 2 fell 440 basis points to 2.5% from 6.9% during the year-ago fourth quarter.

Fourth quarter results are posted for those companies that have reported for the period ended closest to the February 3, 2007.  Still, because the report is not a clear picture of the entire industry, SEW feels the total numbers are less significant than the trending information provided in the percentage increases and decreases.  The SportsOneSource Group does a broader analysis of the industry each quarter by comparing vendor wholesale performance against retail sales performance based on data provided through SportScanINFO. The SportsOneSource Market View 2008 Report reflecting both wholesale and retail performance of brands will be available in May.


Specialty retailers cut into gains seen at sporting goods and the Internet.  The specialty business, highlighted by sales declines at The Finish Line, Foot Locker, Inc. and Genesco, posted a mid-single-digit sales decline for the quarter, while margins declined 330 basis points and profits were cut in half versus the prior-year period.  Sporting Goods retailers again saw pretty solid results although half the retailers reporting saw sales and/or profit declines for the period.  Dick’s Sporting Goods and Cabela’s kept it positive on new store growth and Forzani continued to outperform the market with a very impressive turnaround underway north of the border.  Overall sporting goods sales were up in the low-teens, but profits fell by a third thanks to a sharp loss expansion at West Marine.  Excluding the WMAR loss, the sporting goods sector saw a low-single-digit loss.  A loss at Sport Chalet and profit declines at Big 5, Gander and Hibbet contributed to the decline.