Today's News...11/11/04

Bianchi Bought By Armor Holdings

Armor Holdings, a manufacturer and distributor of security products and vehicle armor systems serving law-enforcement, military, homeland defense and commercial markets, has reached a definitive agreement to acquire Bianchi International ,a privately- held long-time manufacturer and supplier of duty and concealment holsters, belts and accessories under the Bianchi brand name used primarily by law-enforcement, private security and military personnel. A supplier of the SPEAR rucksack system for US Special Operations Forces, Bianchi also offers medium and large technical internal frame backpacks, and high-end daypacks, satchels and carrying cases under the Gregory brand name. Armor Holdings will pay $60 million in cash for the company, which will be delivered on a debt-free basis. Bianchi recorded $36 million in revenue for the 12 months ended September 30, 2004.


Head's Profitability Rose In 3Q

In 3Q04, Head NV's net revenues increased by 5% to $122.7 million. Its operating profit before restructuring costs increased by $7.6 million to $15.7 million. The operating profit after restructuring costs increased by $7.6 million to $15.3 million. Net profit was $8.1 million vs $2.2 million. 3Q profits were helped by $5.6 million resulting from the sale of its Irish property. Winter Sports revenues increased by $8.9 million, or 14.8%, to $68.9 million. Racquet Sports revenues decreased by $2.6 million, or 6.2%, to $39.1 million. Diving revenues decreased by $0.1 million, or 0.9%, to $12.7 million. Licensing revenues decreased by $100,000, or 4.5%, to $1.9 million.


Brown Shoe Consolidates Wholesale Division

Brown Shoe, in an effort to strengthen its product design, brand building and service to department store customers, has consolidated its wholesale operations into one division: Brown Shoe Wholesale. The company also created a new division, Specialty Retail, to manage its 365 Naturalizer stores and 16 FX LaSalle stores in the US and Canada.

Gary Rich, president of Brown Shoe Wholesale, will manage the expanded division that now includes the company's flagship Naturalizer brand. John Mazurk has been promoted to SVP/specialty retail and will manage the new division of mall- and outlet-based concept stores. As a result of the reorganization, Byron Norfleet, who headed the former Naturalizer division, has decided to leave Brown Shoe effective December 1.

"First, let us say that we respect Byron's decision, and are grateful for his many contributions to the company," said Brown Shoe president Diane Sullivan. "As one Wholesale division, Brown Shoe Wholesale becomes a more powerful partner for our retail customers. Under unified management we can bring them more than a strong portfolio of well-known footwear brands."

Over the past four years as separate divisions, she noted, Brown Shoe has built its Naturalizer brand from the Number 6 brand to Number 2 in department stores, while simultaneously making great progress in building share for its LifeStride, Dr. Scholl's and Carlos brands. "The Specialty Retail division will be devoted to higher-end concept stores based in malls and outlet centers," Sullivan added. "It will give us the ability to focus management expertise on profitably running stores that are vehicles for both brand-building and product testing." The changes do not affect Famous Footwear. Previously, Mazurk was SVP/retail sales of Famous Footwear, where he was responsible for the daily operation and direction of its more than 900 stores.


Outdoor Retailer Offering Show Savings For Exhibitors

Outdoor Retailer is offering new savings for exhibiting companies with the official service contractor, GES. Per an agreement negotiated with Outdoor Retailer, GES is cutting costs on basic services including labor for booth set up, selected furnishings and material handling. The following GES rate reductions will go into effect for all 2005 Outdoor Retailer tradeshows (percentage discounts from 2004 published rates):

Material Handling/Drayage: - 17% to 22% reduction;
GES Labor: - 15% reduction;
Marshalling yard and weight certificate fees eliminated;
Select GES Furnishings: 15% reduction;
200 lb minimum reduced to 100 lb minimum;
Standard Booth Carpet: 15% reduction;
Discount Rate Deadline extended.


Adidas Investing In Soccer Movie Trilogy

According to Bloomberg News, Adidas-Salomon hopes to lift its sales in the US, while soccer's ruling body, FIFA, plans to raise its profile there by endorsing three Hollywood films part-produced by Mel Gibson and featuring David Beckham. Adidas is sponsoring "Goal!," a trilogy directed by Danny Cannon, who worked on CBS's crime drama CSI. FIFA is permitting the use of its marks for free in order to spur the sport's growth here. The company declined to say how much money the company is putting into the project. The first part is scheduled for release in August 2005. Adidas ought to look at the dismal results of Vans' decision to help finance a movie on the early days of skateboarding, and that movie was critically praised.


Front Porch Classics named Helen Rockey, former CEO of Just For Feet and Brooks Sports, CEO of the Seattle-based maker of coffee-table games.


The Finish Line named Chicago-based media services company Starcom USA as its media agency of record. The assignment includes all planning and buying responsibilities for Finish Line, which were previously handled in-house and by
Indianapolis-based EchoPoint Media.


Mountainsmith, producer of packs and bags, has a new partner in Latin America. Effective immediately, Rabbit Mountain, Boulder, CO, assumes distribution responsibilities for Mountainsmith products in Mexico, Central America, and South America. Rabbit Mountain is headed up by its president and founder, Edward Gerety. Since 1995, Rabbit Mountain has sold equipment, accessories and apparel for mountain and outdoor activities throughout Latin America. It currently supplies most independent outdoor shops from Mexico to Tierra del Fuego.


Cabela's secondary public offering of 10.5 million common shares has been priced at $22.50 apiece. All the shares are being sold by existing stockholders, and the company will not receive any proceeds from the sale. The underwriters have an option to purchase up to an additional 1.5 million shares to cover over-allotments, if any, from the selling stockholders. It opened on Thursday at $23.60.


GSI Commerce launched a new, online HBO retail store for the US, using an e-commerce solution developed and operated by GSI Commerce. GSI supplies HBO's online store with a comprehensive solution that includes e-commerce technology, product merchandising and fulfillment and customer service. Post-launch plans include adding online marketing capabilities such as affiliate marketing, paid search and e-mail notices. The new online store, launched on November 8, carries an assortment of HBO-licensed gear and products tied to HBO programming, which includes HBO Films, documentaries, and original series programming such as The Sopranos, Sex and the City and The Wire.