Sporting Goods Industry News for May 03, 2016
Over the strenuous objections of the term loan creditor, which had asserted its priority over the goods that were shipped on consignment to The Sports Authority, the DE bankruptcy court essentially finalized its interim order that provided for consignment vendors to be paid per the terms of their contracts.
BGFV swung to a $1,119,000 loss from a $2,314,000 profit last year in the fiscal first quarter ended Apr. 3 as revenues dropped to $234,528,000 from $243,555,000.
A separate DE bankruptcy court approved the procedures offered by PacSun that provide for its secured lenders to convert its debt into equity as a stalking horse bidder, subject to any possible higher bids that may emerge.
Net income dropped by more than half to $17.6 million from $40.1 million in the first quarter ended Mar. 26 on sales that were 9% lower at $577.6 million vs. $631.4 million including $6.3 million of negative currency impact.
Six-year company veteran Henry Stafford, who was most recently Under Dog’s chief merchandising officer, will leave in July.
Asked about acquisitions, RGR said that most of the gun companies it sees are grossly overpriced, and believes in most cases it’s better off hiring a few more engineers and innovating in-house.
Under Dog inked a multi-year extension to its sponsorship deal with National League MVP Bryce Harper who has been with the brand since the minors.
Winchester ammunition sales expanded 3% to $183.7 million from $178.70 million in the first quarter driven by increased shipments to commercial customers.
Last month’s NSSF-adjusted NICS checks were 1,130,238, an increase of 14.4% compared to the Apr. 2015 figure of 987,698.
Proceeds from the new senior unsecured debt will be used to redeem its existing 6.375% senior notes due 2020 and to pay down its revolving credit facility.
Cascade Designs is recalling 1,830 Striker 320 and Striker 240 avalanche rescue probes because the lock button on the probe can fail to engage.