Outdoor Insight

T he big dogs in the outdoors continue to get bigger. Sportsman's Warehouse, the 112-door, publicly-traded chain across 12 U.S. Western states, will become part of the privately-held Great American Outdoors Group (parent of Bass Pro Shops and Cabela's) during the second half of 2021. Sportsman's Warehouse is known for its focus on fishing, boating, camping, hunting and other outdoor gear. Over its last three fiscal years, footwear and apparel have been the smallest revenue segments for Sportsman's Warehouse. But that focus could change under its new parent company. Moody's is calling the $18 per share cash merger of Sportsman's Warehouse into Great American Outdoors Group, in a deal valued at approximately $785 million, "a good strategic fit" that will improve Bass Pro/Cabela's scale and expand its presence into complementary geographic regions stretching from Alaska to Arkansas. Forecasted synergies from the com- bined operation include lower costs, an expanded credit card program and the ability to expand the sales reach of Bass Pro-owned brands that include Tracker Boats and Ascend Kayaks. When the merger commences, Sportsman's Warehouse will account for approximately 18 percent of Bass Pro/Cabela's topline. During the first half of fiscal year 2020, Sportsman's Warehouse reported that its foot- wear sales increased more than 15 percent to $32.6 million. For the West Jordan, UT-based chain, the category consists of hiking boots, socks, sport sandals, technical footwear, trail shoes, casual styles, waders and work boots. Footwear brands cited by Sportsman's Warehouse in its most recent annual report were Danner, Keen, Merrell, Red Wing and Under Armour. For its fiscal year ended Feb. 1, 2020, footwear accounted for 7.5 percent of the chain's topline. Meanwhile, the banner's apparel segment generated a 9 percent fiscal year sales increase to an implied $82.4 million. Going forward, Sportsman's Warehouse customers will have access to the Cabela's apparel brand. l Adidas reports that in 2021, for the first time, more than 60 percent of its products will be made with sustainable materials. The brand says it is moving closer toward its objective to end plastic waste. From 2024 onward, Adidas will shift to using only recycled polyester. Since 2018, the company has been using exclusively sustainable cotton. Sandal brand Hari Mari announced the addition of its longtime board member Jake Szczepanski to the company's management team as president. At Hari Mari, Szczepanski, who co-founded high-end men's and women's wear label Billy Reid, will help scale and manage the company's internal operations and supply chain to keep pace with the Hari Mari brand's growth trajectory. He will also oversee the creation of the brand's first apparel line, launching in Spring 2021. Outdoor apparel brand Flylow Gear has joined as a major sponsor for the American Avalanche Association (A3), a leading nonprofit dedicated to avalanche safety, education and research in the United States. Flylow will be supporting initiatives such as the Professional Development Grant, Scholarship and Research Grant programs, The Avalanche Review, and the new A3 seminar series. Sierra Designs announced Blackpackers, Outdoors for All, Venture Out Project, and WildKind Closet as its Reach Out partners for 2021. In addition to donating 1% of all web sales and $2,000 worth of gear per quarter, Sierra Designs pledges to provide education, event support, and a customizable awareness campaign for each participating partner. Using the brand's platform, Sierra Designs will broadcast each organization's mission via social media, email newsletters, and an exclusive partnership with She Explores Podcast. Keen is accepting submissions for its Keen Effect Kids' Grant Program that has introduced 130,000 underserved youth to the outdoors since 2014. With the program, Keen works with grassroots organizations around the U.S. making the outdoors more accessible and inclusive for all. Groups are eligible for grants up to $10,000, with the total program reaching $100,000 in 2021. The application deadline is February 5 and may be submitted on the brand's website. # T H E B U Z Z N E W S / A N A L Y S I S OUTDOOR EYE Sportsman's Warehouse Acquired By Cabela's and Bass Pro Parent outdoorinsightmag.com

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