FinancialBuzz.com News Commentary
NEW YORK, April 8, 2020 /PRNewswire/ -- The sports equipment and accessories industry is witnessing considerable growth around the world. Particularly, the increasing adoption of sports and recreational activities by people for stress management and growing health awareness is having a profound effect. Widespread media coverage of several global sports events, such as FIFA World Cup, Commonwealth Games, as well as Olympic Games, further amplifies their popularity and enlarges the global influence of sports, thus encouraging youth to take part in the activities. Recently, with the global pandemic disrupting public sport events and activities, equipment that can be used for independent exercise or practice has been in high demand. Such products include home gym equipment and various machines designed to help enable solo practice, such as tennis ball machines and the solo swing training machines for baseball. Overall, the global sports equipment market size is expected to reach USD 89.22 Billion by 2025 while registering a CAGR of 3.5% according to a new report by Grand View Research, Inc. Slinger Bag Inc. (OTC: SLBG), NIKE, Inc. (NYSE: NKE), Under Armour, Inc. (NYSE: UA), Peloton Interactive, Inc. (NASDAQ: PTON), Big 5 Sporting Goods Corporation (NASDAQ: BGFV)
The online retail segment is specifically positioned to record the fastest growth rate in the coming years; the usage of mobile phones and other electronic devices by consumers to browse and shop online for products, including sports equipment and accessories, is increasing significantly all over the world. In response to this transition in the nature of consumers' buying patterns, sports brands are now focusing on consolidating their presence in online retail. "They are investing in e-commerce in order to facilitate a greater convenience for buyers to make online purchases, by providing user-friendly and improved websites. Thus, the e-commerce industry is experiencing rapid expansion, especially in these equipment sales volume, which is estimated to stimulate the growth of the segment," the report indicates.
Slinger Bag Inc. (OTC: SLBG) announced today breaking news on, "its inaugural global distribution agreement with the leading Japanese sporting equipment distributor, Globeride Inc.
The partnership names Globeride Inc. as the exclusive distributor of Slinger Bag products in the Japanese market including its new Slinger Launcher Bag - a major innovation in the global tennis market. Globeride plans to launch the Slinger Bag brand to Japanese consumers from July 1st 2020.
Tennis is growing at a serious speed across Asia and Japan is recognized as the second largest global market for the sport with over 3 million players - a market which also includes Soft Tennis. Statistics reveal that there are 1.3 million avid tennis players, those who play weekly, and Globeride has demonstrated its faith in the Slinger Bag by committing to capture at least 2.5% of this Japanese avid player community over the duration of the five-year agreement, which equates to a minimum purchase order of 32,500 Slinger Launcher Bags.
The deal will see Globeride market Slinger Bag through a combination of an aggressive on-line, direct-to-consumer business targeting players and coaches; through its extensive network of tennis wholesalers and retailers and through Japanese schools, universities and associated governing bodies of tennis across Japan. This will enable Slinger Bag to activate its global brand plan and to build on the success it has already seen in its Kickstarter© and Indiegogo© crowdfunding campaigns, which were the highest grossing sports product campaigns ever launched to date.
Slinger Bag CEO Mike Ballardie says: 'We're delighted to be aligning Slinger Bag with the leading sports equipment distribution company in Japan. Globeride Inc, with their 40+ year experience in the Japanese tennis market, will unlock the door to access the all-important regular tennis players market, facilitating our ability to bring our market-changing products to a nation of tennis players and fans.'
'In my previous role as CEO of Prince, I worked closely with the Globeride team to drive revenue and market share in one of the world's largest and most active tennis markets. I know first-hand that Globeride's vastly experienced tennis division's management will drive long-term growth and success for the Slinger Bag brand, starting by building a solid grassroots foundation of teaching pros and tennis influencers. Globeride's commitment to Slinger Bag, as a new brand in the market, over a five-year term demonstrates a significant stamp of approval for the Slinger Bag brand and our products. We're excited to be embarking on a journey with our new distribution partner to deliver our vision of stimulating increased participation in tennis by making it more accessible for players and fans, irrespective of age or ability.'
Kazunari Suzuki, President at Globeride Inc. said: 'We've been extremely impressed by Slinger Bag. Our market testing over the past 4 months opened our eyes to a new product category in tennis which is typically a very traditional sport. The Globeride family holds out great hope for the long-term success of Slinger Bag products with Japanese players of all ages and abilities. The Slinger Launcher Bag is unrivalled in the tennis industry. With its high quality specification combined with its affordable retail price we are confident that the Slinger Launcher Bag can change the game for the better and that we will see quick adoption of Slinger Bag products by the worldwide tennis community, starting here in Japan.'
Founded in 1958, Globeride Inc. (7990.T) is listed on the Tokyo Stock Exchange. Globeride is a leading producer of fishing tackle, through Daiwa® and of golf equipment through OnOff® and others with sales and distribution operations across the globe. Globeride is also the exclusive licensee for Prince® for all racquet sports categories and is the exclusive distributor for Corratec® and other cycle brands in Japan."
NIKE, Inc. (NYSE: NKE) is a designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Earlier this year, the Company announced that it is transitioning its Nike Brand business in Brazil, Argentina, Chile and Uruguay to strategic distributor partnerships, enabling a more profitable, capital efficient and value accretive business model. This move demonstrates Nike's ongoing approach to optimize country operating models across its global portfolio, with sharpened focus and investment against its biggest growth opportunities through the Consumer Direct Offense.
"Nike manages successful distribution businesses around the world and expanding this model in the rest of South America will help drive sustainable, profitable growth. Our partners are committed to serving local consumers and elevating retail and digital experiences and share Nike's values and commitment to employees."
Under Armour, Inc. (NYSE: UA) is an inventor, marketer and distributor of branded athletic performance apparel, footwear and accessories. Last month the Company announced that it pledges its support to help people affected by the novel coronavirus pandemic. Under Armour is donating USD 1 Million to Feeding America to support hunger relief efforts as a result of current school closures and quarantines. In addition, the Company also announced that it is hosting a 30-day Healthy at Home fitness challenge on Under Armour's MyFitnessPal and MapMyRun platforms, individuals and families at home will be encouraged to stay healthy and physically active. When users join the challenge beginning March 23rd, Under Armour will donate up to USD 1 Million in combination of monetary donation and product to support Good Sports' efforts in ensuring youth sport leagues have the necessary equipment, footwear and apparel.
Peloton Interactive, Inc. (NASDAQ: PTON) is the largest interactive fitness platform in the world with a loyal community of over 2 million Members. The company pioneered connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes for its Members anytime, anywhere. Earlier this year the Company announced its financial results for second quarter 2020. In the report, financial comparisons on a year-over-year basis indicated that total revenue grew 77% to $466.3 million and that total revenue grew 77% to $466.3 million. According to Peloton, engagement remained strong; our Connected Fitness Subscribers worked out over 24.3 million times with us in Q2 and averaged 12.6 Monthly Workouts per Connected Fitness Subscriber, versus 9.7 in the same period last year.
Big 5 Sporting Goods Corporation (NASDAQ: BGFV) is sporting goods retailer in the western United States, operating 434 stores under the "Big 5 Sporting Goods" name as of the fiscal quarter ended December 29th, 2019. Earlier this year the Company reported financial results for the fiscal 2019 fourth quarter and full year ended December 29th, 2019. For the fiscal 2019 full year, as previously reported, net sales were USD 996.5 Million, compared to net sales of USD 987.6 Million for the fiscal 2018 full year. Same store sales increased 1.2% in fiscal 2019 versus the prior year. Net income for fiscal 2019 was USD 8.4 Million, or USD 0.40 per diluted share. Net loss for fiscal 2018 was USD 3.5 Million, or USD 0.17 per basic share, including charges of USD 0.09 per basic share as previously reported.
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