Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Dicks Sporting Goods Inc    DKS

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

College-Licensed Apparel Tops Sports Market

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/15/2012 | 08:40pm CET

--College sports pushes college merchandise ahead of NFL, baseball in sales

--More television exposure seen creating demand

--Nascar merchandise in fourth place but growing rapidly

 
   By Sam Mamudi 
 

One-fourth of all goods sold through licensed sports apparel stores in 2012 will be college-branded, a timely reminder as March Madness gets going of the immense national appeal of college sports.

Sales of licensed college sports clothing at outlets such as Dick's Sporting Goods Inc. (>> Dicks Sporting Goods Inc) and Foot Locker (>> Foot Locker, Inc.) are set to top the market this year, beating out the professional leagues.

The National Football League, the highest-earning sports league in the world, is expected to rank second this year, with a 22.6% share, with Major League Baseball third, taking 22.9% of overall sales.

Total revenue from retail stores such as Dick's, Foot Locker and the Sports Authority will total $3.7 billion in 2012, according to a study by IBISWorld.

The study projects that revenue to grow to $4.1 billion by 2017, with college sports and Nascar seeing the most growth.

The primacy of college-branded wares is a relatively new phenomenon, according to IBISWorld. Until recently MLB-licensed goods were the biggest sellers at licensed sports apparel stores. But a combination of more television exposure and an increasingly professional approach to merchandising has seen college products rise from third in 2009, behind MLB and NFL, to number one in 2010 and last year--and likely in the years ahead.

"Increased national exposure of college men's football and basketball (through TV networks like ESPN) has catapulted collegiate athletics onto the national stage over the last decade," wrote Brian Bueno, lead industry analyst at IBISWorld, in his report. "More exposure has encouraged colleges to increase apparel offerings to more niche items, such as socks, robes and underwear, along with jerseys, T-shirts and outerwear."

Bueno said that the top-selling colleges last year were the University of Texas, University of Alabama and University of Florida.

College sports have benefited enormously from the boom in televised games in recent years. With live events among the few remaining appointment-viewing programs, TV networks have been paying billions of dollars for sports rights.

So strong is the pull of college sports that Walt Disney Co.'s (>> The Walt Disney Company) ESPN and Texas launched a university-specific Longhorn Network last August; the Big Ten Conference has its own TV station, and the Pac 12 Conference is due to launch its a national network and six regional channels in August. The impact of TV dollars is so large that college sports is in a major upheaval that could result in four 16-team super-conferences established just to meet broadcasters' wishes.

It's not just more airtime that's helping colleges. Many of the top schools have in recent years signed up with IMG College, a division of IMG Worldwide, to handle their licensing and sponsorship.

For example, though not captured in the IBISWorld study, IMG recently sealed a deal to sell college merchandise through Old Navy (GPS) stores.

"IMGs ongoing management of college licensing has definitely helped facilitate the growth, particularly as the company can leverage its marketing and licensing expertise to expand licensing strategies for colleges and, thus, expand the product base," Bueno told MarketWatch.

"It can also be argued that the increased exposure has been due to marketing efforts either undertaken by the colleges themselves, marketing agencies like IMG or other business forces."

Bueno also found that at the same time college products were claiming top spot, the NFL overtook MLB in retail sales at licensed sports stores, perhaps unsurprising given the country's enormous appetite for football. As with college sports, Bueno suggested increased media coverage has boosted sales.

"The successful launch and subsequent development of the NFL network in 2003 has played a huge role in generating apparel revenue," he noted.

Sales of Nascar apparel ranked fourth in the study, though he sees the sport as the perhaps the fastest-grower in the sector in the years ahead.

"[The sport's] products are typically sold in the Southeast region, as Nascar is most popular in those states," wrote Bueno. "In the five years to 2017 this segment is expected to generate a higher percentage of industry revenue, as NASCAR further develops its brand across the country."

-By Sam Mamudi; 415-439-6400; AskNewswires@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DICKS SPORTING GOODS INC
01/11 DICKS SPORTING GOODS : Clemson fans snap up championship gear
01/11 DICKS SPORTING GOODS : Dick's Sporting Goods to close Rochester store
01/10 DICKS SPORTING GOODS : Dick's Sporting Goods opening tonight to sell fan gear if..
01/06DJRetailers Risk Multibillion-Dollar Earnings Hit Under GOP Tax Plan
2016 Triangle Town Center owners sell Dick's Sporting Goods property for $30M
2016 DICKS SPORTING GOODS : Petco, Dick’s Sporting Goods sign on at mall site
2016 DICKS SPORTING GOODS : Employee charged with stealing from Dick's Sporting Goods
2016 DICKS SPORTING GOODS INC : Other Events (form 8-K)
2016 DICKS SPORTING GOODS INC : ex-dividend day
2016 DICKS SPORTING GOODS : Chris Largent brings deep love for outdoors to his retail..
More news
Sector news : Sporting Goods Stores
08:49aDJLUXOTTICA FOUNDER : A Lifetime of Deals -- WSJ
08:49aDJLUXOTTICA : Merger to Create Eyewear Giant -- WSJ
08:48aDJWHAT'S NEWS : Business & Finance -- WSJ
01/16 ESSILOR INTL : Luxottica's merger helps Del Vecchio manage family risks
01/16DJLUXOTTICA : Another Big Splash by Italy's Eyewear King
More sector news : Sporting Goods Stores
News from SeekingAlpha
01/10 B. Riley names top picks for 2017
01/06 Border tax seen as a profit headwind for major retailers
01/05 Retail sell-off spreads from high to low
01/04 Wide World Of Sporting Goods Retail Profits Depends Upon The Play
2016 No holiday cheer for retail stocks
Advertisement
Financials ($)
Sales 2017 7 924 M
EBIT 2017 555 M
Net income 2017 341 M
Finance 2017 114 M
Yield 2017 1,08%
P/E ratio 2017 17,32
P/E ratio 2018 14,00
EV / Sales 2017 0,73x
EV / Sales 2018 0,66x
Capitalization 5 927 M
More Financials
Chart DICKS SPORTING GOODS INC
Duration : Period :
Dicks Sporting Goods Inc Technical Analysis Chart | DKS | US2533931026 | 4-Traders
Full-screen chart
Technical analysis trends DICKS SPORTING GO...
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 64,3 $
Spread / Average Target 22%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Edward W. Stack Chairman & Chief Executive Officer
Andrè J. Hawaux Chief Operating Officer & Executive Vice President
Lee J. Belitsky Chief Financial Officer & Executive Vice President
Kurt J. Schnieders Chief Information Officer & Senior VP-IT
Lawrence J. Schorr Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
DICKS SPORTING GOODS I..-0.90%5 927
SPORTS DIRECT INTERNAT..2.30%2 038
XXL ASA1.53%1 582
AMPLIFY SNACK BRANDS I..28.83%872
BEIJING SANFO OUTDOOR ..--.--%558
BIG 5 SPORTING GOODS C..-6.92%354
More Results