Image Source: Pool Corp.
Structure of the Sporting Goods Industry
The seasonal sporting goods industry is heavily tied to sporting trends and relies on large athletic partners to distribute their athletic goods and apparel. Exclusive licenses can help certain firms achieve competitive advantages, and while scale helps, small companies have been able to carve out favorable niches. Unlike other apparel industries, we have yet to see tremendous online competition emerge. Potential firearm regulation could negatively impact sales, but most companies are well diversified. We’re neutral on the space, but continued consolidation could ultimately benefit industrywide pricing and margins.
We’ve dropped coverage of reports on stocks in the Sporting Goods industry: CLAR, ELY, JOUT, NLS, POOL.