Outdoor financials: Quiksilver attains 96 percent of Rossignol voting rights, plus Under Armour, Michigan Retailers' Association, Deckers, Winmark, Big 5

Quiksilver holds 96 percent voting rights for Rossignol
It’s official — Quiksilver (NYSE: ZQK) today said it now owns directly or indirectly over 95 percent of Rossignol, with over 96 percent of the voting rights. It has initiated the mandatory squeeze out to acquire the remaining shares. Quiksilver had launched a second tender offer period in July that settled Aug. 25, resulting in the acquisition of enough shares to push its ownership over the 95 percent threshold. The company said it anticipates completing the acquisition of all remaining shares of Rossignol near the end of September 2005.

Under Armour applies for IPO
Under Armour has filed a preliminary offering document with the U.S. Securities and Exchange Commission to sell as much as $100 million of Class A common stock in an initial public offering.

Details of the IPO such as the specific amount of shares or an estimated price range for the shares were not announced. The company said it intends to apply for a Nasdaq listing under the symbol “UARM.”

Net revenues in the six months ended June 30 were $107 million compared with $70 million in the same period in 2004, according to the regulatory document. In 2004, its largest customers, which collectively accounted for about 36 percent of net revenues, were The Army and Air Force Exchange Service, Dick’s Sporting Goods and The Sports Authority, the company said.

After the IPO, Under Armour will have two classes of stock. Class A stock will carry one vote per share and each Class B stock share carries 10 votes, it said. All of the Class B shares will be owned by Kevin Plank, the company’s founder and CEO.

It said it plans to use the proceeds to redeem outstanding preferred stock issued to private equity firm Rosewood Capital and its affiliates and repay debt under a credit line. It also plans to use the remainder for general corporate purposes, including working capital and capital spending, and possible acquisitions, the company added. It will not receive any proceeds from the sale of shares in the IPO by current stockholders.

Goldman, Sachs & Co. will lead a group of five underwriters to manage the IPO. CIBC World Markets, Wachovia Securities, Piper Jaffray and Thomas Weisel Partners LLC will assist, according to the IPO prospectus.

July retail index dips to lowest level since 2001 for Michigan Retailers’ Association
The Michigan Retailers’ Association sales and short-term outlook slipped to the lowest July levels since 2001, according to the Michigan Retail Index, a joint project of the MRA and Federal Reserve Bank of Chicago.

The MRA blames higher unemployment, higher gas prices, hot weather and strong auto sales as having the greatest impact on merchandise retail sales.

The Index, based on monthly surveys of MRA members, found that 35 percent of retailers increased sales in July over the same month last year while 47 percent recorded declines and 18 percent saw no change. The results create a seasonally adjusted performance index of 43.1, down from 47.1 in June and 45.9 in May. It was the worst July since the Index hit 42.2 in 2001.

The Index also revealed a small drop in retailers’ projections for the next three months.

Fifty-six percent said they believe their sales will increase for August to October, while 20 percent forecast declines and 24 percent project no change. The results create a seasonally adjusted outlook index of 66.0, down from 67.7 in June and 69.4 in May. It was the worst three-month projected outlook since the Index hit 64.0 in 2001.

No region of the state was immune. Fewer than 50 percent of the retailers in each region reported sales gains in July.

The MRA is the nation’s largest state trade association of general merchandise retailers.

Deckers hires international VP
Deckers Outdoor Corp. (Nasdaq: DECK) appointed Colin Clark as senior vice president – international, effective Sept. 1, responsible for all aspects of the company’s international business, including sales, product and marketing, as well as managing its international distributors. Clark will report directly to Angel Martinez, Deckers’ CEO.

Clark, a native of Scotland, spent 13 years at The Rockport Company, a subsidiary of Reebok International Ltd., most recently serving as vice president and general manager – international. During his time in that role, sales and profits grew substantially and outpaced other divisions to become a highly successful and profitable division of The Rockport Company. From 1991 to 2001, Clark held various senior positions, including vice president – global marketing, vice president – international, director and general manager – United Kingdom, and sales manager – United Kingdom.

Winmark board OKs buyback
The board of directors of Winmark Corp. (Nasdaq: WINA), parent of Play It Again Sports, has authorized a 500,000 share repurchase in addition to the approximately 40,000 shares remaining under an existing board authorization. The new authorization is equal to approximately 8 percent of Winmark’s shares outstanding as of Aug. 4. Since 1995, Winmark said it has repurchased 2.96 million shares at an average price of $11.97 per share.

Big 5 gets final SEC extension
Big 5 Sporting Goods (Nasdaq: BGFVE) received one last reprieve from Nasdaq and was granted an extension to file its 2004 annual report and quarterly reports for Q1 and Q2 of 2005, and to continue the listing of its common stock on the Nasdaq National Market pending those filings.
 
Nasdaq has granted the company an extension until Aug. 31to file its fiscal
2004 Form 10-K and an extension until Sept. 30 to file its first quarter and second quarter fiscal 2005 Forms 10-Q. These dates are an additional extension from its previous Aug. 12 deadline. Big 5 has not been in compliance with Nasdaq requirements for continued listing as a result of its failure to file these forms with the SEC.
 
Nasdaq said this is Big 5’s last extension. In the event that the company is unable to file its forms by the due dates, its shares may be delisted from the Nasdaq National Market.

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