The sporting goods industry is one that covers a wide variety of activities; from individual activities like fitness or hiking, to team sports like football or baseball. There are many areas in which companies can compete. A company can compete in one area and create a niche or compete in many areas by doing many things well. Two companies that cover a wide range of activities are Big 5 Sporting Goods and Dick’s Sporting Goods. Intepreting both companies financial statements and financial ratios through comparing and contrasting will provide the opportunity to analyze how their respective businesses perform in the sporting goods industry.
Background
Big 5 Sporting Goods was founded in 1955 while operating five stores in Burbank, Glendale, Inglewood, Los Angeles, and San Jose California. Originally, Big 5 focused on WWII Army surplus and later transitioned to sporting goods as a result of the active life styles of their customers. In 1971, Big 5 was acquired by Thrifty Drug Stores and later by a private equity firm, Leonard Green & Partners in 1992. After this acquisition, Big 5 continued to grow and expanded into other states like Arizona, Idaho, New Mexico, Oregon, and Texas. Expansion progressed and in 2002 Big 5 had an initial public offering to raise $100 million to invest in future growth (Big 5 Sporting Goods, History). This growth in a little over 50 years has resulted in over 400 locations in 12 states in the west while offering name brands (Big 5 Sporting Goods,
1. Political: “issues affecting our international vendors could materially adversely affect our business and financial performance.”(Page 8.)
Athletics Supreme’s sportswear prices are affordable when compared to higher priced competitors like Walmart Stores and Dick’s Sporting Goods with a pricing strategy designed and employed to offer competition to its rival companies. The company does not compromise on its quality craftsmanhip while still offering low prices because it is confident of its loyal consumers. The company’s pricing methodology is flexible and depends generally on the economic trends that might influence buyer behavior in targeted segments focusing on total customer satisfaction as a way of encouraging brand loyalty in a highly competitive
The background of this paper we need to mention is that West Coast Fashions, Inc. (WCF), a large designer and marketer of branded apparel announced a strategic reorganization calling for a divestiture of certain assets, and one of the divisions it intended to shed was Mercury Athletic, its wholly owned footwear subsidiary. John Liedtke, the head of business development for Active Gear, Inc. (AGI), a privately held athletic and casual footwear company, contemplated an acquisition opportunity of Mercury that would significantly improve his business. So, he wanted to evaluate this opportunity.
Profitability. The company strategy is to target only 25-45 years for specialist sportswear products, but a lot of
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Dick’s Sporting Goods was originally opened in 1948 as a bait and tackle shop in Binghamton, NY. Since then, the company has grown into a major, full-line sporting goods chain with over 500 stores. Part of the company’s mission statement is to be “….the #1 sports and fitness specialty omni-channel retailer that serves and inspires athletes…” (Dick’s, 2015). There is no doubt Dick’s Sporting Goods has succeeded in fulfilling the mission as the company has been publicly traded since 2002 with sales today in
1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?
1971 to over 800 stores located in 46 states and Puerto Rico. This industry is
This report intends to analysis the macro and internal environments and financial position of the Travis Perkins plc by conducting the PESTLE and SWOT analysis. In the beginning of this report, it introduces the mission of Travis Perkins plc. After that, this report presents the PESTLE analysis to show the company’s external environment. Then, it depicts the SWOT analysis of Travis Perkins plc to show the strengths, weaknesses, opportunities and threats of this company. It follows by the financial strategy analysis and results of Travis Perkins. The balance sheet analysis will be presented in the appendix. In conclusion, the comprehensive environments are favorable to Travis
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Athletic goods industry still has unlimited potential and it is a growing industry at the moment. The sportswear is not limited to track and field anymore. It has become a daily-life goods that can be seen everywhere. Product diversification into fashion business opens up a new growth potential for athletic goods.