OAKLAND, Calif. (BRAIN) — David Archard landed in Oakland after bike touring the West Coast in 2009. Since then he has worked toward opening a bike shop — first joining forces with Brazen Bicycles, where he updated vintage steel frames with modern components, and later for a small online custom shop.

Now, after nearly three years of planning, Archard and partners Aaron Wacks and Jimmy Ryan have opened Luckyduck Café and Bike Shop in Oakland. The 2,100-square-foot space is split evenly between the café and the retail shop, which has a full-service repair department. Located in the front of the store, the café serves coffee, beer and wine along with breakfast and lunch.

“We didn’t want to just open a bike shop because you need so much capital upfront,” Archard said. “So we decided to open a café too, which will hopefully help make the bike shop more accessible to more people. We want to make it easier for people to gain entry and start a conversation.”

Archard, Wacks and Ryan spent months building out the space, which saved them money and allowed them to initially stock inventory they otherwise wouldn’t have been able to afford. “We’re still keeping it lean, though, focusing on touring, commuting, bikepacking, randonneuring and custom builds,” Archard said. “We also do wheel builds and lots of dynamo stuff, and are deep into cyclocross.”

For now, Luckyduck is selling only used and low-cost commuter bikes the partners have built up on old steel frames and new frames made by local builders and Winter Bicycles in Pittsburgh.

We all know the song, right? But what does that have to do with your business?

Quite a bit, actually. For a first-time customer walking into your store, a clear signage package throughout the space can be the difference between that customer feeling comfortable enough to navigate the busy floor over to helmets for a purchase OR feeling overwhelmed, turning around and walking back out the door.

Store owners often say to me, "Doesn't everybody already know what a helmet and shoe is? Seems silly to put up all the signs." Well, yes, presumably most people do know what these things are (although don't assume everybody does), but people often don't know where they are in your store. In fact, most people aren't paying any attention at all as they wander through, and if you can do anything to make their experience easier, it's likely to keep them browsing longer, which means increased sales for you.

A quote from Chris Brennan, senior vice president global retail development for the NBA, comes to mind: "We know that if we keep the customer in the store for more than 10 minutes, we increase conversion by 200 percent." Now that's an astounding thing to consider, isn't it? Especially when something so simple as proper signage throughout your space to draw your customers to the key categories can have an impact like that.

So where do you start? First, remove every handwritten, mismatched, outdated, ripped or dirty sign that's in your store. Hire a local graphic designer (great project for a college design student if you're near a university) to create a basic category sign package. Include your logo, pick a bold, clean font, and be sure to have a strong color contrast between the sign background and the letter color. Black, white and red are usually the most effective colors for letter visibility.

At 3 Dots Design, when we create an effective sign package we like to build in several different levels, if possible: larger departmental signage (men's, women's, service, etc); then smaller category signage such as tubes, hydration, nutrition, grips, etc.; and often we top it off with smaller product and feature call-out signage (apparel feature call-outs, special pricing that needs attention, new product call-outs, energy food details, etc.). If making the different sizes doesn't work so well in your space, combine the first two levels into one nice size that works on your walls and floor fixtures — perhaps something like 6 inches by 20 inches. Signs can be easily attached to walls with adhesive Velcro or double-sided tape. We have great luck with using magnets for signs on fixtures.

Whatever direction you choose, keep it clean, simple and consistent. You'll be surprised by the impact such a simple element will have on your retail environment.

SALT LAKE CITY (BRAIN) — Vista Outdoor saw sales increase to $630 million in its second quarter, as revenue from its new acquisitions of Bell, Giro, Jimmy Styks and CamelBak kicked in. Organic sales from its businesses prior to those acquisitions were down 4 percent and earnings were down 14 percent to $29.1 million.

The company remains on a growth strategy, said Vista Outdoor chairman and CEO Mark DeYoung. "Early in the quarter, Vista Outdoor completed the acquisition of Action Sports, which has enhanced our market offerings in cycling, snow sports and powersports, and the integration is on track. Including recent acquisitions, both sales and gross profit increased 23 percent over the prior-year period. We, like other consumer products companies, experienced a soft retail environment in the first quarter. Additionally, we were impacted by a shift in consumer spending from accessories to firearms platforms outside our portfolio, and the timing of international orders from the first quarter to later in our fiscal year. We expect a recovery in the second half of the fiscal year due to sell through of new products, increased international sales, the continued improvement in the retail environment and seasonal upside in the shooting sports market."

Also during the quarter, the company repurchased approximately 462,000 shares for $22 million. 

"With expected improved performance in the second half of the year, the company reaffirms its financial guidance in fiscal year 2017, as we anticipate an improved retail landscape and a return to spending on hunting and shooting accessories to complement the growing firearms installed base," said Vista Outdoor CFO Stephen Nolan. "We will also continue to leverage the strength of our portfolio, including new capabilities and talent from recent acquisitions, to improve performance and achieve execution excellence."

The company is forecasting full year sales of $2.72 billion to $2.78 billion.

SAN JUAN CAPISTRANO, Calif. (BRAIN) — Interbike is organizing a volunteer service project to help build new singletrack trails just before its inaugural Fall CycloFest festival, which will be held in October at the U.S. National Whitewater Center, in Charlotte, North Carolina.

The trail project will be on October 19 from 1-5 p.m. The festival is October 20-23.

"We couldn't think of a better way to launch our new event than by gathering volunteers from the bicycle industry and local organizations to help expand the more than 30 miles of trails that are used by local Charlotte residents at no charge every day," said Pat Hus, the vice president of Interbike. "This will be a great opportunity to make positive change within the local cycling community, and we hope anyone that's willing to lend a hand will come out."

The Tarheel Trailblazers, a local non-profit organization affiliated with IMBA and SORBA, will spearhead the trail-building efforts. The event is sponsored by Interbike, PeopleForBikes and Recover Brands. Recover Brands will have free T-shirts for the first 100 volunteers that show up and assist. Volunteers also will be able to enjoy a refreshing beer at the completion of the day at the Pump House Biergarten.

Jeff Wise, CEO of the USNWC, said, "We're very grateful that Interbike took the initiative to try and gather the bike industry troops here in Charlotte to expand upon the trail system.

"With so many individual cyclists, groups and associations like the Tarheel Trailblazers using the facility on a regular basis, I am confident that all parties involved will use these trails for many years to come."

Volunteers are encouraged to bring fast drying short or long-sleeved shirts, long pants or shorts and closed-toed shoes.

Additional details can be found at cyclofest.com/service-project.

BOULDER, Colo. (BRAIN) — The International Mountain Bicycling Association has come up with a new award to honor exceptional volunteers and their IMBA chapters. The new award is named for Scott "Superman Scud" Scudamore, a volunteer, activist and bike retail salesman from Virginia. Scudamore died in 2013 following a bike park crash. 

The Scott Scudamore National Volunteerism Leadership Award will award a complete mountain bike to a worthy individual and $5,000 in cash to the volunteer's associated IMBA chapter.

IMBA is seeking a sponsor to provide the bike and cash award. The group is accepting proposals for sponsorship through August 30. 

The award honors outstanding individuals who are making a significant contribution to the mountain bicycling community. All members in the IMBA database will be emailed with an opportunity to nominate candidates; the winner will be decided by a vote of IMBA regional staff.

The presentation ceremony will take place at the 2016 IMBA World Summit on November 10 at Crystal Bridges Museum of American Art, in Bentonville, Arkansas. It will be featured in all IMBA communications and distributed to media.

In a typical year IMBA volunteers contribute "sweat equity" valued at $2.8 million to the establishment and upkeep of these recreation facilities. 

Companies interested in sponsoring the award can read the full Request for Proposal (pdf). Proposals should be written in letter format and sent to rod.judd@imba.com before midnight MDT on August 30.

MIAMI (BRAIN) — J&B Importers has acquired Alienation, the Mill Valley, California-based BMX aftermarket and OEM component brand.

Alienation is best known for its front-specific BMX rim, and for its wheel systems using TCS  (Tubeless Compatible System), licensed from WTB.

Alienation will continue to operate independently with its existing management team led by industry veteran Zach Taylor. 

"We see a tremendous opportunity in the Alienation brand and look forward to continuing the development of TCS compatible products. Moving the wheel build process in-house will allow us to quickly adapt spec', control quality, and provide healthy margins for the IBD," said Mitch Gurdjian, co-chief executive officer of J&B.

Taylor, Alienation's founder, will continue to lead operations. Order processing for Alienation products will be integrated within J&B's existing system. Alienation's supply chain will remain largely unchanged, the company said.

Taylor said, "We started Alienation 10 years ago to offer inherently better products. We have had amazing success to date and are excited about joining forces with J&B. J&B has a significant reach within the IBD, making them a natural fit. We look forward to further propelling forward with tubeless within BMX. We have some exciting new developments. We just signed an agreement to utilize Kappius's rear hub internals for BMX. I am really excited by these developments."

In the 2017 model year, brands including Haro/Premium, Kink and Redline will feature Alienation rims on bike models, according to Taylor.

FREEHOLD, N.J. (BRAIN) — JET Roll's newest product is the Sidewinder, a tool pack that allows cyclists to carry up to four extra 12 gram or 16 gram CO2 cartridges, as well as other small items such a spare chain links and pins, a CO2 cartridge head, a patch kit and tire boot. It all fits in a small, tightly wrapped, compact setup that wraps and fastens around the seatpost or any frame tube.

The design of the JET Roll - Sidewinder allows it to be strapped or fastened to either the seatpost or anywhere on the frame with the included leather strap and compression bands. Alternatively, the Sidewinder can be rolled up along with its contents and carried in a jersey pocket.

The design of the JET Roll - Sidewinder allows it to also be fastened to other items, such as JET Roll road and MTB models or packs and other gear by passing the included strap around and through two of the three button holes on the Sidewinder and tightened down with the strap buckle.

It is expected to be available for shipment on August 15. MSRP is $45. It's available in Matte Red, Matte Black, Matte Light Gray, and Matte Blue. 

More information: justenoughtools.com.

LAGUNA HILLS, Calif. (BRAIN) — The Brexit vote in the United Kingdom could make life difficult for U.S. bike industry suppliers who sell into the UK. Companies like Park Tool say the devaluing of the British pound makes their products more expensive there. While exchange rates are stabilizing, some worry that the extended period of adjustment as the UK exits the EU could cause a recession that will hamper the bike industry along with other markets. 

BRAIN's Marc Sani takes a look at the Brexit issue in the latest Bicycle Retailer & Industry News, the August 15 issue, which has already arrived in most subscribers' mailboxes.

The new issue also contains a look at the value of the Olympics to the bike industry. BRAIN's Lynette Carpiet reports that the Games may give a general boost to the sport — including BMX track, road and mountain bike disciplines — that is more valuable than brand exposure from individual suppliers. While many suppliers planned special team edition products for their athletes, the IOC's rules make it difficult to promote brands while the Games are underway.

The new issue also takes a look at SRAM's decision to reduce its U.S. distributor count, a remembrance of retailer Jeff Archer, Giant's latest stab at the e-bike market in the U.S., and more. 

This is in addition to regular departments like State of Retail, Global Briefs, Mad Dog Unleashed, Tech Briefs and Through the Grapevine that are only published in the magazine.

Bicycle Retailer & Industry News is published 18 times a year and is available in print or digital format. Visit our subscription page for more information.

VENTURA, Calif. (BRAIN) — Zeitbike is now the exclusive U.S. and Canadian distributor of Classified Nutrition products. 

Classified Nutrition is a new brand that says its products are based on scientific research and its ingredient-combinations target what athletes need before, during, and after their training and competition. In addition, both caffeinated and non-caffeinated flavors can be added separately and in customized portions.

"We are very excited to partner with a distribution company that shares a similar mission: To provide the absolute highest integrity, quality, and most effective products to the cycling community," said Kevin Kuhn, VP of research and development for Classified Nutrition. "No other company can match the scientific data we have to support our ingredients and doses. We are taking athletes' nutrition systems absolutely to the next level. Another great aspect of Classified Nutrition is that our retail margins are much better than most in the sports nutrition realm."

Zeitbike founder Fritz Bohl said, "Classified Nutrition is not just sugar, salt, and flavor. Classified is a true performance-enhancing supplement for any athlete based on scientific research and results. Science proves that these products are by far better than the competition, and that's the intriguing part of this product. It's in writing, black and white. The bonus feature is that you can customize your flavors, so you don't have to go super sweet having to change your ingredient ratio."

Zeitbike now carries the entire line of including BEFORE, FUEL, and AFTER products, and all flavors. Pricing starts at $3.95 for single packs.

For more information, visit zeitbike.com, call 877-612-2212 and visit classifiednutrition.com.

By Ashley Korenblat 

Editor's note: In its August 15 issue, Bicycle Retailer & Industry News published a column by Ashley Korenblat on the topic of mountain biking in federal wilderness areas. In the September 1 issue, BRAIN will publish an opposing viewpoint, written by Ted Stroll, the board president of the Sustainable Trails Coalition. We are publishing both columns on the BRAIN website today. (Stroll's column)

Mention wilderness to a serious mountain biker and the first thing you will see is fear, because bikes are not allowed in wilderness. The Wilderness Act of 1964 is the first time we as a species decided to put the needs of nature above the needs of man. Today, with climate change looming, there are hundreds of organizations with millions of members dedicated to land protection and maintaining the integrity of the Wilderness Act. Plus, corporate America is getting into the act as companies of all types work to improve their green credentials.

For many mountain bikers, the exclusion of bikes from wilderness is just not fair. Bikes do less damage than horses and horses are allowed. Hikers get the wilderness trails all to themselves, and in some cases trails maintained by local bike clubs can be threatened by wilderness, or preparation for wilderness designation. The Sustainable Trails Coalition was founded to right this wrong by simply amending both the Wilderness Act and the National Environmental Protection Act (NEPA), the act that determines how we make changes to our federal land management plans.  

Perhaps if the public lands universe was just made up of hikers and bikers, STC might have a point, but it isn’t. Public lands are used by all Americans to meet a vast array of needs: mining, oil and gas, grazing, wind and solar installations, endangered species habitat, timber harvests, to name a few. And there are an equally vast number of laws and regulations that decide who gets to do what where. NEPA has been a great friend to the recreation industry and has led to the protection of many trails.

IMBA has spent the last 28 years working with land managers to open existing trails and build new ones on public lands of all types — not because, at 40,000 members, we were never the biggest or most established group in the room (in fact most of the time we were the smallest), but we worked within the system to build allies and prove the economic and social value of trails. When I served as IMBA’s chair, we considered the arguments put forth by STC and determined that they were counterproductive. Instead, IMBA has spent its resources wisely, working with local clubs to build trails that meet the needs of large numbers of riders across the country. 

After serving as IMBA’s chair, I returned to the organization in 2010 specifically to work on bikes and wilderness. I worked on 30 different bills around the country. With the help of local clubs, we cut deals that kept trails open in 29 of those bills. We lost a few trails in one bill, the Boulder White Clouds (which still has some amazing rides, Big Boulder Creek being my favorite). The best deal we cut was in New Mexico, where we moved the boundary of an existing wilderness area to open a 20-mile trail to an alpine lake right outside of Taos. I have taken some heat for compromising, but democracy requires compromise, and those that demand everything often end up with nothing. 

Without public lands, there is no mountain biking, and Sen. Mike Lee is no friend of public lands. He supports the state takeover of public lands and votes consistently NOT to fund the Forest Service or the Bureau of Land Management. Lee’s support of the STC bill is part of his larger agenda to undermine the environmental community, undermine the public land agencies, and give states control of federal lands.

Lee is primarily known for his work to balance the federal budget, and since most states are required to balance their budgets, when hard times come, they have to sell assets to cover the shortfall. If Lee’s vision of our public lands prevails, bike trails on federal lands could be taken over by states and then sold for development when the states need cash. To date, the only bills sponsored by Lee that have actually become laws are those that conveyed federal land to cities and towns for development.

Sen. Lee is using mountain biking to poke the environmental community in the eye. The bill is a symbolic gesture that will not pass, and therefore will not open any wilderness trails. The STC has been duped by a false promise. Plus, we are already seeing increased concerns from environmental groups that previously trusted mountain bikers. One wilderness advocate called me to say, “Prior to this bill, we thought of mountain bikers as our partners and were happy to work with them to protect key places and open trails, but with STC’s partnership with Lee, all bets are off and we need to reconsider our position.” 

It is too bad that STC has led us into a partisan battle that ignores the complexity of the public land system, burns bridges with strategic partners, and jeopardizes key relationships with both land managers and public land groups. 

Meanwhile, IMBA and the Outdoor Industry Association recently had a great victory in Utah. The Utah state Legislature voted unanimously to fund the Governor’s Office of Recreation. Both Republicans and Democrats see the value of the recreation economy and are looking forward to building and improving trails in every county. The recreation economy is taking off across the country and that will lead to more trails for everyone in both remote communities and large cities. Proximity to trails is how companies recruit talent and states recruit companies. The future is bright for mountain biking, but to keep trails open, we need to maintain a bipartisan stance and work with the environmental community, not against them. 

Ashley Korenblat is a Mountain Bike Hall of Famer, former IMBA president, and owner of Western Spirit Cycling.

By Ted Stroll

Editor's note: In its August 15 issue, Bicycle Retailer & Industry News published a column by Ashley Korenblat on the topic of mountain biking in federal wilderness areas. In the September 1 issue, BRAIN will publish an opposing viewpoint, written by Ted Stroll, the board president of the Sustainable Trails Coalition. We are publishing both columns on the BRAIN website today. (Korenblat's column) 

In these days of challenging market conditions, there’s a bright spot: the recently introduced congressional Human-Powered Travel in Wilderness Areas Act. From the biggest manufacturer to the smallest shop, the bicycle industry will benefit if it passes. 

The 1,200-word bill, which the Sustainable Trails Coalition (STC) has worked on for a year, will reconnect Americans with their federal lands in two ways:

 1. Its travel aspect will let visitors explore local areas, under federal supervision and if federally authorized, if they’re willing to get about on their own. This aspect applies to all federal trails, not just Wilderness ones.

2. Its maintenance aspect will restore overgrown and lost trails for hikers, horse-riders, hunters, and cyclists.

The bill will let local Forest Service, National Park Service, and Bureau of Land Management staff use modern hand-manipulated tools to restore Wilderness trails and decide if human-powered travelers like mountain bikers can visit them. 

The main beneficiaries will be backcountry mountain bikers. In an area larger than California and Maryland combined, mountain biking is forbidden. But other self-powered explorers will benefit too. For the first time in years, parents with baby strollers, canoeists with portage wheels, and hunters with hand-wheeled game carriers will be able to visit Wilderness if the nearby federal land manager allows it.

And there’s the elderly but intrepid man I’ve seen on a county-park trail. He walks beside a scooter outfitted with an oxygen tank, leaning against the handlebar for support, oxygen mask over his face. He’ll be eligible to visit Wilderness too.

As significant for recreation, and hence bicycle sales, is the bill’s maintenance aspect. The Forest Service admits it’s reducing trail maintenance. Wilderness trails may be the most neglected of all. Oddly, the agency ordinarily doesn’t let its employees use wheelbarrows in Wilderness and requires deadfalls be removed with giant Paul Bunyan–style handsaws, even though the Wilderness Act authorizes modern tools if they’re of “minimum” scale. This bill will reinforce that part of the current Act.

Facebook reflects the widespread enthusiasm the bill has generated. The three grass-roots Facebook pages associated with the bill have 11,389 “likes.” A single post on one of those pages has 31,198 views. Another post garnered 9,201 views in 13 hours.

Because the legislation offers much to hikers, backpackers, and equestrians alike, we’re not surprised that traditional conservation organizations haven’t formally opposed it. Perhaps tired of squabbling over trail access mile by mile for years, traditional skeptics may perceive their members have more to gain by regaining access to abandoned trails than to lose by sharing some trails with the occasional mountain biker.

STC has raised about $130,000, but the biggest bicycle manufacturers haven’t donated. Now that the bill is before Congress, we hope they’ll reconsider. A bike shop in New Mexico donated $2,000, understandable given that the Forest Service could be closing trails near Albuquerque that mountain bikers ride after work. It’s a threat that faces bike shops anywhere near roadless federal land, whether in Brevard, N.C., Winthrop, Wash., or Moab, Utah.

There’s no hidden agenda here. Senators Mike Lee and Orrin Hatch of Utah, the bill’s author and original cosponsor respectively, would like to see Moab protected for mountain bikers and more human-powered Moab-type destinations emerge. The bill doesn’t provide for motorized travel, semi-motorized travel by devices like e-bikes, grazing, mining, or sale of federal land.

Nor does it amend the Wilderness Act substantively. It adds a few sentences to the Act’s 52-year-old text to reinstate those aspects of Congress’s intent that federal agencies have forgotten or misunderstood, restoring the Act’s original function.

Mountain bikers are united in our desire for reasonable Wilderness access. An informal Singletracks poll and a publicly released portion of a scientific IMBA member survey show strong support for the legislation. The IMBA poll revealed that 48.4 percent of California IMBA members feel regaining some Wilderness access is “very or extremely important.”

Anyone who opposes this legislation is necessarily signaling he or she doesn’t trust on-site federal employees to administer forests and parks. We hope you have more faith in them.

Please support the Human-Powered Travel in Wilderness Areas Act. Or prepare to watch from the sidelines while your customers continue to be evicted from trails they’ve long treasured.

Ted Stroll is board president of the Sustainable Trails Coalition, based in California.

OGDEN, Utah (BRAIN) — Amer Sports has formed the “Cycling Anticipation Group” made up of its two cycling brands, Enve and Mavic, and named Matt Robertson to lead the initiative. Robertson previously guided the development and direction of Shimano’s mountain bike product line.

Under Robertson’s guidance the Cycling Anticipation Group will work closely with customers and partners to identify opportunities that better utilize consumer insight, generating new ideas and working with the Research and Development team to bring them to market, Amer Sports said.

“The cycling world is evolving rapidly and we need to be leaders in that evolution,” said Bernard Millaud, president of Cycling, Amer Sports. “Matt’s hire and the creation of the Cycling Anticipation Group is evidence of our commitment and desire for bold ideas and innovative products.”

Robertson has more than 20 years in the cycling industry as both a design engineer and product manager at GT and Shimano. He helped usher in the current era of mountain bike geometry and technology, including downhill bikes, and has played a pivotal role in the development of products and technologies for trail bikes. 

“I’ve known Matt for more than six years and have always respected his desire to think big about where the industry is headed,” said Sarah Lehman, Enve CEO and Mavic commercial director, North America. “His insightful approach, leadership and forward-thinking ability are uniquely suited to this task. I look forward to fusing his ideas and processes with that of an already strong and innovative team.”

WATERTOWN, Mass. (BRAIN) — Seven Cycles' new RedSky road bike is aimed at the all-weather, all-road market.

Based on the company's Axiom road bike platform, the RedSky is intended to be a "category-spanner."

Seven Cycles' founder Rob Vandermark said, "We have 80 rain days per year, on average, in New England, not to mention the snow, so with RedSky we are giving riders a bike that will turn all of those into riding days."

RedSky will fit a wide array of tires, from 23c road slicks to 32c file treads. The frame comes with optional, hidden fender mounts. Seven's 5E road fork comes in eight different rakes, which allows the company to optimize handling for riders across the size spectrum, as well as addressing issues of toe overlap for smaller riders.

RedSky can be built with a choice of build kits from SRAM, Campagnolo or Shimano.

Vandermark said, "As custom builders, it's incumbent on us to build as much value as possible into every bike. RedSky does that by giving riders both versatility and performance at the same time. These bikes weigh what any fast road bike weighs, but they are configurable to address everything from a fast group ride to a loaded winter commute."

The RedSky is available in steel, titanium and titanium/carbon fiber mix. The line starts at approximately $4,000. More information at sevencycles.com. 

PHILADELPHIA (BRAIN) — Advanced Sports International has bought the nation’s largest bicycle retailer, Performance Bicycle, including its 106 stores, private-label brands Forte, Spin Doctor, Transit and Scattante, and online businesses Performancebike.com and Nashbar.com.

ASI declined to reveal the purchase price, but the deal had been in the works since ASI learned last November that Performance was on the block.

The move could help ASI compete with rivals Trek, Specialized and Giant, which have opened corporate-owned stores or retail partners. All three have been squeezing out competing brands from retail floors. ASI can now capitalize on Performance’s position as an omnichannel retailer with its strong internet business as well as brick and mortar.

Performance Bicycle’s annual revenue is estimated to be between $275 and $280 million. The Chapel Hill, North Carolina, company employs approximately 2,000 people across its retail and online businesses.

ASI has formed a new U.S. company called Advanced Sports Enterprises. It will oversee both ASI’s wholesale business and Performance’s retail operations, but will treat them as separate companies, said Pat Cunnane, who becomes CEO of ASE and will continue to lead brand development and the wholesale division under the ASI banner.

Performance Bicycle CEO David Pruitt will continue to head up the retailer’s operations. Both companies will retain their headquarters in Philadelphia and Chapel Hill, North Carolina. A management board, consisting of Cunnane, Pruitt, Debbie Chiu, vice president of finance at Advanced Sports, and Karen Bliss, ASI’s vice president of marketing, has been formed to lead the new company. 

“We’re considering a vertically integrated model but not a merged business,” Cunnane told BRAIN on a conference call. “There’s a real distinction.

“The market is changing and where there’s a lot of change there’s opportunity,” Cunnane added. “We see omnichannel as the way to go. Retailers will have to partner with stronger businesses that provide them what they need to compete in an omnichannel world.”

ASI bought the retail chain and internet business from private equity group North Castle Partners, based in Greenwich, Connecticut, which acquired a controlling interest in Performance in 2007.

Garry Snook started Performance in 1981 as a mail-order catalog company, leveraging he and his wife’s savings to launch the business with the mantra of offering great products at great prices. Snook remains a minor shareholder in the company.

ASI secured a $100 million line of credit with Wells Fargo to help finance the buyout. Ideal, Taiwan’s third largest bike manufacturer, has a minority stake in ASI and becomes a shareholder in the new company. Cunnane said the transaction was made with “very minimal debt.”

“We’ve stabilized the business [Performance] financially and they will have the opportunity to grow and make additional investments to further perfect their business,” Cunnane said of the buyout.

ASI, which owns Fuji, SE, Kestrel, Breezer, Phat Cycles and component brand Oval Concepts, sells through 2,000 stocking dealers in the U.S. and now gains Performance’s distribution through its brick-and-mortar and online outlets. Performance also sells complete bikes from Ridley, GT, Charge, Diamondback and Schwinn, and, for the time being, will continue to carry those bike brands.

“We expect Performance will sell more of our brands, but they will not be an ASI store,” Cunnane said. “Performance stores will sell other brands.”

“Competitive differentiation is absolutely critical given the historic shift we’re seeing in consumer buying behavior and the retail landscape as a whole,” said Performance CEO Pruitt. “This new business model will provide tangible benefits for both companies and will fuel the next round of growth for Performance. This will be great for our associates, our vendor partners and our customers. We’re very excited to move forward under this new structure.”

WESTPORT, Conn. (BRAIN) — Compass Diversified Holdings sold 3.5 million shares of Fox Factory’s common stock, totaling $63 million in net proceeds. As a result, Compass’ ownership in Fox Factory Holding Corp. is reduced from 33 percent to 23 percent, or 8.6 million shares.

Fox Factory closed on a secondary public offering of 4,025,000 shares of Fox common stock held by stakeholders, including Compass, to Merrill Lynch at $18 per share. 

“By capitalizing on a compelling opportunity to monetize a portion of our interest in Fox, we have further strengthened our financial position for capitalizing on attractive acquisition opportunities,” said Alan Offenberg, CEO of Compass Diversified Holdings. “Including our Fox secondary sales and past opportunistic sales of subsidiaries, we have now realized gains for our shareholders of over $575 million. We remain a significant shareholder of Fox and continue to be excited about the company's growth prospects.”

Compass is traded on the New York Stock Exchange as CODI.

Fox Factory was split off from Compass Diversified in a 2013 IPO. It acquired Race Face and Easton Cycling in December 2014, and Marzocchi's mountain bike-related business last year. The company’s stock is traded on NASDAQ under the FOXF symbol and its stock performance is tracked on BRAIN’s stock page. 

Compass sold CamelBak to Vista Outdoor last year.

SANTA FE SPRINGS, Calif. (BRAIN) — Bravo Sports Corp. has hired Jeff Balaban, Kyle Brookey and Dave Davenport as it expands its product and sales management team.

Bravo Sports owns several brands in the action sports and outdoor/lifestyle segments including Pro-Tec, SixSixOne and One Industries.

“With the recent acquisitions of Sector 9 and Pro-Tec, we have expanded our specialty division and become the largest skateboard manufacturer in the world,” said Leonardo Pais, Bravo Sports CEO. “With the addition of the new lines and in light of our growth across all brands, it was necessary to add key personnel to support us with the best possible leadership.”

Balaban assumes the role of senior vice president of sales for the Bravo Sports specialty division. He returns to the company where he worked more than 14 years and helped increased sales from $15 to $40 million.

Balaban comes from PTX Performance Products where he launched brands in the U.S.A., Canada, Europe and the U.K., as well as South America and the Pacific Rim.

Brookey previously held positions at Yvolution and Wild Sales, where he brought licensed products from the NFL, MLB, and NHL to Wal-Mart and Target. He’s the new director of sales and will focus on mass retailers.

Davenport, who assumes the role of product manager of helmets and protective gear, will oversee the Pro-Tec brand and integrate the technology and innovation of that brand to other lines within the Bravo portfolio. He previously held stints at Box and Stolen BMX.

Bravo Sports is owned by Transom Capital Group, a Los Angeles-based private equity firm. 

PITTSBURGH (BRAIN) — Dick's Sporting Goods reported Tuesday that net sales for the second quarter were up 7.9 percent over the same period last year, reaching approximately $2 billion. Same-store sales were up 2.8 percent, much higher than what Dick’s had forecasted. The company expected a decline of 1 to 4 percent.

The company reported growth across several categories, but said that increased sales of camping equipment contributed to the sales growth. It also acknowledged that the recent liquidation of rival sporting goods stores was a factor.

“We are pleased with our second quarter results, particularly in light of the liquidation activity in the market,” said Edward W. Stack, chairman and CEO, referring to rivals Sport Chalet and Sports Authority, which held going out of business sales. “Looking ahead, we are focused on capturing the displaced market share and remain confident in our ability to strengthen our leadership position." 

Dick’s same-store growth was primarily driven by the company’s e-commerce sales, which were up 26 percent. Online sales accounted for about 8.5 percent of its net sales. The company reported a net income of $9.4 million, or 82 cents per diluted share, which was up from 77 cents over the same period in 2015.

Dick’s plans to open 25 new Dick’s stores, seven Field & Stream and two Golf Galaxy stores in the third quarter. Fifteen of the planned Dick’s stores will open in new markets, including Houston, where it will open six locations.

Since Dick’s acquired several leases from Sports Authority’s bankruptcy auction earlier this year, some stores will open in former Sports Authority locations. The leases are located primarily in California and Florida.

At the end of the second quarter, Dick’s operated 645 sporting goods stores across the country.

Dick's sells bikes from Diamondback, Nishiki and GT, as well as cycling apparel, helmets, accessories and car racks, but does not break out its cycling business in earnings reports.

BOSTON (BRAIN) — Vittoria has released 2017 pricing and the company slashed prices across its entire range of tires.

Under its new pricing the popular Corsa model, which retailed for $84.99, will hit the shelves at $69.99. Likewise, its Revolution city tire that retailed for $51.99 will now list at $39. These decreases come while increasing dealer margin, Vittoria said.

“Vittoria is known for our high-end products, image and pricing. However, the beauty of this program is that it applies to our entire line of tires, in all categories, and at all price levels,” said EJ Riordan, president of Vittoria Industries North America. “This is a win for the dealer and the consumer alike.”

Vittoria said that by positioning pricing to where consumers say they want to buy, it hopes to fuel demand and sales.

“In an already challenging market, it is common to see tire brands raising dealer prices to make up for decreased demand,” Vittoria said in a press release. “This deliberate correction in pricing represents action to combat the current market trend, where overpricing inevitably leads to deeply discounted stock later in the cycle.”

Vittoria emphasized that price changes aren’t a temporary pre-season promotion.

Retailers should contact their local Vittoria rep for more information or call (800) 223-3207.  

TAICHUNG, Taiwan (BRAIN) — Velo Saddles is offering a new handlebar tape that uses proprietary technology to bond 3M reflective materials to the tape without any detriment to hand feel or durability.

The black tape is discreet in daylight, but reflects when a light source hits the tape.  The tapes use Velo's microfiber or anti slip material on the gripping surface. The tapes are tested to withstand 13 kg of stretching tension, which the company said is far beyond the industry standard. This ensures the tapes are easy to install, and stay still once they're on the bars.

Velo said the tape's gel backing increases comfort and reduces fatigue for the rider and replaces the traditional adhesive strip to provides sufficient grip to hold the handlebar tape in place while also allowing easy removal and replacement with no glue residue left behind on the handlebars.

BOSTON and LAKE OSWEGO, Ore. (BRAIN) — The car sharing network Zipcar said it will equip its vehicles with bike, ski and surfboard carriers in North America so members can enjoy outdoor adventures and activities outside of the city without the cost and hassle of owning a car.

The partnership will bring Yakima’s new StreamLine base rack system, paired with FrontLoader bike mounts, FatCat 6 ski/snowboard mounts and SUPDawg stand up paddle/surf board mounts, to more than 150 Zipcars in 17 North American markets.

The Yakima mounts can hold two bikes, six skis or four snowboards, or two surfboards or paddleboards.

According to the Outdoor Industry Association’s ConsumerVue research, 34 percent of the outdoor consumer market lives in cities. Zipcar and Yakima’s partnership enables urban adventurers to live a car-free or car-light lifestyle without sacrificing their ability to get out of the city and enjoy their favorite outdoor activities.

“We are very excited to partner with Zipcar and create these adventure vehicles. Our bike, ski and board mounts make it extremely easy for city dwellers to have awesome outdoor experiences with friends and family,” said Ryan Martin, chief executive officer of Yakima.

To reserve Zipcars with Yakima racks, members tap “Car Model” when making a reservation and look for the Yakima logo.