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Logan Waddell joins OutsidePR as senior account manager

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SAN FRANCISCO (BRAIN) — San Francisco-based public relations and sports marketing agency, OutsidePR, has hired Logan Waddell as a senior account agency.

Waddell comes to OutsidePR from within the outdoor industry. He is a former writer for RootsRated, later joining Groundswell PR, where he led media outreach, content generation and social media strategy for Mountainsmith, FITS, Tenkara Rod Co., The New Primal and Burley Design during his tenure.

At OutsidePR, he will work with Craft Sportswear, Buff USA, Decathlon Sporting Goods, Lorpen and New York-based City Paddle Festival.

"What an honor it is to join such an elite team of professionals and contribute to the inspiring work I've seen coming from this agency over the years," said Waddell. "I could not be happier to work with some of the industry's most innovative and exciting brands, not to mention a crew as genuine and progressive as those OutsidePR."

OutsidePR, located in Sausalito, represents clients including Red Bull, Cotopaxi, CamelBak Pursuit Series, Backcountry, Buff USA, Rocky Mountain Underground, Icebreaker, DownTek/Sustainable Down Source, Epson, Sparta Science, Injinji, King Oscar and Halo Neuroscience.


Garmin reports record Q1 revenue; fitness sales up 20%

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OLATHE, Kan. (BRAIN) — Garmin on Wednesday reported record first-quarter revenue of $711 million, up 11 percent, on improved sales of outdoor, fitness, aviation and marine products. Those gains offset continuing declines in the company’s automotive business.

“Both the outdoor and fitness segments delivered solid, double-digit revenue growth, and we remain confident in our wearable product offerings. We are pleased with our first-quarter results and look forward to launching new, compelling products throughout the remainder of the year,” Garmin president and CEO Cliff Pemble said in a statement.

Operating income for the quarter totaled $142 million, up 22 percent.

Outdoor revenue rose 24 percent to $144 million on strong demand for wearables, the company stated. Garmin also began shipping its new Descent dive watch during the quarter.

In Garmin’s fitness segment, which includes the company’s cycling products, revenue rose 20 percent to $166 million, with growth in advanced, GPS-enabled wearables countering ongoing declines in basic activity trackers. Garmin saw year-over-year losses in the fitness segment every quarter last year due largely to slumping sales of lower-end activity trackers.

“The general trend for basic trackers continues. As we have been remarking and the market has been demonstrating, there are pockets of strength geographically and also by product lines we have, but generally we see a downward trend to that,” Pemble said.

During the quarter, Garmin introduced the Forerunner 645M GPS running watch, featuring integrated music and Garmin mobile payments, and Pemble noted the product saw strong initial sell-in. In the current second quarter, the fitness division also launched new cycling products including the Edge 130 entry-level cycling computer, Edge 520 Plus with advanced mapping and navigation, and the Varia RTL510, a seatpost-mounted rearview radar that provides visible and audible alerts when a vehicle is approaching from behind, Garmin noted.

“The updated Varia radar enhances the safety features from the first generation and the new design easily mounts to most road-use bikes. Even though the market for basic activity trackers has continued to rapidly mature, we continue to see opportunities for advanced wearables within the fitness segment,” the company stated.

In Garmin’s other business segments, aviation revenue rose 19 percent to $146 million; marine revenue rose 9 percent to $146, fueled by Garmin’s acquisition last year of Navionics, a provider of electronic navigational charts and marine mobile applications; and automotive revenue declined 12 percent to $144 million as sales of personal navigation devices continued to struggle. 

For the full year, Garmin maintained its 2018 guidance of $3.2 billion in revenue and pro forma earnings per share of $3.05. 

CeramicSpeed introduces pink pulley wheels in time for the Giro

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HOLESTEBRO, Denmark (BRAIN) — CeramicSpeed is releasing a limited edition pink version of its derailleur pulley wheels. The pink pulleys will be used by the AG2R La Mondiale team at the Giro d'Italia this month. 

The color will be available on standard sized, 11-tooth pulleys or as oversized pulleys with carbon derailleur cages (OSPW).

The pulleys use CeramicSpeed low-friction ceramic bearings and are compatible with Shimano, SRAM and Campagnolo, fitting cassettes of up to 32-tooth.

They will be available May 4 in stores and online at ceramicspeed.com. OSPW oversized pulleys with cages retail for $499. Standard sized pulleys without a cage are $269 per pair.

 

Fox Factory reports 10.3% sales growth in bike products in Q1

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SCOTTS VALLEY, Calif. (BRAIN) — Fox Factory Holding Corp. said sales in its bike product division, which includes Fox, Marzocchi, Race Face and Easton Cycling, were up 10.3 percent in the first quarter, which ended March 30. The company said original equipment orders drove the sales increase.

The company's bike-related sales totaled $57.7 million in the quarter, up from $52.3 million last year.

Across the bike and powered-vehicle businesses, Fox saw a 22.1 percent sales increase in the quarter, to $129.8 million, compared to $106.3 million in the same period last year. Gross margin increased 40 basis points to 32.1 percent compared to 31.7 percent in the same period last fiscal year.

"We started the year with record quarterly sales driven by strength in both our powered vehicle and bike offerings resulting in sales and profitability above our expectations," said Larry L. Enterline, Fox's CEO. "Looking ahead, our team remains committed to further building Fox's brand presence in our existing powered vehicle and bike categories and we believe Fox's differentiated market position will continue to fuel our expansion in the diverse end markets we serve."

The increase in sales of powered vehicle products was partly due to the inclusion of the company's recent acquisition of Tuscany Motor Company, a truck modification company.

In an investor conference call later Wednesday, Fox CFO Zvi Glasman said the bike segment's growth rate exceeded Fox's long-range growth target for the segment, which remains in the high single digits.

In response to an investor question, Fox's president, Mario Galasso, said Fox will continue to expand its Rhythm family of forks, which is an OE-only line that hits lower price points than Fox typically offers. 

"It's going well," he said. "We continue to round out the Rhythm offerings and the products continue to be very well received. Also there's a little Rhythm inside the new Marzocchi products, so by what of that, (Rhythm) is carrying even a little further into the product line," he added, referring to the use of the Fit Grip damper, originally designed for the Rhythm forks, in the new Marzocchi forks that Fox introduced last month. The Marzocchi forks are only sold in the aftermarket.

Galasso said that the plan since Fox's acquisition of Marzocchi was to position the brand as an entry level offering below the Fox-branded offerings. "We are seeing it all come together now," he said.

Fox said it incurred legal fees of about $800,000 in the quarter primarily due to its ongoing litigation with SRAM. 

SRAM's lawsuit against Fox's RaceFace subsidiary is stayed while the U. S. Patent and Trademark Appeals Board rules on Fox's request for a review of some of SRAM's relevant patents. The PTAB issued a ruling last month in favor of SRAM and Fox said it is "currently evaluating strategic next steps" in that case. Meanwhile Fox's suit against SRAM, which was moved from California to Colorado last year, is proceeding.

Giant plans virtual rides to honor founder King Liu

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NEWBURY PARK, Calif. (BRAIN) — Giant is holding several virtual rides to honor founder King Liu May 4-6. The company has been holding an annual ride led by Liu, now 84, in Taiwan for 10 years. This year, riders from all corners of the world can join in on Zwift.

Every year Giant and its sister brand Liv honor King. This year's event include group rides, online photo contests, prizes including special Ride Like King jerseys, and a grand prize giveaway of a premium Giant or Liv road bike.

The main event on Zwift is May 4, at 8:15 p.m. Taipei time and will be live-streamed worldwide. This 30-minute event will be structured as a "group workout" so all riders stay together.

Participants can access a Giant Propel Advanced SL Disc 0 or Liv Langma Advanced SL 0, along with the Ride Like King kit, during the ride. They also have the opportunity to win prizes from Giant and Liv, including the grand prize of a Giant Propel Advanced SL Disc 0 or Liv Langma Advanced SL 0, along with a certificate signed by King. Ten riders will also be selected to win a limited-edition Ride Like King jersey signed by King.

Participants can register at:

Ride Like King Zwift Event Series | Ride Like King Main Event with King Liu.  

In addition to the main event from Taiwan, four other Zwift rides will be hosted in various regions across the world. These include:

  • May 4 at 5 p.m. PDT: hosted by Giant and Liv USA/Canada
  • May 5 at 12 p.m. (noon) CEST: hosted by Giant Germany
  • May 5 at 1:30 p.m. CEST: hosted by Liv Germany
  • May 6 at 7 p.m. AEST: hosted by Giant and Liv Australia

One Zwifter at each of the regional events will win a limited edition Ride Like King jersey.

Beyond the Zwift events, Giant is also encouraging riders worldwide to get out and ride on May 4-6 and share their rides on social media with the #RideLikeKing tag.

 

LeMond settles suit with alleged cybersquatters

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MINNEAPOLIS (BRAIN) — After boths sides reported that they had settled their issues, U.S. District Court judge has dismissed a case that Greg LeMond filed against a father and son who LeMond said were cybersquatting at least 66 web domains related to LeMond's name and his business trademarks.

LeMond filed suit in June last year and a jury trial was recently scheduled for February, 2019. Terms of the settlement were not released.

LeMond had charged that Frederick Harold Stinchfield II and Frederick Harold Stinchfield III registered the domains and were offering them for sale. He demanded $6.6 million in damages and compensation.

The sites were registered in the Stinchfields' names in 2016. The domains include variations on the words LeMond and Grail, which is a trademark LeMond Composites uses for its products. The domains include lemond.news, greglemondgonewild.com, lemondautomotive.com and lemondtechnologies.org, among others. According to whois.icann.org, all those domains are now registered in Greg LeMond's name.

According to the complaint, the Stinchfields also had built a site that contained "derogatory information about LeMond and his businesses," as well as his name and photo. The site has now been taken down.

Related:

LeMond wins restraining order against alleged cybersquatters— June 27, 2017
Court sets date for LeMond cybersquatting trial, agrees to seal some records — Jan. 20, 2017

First Olympic-sized velodrome in the Middle East opens in Tel Aviv

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Photo credit: Guy Yechieli

TEL AVIV, Jerusalem (BRAIN) — The city of Tel Aviv has unveiled Israel's newest velodrome, said to be the most advanced indoor bike racing arena in the Middle East. The velodrome's unveiling was Tuesday, a few days before the start of the Giro d'Italia in Israel on Saturday.

The Giro d'Italia will pass by the track on Saturday's stage.

The Israel Cycling Union has submitted its candidacy to host the UCI Junior Track Cycling World Championship in 2021.

At the unveiling, Tel Aviv's mayor, Ron Huldai, said, "Three years ago, Sylvan Adams told me that it makes no sense that a global city such as Tel Aviv-Yafo doesn't have a professional cycling facility. The municipality took on the challenge, and in a few months we will inaugurate the velodrome, the first Olympic racing arena in the Middle East."

Sylvan Adams is the Honorary President of the Giro's "Big Start" in Israel, and led the effort to get the velodrome built. The track will be named in his honor. 

Adams said, "The new velodrome aims to encourage local youth to experience the cycling world as well as promote physical activity and sports. This is the most advanced cycling facility in the Middle East and we aspire to host international competitions here with the participation of our neighboring countries. This velodrome will allow us to use sports as a medium to foster closeness and good neighborliness between our bordering countries. Today, cycling teams from Bahrain and the United Arab Emirates landed in Israel in order to take part in the Giro. They will ride in Israel, experience the velodrome and understand that they are always welcome here and we can compete and train together!"

The 250-meter wood-surface track has 45 degrees banking. A three-story complex is being built adjacent to the velodrome, and will include a cafeteria, a bicycle store, changing rooms and a doctor's office. The two structures will be connected via a tunnel.

The velodrome is located next to the National Sports Center in Tel Aviv and its construction was made possible through a municipal investment of 70 million Israeli Shekels ($19.3 million)

Interbike parent reports 5 percent revenue growth in Q1

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SAN JUAN CAPISTRANO, Calif. (BRAIN) — Emerald Expositions Events on Wednesday reported 4.8 percent revenue growth for the first quarter. Revenue reached $142.2 million, compared with $135.7 million for the same quarter last year. 

Emerald owns Interbike and the Outdoor Retailer shows among its more than 55 business-to-business shows. 

The company also said net income increased 34.6 percent to $38.1 million, compared with $28.3 million for the first quarter of 2017. Net cash provided by operating activities decreased 28.5 percent to $20.6 million, compared with $28.8 million for the first quarter of 2017.

Adjusted EBITDA increased 1.7 percent to $73.6 million, compared with $72.4 million a year earlier. Adjusted net income increased 30.9 percent to $50.4 million, compared with $38.5 million a year earlier.

“I am pleased with our first-quarter results as revenue grew by 5 percent, year over year, driven by our acquisition of Connecting Point Marketing Group, CPMG, in the fourth quarter of 2017. The inaugural Outdoor Retailer + Snow Show staged in Denver at the end of January and its considerable success bodes very well for future shows,” said David Loechner, president and CEO of Emerald Expositions, in a release. 

For the first quarter, organic revenue was flat compared with the first quarter of 2017. The company reported strong growth in several of the quarter’s trade shows, including KBIS and Pizza Expo, which were offset by mid-single-digit revenue declines at its ASD Market Week and NY NOW shows. 

In addition, despite a strong and expanded show in its new Denver venue, the Outdoor Retailer + Snow Show’s first-quarter show declined in revenue, due mainly to transitional pricing accommodations provided to exhibitors as a result of Emerald’s acquisition of the SIA Snow Show last year.

Still, Loechner told analysts during an earnings call that attendance was 60 percent higher at this year’s January OR show compared with last year, noting that the show picked up SIA show attendees as well as additional retailers and buyers from the snow community that hadn’t been to Outdoor Retailer or the SIA shows.  

The Connecting Point Marketing Group (CPMG) business, acquired in November 2017, contributed $8.2 million in revenue during the first quarter of 2018. This increase in revenue was reduced by the impact of events that were discontinued between the first quarter of 2017 and the first quarter of 2018, as well as the impact of a scheduling difference for a small show.

Emerald noted that it expected revenue growth of 7.4 to 9.7 percent for the full year, or approximately $367 million to $375 million, and organic revenue growth of 1.5 to 3.5 percent. 

 


Moots and Ibis donate bikes to benefit advocacy and trail building

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The new Ibis Ripmo.
Each company has offered up a bike to be raffled by regional groups.

STEAMBOAT SPRINGS, Colo. and SANTA CRUZ, Calif. (BRAIN) — If you are looking for a chance to win a pricey new bike and support bike advocacy, there are at least two new raffle options this month.

Moots Cycles has donated a titanium Routt 45 gravel bike to be raffled by Bicycle Colorado to raise funds and awareness for bicycle advocacy and education in the brand's home state. Only 250 tickets will be sold at $100 each for the raffle.

Meanwhile Ibis has donated a complete Ibis bike of the winner's choice for a raffle being conducted to support the Mountain Bikers of Santa Cruz's "Ante Up for Trails" campaign. Donors receive one entry for every $5 donated to the MBOSC between now and May 29 when the winner will be chosen. 

Moots raffle details:

The Moots raffle started Tuesday, May 1, in conjunction with National Bike Month and concludes at the end of the month. The Moots bike will be built with components supplied by Shimano, and the complete bike will be valued at more than $7,000.

Bicycle Colorado’s mission is to encourage and promote bicycling, increase safety, improve conditions and provide a voice for bicyclists in Colorado through advocacy and education. The organization has nearly 10,000 members. 

“As a native Colorado bicycle company, supporting the tireless work of Bicycle Colorado just seems like the right thing to do,” Moots president Drew Medlock said. “Their efforts help promote cycling participation and safety in our home state, and getting behind that kind of work is something we should all be doing.” 

Raffle details and ticket sales are available at bicyclecolorado.org/events/moots-raffle.

Ibis raffle details:

"We have witnessed MBOSC gain momentum as they work to improve trail access in Santa Cruz," said Ibis' founder, Scot Nicol. "Their recent growth and success has been impressive, and they've clearly cultivated great relationships with local land managers. All of us at Ibis are proud to support MBOSC, and we are eager to ride new trails that can be built as a result of the Ante Up for Trails campaign. We look forward to sending a bike to the lucky winner!"

Some of MBOSC's current projects include:  Three miles of new trail in Scotts Valley, planned to be completed next month; a new trail reroute in Wilder Ranch which will decommission the badly eroded West Engelsmans Fire Road and replace it with just over a mile of sustainably built trail; and a new 30-plus mile trail network being planned in San Vicente Redwoods:

"Ibis Cycles and MBOSC have been longtime partners working to expand and promote sustainable trail access in the Santa Cruz area," said MBOSC's marketing and events director, Amanda Schaper. "We are thrilled to have their support through advocacy campaigns, trail construction and maintenance projects, event sponsorship, and volunteer appreciation. Our progress on bringing more trails to Santa Cruz wouldn't be possible without Ibis' continued support, and we are grateful to have them behind the MBOSC mission."

Donations can be made at mbosc.org/anteup.

 

 

Guilty verdict in Kalamazoo's deadly crash gratifies local cyclists

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Kalamazoo riders before Tuesday's post-verdict ride.

KALAMAZOO, Mich. (BRAIN) — Bike riders do things a bit differently now in this city of 75,000, where a driver plowed his truck into a group road ride nearly two years ago, killing five cyclists and injuring four others. On Tuesday a jury convicted the driver, 52-year-old Charles Pickett Jr., of five counts of second degree murder and other charges.

Since the crash, Steve Johnson and his wife Jennifer — one of the injured survivors — rarely ride together. The couple have young children and "we want to be sure one of us comes home," Steve, a former bike retailer, told BRAIN this week. "It's always in the back of our minds," he said.

"Our business was more like a group hug than anything associated with retail"— Pedal owner Tim Krone

Kalamazoo bike retailer Tim Krone said some of his customers are now avoiding road riding, although he concedes it's hard to say if that's because of the crash or other factors, like a growing fear of distracted drivers.

"I know there are people that are scared. There are people who are afraid to get back out on the road," said Krone, the owner of Pedal, a two-store chain.

"For weeks after (the crash) our business was more like a group hug than anything associated with retail," he recalled. "As time goes on we continue to be a bike shop that services people who survived that horrible thing. It's just a fact in our community now and we all deal with that fact in different ways. But it's always there."

Prosecutors said Pickett had downed a handful of drugs before getting into his truck that day and police received several reports of his erratic driving before the collision with the group ride. Witnesses testified at the trial that he was going about 58 mph at the time of the crash and that he had methamphetamine, amphetamines, hydrocodone and four other drugs in his system. Witnesses also testified that the cyclists rode in single file on the shoulder, wore helmets and some had mirrors and blinking tail lights.

The cyclists who died in the crash were Tony Nelson, 73; Larry Paulik, 74; Melissa Fevig-Hughes, 42; Debra Bradley, 53; and Suzanne Sippel, 56.

Pickett will be sentenced on June 11, four days after the two-year anniversary of the crash.

Many in the cycling community said they were gratified, but not surprised by the verdict.

"From the first responders that evening through to the police and prosecutors, they were doing everything right, knowing that this day would come," said John Olbrot, a local cyclist and vice president of the Kalamazoo Bicycle Club. "I did have confidence all along that he wasn't going to get off lightly," he said.

Olbrot wasn't on the ride that night, but in Kalamazoo's small cycling community, everyone knows everyone, and that night many friends and family members got in touch to make sure he was OK. He said the crash is in his thoughts on many group rides especially if the ride passes the part of town where the crash occurred. 

Olbrot said he's always been a cautious rider, but maybe a bit more so now. "I will be more apt to ride with lights during the day now. And I don't mind falling off back of a group if I don't think it's safe. I'd rather be dropped than keep up and not be safe." He said he has friends who have taken up gravel riding since the crash and wonders if the crash influenced that.

Steve Johnson should have been the ride leader of the long-standing "Chain Gang" group ride that night in 2016, but he couldn't ride because of an injury. Instead Jennifer led the ride while Steve stayed home with their children.

Then he got a call from an acquaintance who had heard about the crash.

"It was just a horror ... I just heard that a group had been hit and there were at least four dead. I knew based on the location that it was our group. For ten minutes I didn't know if Jennifer was dead, and then I got a call from the hospital saying she was alive. It was a horrible ten minutes," he said.

Jennifer had a long list of injuries including a broken femur, hip and vertebrae and a concussion. She's back riding again, nearly as strong as before the crash, her husband said. She and two other survivors of the crash led a group ride Tuesday soon after news hit of Pickett's guilty verdict.

By coincidence, Johnson was closing down his store, Johnson Cycle Works, around the time of the crash. He works construction now and is still heavily involved in the bike community. He said he's seen the community come together in the last two years.

"Quite honestly, it's mostly positively affected the bike community. Various clubs feel much more a part of the same community now ... And it's raised awareness of cyclists being on the road with motorists."

Since the crash, Kalamazoo and some neighboring communities have passed ordinances requiring passing vehicles to give bikes at least 5 feet of clearance, and the Michigan Legislature is currently debating a 5-foot state law.

Olbrot plans to meet with lawmakers this month to push for the law. Krone said he's spoken with his state Senator in favor of the law as well. If Michigan passes the 5-foot law it would be among the most generous in the country. About 30 states, and the District of Columbia, have laws requiring vehicles to give clearance. In most states it's 3 feet, but Pennsylvania requires 4-feet of clearance. South Dakota requires 3 feet for passing vehicles below 35 mph and 6 feet if the vehicle is going faster.  

Kalamazoo cyclists plan a memorial ride on June 7, as they did last year on the anniversary, along the route of the planned Chain Gang ride the night of the crash. This year on the ride they will unveil a memorial on a spot overlooking the crash site.

PeopleForBikes rates 480 US cities to determine the best places for bikes

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INDIANAPOLIS (BRAIN) — PeopleForBikes recognized and awarded several cities at the second annual PlacesForBikes conference, which wraps up today in this Midwestern city. Through its new program, City Rankings, PeopleForBikes takes a data-driven approach to determine which cities are best for biking, and those that are improving the fastest.

At an awards ceremony held at the National Collegiate Athletic Association headquarters in downtown Indianapolis, PeopleForBikes' president, Tim Blumenthal, honored top-ranking cities and their leaders.

"We never sat around a table and said, 'Portland, Oregon, what do you think?' And then someone says, 'I was just there and it was really amazing, I think that's maybe 3.5 stars, and everyone says, yeah, that's about right'," Blumenthal told conference attendees. "It's nothing like that. You can look at the 184 calculations that go into each city rating."

The City Rankings program is based on factors including ridership, safety, network, reach and acceleration, and uses a variety of data sources to determine a city's ranking. PeopleForBikes said the City Rankings system is the first of its kind in the U.S., and that it's fully transparent and data driven, making it easy for any community to see how it's doing well and how it can improve.

Some of the data sources include:

  • Street-level data from Open Street Map that includes infrastructure, traffic speed limits, where people live, how equitably infrastructure is available to disadvantaged groups and whether the low-stress bike network links people to destinations
  • Local and federal data on overall traffic injury rates, for people biking and using any mode.
  • The scale and variety of investment in bike infrastructure and events reported by local officials for the PlacesForBikes City Snapshot.
  • The PlacesForBikes Community Survey, which asked more than 39,000 people about their riding habits and perceptions of safety and progress.
  • U.S. Census Bureau American Community Survey data on the local percentage and gender split of bike commuters compared with car commuters.
  • An assessment of a community's propensity to bike for fun, from Sports Marketing Surveys.

But there is a social and cultural component as well, which is more difficult to measure. Good street design is an essential ingredient, but a great biking town also has social rides, places people want to ride for fun and city officials working to make biking better — for that reason, City Rankings takes into consideration more than just infrastructure.

According to Dr. Jennifer Boldry, PeopleForBikes' research director who spent three years developing the rating system, filling in some of the gaps that some data sets like ACS and fatality data don't cover led PFB to develop the PlacesForBikes Bicycle Network Analysis, which assigns a score to the low-stress biking networks in hundreds of U.S. cities. It accounts for just under one-third of a city's rating.

"My guess is that not everybody will be absolutely thrilled about their rating. But we are grading on a global scale, and in our mind, there is no place, not even the Netherlands or Denmark that is absolutely safe, appealing and connected by bike for anyone at any age or bike-riding ability," Blumenthal said. "No place deserves a score of 100 or 5 stars. We have a lot of work to do, and we're going to do that work together."

Communities of any size can participate by completing an annual PlacesForBikes Community Survey, the PlacesForBikes City Snapshot, by actively growing riding and business in their town or city, and by working together to support implementation of complete bike infrastructure networks, among others.

See how all cities scored: cityratings.peopleforbikes.org/all-cities-ratings.

Look for more about City Rankings in the June 1 issue of Bicycle Retailer.

 

The dynamic duo from the UK, Terry and Irene Moyes, retires from BRAIN after 27 years

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Irene and Terry at the BRAIN show booth.

LAGUNA HILLS, Calif. (BRAIN) — Their friendly faces have welcomed readers at Bicycle Retailer's booth at Interbike for many years. Terry and Irene Moyes, who served in various roles at the publication, including circulation and sales, are retiring from the magazine, where they've worked since its launch in 1992.

Terry Moyes was recruited by then-editor Marc Sani while both were at the ski industry's annual trade show, SIA, in Las Vegas. At the time, the magazine had established a small office in Santa Fe, New Mexico, and Sani was working as a freelancer for Ski Show Daily. The Moyes subsequently moved from Waitsfield, Vermont, to Santa Fe.

Moyes joined BRAIN as vice president and general manager and was responsible for the magazine's advertising sales and marketing. He also was one of the original investors who helped jump-start the magazine then operating on a shoestring budget. His wife, Irene, started selling the magazine's Marketplace advertising section from their home's dining room table.

Terry Moyes later was named publisher after the untimely death of Bill Tanler, who died at age 68 from a heart attack. Tanler, who had the original idea for launching a new trade magazine in the bicycle industry, co-founded BRAIN with Sani.

Moyes held the role as publisher until the magazine moved to Southern California in 2000. As Sani took on the publisher's role, Moyes continued to manage circulation from Santa Fe and Irene continued to sell Marketplace. At trade shows, the two would share duties in the BRAIN booth, gently urging retailers to renew their subscriptions and politely fielding a nonstop flow of questions, compliments and complaints about the magazine while the editorial and advertising staff roamed the halls.

Sani said recruiting Terry in the early days of the magazine's launch was the most important decision that he and Tanler made. "Without Terry's extensive publishing background, his ability to work with the magazine's editors and to supply them with the tools and travel budget so necessary at the time, it's unlikely the magazine would have survived in what was then a competitive trade publishing environment," Sani said.

At the time of BRAIN's launch, the industry had three trade magazines: Bicycle Dealer Showcase, Bicycle Business Journal and American Bicyclist.

Moyes brought years of experience to BRAIN as the former publisher of Popular Science and as an experienced manager in the Times-Mirror group. "He brought a steady hand to the finances and advertising sales," Sani said, an area where he and Tanler were weakest.

"Having spent a quarter century working with the professionals at the magazine and in an industry where we have made many friends, Irene and I face this life transition with mixed emotions," said Terry Moyes. "We wish the magazine continued success and everyone involved the very best."

Circulation duties will be handled by production manager Ron Bertola and publisher Megan Tompkins going forward. The magazine's field reps will take over sales of Marketplace ads starting with the June 1 issue. Subscription changes and inquiries can be emailed to Bertola at rbertola@bicycleretailer.com.

GoPro beats Q1 forecasts with narrowed loss

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GoPro launched the $199 entry-level Hero camera at the end of the first quarter.
Company cites strong sell-through of streamlined product lineup and expects new entry-level camera to buoy Q2.

SAN MATEO, Calif. (BRAIN) — GoPro on Thursday posted a narrower-than-expected first-quarter loss on strong sell-through of its Hero5 Black and Hero6 Black action cameras. CEO Nicholas Woodman also said the company is poised for a robust second quarter as its new $199 entry-level Hero camera, launched on March 29, reaches major retailers.

"Initial demand for Hero is promising and we expect it to improve as large retail partners like Target and Walmart begin selling the product in the second quarter," Woodman said.

"Our first-quarter performance makes it clear that there is significant demand for GoPro, at the right price. We began to step up marketing programs in March which, coupled with overall expense controls, solid channel management and second-half new product launches, gives us confidence for a successful 2018 for GoPro," he added.

GoPro posted a loss of $76.3 million for the quarter, compared with $111.2 million a year earlier. Revenue totaled $202.3 million, down 7.4 percent from $218.6 million in the first quarter of 2017. Both figures outperformed analyst expectations.

In the U.S. during Q1, GoPro stated it held 86 percent and 95 percent of the action camera category by unit and dollar volume, respectively, according to data from The NPD Group.

"We obviously had a good quarter and are optimistic about our second quarter," Woodman said. "The reasons for our restored sell-through and momentum are simple. One, we removed Session (camera models) from our lineup and restored our proven Hero form factor, now with touch displays, to the $199, $299, $399 price points that GoPro's brand was built upon. Sell-through growth and market-share gains make it clear consumers love the Hero camera much more than Session, and they're loving it even more now that they've got touch displays and are priced well. We believe this bodes well for sell-through going forward. And second, we're increasing our global marketing efforts to capitalize on this consumer demand for our much-improved product lineup."

GoPro's shares, which have fallen more than 30 percent this year, rose about 10 percent in after-hours trading following the initial first-quarter earnings announcement.

Vail Outlier event expands offerings

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The 2017 expo. Photo: Eddie Clark Media
The late September festival in Colorado is expanding its demo and its enduro, and adding a gravel grinder and e-bike event.

VAIL, Colo. (BRAIN) — Organizers of the Outlier Offroad Festival have announced additions for the event, which is scheduled for Sept. 28-30 this year. 

"We're bursting at the seams and took this offseason as an opportunity to rethink our footprint as well as what we offered to the consumer," said event director Mike McCormack. "The demo sits in the heart of the (Vail) village and is served by two high-speed gondolas. That's a rarity and has proven an amazing opportunity for multiple inventory turns for attending brands."

The year's Outlier will include an expanded expo, an additional day of enduro racing, a gravel and e-bike adventure and a weekend-long vertical challenge.

The event's presenting sponsors are SRAM and Scott Bicycles. The weekend slots in between the end of Interbike and the start of the Outerbike Moab event.

McCormack said this year the Outlier's consumer demo will open to the public a day early, on Friday, Sept. 28. The demo expands its footprint and into Vail Village for 2018. He said the increased real estate accommodates of vendors that wouldn't fit in prior years.

"Increased capacity means greater value for consumers. It also means that we're able to reduce expo fees while increasing amenities (lift tickets and event comps) for attending brands," an event statement said. 

The Vail resort plans to reinvigorate its trail network over the summer, so Outlier will offer new terrain. This year's enduro expands from one-day to a two-day affair, with longer courses and better connectivity.

The new gravel ride is presented by Goodyear Bicycle Tires. The 45-mile loop takes riders through the historic mining towns of Minturn and Redcliff before ascending Shrine and Vail Passes via a USFS gravel road. Organizers said the course also includes great e-bike sections.

The Outlier also will include the Scott Bicycles VertiVail Challenge, which will measure how much elevation riders can complete over the weekend, with prizes awarded in six categories each day. 

More information: outlier.bike.

Velo releases Year of the Dog saddle

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TAIPEI, Taiwan (BRAIN) — Velo Saddles is continuing its Chinese Zodiac collection of saddles with this year's Year of the Dog model, featuring an image of a Golden Retriever.

Velo began the series in 2015 with the Year of the Sheep and has since offered Year of the Monkey and Year of the Rooster saddles.

This year's saddle has a special cover treatment technology that allows for stitch craftsmanship of the dog fur. The gold metal chain at the rear of the saddle adds to the dog symbolism while offering saddle protection.

The saddle has special packaging to protect it during shipping and delivery and which doubles as a messenger bag.

The 2018 Year of the Dog saddle is based on Velo's newest saddle model, Prevail. Prevail is intended as a professional level saddle with a classic look. Unlike Velo's Angel series, the Prevail's Y-shaped cutout is not visible, but is within the base to offer pressure relief while maintaining the support necessary for competition saddles. Thanks to the additional seat coverage, the Prevail allows for multi-seat positions with a stiffer feel, the company said.

The Prevail features Velo's ArcTech rail mounting system on the underside of the saddle, which provides support and suspension functionality.

Prevail is made using Velo's AirForm foam, which is able to distribute weight and form to the rider's body, but isn't affected by changing temperature and is 30 percent more shock absorbent than traditional PU foam. 

 


Toys ’R’ Us bankruptcy pummels Dorel Sports' first quarter

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Photo by Phillip Pessar via Wikimedia Commons.
Weather also slowed the start to bike sales in spring, company says.

MONTRÉAL (BRAIN) — Dorel Industries, which operates three divisions including home, juvenile and sports businesses, reported that Toys "R" Us' liquidation impacted all three, resulting in a first-quarter impairment loss of $12.5 million total, about $2.1 million in home, $3.8 million in juvenile and $6.6 million in its sports segment, which includes its bike brands.

This is in addition to the $3.8 million the company said it lost in the fourth quarter of last year.

"As we reported in March, all of our business units are being affected by the Toys "R" Us situation. We estimate that company-wide sales were reduced by approximately $7 million in the quarter. The Toys "R" Us liquidation in the U.S. may cause a market disruption in the short-term, but we believe this situation will stabilize, and both the Juvenile and Sports business will shift to other retailers or other channels during the second half," said Martin Schwartz, Dorel president and CEO.

"While we were anticipating a slower start to the year, the first quarter was more difficult than originally expected at Dorel Juvenile and Dorel Sports," he added.

The company told analysts during a call Friday morning that the bad weather this spring meant a poor start in April for bike sales. "But in May, the weather so far is good and we're seeing strong POS sales," Schwartz said during the call. "Right now, it's difficult to bet on the weather."

Its sports business, which includes its bike brands sold both at mass and IBD channels, posted $206 million in revenue, down from $214 million in last year's first quarter, or $7.3 million (3.4 percent). Organic revenue dropped 6.2 percent, and Dorel said the decline was mostly in the mass-market channel due to weak consumer demand at major retailers, and the impact of halted shipments to Toys "R" Us in March.

"A less favorable sales mix accounted for most of the decline in gross profit of 80 basis points. However, excluding restructuring and other costs, the decrease in adjusted gross profit was only 30 basis points from 22.4 percent to 22.1 percent," the company said.

Operating profit decreased $10.9 million to an operating loss of $0.8 million compared to an operating profit of $10.1 million in 2017. Adjusted operating profit decreased $10.2 million. Dorel pointed to the $6.6 million loss from Toys "R" Us as a major factor in this result.

"The coming months will see the introduction of several exciting model year '19 mountain and road bikes, expected to be enthusiastically received," the company said. "Cannondale will launch a complete e-bike line in Europe in response to the growing popularity of e-bikes abroad. As well, a new category of interactive ride-ons has been developed to launch this fall, which will set Dorel Sports apart from the competition."

Dorel said that its tax rate for the quarter was 6.9 percent, compared to 35.7 percent last year. Its adjusted tax rate was 10.2 percent compared to 22.6 percent a year ago.

"While 2018 started with lower sales and earnings than initially expected, we still expect improvements over last year as the year progresses. We are confident that much of the lost Toys "R" Us sales will be recovered commencing in the second half," said Schwartz.

"Dorel Sports' second quarter earnings may be reduced by the residual impact of the Toys "R" Us insolvency as they liquidate on-hand inventory, and by the poor April weather in most of our markets. As we enter the second half of the year, the hangover effect of the Toys "R" Us liquidation should dissipate and our upcoming new products are expected to drive improved sales and adjusted operating profit," Schwartz added.

Photo by Phillip Pessar via Wikimedia Commons.

Buffalo's Tom's Pro Bike acquires Park Ave Bike Shop

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Part of the Park Ave Bike Shop showroom.

BUFFALO, N.Y. (BRAIN) — The owners of Tom's Pro Bike Service, which has two locations in the Buffalo area, have acquired Park Ave Bike Shop, which has two locations in the Rochester area, about an hour away. 

Tom and Val Lonzi bought the Park Ave business from Andy August effective May 2. Tom's Pro Bike opened in 1997 but Lonzi had owned an earlier bike store since 1980. 

The Park Ave business dates to 1978.

Chris Lonzi, the son of Tom and longtime manager of the Tom's stores, will manage the Rochester stores, which will retain the Park Ave name.

"They have a good following down there so we think it makes sense to maintain the name," Lonzi told BRAIN. He said the Buffalo-area stores serve a wide clientele but are known for their expertise in the high-end road market. The Tom's stores stock Specialized, Giant and Cervélo bikes, among other brands. The Park Ave stores also are strong in the high-end, but more so in the mountain bike market. 

"We (in Buffalo) are probably 75 percent road, while they are more like 75 percent mountain bike," he said. The Park Ave stores stock Specialized and Santa Cruz, among other brands.

Park Ave has locations in Pittsford and Henrietta, New York, both suburbs of Rochester. Lonzi said the Pittsford store is fairly new but there are plans to remodel the Henrietta store this fall. 

The Tom's stores are in Lansford and East Amherst, New York, both suburbs of Buffalo. 

More information: tomsprobike.com | parkavebike.com.

Erik's agrees to buy Rasmussen Bicycle Shop in West Des Moines

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Erik's expects to add its first location in Iowa.

WEST DES MOINES, Iowa (BRAIN) — Erik's Bike Shop, which has more than two dozen locations across the Upper Midwest, expects to have its first location in Iowa soon, with an agreement to buy Rasmussen Bicycle Shop in West Des Moines. The transaction is expected to be finalized on May 9.

Headquartered in Bloomington, Minnesota, Erik's other locations are in Minnesota, Kansas, Illinois, and Wisconsin. Erik Saltvold founded the business in his parents' barn in 1977 when he was only 13. 

In a statement released by Erik's, Greg Rasmussen said, "After 44 years of being a family business in West Des Moines, Iowa, Rasmussen Bike Shop will be changing ownership. My family and I am excited for this transition in my life and working with Erik and his team has been great. I am super confident in the transition, employees are on board, and we are comfortable that the commitment to family and fun that Rassy's has been known for will be taken to the next level as Erik's transitions the store."

Through the 2018 cycling season, Rasmussen Bicycle Shop will continue to operate under the same name and with the same staff and management. Greg Rasmussen will assist in the transition. 

"Rest assured, we will continue with what has made Rassy's a great shop and a great friend to the cycling community. We aren't going to mess with that!" Erik's announced. 

The company said it expects to close for two days for inventory after the purchase, but will maintain repair services during that time. The store will continue to honor club and team discount programs and regular group rides will continue.

 

Abus launches retail staff training website

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CHICAGO (BRAIN) — Abus' new ABUSAcademy.com is available to all bike shop employees in North America.

Abus Academy includes training modules under three main schools: Brand, Products and Retail. The Brand school will feature modules on the history of Abus and the processes that diferentiate Abus from its competitors. The Products school will include modules about the entire lineup of locks and urban helmets, including all new products released in 2018. The Retail school will focus on sales techniques and ways to educate consumers about bike thef and security needs.

Norman Semmling, Abus' North American general manager, said, “Abus has a very dedicated sales team but we have come to realize that visiting every dealer for training seminars was a difficult challenge. Abus Academy allows us to reach more shops and gives them the tools to improve sales results and educate consumers.”

For more information contact at sales@abus.com

DannyShane names SIMBOL as its PR agency

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DALLAS (BRAIN) — The boutique cycling apparel brand DannyShane has named Park City, Utah-based SIMBOL Communications as its PR agency of record.

Shane Hunt, the brand's founder, said, "We've been around for a few years now, with some great success, but we feel our story will resonate with a far wider audience than we've been attracting so far, and we have no doubt the SIMBOL team will help us do just that, with their passion, decades of experience and huge network of industry relationships."

Nic Sims and Scott Boulbol, who founded SIMBOL about a year ago, have decades of combined experience in the cycling industry "We've seen these designs around for a few years, and we're alway thinking, 'Wow that's cool – what brand is that?' Now we know, and we're thrilled to be working with them," said Boulbol. "We're eager to start spreading the word to the cycling world that this is some amazing stuff, a really cool brand, and outstanding sustainability story to boot. But we're perhaps most excited to use all the products!"

 

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