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Takeaway: UA expanding into digital with MapMyFitness, JOSB takes MW offer off the table, H&M plans India expansion, CROX can't find a prom date

Athletic Apparel Data

Takeaway: The only brand that are showing up on game day are Nike, UnderArmour, Mountain Hardware, Marmot (note cold weather brands doing well), and believe it or not — Reebok. 

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UA - Under Armour to Acquire MapMyFitness, One of the World's Largest Open Fitness Tracking Platforms


  • "Today, Under Armour...announced the acquisition of MapMyFitness, the fitness technology company powering one of the world's largest digital fitness communities."
  • "With this acquisition, Under Armour will be uniquely positioned at the forefront of sports and technology and will continue to deliver game-changing solutions to how athletes train and perform. As part of the collaboration, Under Armour will add depth to its digital capability, offering athletes an elevated training experience through new digital products and platforms."
  • "MapMyFitness has one of the largest connected fitness communities in the world and offers a diverse suite of websites and mobile applications under its flagship brands, MapMyRun and MapMyRide. Utilizing GPS and other advanced technologies, MapMyFitness provides users with the ability to map, record and share their workouts."
  • "Under Armour intends to initially finance the $150 million acquisition of MapMyFitness with borrowings under its existing revolving credit facility, cash on hand or a combination thereof, while it evaluates longer-term funding options for the transaction. The deal is expected to close by the end of 2013 and the Company's previously provided 2013 guidance and preliminary 2014 outlook remain unchanged."

Takeaway: Solid move my UA here to get more embedded in digital training — something Nike has been doing for five years. Nike built its expertise organically — though there’s nothing wrong with buying a preexisting platform like MapMyFitness. UA could quickly rebrand it as its own in a way that won’t scare off the existing consumer, and likely convert some of them into UA customers. 

JOSB, MW - Jos. A. Bank Terminates Acquisition Proposal as Men's Wearhouse Fails to Engage in Discussions


  • "Jos. A. Bank Clothiers, Inc. today sent a letter to the Chief Executive Officer of The Men's Wearhouse, Inc. terminating its all-cash proposal to purchase Men's Wearhouse for $48 per share. As previously reported, Jos. A. Bank had advised the board of directors of Men's Wearhouse that Jos. A. Bank would terminate its proposal if the board did not engage in good faith negotiations by November 14, 2013. The November 14 deadline has passed with Men's Wearhouse having failed to engage in such discussions."

Takeaway: We’re surprised that MW did not at least show up to the table. We’re with MW in that we think a fair value is far above the JOSB bid. If the stock trades off materially as the takeout premium evaporates, we’d consider hitting the bid on this one.

HMB - H&M gets Foreign Investment Promotion Board nod, plans to invest Rs 720 crore 


  • "The Foreign Investment Promotion Board (FIPB) has cleared Swedish clothing major H&M's Rs 720-crore proposal to set up single-brand retail stores in India…"
  • "H&M...plans to open 50 retail stores in India."
  • "The government had last year raised the FDI limit in single-brand retail to 100% from 51%, subject to certain minimum sourcing from local vendors. H&M had moved its proposal in April this year, but lack of clarity over certain issues had delayed a decision."

Takeaway: It’s nice to see a retailer actually succeed and grow in India. You hear that Wal-Mart? 

ADS - Adidas unveils white kit for German football team


  • "At the 2014 FIFA World Cup in Brazil, the German team will play a World Cup for the first time in an all-white kit. Supplier adidas presented the new home jersey in collaboration with the German Football Association (DFB)."

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Jockey unveils limited edition Anchorman 2 briefs


"This holiday season, Jockey International, Inc. unveils limited edition Jockey–Anchorman 2 briefs. The classic Jockey product makes a "brief" appearance in Paramount Pictures' Dec. 20 release of "Anchorman 2: The Legend Continues" as a nod to the broad popularity of Jockey's ads from the late '70s and early '80s."

"Presented in custom packaging featuring legendary anchorman Ron Burgundy, the briefs come in two colors that say 'I'm kind of a big deal': 'Beard of Zeus Blue' for afternoon delights and 'Sex Panther Red' for the jazz flute kind of nights, references from the classic original Anchorman film"

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Takeaway: This might be the most brilliant marketing gimmick we’ve seen all year.

CROX - Crocs Said to Explore Alternatives After Buyout Talks Falter


  • "Crocs Inc...held buyout talks that are unlikely to lead to a sale, leaving it to consider other options to boost value, people with knowledge of the matter said."
  • "Blackstone Group LP, which had explored a takeover, is now in discussions with Crocs about alternative deals, one person said, asking not to be identified as the information is private. The options include a stake sale or joint venture, another person said. KKR & Co. and other private-equity firms have decided against a bid, people said."

Takeaway: Let me get this straight…no one wanted to buy CROX outright, so the announce that they’re exploring other alternatives, and people think this is good news? That’s like looking for a prom date for three months, coming up dry, and then announcing that you’re evaluating alternative options for what to do while the rest of your friends are at the prom.

KER - Kering Sees Very Significant Profit Drop on La Redoute, Puma


  • "Kering SA...said it expects net income to drop 'very significantly' this year because of costs related to its planned sale of mail-order unit La Redoute and one-time charges for the Puma brand."
  • "Any 'solution' for La Redoute 'will have a significant impact on the net result from discontinued operations,' Paris-based Kering also said in a statement yesterday after the close of trading. Puma, the sporting-goods brand in which Kering is controlling shareholder, last week said it would book one-time charges of about 130 million euros ($175 million) this quarter."

Takeaway: No shocker here. Puma already announced that it’s following in the footsteps of its big brother Adidas this quarter in punting on first down. Nike is annihilating the Germans.

 Macy's Completes Beauty Floor Renovation


"Macy’s christened the new beauty floor at its Herald Square flagship in Manhattan this week with a host of launch activities including ribbon cuttings at new counters like Bobbi Brown and Laura Mercier. Celebrations, including appearances by various brands’ national makeup artists, will continue into December."

"The reimagined main floor features an additional 4,500 square feet of selling space for beauty and men’s grooming, a 17 percent increase, since renovations began this summer."

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Bangladesh Garment Factories Reopen After Wage Deal Reached


  • "About 250 Bangladesh garment factories reopened today in the Ashulia industrial zone on the outskirts of the capital, Dhaka, after owners agreed to a minimum wage of 5,300 taka ($68) a month for workers."
  • "A group of owners met Prime Minister Sheikh Hasina, who urged them to accept a recommendation made by a government-appointed panel, Atiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association, said from Dhaka. The pay increase from 3,000 taka will be effective from Dec. 1, Labor Minister Rajiuddin Ahmed Raju said at a media briefing today."

Vietnam Leads Imports in September


  • "Vietnam posted the largest increase in apparel imports to the U.S. in September compared with a year earlier, as it continued to take business away from other Asian countries such as Indonesia, which posted a double-digit decline, while Bangladesh showed signs of a slowdown in production, a report from the U.S. Commerce Department showed Thursday."
  • "Apparel imports from Vietnam, the second-largest supplier to the U.S., rose 21.6 percent to 206 million square meter equivalents in September compared with September 2012. Indonesia, the fourth-largest apparel supplier to the U.S., posted a 17.1 percent decline in apparel imports to 73 million SME. China, the top supplier of apparel to the U.S., posted a 1.3 percent gain to 1.1 billion SME in the month."
  • "The pace of growth in apparel imports from Bangladesh…slowed in September. Apparel imports rose 2.2 percent to 124 million SME. This followed increases in the prior five months that ranged from 6.3 percent to 18.6 percent."