The stock market capitalization of the 18 major public outdoor and outdoor-related companies trading on various stock exchanges grew at an average weighted rate of 70.9 percent in local currencies in 2009, reaching a total value of $25.8 billion and outperforming the global economy. Comparatively, the FTSE index in London and the Dax in Frankfurt recorded increases of only 22.9 and 23.8 percent, respectively. While the Standard and Poor’s Index went up by 26.5 percent, the Japanese Nikkei index rose by 19.0 percent and the Hang Seng in Hong Kong by 51.0 percent.
This conclusion comes from a fine analysis of an exclusive annual study that we have already published in a sister publication of ours, Sporting Goods Intelligence, providing the stock market capitalization reached by 91 companies dealing with sporting goods in one way or another all over the world. The study is based on the number of diluted shares and closing stock prices on Dec. 30, 2009, which were compared with the corresponding share numbers and values on Dec. 31, 2008. The values are translated into U.S. dollars at the end of each year in order to calculate the total market size, but changes in currencies had little impact on the figures. The euro gained only 1.8 percent against the U.S. dollar from one date to the other, while the British pound rose by 9.2 percent against the American currency.
VF Corporation, whose Outdoor & Action Sports Coalition overtook its vast jeans business last year, tops our chart of the public outdoor-related companies, representing almost one-quarter of the total market value of the sector, but its capitalization rose by only 39.0 percent. Two outdoor retailers – Cabela’s in the U.S. and Blacks Leisure Group in the U.K. – performed much better, growing by 172.2 percent and by 165.2 percent, respectively. While Gander Mountain did 134.1 percent better, another U.S. retailer that sells other types of products as well, Sport Chalet, was the star performer with a jump of 336.6 percent.
None of the companies on our chart suffered a decline in market value last year. On the other hand, the 70.9 percent average increase for the sector was dragged down by meager increases of 11.3 percent for Columbia Sportswear and 6.8 percent for Shimano, a company that is indirectly present in the outdoor sector through its big fishing tackle and bike components businesses. The Japanese company still represents the second-largest capitalization in the sector. None of the seven major companies on our chart is entirely focused on outdoor. Columbia is, but it comes in eighth place, bearing testimony to the relative fragmentation of the offer at the wholesale and retail levels in this important segment.
Together, the 16 outdoor-related companies on our chart represented 16 percent of the market capitalization of the whole sporting goods sector, which grew at a faster rate of 83.7 percent, driven by rises of almost 120 percent in the value of 18 Asian companies and of nearly 160 percent for all the sporting goods retailers listed on the stock market worldwide. With a market value of $32.2 billion, 33.6 percent higher than one year ago, Nike easily came out again as the biggest player in the overall sporting goods sector, making up about one-fifth of the industry’s total market capitalization. The former runner-up, Adidas Group, grew just a little faster than Nike, but was overtaken by Li & Fung and Luxottica, parent company of Oakley. VF Corp. came next, in fifth place. You are welcome to request a copy of this chart if you don’t yet subscribe to SGI.