Gart Sports and Global Sports Enter into E-Commerce Agreement
GART SPORTS (NASDAQ: GRTS) and GLOBAL SPORTS, INC. (NASDAQ: GSPT) announced today that they have entered into an e-commerce agreement.
Under the agreement, Global Sports will develop and operate separate online sporting goods stores for Gart’s three retail brands, Gart Sports, Sportmart, and Oshman’s. Global Sports developed and, since May 2000, has operated the www.oshmans.com e-commerce store under a separate agreement. The grand opening of the www.gartsports.com and www.sportmart.com is expected to occur in the third quarter of 2001.
Gart Sports is the second largest public sporting goods retailer in the United States, operating 177 stores in 25 states under the Gart Sports, Sportmart and Oshman’s SuperSports brands. Gart Sports completed the acquisition of Oshman’s on June 7, 2001.
Collectively, Gart Sports and Oshman’s generated revenue of approximately $1.1 billion during the Fiscal Year ended February 3, 2001, more than two-thirds of which represented sales from the Gart Sports and Sportmart brands.
“This is an exciting deal for us that will provide enhanced exposure for our brands and be accretive to our earnings beginning in the second half of 2001,” commented Doug Morton, Chairman, President and Chief Executive Officer of Gart Sports. “We believe it is important to offer our customers the option of shopping from us online, and we have seriously evaluated our alternatives to create this brand extension over the last two years. Through our recent acquisition of Oshman’s and our overall evaluation process, we determined that Global Sports will provide the best e-commerce experience to our consumers while creating significant upside for our company.”
Michael G. Rubin, Chairman and Chief Executive Officer of Global Sports, Inc. said, “This is an important deal for Global Sports adding a meaningful new partner. Gart’s strong position in key e-commerce markets, including Denver, Northern and Southern California, Chicago, and Texas, along with their substantial brand recognition and marketing power should contribute to a successful e-commerce business.”
About Gart Sports
Gart Sports, headquartered in Denver, Colorado, is the second largest full-line sporting goods retailer in the U.S. and the leading full-line sporting goods retailer in the Western United States. The Company was established in 1928 and offers a comprehensive high-quality assortment of brand-name sporting apparel and equipment at competitive prices. Gart Sports Company operates 177 stores in 25 states under the Gart Sports, Sportmart and Oshman’s SuperStores names and trades on the NASDAQ National Market under the symbol GRTS.
About Global Sports
Global Sports, Inc. (NASDAQ: GSPT) (www.globalsports.com) is a leading developer and operator of e-commerce sporting goods businesses.
Forward-Looking Statements
All statements made in this release, other than statements of historical fact, are forward-looking statements. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “guidance”, and similar expressions typically are used to identify forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of Global Sports and Gart Sports and the industry and markets in which the companies operate. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions which will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those forward-looking statements. Factors which may affect Global Sports’ and Gart Sports’ respective business, financial condition and operating results include, as applicable, the effects of changes in the economy, the stock market and the sporting goods industry generally, changes affecting the Internet and e-commerce, the ability of the company to maintain relationships with strategic partners and suppliers, the ability of the company to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of the company to attract and retain qualified personnel and the ability of Global Sports to successfully integrate its recent acquisition of Fogdog, Inc. and Gart Sports to successfully integrate its recent acquisition of Oshman’s Sporting Goods, Inc. More information about potential factors that could affect Global Sports and Gart Sports can be found in their respective most recent Form 10-Q and other reports and statements filed by Global Sports or Gart Sports, as the case may be, with the Securities and Exchange Commission. Global Sports and Gart Sports expressly disclaim any intent or obligation to update those forward-looking statements except as otherwise specifically stated by Global Sports or Gart Sports.
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Contact:
Gart Sports Contacts:
Thomas T. Hendrickson
Executive Vice President and Chief Financial Officer
(303) 863-2293
Global Sports Contact:
Patricia Henderson
(610) 491-7000
hendersonp@globalsports.com
