Pure fishing sold

[J.Vincent]

Newell is the company who is not doing well financially, they needed to streamline their holdings and focus on higher profitability. Newells stock has declined something like 50% or more over the past year and a half! I believe they viewed Pure Fishing as less profitable and a wing of their brands which required a lot of marketing money and production cost.....I also think they were aware of a strong bull market coming to an end, which signals tighter spending for the consumer and usually less discretionary income.....this would further affect the profits in the outdoor industry. Newell made a smart decision to unload Pure Fishing. Now consider this, Newell portfolio consisted of candles, coffee, ink pens, tupperware and fishing gear. In my opinion it's better for Pure Fishing to now be a part of a holding company who specializes in clothing and apparel, it just makes greater sense considering outdoor apparel and clothing is a big part of sales at every major retailer around the country. I'm certain they will manage the business differently and the only hope is they won't cut back sponsorships and they won't cheapen the product any further to create higher margin......but who knows and we won't really be aware of how this affects the Pure Fishing brand for at least another 12 months, but I think it will be good for their business in the long run.

[Deleted account]

Yeah, a lot of large conglomerates were/are looking to reduce debt. The time of free/cheap money is coming to an end, so we'll see more and more of that. M&As will do what they always do. I agree that outdoor/sporting good companies do better under more focused narrower ownership. Pure Fishing is well placed in the industry, and they will do fine, if not by pleasing Wall street. 

[WRB]

Most if not all of Pure Fishing products are made in China and with tariffs nearly equal to profite margins it's a tall pole to be competitive in a lean market sector. I can see a decent product being reduced to cheaper quality, if you are a fan of Pure Fishing products buy them now during discount periods.

Tom

[Deleted account]

18 minutes ago, WRB said:

Most if not all of Pure Fishing products are made in China and with tariffs nearly equal to profite margins it's a tall pole to be competitive in a lean market sector. I can see a decent product being reduced to cheaper quality, if you are a fan of Pure Fishing products buy them now during discount periods.

Tom

Yes, but that's true of their competitors as well, so the real challenge will be how to position to deal with how sensitive demand will be to potential price increases, which if not passed on will hurt margins.

[Peddiesake]

On 11/24/2018 at 3:23 PM, WRB said:

Not a fan of Pure Fishing but they had nothing to do with Penn reels doing poorly in the fresh water market. Penn was the premier salt water reel maker for decades until the higher quality Japanese salt water reel makers won over that business and Penn nearly went broke before Pure Fishing bought them.

Tom

Pens difficulty was the same as Chrysler Motors of the 70’s. Failure to conform from heavy metal to light weight plastic. Their reels were 5-6 ounces heavier resultantly per model weight. Their ability to platform and engineer a new reel model became too long or not existent. By the time they woke up twenty years hence, they had lost the entire salt water market.

[WRB]

9 minutes ago, Peddiesake said:

Pens difficulty was the same as Chrysler Motors of the 70’s. Failure to conform from heavy metal to light weight plastic. Their reels were 5-6 ounces heavier resultantly per model weight. Their ability to platform and engineer a new reel model became too long or not existent. By the time they woke up twenty years hence, they had lost the entire salt water market.

Penn came out with a composite lighter weight level drag 2 speed off shore reel before Shimano entered the market with a heavy off shore reel similar to Penns International series reels. Today Shimano owns the off shore reel business with their lever drag reels.

You are right, Penn didn't change enough to be competitive with Japanese products and never was a factor with fresh water reels.

Tom

[Peddiesake]

2 minutes ago, WRB said:

Penn came out with a composite lighter weight level drag 2 speed off shore reel before Shimano entered the market with a heavy off shore reel similar to Penns International series reels. Today Shimano owns the off shore reel business with their lever drag reels.

You are right, Penn didn't change enough to be competitive with Japanese products.

Tom

In the early 80s, Penn the SS series was the standard for surf fishing. Ten years later, no one bought one and few people luges them into the water any longer.

[Deleted account]

I still shark fish with older Internationals, and wire line troll with Senators from the 70s. I've retired my SS and greenie 7 series Z spinning reels, but they are still functional. The narrow spooled Squidders are coveted by NY/NJ tog guys, and I still use mine for that when not fishing a winder. Sorry, can't figure a way to segway to (that all so exciting, non bait slinging) LMB fishing.