What Happened to Sitka?

[2531usmc]

There are more than a few Gore employees where I live. Whenever they talk about Sitka, they always talk about how much money it brings in.

Now they are competing with REI, North Face, Patagonia, etc, etc for lifestyle brand clothing. Hard to see how they can maintain their margins.

 

[thegoosano]

This is a great question - you're absolutely right. Sitka is changing.

11-12 months back Sitka made internal changes across their organization. And, moved folks from Gore (parent company) into the Sitka org. to oversee Merchandising (all product, new releases, product roadmap, etc). Merchandising is the function we see as end users - it's what shows up online, in-store and on-sale.

There were key moves / hires across Merchandising, Retail and Demand Planning (demand planning is the role that is responsible for the financial investments across inventory and product lines)

All three roles that Sitka hired came from companies like Academy Sports & Outdoor, lululemon, Fjallraven & Gore (internal appointment). I'm not going to name names - but, these folks do not live in Bozeman, and do not understand the Hunting industry or us the end users. John Barklow is the only true end user in a Senior Leadership role at Sitka now.

Sitka also made key moves to deleverage their Wholesale channel (products that show up at SCHEELs, or on GoHunt.com, etc.). And, under this new leadership lowered the percent to total investment in true end user products (Ambient, Intercept, Mountain & Evo et al.) to grow lifestyle.

Said more simply - Sitka is pivoting to a true Direct-to-Consumer ecommerce brand. Margins are higher, lifestyle sells more quickly, and they can invest less in inventory because we are all blind to how many units Sitka has in-stock on their website vs. shopping in real life.

ALL of this is an attempt to be more profitable. Make more money.

The fire-sales Sitka has had over the last year were an attempt to clean out their gluts of inventory (stuff they owned way too much of), and free up cash to invest in new products across Lifestyle and in many cases get rid of styles - notice how ALL baselayers are now Merino, and certain (awesome) products no longer exist (Kelvin Down).

This doesn't necessarily mean quality will go down - though I bet more products we've perhaps loved will no longer exist. Lifestyle will be more prominent and truly technical hunting apparel will be a fraction of what it was in the past.

IMO the lifestyle stuff looks like trash (the new flannels and pants are awful). And, since Sitka got rid of the OG Ambient and Kelvin Down, I'm at a loss for what I would buy from Sitka to actually hunt. Maybe the Snowcrest 1/4 to wear to a BBQ or take my dog on a walk?

My only hope: Sitka's new leadership and bean-counters listen to John Barklow, and let him do what he's best at.

I've worked on the corporate-side of the retail industry for 15 years, seen this happen across a lot of brands. And, I've spoken to a few buyers and sales associates on the front lines of Sitka's changes.

This is exactly the explanation I was waiting for. Thank you for sharing, makes a lot of sense. I hope the emphasis on lifestyle is temporary and they continue to innovate and push the technical hunting market when things settle down. Time will tell I guess.


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[ChrisAU]

Damn at the email from Eurooptic just now…

EuroOptic ownership believes that a person or company is only as good as their word. Our values will never be sacrificed regardless of the cost to us. We believe how business is conducted matters and we cannot do business with partners who don’t conduct themselves in the same way. Because of differences in core values, along with changing market conditions, we are eliminating Sitka from our retail portfolio.

Today begins the liquidation of 89,975 articles of Sitka brand clothing at very significant discounts that will be necessary and unavoidable under the circumstances. EuroOptic has been the largest volume Sitka brand dealer in the world for some time and clearly holds the largest inventory. If you’ve been waiting to buy, now is the time. Once it’s gone, it’s gone.

 

[Gwchem]

Damn at the email from Eurooptic just now…

EuroOptic ownership believes that a person or company is only as good as their word. Our values will never be sacrificed regardless of the cost to us. We believe how business is conducted matters and we cannot do business with partners who don’t conduct themselves in the same way. Because of differences in core values, along with changing market conditions, we are eliminating Sitka from our retail portfolio.

Today begins the liquidation of 89,975 articles of Sitka brand clothing at very significant discounts that will be necessary and unavoidable under the circumstances. EuroOptic has been the largest volume Sitka brand dealer in the world for some time and clearly holds the largest inventory. If you’ve been waiting to buy, now is the time. Once it’s gone, it’s gone.

Their prices aren't as good as other sales, as far as I can tell.

 

[ChrisAU]

Their prices aren't as good as other sales, as far as I can tell.

Yeah I’m not talking about the pricing, I’m taking about the verbiage.

 

[MTCruisin']

Got the same email, not sure what core values they differ on but I love EO.

 

[Ditt44]

I've bought various items from EO over the years, mostly rifle scopes and never had an issue. Never bought any Sitka stuff because their pricing is usually not the best unless it is the bottom of the barrel on a specific item. Numerous other vendors match or beat their pricing the majority of the time.

Curious development but you may never know the real story. Could be two people who just don't like one another and verbiage is selected to make a point. Everyone reading between the lines will form their own theory, or in many cases, conspiracy.

 

[ScreamingPotato]

Everyone reading between the lines will form their own theory, or in many cases, conspiracy.

I figure Sitka probably put the heat to them with their price fixing requirements or something. Too bad it's not 50%, got some things I'd buy at that discount.

 

[Macintosh]

ALL of this is an attempt to be more profitable. Make more money

That all sounds spot-on for a company that is under significant new financial pressure—make some big changes in leadership, realign assortment, etc. Ime “be more profitable” by itself usually comes slower, when stuff happens fast its usually the result of a metaphorical house fire. Sounds like you have some inside scoop…do you have a sense of what exactly the pressure is that is leading to these changes all at once? My theory was the pfas legislation in the EU and CA had a lot to do with it, with the membrane fabrics that are a huge part of gore’s overall business going away for large sectors driving a relatively sudden need to reinvent their assortment plus possibly other changes. The consolidation of retail vs direct to consumer and how that affects margins, planning and inventory risk is another factor. Any insight on what is behind the changes you outlined?

 

[MT_Wyatt]

 

[Gwchem]

Rumor is that Eurooptic is pissed about Sitka partnering with Scheels for the release of the new camo pattern. I heard stores were stocking those as of this week.

 

[Ditt44]

Rumor is that Eurooptic is pissed about Sitka partnering with Scheels for the release of the new camo pattern. I heard stores were stocking those as of this week.

If true, it's like I said in another thread, it might be interpersonal conflict and in that case, rather petty. IF true. Either way, that's between Sitka and EO and well within their right to drop any products they choose. No one is owned a reason but it obviously makes for good conversation.

If Sitka broke a contract, that's an issue but not for us to litigate. If it's just EO being pissy, that's rather sad.... which feels that way based on the wording in the EO post and if Gwchem's post is accurate.

 

[mtwarden]

All three roles that Sitka hired came from companies like Academy Sports & Outdoor, lululemon, Fjallraven & Gore (internal appointment).

If true, not a good sign at all


notice how ALL baselayers are now Merino, and certain (awesome) products no longer exist (Kelvin Down)

I'm still seeing a wide selection of their synthetic Core line on the website; IMHO they would be crazy to ditch that line, but I've seen Patagonia do it numerous times

 

[Ditt44]

We've seen them discontinue a specific item/line in the past and in some cases it comes back. Or should we say that Sitka says it will be discontinued but come out with an updated version the next season. I suppose there is a marketing strategy in there as well.... tell everyone it's going away to boost close-out sales... bring it back 'better' or just different and get another influx of sales. Items being updated always create a buzz between 'like it the way it was' or 'like the new one better'. Probably some guys jump on a second or third because they like it the way it is and better grab another before they're gone and can't/won't trust change.

I would love two items to come back... the Kelvin active light hoodie in solids as well as camo and the Fanatic Light jacket but add a wind layer like the stratus. I have one of each now but I would certainly jump to buy another of each.

 

[*zap*]

My sitka is fine what little of it I have...fanatic bibs and some base layers.

 

[RMM]

Rumor is that Eurooptic is pissed about Sitka partnering with Scheels for the release of the new camo pattern. I heard stores were stocking those as of this week.

From what I heard, Eurooptic is more pissed about the pricing handcuffs that sitka puts on them. Sitka is very strict about sales distributors are allowed to run. Then, sitka will run a sale on their website undercutting their distributors. So essentially, stores that carry sitka turn into places where people just come in to try their clothing on, then order it elsewhere.

 

[TSU_Archer]

Their new pattern was just released today and I am a little surprised they’re not getting roasted for it. It’s just a darker subalpine, marketed for areas with dense green vegetation. It’s pretty much a turkey hunting pattern. I get the impression. This was just a chess move to try to get hunters to shell out a little extra money on Sitka gear that isn’t any newer or more innovative than the lineup they currently carry. It’s just another camo pattern that just happens to be slightly darker than subalpine.

I feel they were really reaching on this “product” release. Kind of like creating a solution to a problem that didn’t originally exist.


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[texag10]

I seem to remember a euro-only sitka pattern that looks like the new one. I think one shot gear had a big sale on it several years back.

 

[ScreamingPotato]

I seem to remember a euro-only sitka pattern that looks like the new one. I think one shot gear had a big sale on it several years back.

Wasn't it called Optifade Forest or something like that? It was a dark green base?

edit: Optifade Ground Forest.

 

[savetherobots]

My only hope: Sitka's new leadership and bean-counters listen to John Barklow, and let him do what he's best at.

100% ^^this