We ended 2010 with the economy still choppy, but the sporting goods industry enjoying its best year ever. Through nine months of the year, the 60 major public companies whose net profits we track were up a robust 98% compared to last year at just under $4.1 billion, easily a record for the period. That was certainly great leverage on sales increases that were in the high-single digits for all three quarters, and reflects the coincidence of a number of favorable factors that won’t be driving profits in 2011.

First among these is the gross margin improvement in 2010 that was ... Log in to view full article.