Dassault Systems Enovia

TapouT Kicks Up Sales With Martial-Arts Boom

by Robert McAllister, Technology Editor August 01, 2008

The latest craze in the world of extreme sports is mixed martial arts, or MMA, which pits fighters of various disciplines together into a circular cage where they fight until someone goes down—or out. The made-for-TV sport has attracted a huge following, spawning reality TV shows, magazines and, of course, apparel. One Inland Empire, Calif., clothing company—TapouT—is at the center of it all.

The private company, based in the San Bernardino County suburb of Grand Terrace, has been around since 1997, but only recently has its business taken off. It started as a small garage-type operation by two security guards who were fans of cage fighting, popularized by the UFC (Ultimate Fighting Championship) about 10 years ago. Unlike traditional boxing, where fighters wear heavyweight gloves, MMA and other cage-fighting events allow full-contact combat fighting techniques employing kicking, wrestling and throwing, as well as punching (with lightweight gloves).

TapouT has just launched the second season of its namesake reality show, which airs on the Versus cable network. In the show, TapouT staff go around the country looking for the best brawlers. The company recently expanded its headquarters from a small office of a few hundred square feet to a 40,000-square-foot state-of-the-art facility featuring high-tech security equipment and plasma TV screens on almost every wall.

Coupled with its clothing line and other products, TapouT is on a pace to hit $100 million in sales in 2008, which would quadruple sales of about $25 million in 2007. For years, it was selling its clothing only through its Web site (www.tapout.com). It has since opened up distribution and sells to an account base of more than 6,000 stores, including Pacific Sunwear, Dillards, Tilly’s, Hot Topic and Champ’s/FootLocker.

Since it hit the big time with a TV show, TapouT’s clout has lured the likes of private-equity group PEMGroup, which extended the company a multi-million dollar credit line. TapouT has also signed with leading talent agent Creative Artists Agency to help promote the company. And former music-industry executive Marc Kreiner joined the company last fall as president to help manage daily business.

The company’s clothing business has also been aided by the acquisition of Hitman, a Huntington Beach, Calif.–based clothing maker.

In the apparel category, MMA has become a lifestyle as well as a fan draw.

“[TapouT] is the No. 1 company in mixed martial arts right now,” said Bob Maloney, president of San Jose, Calif.–based e-tailer FightRack Inc. “The apparel is doing very well and surprisingly it’s appealing to wide spectrum, though young men are probably the strongest category.”

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EDGY: One of many T-shirt styles within TapouT's latest collection
HEAD TO TOE: TapouT's product line now extends from headwear to footwear.