EXEC: Active Lifestyle Stocks Show Some Recovery In First Half

On Holding, Adidas, Deckers Outdoor, Amazon, Smith & Wesson, and Skechers USA delivered share price gains of more than 30 percent in the first half of 2023 in an overall mixed performance for stocks in the active lifestyle space. Laggards included VF Corp., Hibbett, Under Armour, and Foot Locker.

The broader stock market recovered in the first half after the three major averages in 2022 incurred its worst year since 2008, snapping a three-year win streak. 

For the first half of 2023, the S&P 500 popped 15.9 percent for its best first half since 2019. The Nasdaq surged 31.7 percent for its best first half since 1983. The 30-stock Dow added a modest gain of 3.8 percent.

Of 94 stocks tracked by SGB Media in the active lifestyle space, 52, or 55 percent, showed gains.

On, the Swiss running brand, had the largest gains in the half, climbing 92.3 percent to $33 from $17.16 at the start of the year. The company, which went public at $24 in September 2021, continues to increase market share in the run space. The company’s first-quarter revenues surged 78.3 percent year-over-year.

Shares of Deckers Outdoor, the parent of Hoka, added 32.2 percent in the first half to $527.66 and saw shares more than triple in price since 2019. In Deckers’ fiscal year ended March 31, Hoka sales increased by 58.5 percent to $1.41 billion.

Adidas’ shares rebounded in the first half, gaining 43.7 percent to $97.34, following the hiring of former Puma CEO Bjørn Gulden as CEO. Shares had fallen 53 percent in 2022 due to Adidas’ termination of its Yeezy partnership and with Kanye West, as well as the fallout from inventory bottlenecks.

Among competitors also impacted by inventory challenges, shares of Nike were down 5.7 percent after declining 29.8 percent in 2022. Shares of Under Armour, which hired a former Marriot executive as CEO effective February 27, fell 28.9 percent after dropping 52.1 percent in 2022.

Other brands who gained momentum—Smith & Wesson, was up 50.2 percent; Acushnet Holdings Corp., the parent of Titleist, was up 28.8 percent; Wolverine Worldwide, up 34.4 percent; and Skechers, was up 25.5 percent.

VF Corp., which saw shares decline 30.9 percent in the first half, appointed Bracken Darrell, CEO, on June 20 to reverse the downturn in its largest brand, Vans. VF’s shares fell 62.3 percent in 2022.

Among retailers, Lululemon’s shares gained 18.1 percent in the first half after becoming one of the few to raise its guidance for the year after posting solid results in the first quarter despite ongoing inflationary pressures.

Among the larger sporting goods chains, Dick’s Sporting Goods gained 9.9 percent to $132.19, while Academy Sports + Outdoors added 2.9 percent to $54.05. Both retailers held onto pandemic-surge-related gains. At the start of 2020, the shares of Dick’s traded at $49.49, and Academy was at $20.73.

Other notable gainers among retailers were Amazon, climbing 55.2 percent in the first half; Boot Barn, 35.5 percent; Urban Outfitters, 38.9 percent; and Costco, up 17.9 percent.

Downwardly-revised outlooks led to sharp share declines for Foot Locker, down 28.3 percent in the first six months of 2023 and Hibbett, declining 46.8 percent. Genesco, the parent of Journeys, was down 45.6 percent.

Photo courtesy On