Active Stocks Deliver Humdrum Performance In 2018

Rewarded for its turnaround progress, Crocs saw its shares catapult 105 percent in 2018, pacing a group of stocks in the active lifestyle industry. Overall, the industry’s stocks delivered a mixed performance. Among the stocks losing considerable ground were Hibbett Sports, Big 5, Camping World, Skechers, Newell Brands and Vista Outdoor.

Of 75 stocks in the industry tracked by SGB, 41, or 55 percent, suffered declines.

The market saw its roughest year for U.S. stock prices since 2008. Major U.S. stock indexes, which rose in a range of 20 percent to 28 percent in 2017, finished 2018 with declines that ranged from 4 percent to 8 percent.

The Dow Jones Industrial Average finished 2018 with a loss of 5.6 percent, its worst decline since a 33.8 percent drop in 2008. The broad Standard & Poor’s 500 stock index fell 6.2 percent in 2018, its worst performance in a decade. Concerns of slowing economic growth, due in part to tariffs and trade-related uncertainty, weighed heavily on stocks in the latter part of the year.

Many active-lifestyle stocks also missed the broader market’s strong rally in 2017.

Among winning stocks in the active-lifestyle space in 2018, Amer Sports’ shares ran up 66.2 percent as it reached a deal to merge with Anta Sports. Also rewarded for bounce-back years were Deckers Outdoor Corp., soaring 59.4 percent; Rocky Brands, climbing 40.3 percent; and Clarus Corp, the parent of Black Diamond, up 29.6 percent.

Canada Goose moved up to $43.72 from $31.56 at the year’s start. The stock has more tripled the price it fetched (U.S. $12.78) when it went public in March 2017.

Yeti was the only industry stock to go public, selling 16 million shares on October 25 at $18 each, below its projected price range of $19 to $21. The stock closed the year at $14.84.

Nike added 19.9 percent on top of a 24.8 percent gain in 2017 as its North American business resumed healthy growth. Under Armour rose 23.4 percent after losing half its value in 2017 with some investors betting on growth resuming in 2019. Both Wolverine and VF Corp. delivered flat years for investors after rising just over 40 percent in 2017.

Among retailers, Dick’s Sporting Goods’ shares gained 11.3 percent as its business showed some stabilization after seeing shares plunge 44.8 percent in 2017 on the impact of Sports Authority’s exit. Genesco Inc., up 36.3 percent, was rewarded for its decision to sell off its Lids headwear business.

On the downside, shares of Hibbett gave back 29.9 percent and Big 5 Sporting Goods Corp was down 63.0 percent amid sales shortfalls. Both stocks were off more than 40 percent in 2017. Sportsman’s Warehouse lost just over 30 percent after losing about the same amount in 2017. Camping World, which was busy opening Gander Outdoors locations last year, suffered a 73.7 percent annual decline amid concerns over slower growth in core RV sales.