<span style="color: #8c8c8c;">Top National Stories and the Latest Headlines from SGB Updates across the Active Lifestyle Market during the week of May 4, 2020.
Microban International. Ltd., the specialist in antimicrobial and odor control solutions, has accelerated the development of custom antiviral solutions in textiles as well as antimicrobial treatments that provide lifetime product protection against stain and odor-causing bacteria growth starting with your smartphone’s case. Learn more here.
In this week’s exclusive interview with SGB Executive, Brian Aylward, Microban’s senior director, global textiles business, discusses the elevated opportunities around antimicrobial technologies created by the coronavirus pandemic that he expects will make Microban a household name. Read more here.
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›Peloton’s Marketing Chief To Exit | May 8
Carolyn Tisch Blodgett, Peloton’s head of global marketing, is leaving the company after four years. Her last day is May 29. Read more
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›Neiman Marcus Files For Bankruptcy | May 7
Neiman Marcus Group filed for bankruptcy on May 7 in the U.S. Bankruptcy Court for the Southern District of Texas. The luxury chain has struggled to pay down $5 billion in debt, much of it from leveraged buyouts in 2005 and 2013. Read more
›NPD: Sporting Goods, Home Fitness And Cycling Sales Surge In The U.S. | May 7
As U.S. consumers find ways to stay busy, active and fit during this time of social distancing, sports and home fitness equipment, as well as children’s and adult leisure bicycles, have seen double- and triple-digit sales increases, according to retail sales data from The NPD Group. Read more
›New Balance Donates $1 Million In Sneakers To Healthcare Workers | May 7
New Balance announced that it will team up with its athletes, including Milos Raonic, Sydney McLaughlin, Dejounte Murray, Rose Lavelle, Rob Pannell, Trayvon Bromell, Joey Gallo, and Zdeno Chara, to collectively donate more than $1 million worth of footwear to front line medical workers. Read more
›Kohl’s Announces Phased Approach For Store Reopenings | May 7
Kohl’s announced plans to reopen stores in 10 states beginning May 11 after opening stores in four states earlier this week. Read more
›GoPro Q1 Revenue Cut In Half On COVID-19 Softness | May 7
GoPro Inc. reported first-quarter revenue was $119 million, in-line with the preliminary results published on April 15, and slightly ahead of Wall Street’s expectations but down from $243 million for the same period a year ago. Read more
›Camping World Motors To Q1 Beat Despite COVID-19 Headwinds | May 7
Camping World Holdings Inc. reported first-quarter revenue decreased 3.5 percent to $1.03 billion primarily as a result of the company’s strategic shift in 2019 and the impact from COVID-19. That crushed Wall Street’s expectations by $53.5 million. Read more
›Callaway Golf Sees Sales Tumble But Remains Profitable In Q1 | May 7
Callaway Golf Co. reported first-quarter net sales decreased 14 percent to $442 million from the year-ago quarter due to the negative impact of COVID-19 on both the golf equipment and soft goods operating segments globally. The total beat Wall Street’s expectations by $1.6 million. Read more
›New Balance Taking Ownership Of High School Nationals | May 7
New Balance said it will be parting ways with the National Scholastic Athletic Foundation (NSAF), which has handled registration, coordinates meet planning and public relations for New Balance’s national high school indoor and outdoor championships. The brand will be taking sole ownership in directing and coordinating its own meet starting in 2021. Read more
›The Aldo Group Announces Intention To Restructure Under Companies’ Creditors Arrangement Act | May 7
The Aldo Group Inc., the fashion footwear brand, announced that it sought and obtained an initial order pursuant to the companies’ Creditors Arrangement Act (CCAA) from the Superior Court of Québec. In addition, the company has voluntarily applied for similar protection in the United States and is about to do the same in Switzerland. The company intends to use the proceedings to stabilize the business. Read more
›Clif Bar Appoints New CEO | May 7
Clif Bar & Company announced that Sally Grimes, most recently at Tyson Foods, has been named the company’s new chief executive officer, effective June 1, 2020. With the appointment, Clif Bar Founder, Owners and current Co-CEOs Gary Erickson and Kit Crawford, will remain on the company’s Board of Directors. Read more
›Osprey Launches “Buy Online, Fit In-Store Program” To Support Independent Specialty Retailers | May 7
Osprey announced a new program aimed to support independent specialty retailers as it begins to open following the COVID-19 pandemic. The new “Buy Online, Fit In-Store Program” is designed to drive customers to Osprey specialty retail partners. Read more
›YNIQ Announces North American Distribution | May 7
YNIQ Sweden (Spoxury TR Group AB) announced the formation of its North American distribution, YNIQ North America, under the umbrella ownership of Wedge Brands, LLC, formerly ZG Holdings. Read more
›Vista Outdoor Posts Q4 Loss On Impairment Charges | May 7
Vista Outdoor Inc. reported a steep loss in the fourth quarter ended March 31 after impairment charges as sales fell 8 percent adjusted for the sale of the firearms business. The company also provided an update on its business operations and announced a realignment of its reporting segments to better reflect the company’s strategic focus. Read more
›Puma’s Q1 Earnings Decline 62 Percent | May 7
Puma reported that its first-quarter earnings were dragged down by the coronavirus pandemic while warning of a bigger impact in the second quarter. Read more
›Acushnet Posts Steep Q1 Profit Decline On COVID-19 Impact | May 7
Acushnet Holdings Corp., the parent of Titleist, FootJoy and KJUS, reported net income dropped 74.5 percent, adjusted EBITDA slid 17.8 percent and sales were down 5.8 percent in the first quarter. Read more
›SportChek’s Q1 Sales Slump 13.1 Percent | May 7
Canadian Tire Inc. reported sales in its SportChek segment decreased 13.1 percent while comparable sales decreased 1.8 percent. Helly Hansen’s revenue in the quarter was $121.5 million, a decrease of 7.3 percent. On a constant-currency basis, Helly Hansen’s revenue grew 0.6 percent. Read more
›Yeti’s Q1 Sales Climb 12 Percent, Details COVID-19 Response Plan | May 7
Yeti Inc. reported sales grew 12 percent in the first quarter but declined 25 percent in the final two weeks due to the impact of the coronavirus. The company withdrew its full-year outlook and detailed an action plan to respond to the pandemic. Read more
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›Sturm Ruger’s Q1 Profits Climb 18.5 Percent | May 6
Sturm, Ruger & Company Inc. reported net earnings rose 18.5 percent in the first quarter on an 8.4 percent revenue gain. Read More
›Fitbit’s Device Sales Sink 26 Percent In Q1 | May 6
Fitbit Inc. reported that it sold 2.2 million devices in the first quarter, down 26 percent year-over-year, leading to a 30.8 percent revenue decline to $188.2 million missing Wall Street’s expectations by $80.4 million. Read more
›Peloton Raises Full-Year Guidance | May 6
In just its third quarterly earnings report since going public, Peloton Interactive Inc. notched another revenue beat as the company grew its number of connected fitness subscribers 94 percent to 886,100 and its total members to more than 2.6 million. The company also raised its full-year guidance. Read more
›Fox Factory’s Adjusted Q1 Profits Slip | May 6
Fox Factory Holding reported earnings on an adjusted basis declined slightly in the first quarter. Revenues grew 14 percent as strong gains in the Powered Vehicles Group due to acquisitions offset a 1.8 percent decrease in Specialty Sports Group sales. Read more
›Gap Inc. Outlines Strategic Plan For Store Re-Openings | May 6
Gap Inc. said it’s preparing to re-open up to 800 of its Old Navy, Athleta, Gap, Banana Republic, Janie and Jack, and Intermix stores before the end of the month, starting with a small selection of locations in Texas this weekend. The company, in a statement, said its top priority remains the health and safety of its employees, customers and communities. Read more
›NPD: Weekly Retail Spending Up 7 Percent Sequentially | May 6
Retail spending rose 7 percent for the week ending April 25 compared to the prior week, according to The NPD Group. Sales were flat year-over-year during the same period — the first time sales didn’t decline since early March. Read more
›Safilo Group’s Q1 Dragged Down By COVID-19 Impact | May 6
Safilo Group S.p.A., the parent of Smith Optics, reported earnings fell sharply and sales dropped 11.5 percent at constant exchange rates in the wake of COVID-19. Read more
›Kohl’s Begins Reopening Stores | May 6
Kohl’s Corp re-opened stores in Arkansas, Oklahoma, South Carolina, and Utah in its first steps to resume operations amid the coronavirus pandemic. Read more
›NRF Chief Economist: Recovery Likely To Come In ‘Fits And Starts’ | May 6
With some stores starting to reopen as governors lift stay-at-home orders across the U.S., economic recovery from the coronavirus is likely to come gradually and vary by location, NRF Chief Economist Jack Kleinhenz on May 6. Read more
›Fitbit Announces Large-Scale Study To Identify Atrial Fibrillation | May 6
Fitbit launched the Fitbit Heart Study, its first large-scale, virtual study to validate the use of its wearable technology to identify episodes of irregular heart rhythm suggestive of atrial fibrillation (AFib) (Read More)
›Kitsbow Appoints Andrew Chmar To Board of Directors | May 6
Kitsbow, the manufacturer of cycling clothing, announced that Andrew Chmar has joined Kitsbow’s Board of Directors. An expert logician having served in the U.S. Army for more than two decades, Chmar brings extensive expertise in strategic planning and operational management to the Kitsbow board. Read more
›SFIA’s State of the Industry Report Shows 3.9 Percent Growth In 2019 | May 6
The sports and fitness industry performed well across multiple sectors in 2019, according to the Sports & Fitness Industry Association’s annual State of the Industry Report. In 2019, the industry grew 3.9 percent in one year, representing the largest annual growth in 17 years. Read more
›Nike To Donate Sneakers To Frontline Healthcare Workers | May 6
In recognition of frontline healthcare workers combating COVID-19 around the world, Nike will partner with nonprofit Good360 in the U.S. and local organizations across Europe to donate more than 140,000 pieces of footwear, apparel and equipment globally. Read more
›Nordstrom To Permanently Close 16 Stores | May 6
Nordstrom Inc. plans to permanently close 16 full-line stores and announced additional actions to increase flexibility and agility in response to COVID-19. The Seattle-based chain also said it would make changes to how its stores function in a “market-by-market” approach and would move its Anniversary Sale from July to August. Read more
›Wolverine Worldwide Announces Offering Of Senior Notes | May 6
Wolverine World Wide Inc. announced an offering $300 million aggregate principal amount of senior notes due 2025. Proceeds will be used to repay borrowings under its revolving credit facility. Read more
›Report: Lord & Taylor Preparing To Liquidate | May 6
Lord & Taylor is reportedly preparing to liquidate its stores as soon as they reopen, according to a report from Reuters. Read more
›Umbro To Sponsor England Rugby | May 6
Umbro will replace Canterbury as the kit supplier for England’s rugby team on September 1 under a four-year deal. Read more
›Kathmandu’s Online Sales Surge | May 6
Kathmandu, the New Zealand-based outdoor chain and owner of Oboz and Rip Curl, reported online sales increased nearly three-fold in April while announcing plans for a staged reopening of its physical stores with a focus on employee and customer safety. The company also said a successful equity raising and cost reduction effort have solidified its financial position. Read more
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›PLAY Sports Coalition Secures Congressional Support | May 5
Two weeks after initial letters, backed by a united front of youth and local sports leaders, were delivered to Congressional leaders in the U.S. Senate and House of Representatives, the bipartisan Co-chairs of the Congressional Caucus on Youth Sports, Rep. Ron Kind (D-WI), Rep. Rodney Davis (R-IL), Rep. Marc Veasey (D-TX), and Rep. Kelly Armstrong (R-ND), are the first to join the PLAY Sports Coalition Member Sign-On Letter. Read more
›Bogs Q1 Sales Drop 22 Percent | May 5
Weyco Group Inc. reported sales of Bogs fell 22 percent on a wholesale basis in the first quarter. Overall sales for Weyco, which also owns the Florsheim, Stacy Adams and Nunn Bush footwear brands, were down 14 percent. Read more
›Nautilus Rides Stay-At-Home Fitness Trends To Strong Q1 | May 5
Nautilus Inc. reported revenue for the first quarter at $93.7 million, up 11 percent from $84.4 million in the year-ago period, driven primarily by strong demand for strength and cardio products including its new connected-fitness bikes. Read more
›Planet Fitness’ Q1 Revenues Sink 14.5 Percent | May 5
Planet Fitness reported net earnings tumbled 67.2 percent in the first quarter as sales fell 14.5 percent. The fitness chain outlined the steps it has taken to mitigate the financial impact of COVID-19 and preserve liquidity. Read more
›Vista Outdoor Announces Additions To Board of Directors | May 5
Vista Outdoor Inc. announced the addition of two independent members, Fran Philip and Lynn Utter, to its board of directors as part of the company’s ongoing board refreshment efforts. Read more
›TIA Survey Highlights Challenges For Tennis Retailers | May 5
According to a survey from the TIA (Tennis Industry Association) of professional and specialty tennis retailers in the United States, steep sales declines were expected for March and April. Nearly 90 percent of the respondents’ stores were closed when the survey was taken. Read more
›Road Runner Sports To Host A Virtual Race | May 5
Road Runner Sports has partnered with Stride, the boutique fitness franchise that offers treadmill-based cardio and strength workouts, to host a national virtual race on June 3, which is Global Running Day. Read more
›Embody Secures Funding | May 5
Embody, Inc., a privately-held medical device company focused on soft tissue repair, closed a $9.3 million Series A funding round. The financing will support the commercial launch of Tapestry, its next-generation soft-tissue repair technology. Read more
›In Memoriam: Former Emerald CEO Sally Shankland | May 5
Sally Shankland, the former CEO of Outdoor Retailer and Surf Expo parent company Emerald Holding Inc., passed away on April 20 after a battle with cancer. The company made the announcement during its earnings call on May 4. Read more
›CODI Sets Senior Unsecured Notes Offering | May 5
Compass Diversified Holdings (CODI) announced that the company intends to commence a private add-on offering of $200 million aggregate principal amount of the company’s 8.0 percent senior notes due 2026. Read more
›Johnson Outdoors Q2 Revenues Slump 8 Percent | May 5
Johnson Outdoors Inc. reported earnings were down slightly in its fiscal second quarter ended March 27 on an 8 percent revenue decline. Year-to-date revenue and net income compared favorably to the prior year fiscal six-month period. Read more
›Dakine To Shutter Hood River Offices | May 5
Dakine Equipment LLC is reportedly closing its Hood River headquarters and moving to Torrence, CA. Read more
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›Disabled Sports Merges With Adaptive Sports To Become Move United | May 4
Disabled Sports USA and Adaptive Sports USA are merging to become Move United. This new organization will lead the movement to include people with disabilities using sport to challenge perceptions and redefine ability for youth and adults who are disabled. Read more
›Duluth Holdings Starts To Re-Open Stores | May 4
Duluth Holdings Inc. said it re-opened 20 retail stores on May 4 where COVID-19 restrictions have been lifted and are preparing to re-open the balance as other states lift their pandemic mandates. The apparel company also announced steps to shore up its liquidity. Read more
›Firearms Background Checks Surge Again In April | May 4
The FBI completed 1.68 million firearms background checks in April, an increase of 69.1 percent compared to the April 2019 NSSF-adjusted NICS figure of 992,642. Read more
›Gold’s Gym Files For Chapter 11 Bankruptcy Protection | May 4
Gold’s Gym filed for Chapter 11 bankruptcy protection on May 4 as the fitness chain deals with the closure of outlets across the country due to the coronavirus. The filing does not involve franchise-owned gyms, and the company expects to emerge from bankruptcy proceedings by August. Read more
›L.L. Bean Rolls Out Curbside Pick-Up | May 4
L.L. Bean said will introduce curbside pickup. Currently, the service is only available at its flagship store in Freeport, ME. Read more
›Pelican Products Debt Outlook Changed To Negative | May 4
The debt rating for Pelican Products, a supplier of performance case solutions and portable lighting systems based in Torrance, CA, was affirmed by Moody’s, but the rating agency’s outlook was changed to negative. Read more
›Jim Walker Joins Athletic Republic Executive Team | May 4
Athletic Republic, a franchisor of sports performance training centers, announced that Jim Walker has joined its corporate team as the head of science, education and trainer development. Read more
›Compass Diversified Holdings Announces Common Share Offering | May 4
Compass Diversified Holdings commenced a public offering of 5 million common shares with a 30-day option for the underwriters to purchase up to an additional 750,000 common shares. Read more
›Event Cancellations Plague Emerald’s Q1 Performance | May 4
Because of numerous event cancellations due to the coronavirus, San Juan Capistrano, CA-based Emerald Holding Inc., the operator of Outdoor Retailer, Surf Expo and other trade shows, reported revenue for the first quarter declined 27.4 percent to $99.7 million. Read more
›Topgolf’s Debt Rating Downgraded | May 4
Moody’s downgraded the debt rating of Topgolf International over concerns that the coronavirus would hamper its ability to operate its venues until the spread of the virus is contained. Read more
›Jack Wolfskin North America Announces New U.S. Online Store | May 4
Jack Wolfskin North America, the German-founded and Callaway Golf Co.-owned producer of outdoor apparel and gear, announced the launch of its U.S. online store. Read more
›Puma Close To Signing Raheem Sterling | May 4
Puma is reportedly close to signing Raheem Sterling, the Manchester City soccer star, to a record-breaking endorsement to become the face of the brand’s soccer strategy. Sterling is currently with Nike. Read more
›Wanda Sports’ Revenues Slide In 2019, Warns On COVID-19 Impact | May 4
Wanda Sports Group Co., the China-based owner of Ironman, the Rock ’n’ Roll Marathon series Cape Epic mountain biking event, reported total revenue was €1.03 billion (US$1,156.5 million) in 2019, a decrease of 9 percent compared with 2018. The company also warned that by April 2020 substantially all of its sports events had been canceled or postponed “and it is currently unclear when these sports events will resume.” Read more
›Theragun Rebrands To Therabody | May 4
Theragun, the maker of hand-held percussive therapy devices, announced its rebranding to Therabody. The change comes as the company announced plans to launch a USDA certified organic CBD line, TheraOne, as well as Theragun’s fourth-generation percussive massage devices. Read more
›Shoe Carnival Begins Initial Store Re-Openings | May 4
Shoe Carnival re-opened 122 stores on May 1 and 62 on May 4. Read more
›J. Crew Files For Chapter 11 Bankruptcy | May 4
J. Crew Group Inc., as expected, filed today for Chapter 11 bankruptcy protection in federal bankruptcy court in the Eastern District of Virginia. The retailer said it had reached a deal with its lenders to convert about $1.65 billion of debt into equity. Read more
›Trump Threatens New China Tariffs | May 4
President Trump threatened to impose further tariffs to punish China for its handling of the coronavirus pandemic. Read more
›Adidas Countersues Louisville Basketball Recruit’s Father | May 4
Adidas filed a counter lawsuit against former five-star recruit Brian Bowen II’s father, a former grassroots consultant, and a financial advisor. The suit charges the three worked with Adidas employees to funnel money to the families of high school basketball prospects while evading detection by others in the company.
