Author: SGB Executive

Compass Diversified Holdings (CODI) reported healthy double-digit revenue gains for Velocity Outdoor, Marucci Sports, Boa Technology, and Liberty Safe in its first quarter ended March 31, 2021. The company’s 5.11 brand achieved more modest growth but saw robust retail gains.

On Puma’s quarterly media call, CEO Bjørn Gulden said the brand’s 26 percent jump in first-quarter sales came despite ongoing coronavirus lockdowns and congestion at U.S. ports and reflected strength across running, golf, basketball and lifestyle offerings. He also predicted a return to sport with the help of the Olympics and EURO Cup.

Olin Corp. reported sales at its Winchester ammunition business catapulted 107 percent in the first quarter. The gains were driven by its purchase of the Lake City U.S. Army Ammunition Plant and heightened interest in target shooting coming out of the pandemic.

Helen of Troy said Hydro Flask topped internal plans in its fiscal year ended February 28 and trends have improved as social distancing restrictions have eased. Julien Mininberg, Helen of Troy’s CEO, on a conference call with analysts, said, “We are excited about Hydro Flask growth prospects as the world begins to reopen.”

Crocs Inc. reported sales jumped 64 percent in the first quarter and said it now expects sales for 2021 to climb about 45 percent for the year. The comfy shoe brand has clearly benefited from the comfort footwear trend in the stay-at-home economy but it’s also increasingly being seen as a fashion statement.

New research by Accenture suggests that the pandemic has intensified interest in “conscious consumption” — defined as those who seriously consider the environmental and societal impacts of their shopping choices. Sixty-nine percent of consumers believe brands should do more to make it easier to consume more consciously.

Skechers USA’s first-quarter earnings topped Wall Street’s target on robust international gains, driven by China. Domestic wholesale sales were down slightly due to logistics challenges but Skechers’ officials said demand for its comfort footwear remains strong. They also expect to gain market share as Nike streamlines its wholesale account base.

SGB Executive collected the latest consumer research into Generation Z, including insights into their online loyalty, gaming habits, environmental concerns, and online and offline shopping behavior.

Nike’s shares are trading lower on Tuesday after Citigroup reduced its rating and price target amid growing consumer boycotts in China.

Shares of Peloton Interactive were down about 9 percent in mid-day trading Monday after the U.S. Consumer Product Safety Commission (CPSC) in an unusual move warned people to stop using the company’s Tread+ “immediately” if they have children or pets in the home, citing 39 incidents including one death.  Peloton called the warning “inaccurate and misleading” but some analysts felt the heightened safety concerns could slow subscriber growth.

At the JP Morgan Retail Round-Up, Academy Sports’ officials said strong sales momentum continues for many pandemic-boosted categories but they also spent time elaborating on the chain’s efforts to strengthen partnerships with Nike, The North Face, Adidas and other key brands.

REI Co-op logged a net loss of $34.5 million in 2020 and sales on a Proforma basis were down 8 percent. However, the retailer was able to exceed its pandemic-adjusted targets and finish the year in a strong financial position, said Kelley Hall, REI SVP and CFO, in an interview with SGB Executive. Sales have also seen a resurgence since the initial pandemic-driven store closures and momentum has continued into 2021.

JD Sports Fashion, Britain’s biggest sportswear retailer, predicted profits would rebound more strongly than expected in 2021 as stores reopen after lockdown and its aggressive expansion in the U.S. shows early signs of paying off.

Studies continue to predict the pandemic will likely change behaviors in the years ahead, including an expected greater focus on physical and mental health. A notable weight gain was seen by most Americans as well as continued stress also points to opportunities for brands supporting active lifestyles.

In an extensive interview with SGB Executive, Steve Lawrence, EVP and chief merchandising officer, Academy Sports + Outdoors, discusses how the many drivers of the retailer’s 16.1 percent same-store gain in 2020 will support growth in 2021 and beyond.