Author: SGB Executive

Americans skateboarded, played tennis, surfed, camped, and played basketball at record highs in 2020, helping reduce inactivity rates to their lowest levels since 2007, according to SFIA’s 2021 Annual Topline Participation Report. While social-distancing requirements decimated team sports participation, recreational or backyard play saw an uptick and strong interest in kids returning to team play.

Garmin Ltd. reported sales in the fourth quarter came in well ahead of Wall Street expectations as sales surged 48 percent in its Marine segment, 40 percent in Outdoor, and 26 percent in Fitness. Continued double-digit growth was forecast for the three segments for 2021. Cliff Pemble, Garmin’s president and CEO, told investors, “Right now we’re believing that the trends that we’ve been seeing in the business over the past year are solid and will continue.”

Run specialty has finally embraced online retailing due to COVID-19 to support a strong sales recovery in the second half of 2020, according to the latest survey from the Running Industry Association (RIA). However, according to the survey, it’s still uncertain how big a driver online will be for the channel, and direct-selling continues to cause tension in supplier relationships. In an interview with SGB Executive, Terry Schalow, RIA’s executive director, explains more.

At a webinar as part of Outdoor Retailer Winter Online, supply chain executives from Keen, Simms Fishing Products, NEMO Equipment, REI and Columbia Sportswear elaborated on how agility and the resilience of internal teams helped offset logistics disruptions caused by the pandemic, including ongoing port congestion and shipping container shortages.

Newell Brands reported sales in its Outdoor & Recreation Segment in 2020 were held back by weakness at the Marmot technical apparel business and Contigo beverage business due to reduced on-the-go activities during the pandemic. However, Coleman experienced its first positive sales annual growth since 2017.

Asics’s sales in its North American region fell 11.9 percent in the fourth quarter as continued robust online growth was offset by wholesale declines. However, Asics predicted a return to double-digit growth in 2021. Said Richard Sullivan, president and COO of Asics America, in a statement, “We have seen a sustained demand for our products across our owned and partner channels even given the circumstances of the last year.”

Yeti Holdings Inc. reported better-than-expected fourth-quarter earnings as the thirst for outdoor pursuits amid the pandemic continued. Officials are targeting mid-teens growth for the current year and expect to catch up to inventory shortages hampering wholesale growth by the second quarter.

Under Armour Inc. reported fourth-quarter results that blew past Wall Street estimates due to better-than-expected sell-throughs and full-price selling. However, officials provided a cautious sales outlook for 2021 as the company seeks to “constrain demand” to reestablish Under Armour’s position as a premium-priced brand.

HanesBrands reported a solid finish for the year with revenue, operating profits, EPS, and operating cash flow all coming in above expectations, led by double-digit growth for its Champion brand. Officials also detailed its Full Potential plan to drive growth and profitability in the years ahead that includes further steps to accelerate growth for the Champion brand globally.

Delta Apparel reported sales in its fiscal first quarter ended December 31 were well ahead of internal expectations for both sales and profitability. The company achieved nearly-flat sales despite notable headwinds from inventory constraints, hurricane-related disruptions in Central America and freight carrier limitations during the holiday season.

Buoyed by robust gains across its Fishing, Watercraft Recreation and Camping segments, Johnson Outdoors reported a significant hike in earnings in the first quarter ending January 1. Helen Johnson-Leipold, chairman and CEO, told analysts, “Consumer demand remained strong during the quarter and customers replenished their depleted inventory levels in anticipation of the upcoming warm weather recreation season.”

A report from The World Federation Sporting Goods Industry (WFSGI), in partnership with McKinsey & Company, identified eight key themes likely to define the industry’s evolution in the coming period. The report also found that despite the hype over interest in outdoor recreation and home fitness, the sporting goods industry contracted in 2020 for the first time since the financial crisis.

Peloton’s fiscal second-quarter earnings and sales trounced analysts’ estimates, but officials warned that near-term investments in its supply chain to speed deliveries will weigh on margins.

Columbia Sportswear reported a better-than-expected fourth-quarter due to continued robust e-commerce sales and a spike in wholesale reorders in December. Officials provided an upbeat outlook for 2021, projecting 18 percent to 20 percent net sales growth with growth across all four of its brands. On a call with analysts, Tim Boyle, CEO, said, “As we begin 2021, we’re encouraged by the building momentum across our brand portfolio.”

Shares of Canada Goose surged $7.73, or 22.0 percent, to $42.90 Thursday after the outerwear specialist delivered its first quarterly revenue increase since the onset of the pandemic. The gains were boosted by a 39.3 percent hike in global e-commerce revenue and a 41.7 percent DTC revenue gain in Mainland China.