Author: SGB Executive

The athletic apparel and athletic footwear categories again grew mindshare among the Gen-Z generation, led by increased interest from girls, according to Piper Sandler’s 41st Biannual Taking Stock With Teens Spring 2021 Report. Nike and Lululemon were again the big winners in the active lifestyle space. Other brands increasing in popularity among teens were Crocs, Shein and PacSun, while Vans and Adidas lost ground.

Inventory levels were just as hot a topic as sales and margins on recent quarterly investor calls as delays caused by congestion at the nation’s ports risk restraining top-line growth in the months ahead. Here is a roundup of recent discussions on analyst calls regarding inventory flow.

Lululemon Athletica reported same-store sales climbed a better-than-expected 21 percent in the fourth quarter as online sales continued to vault. Robust sales guidance is again seen for the current year as Lululemon officials expressed confidence that the pandemic has accelerated growth opportunities.

Academy Sports + Outdoors Inc. reported fourth-quarter earnings jumped four-fold to come in well above Wall Street’s target as sales momentum continued across numerous categories and apparel rebounded. Academy officials were also optimistic that many trends would continue to boost its 2021 results.

Omega Sports Inc., based in Greensboro, NC, filed a bankruptcy petition in Charlotte, NC with a plan to reorganize around its remaining seven stores. Vendors holding sizeable unsecured claims in the bankruptcy include New Balance, owed $261,110.17; Brooks Sports, $248,424; Under Armour, $225,620; and On Running, $159,318.65.

At its Investor Day event, Nautilus Inc. laid a long-term strategic plan to nearly double sales by 2026 as it looks to take advantage of the dramatic shift toward at home-fitness. Shares of Nautilus, however, remain under pressure due to a weak outlook for margins.

SFIA’s 2021 Manufacturers Sales By Category Report shows double-digit solid sales gains across golf, camping, firearms, and fleece, but the fitness equipment category saw the most significant gain boosted by the home-fitness craze.

Winnebago Industries reported earnings soared in the second quarter ended February 27, and backlogs are running ahead in triple-digits for both its Towable and Motorhome segments. Winnebago told analysts it does not see a slowdown even as other forms of travel slowly reopen to consumers.

Shares of Nike slid $5.68, or about 2 percent, Friday after it reported third-quarter sales missed Wall Street’s target due to port congestion in North America and store closures in the EMEA region—both tied to COVID-19. However, analysts generally believe the underlying demand for Nike’s products remains strong and see top-line momentum resuming in the quarters ahead.

Foot Locker, Bass Pro and REI all landed among the top-ten retailers on CI&T’s Connected Retail Report. Foot Locker stood out for its ‘fun and engaging” website while Bass Pro and REI ranked high for their overall shopping experience.

Nike’s sales in the third quarter ended February 28 came in below Wall Street’s targets as container shortages and port delays impeded the North America wholesale business. However, Nike said demand for its products remains strong and inventory flows are expected to improve, with much of third quarter’s miss expected to be made up in its fourth quarter.

With Americans thirsting to get outdoors during the pandemic, L.L.Bean recorded its best annual sales growth in nearly a decade. Annual net revenue totaling $1.59 billion, a 5 percent increase over 2019, its best showing since 2011.

Designer Brands, the parent of DSW, said athleisure and athletic styles again delivered double-digit growth due in part to ramped-up inventory investments over the last year. Weakness in dressier and formal styles due to pandemic led to a 20.1 percent overall comp decline for the company.

Speaking at the BofA Securities Consumer and Retail Technology Conference, officials at Dick’s Sporting Goods elaborated on the potential for its two new concepts, Public Lands and Dick’s House of Sport, while also addressing its relationship with Nike, its private-label success and sales outlook for the current year.

Dorel Industries Inc. reported sales at its Dorel Sports cycling segment rose 13.8 percent in the fourth quarter and expects cycling’s momentum to continue after the pandemic is over; however, supply chain constraints continue to curtail top-line growth. Martin Schwartz, president and CEO, Dorel Industries, said, “Demand for bicycles overall is clearly outpacing the ability to supply in both the IBD and mass channels.”