Author: SGB Executive

Clarus Corp.’s earnings came in well above Wall Street’s targets as Black Diamond’s revenue declines were significantly lower sequentially and Sierra Bullets’ expanded more than two-fold year-over-year. Continued recovery is expected for Black Diamond in the fourth quarter. John Walbrecht, Clarus’ president, “We are expecting a strong back country snow season.”

Callaway Golf’s third-quarter results exceeded expectations as a faster-than-expected bounce back drove golf equipment sales ahead 27 percent in the period.  The soft goods segment also showed some recovery but was still down year-over-year. Said Chip Brewer, president and CEO, “Golf retail, outside of resort locations, remains very strong at present and barring a shutdown situation has not been sensitive to the upticks in COVID cases.”

VF Corp. announced plans to acquire Supreme, the streetwear brand with a cult following, eyeing a $1 billion global opportunity over time. Said Steve Rendle, VF’s CEO, on a conference call with analysts, “Supreme sits at the epicenter of this market opportunity as the original and global category leader.”

Canadian Tire Corp. reported Sport Chek’s comparable sales growth declined 1.4 in the third quarter. The decline was attributed to fewer promotional events, a slower back-to-school season and a decline in hockey and team sports compared to the prior year.

Champion’s sales declined 9 percent year-over-year in the third quarter. The shortfall was traced primarily to the brand’s Sports Apparel business where COVID-19-related headwinds essentially shut down sporting events and business at college bookstores.

Riding strong double-digit growth in both its Shooting Sports and Outdoor Products segments, Vista Outdoor Inc. reported robust growth in the second quarter ended September 27, provided a bullish outlook for its holiday quarter and detailed how the newly-acquired Remington brand will support future growth.

Powered by strong growth at Saucony, improving trends at Merrell, its work brands, and explosive growth online overall, Wolverine Worldwide reported both earnings and sales topped expectations during its third quarter. Sales are expected to decline no more than 25 percent in the fourth quarter in part due to the timing of deliveries, but a strong return to growth is predicted for Q121.

Academy Sports & Outdoors received positive stock ratings across the board as the first wave of Wall Street reports recently arrived following the retailer’s IPO debut on October 2. Among the catalysts cited for the stock is the expected continuing payback from strategies initiated by the retailer’s revamped management team led by CEO Ken Hicks, the benefit of broad strength in sports and outdoor categories amid the pandemic, and ample room to expand e-commerce.

Stifel upgraded its rating on Under Armour to “Buy” from “Hold” due to the investment firm’s increased confidence in the company’s expense-structure leverage and ability to achieve more than mid-single-digit EBIT margin on a “higher quality” revenue base.

Emerald Holding’s results in the third quarter were decimated by the wide-scale cancellation of trade show events, but Brian Field, interim president and CEO, expressed optimism that live face-to-face events will begin to reemerge in 2021.

Newell Brands’ Outdoor & Recreation segment returned to core sales growth in the third quarter due to strong demand for camping gear during the pandemic, Said Ravi Saligram, Newell’s president and CEO, on a conference call with analysts, “The rebound in outdoor activity we started to see at the end of Q2 has continued, especially in camping gear including tents, stoves, grills and shelters both in America and International.”

Deckers Brands said Hoka One One’s sales surged 83.2 percent in the second quarter ended September 30 and the running brand is now on track to reach its milestone of $500 million in annual sales by fiscal year-end. Coupled with a strong recovery for Ugg, Deckers’ quarterly results far exceeded Wall Street’s targets. Officials, however, warned that inventory shortages could curb growth over the holiday quarter.

Sturm, Ruger & Company Inc.’s sales climbed 53.4 percent in the third quarter, accelerating on gains of 35.3 percent in the second quarter and 8.4 percent in the first. Ruger’s CEO Chris Killoy told analysts the company is increasingly confident that the firearms buying surge during the pandemic will pack long-term benefits for the firearms industry.

Compass Diversified Holdings (CODI) said Liberty Safe, Marucci, and Velocity Outdoor all delivered healthy double-digit growth in the third quarter. 5.11’s sales were flat, but its profitability significantly improved.

Powered by its Marine, Fitness and Outdoor segments, Garmin Ltd. reported sales rose 19 percent and adjusted earnings climbed 25.5 percent in the third quarter ended September 26. Garmin also updated its full-year guidance with an outlook well above Wall Street estimates.