Author: SGB Executive

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.”

Vail Resorts, Inc. financial results continued to be heavily impacted by COVID-19 during its second fiscal quarter ended January 31 but total visitation across the company’s North American destination mountain resorts and regional ski areas were only down approximately 5 percent.

The hard goods category again led Zumiez Inc. to deliver strong results for the fourth quarter, and the chain is looking to convert new skateboarders who embraced the activity during the pandemic into loyal customers.

Tilly’s Inc. logged the strongest fourth-quarter EPS performance since its 2012 fourth quarter. The gains were helped by strong performances in women’s and footwear supported by introducing several new brands. The chain, however, warned that product arrival delays could curtail sales growth in the first half.

Journeys reported same-store sales rose 2 percent for its first positive comp since the pandemic emerged on strong appeal for casual footwear offerings, according to the fourth-quarter report of parent, Genesco Inc. Said Mimi Vaughn, Genesco’s CEO, “Comfort reigns as the fashion choice of the pandemic.”

Bogs saw North American revenues on a wholesale basis increase 5 percent in the fourth quarter to end with flat sales for the year, according to the outdoor footwear brand’s parent, Weyco Group. Bogs’ backlogs are “very strong” due to boot shortages in the marketplace.

Adidas on Wednesday announced its new five-year growth plan, “Own The Game,” which promises to accelerate digital, direct-to-consumer growth and doubling of its “key cities” focus to 12 cities. However, the plan is guided by five industry trends that accelerated due to the pandemic. 

Dick’s Sporting Goods reported record sales and earnings for the fourth quarter and year and predicted continued strong demand across golf, outdoor, fitness and active lifestyle categories as well as recovery for team sports in 2021. Conservative guidance was still provided for 2021 as the company seeks to hurdle 2020’s pandemic-driven gains.

Clarus Corp. reported total sales were up 24.4 percent in the fourth quarter ended December 31 on the back of accelerating growth of the Sierra Bullets brand and continued recovery of Black Diamond. The gains came despite continued supply chain constraints holding back gains in both segments.

Both TJX Cos. and Ross Stores missed Wall Street’s expectations in the fourth quarter due to temporary store closures tied to upticks in COVID-19 cases. Both also continue to be held back by general weakness in the broader apparel category amid the pandemic. Burlington Stores managed to top Wall Street’s targets as store traffic picked up with the arrival of colder weather despite the pandemic.

Hibbett Sports reported significant gains in fourth-quarter earnings and sales and expressed confidence that new customers captured during the pandemic would boost sales in the years ahead. However, Hibbett officials also warned of supply chain disruptions and provided muted guidance for 2021 due to uncertainties in the marketplace.

Gap Inc. said it plans to open 20 to 30 Athleta stores in 2021 after the women activewear chain’s fourth-quarter sales jumped 29 percent on a reported basis and 26 percent on a same-store basis. Sonia Syngal, Gap Inc’s CEO, told analysts, “Athleta is our highest margin business and like Old Navy has made continuous market share gains each quarter year-to-date.”

“It starts with the runner,” said Dan Sheridan, EVP, COO, Brooks Running, explaining how the brand’s run-centric focus paved the way for a 27 percent hike in sales in 2020 amid the pandemic. But the performance, in particular, reflects the payback from recent investments in two areas—establishing a multichannel strategy and creating an internal runner research hub, the Run-Sight Lab.

On Nordstrom’s fourth-quarter earnings call, Pete Nordstrom, president, said the retailer’s partnership with Tonal, the at-home connected gym start-up, is just one part of the chain’s efforts to build on recent success in the active category.