Author: SGB Executive

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.

Big 5 Sporting Goods Corp.’s earnings more than tripled in the third quarter ended September 27 as the West Coast chain benefited from participation shifts toward fitness and outdoor activities during the pandemic. Same-store sales jumped 14.8 percent for the quarter and are up 15.1 percent so far in the fourth quarter.

In a bullish note, HSBC said the sporting goods industry “has turned out to be even more resilient than we could have hoped for,” aided by strong online growth, heightened interest in healthy lifestyles and a quicker-than-expected recovery in Western countries,

“Athleta is uniquely positioned to win because we sit at the intersection of a number of exciting consumer trends,” said Mary Beth Laughton, president and CEO, Athleta, during Thursday’s Investor Day presentation of its parent, The Gap Inc. The event outlined the brand’s goal to double Athleta’s sales to $2 billion by 2023 from $1 billion currently.

The pending acquisition of Easton Diamond Sports is expected to particularly boost Rawlings’ capabilities in the baseball and softball bat category, but Mike Thompson, Rawlings’ chief marketing officer, told SGB Executive he expects the combination will accelerate innovation across a wide range of categories for both brands and help grow the game of baseball.

According to the fifth edition of PwC’s Sports Survey, growth in the broader sports industry, including sports federations, broadcasting and marketing, is expected to decline significantly over the next few years with many industry execs not expecting a full recovery until 2023 or later. PwC wrote in its study, “Like all industries predicated on events and mass gatherings, the unprecedented health crisis brought about by COVID-19 has impacted the sports market at its very core.”

Winnebago Industries, seeing continuing strong demand for outdoor recreation, reported revenues jumped 39.1 percent in the fourth quarter ended August 29, to $737.8 million. Excluding Newmar, which was acquired in the first quarter of fiscal 2020, organic sales climbed 15.3 percent.

An SFIA webinar headlined by executives at LeagueSide and Morning Consult provided optimism from community youth sports organizations on recovery as teams returned to play over the summer and early fall. However, a warning about potential disruptions as winter sports gets underway was also heard.

Bank of America Merrill Lynch upgraded Foot Locker to “Buy” as the investment firm believes Foot Locker’s momentum improved significantly over September and October, given a shift in back-to-school sales in part due to Nike product momentum. Long-term, Foot Locker is expected to benefit from Nike’s moves to tighten wholesale distribution.