Author: SGB Executive

Lululemon’s third-quarter results arrived well above Wall Street’s expectations due to improved store productivity, nearly double-digit online growth and greater acceptance of Lululemon’s broader offerings. Total comps jumped 19 percent with increases of 22 percent in women’s and 14 percent in men’s. Said Calvin McDonald, CEO, “These results demonstrate that our brand is becoming stronger.”

Elevated by the continued momentum across outdoor and home fitness categories due to the pandemic, Academy Sports reported record earnings and sales in the third quarter in its first report as a public company. Double-digit comps were seen across bicycles, outdoor games, fitness equipment, fishing, camping and hunting.

Morgan Stanley and Cowen both raised their price targets on Nike Inc. Both firms cited the benefits of the company’s digital transformation and potential margin improvement.

SGB Executive talked with Chris Speyer, REI’s VP of product and Nicole Browning, REI’s manager of marketing inclusion, about its updated Product Impact Standards that puts a bigger focus on fighting climate change and supporting diversity and inclusion.

Mimi Vaughn, president and CEO, said, “While the casual part of Journeys’ assortment has been gaining ground over fashion athletic all year, Q3 delivered the largest quarterly growth so far.”

Smith & Wesson Brands reported its second consecutive record-breaking quarter for the 168-year-old company. Mark Smith, president and CEO, also expressed confidence that new hunt customers gained during the pandemic would drive growth for the company in the years ahead.

Tilly’s reported sales slumped 9.4 percent in the third quarter ended October 31 as a result of delayed Back-to-School selling and COVID-19-related restrictions on in-store operations. Women’s was the only positive sales category in the period.

Boosted by a recovery in sales in September and October, Zumiez reported earnings soared 51.6 percent in the third quarter as same-store sales jumped 8.1 percent. Rick Brooks, CEO, said, “Strong digital activity and robust full-price selling across all geographies highlighted our top-line performance.”

Duluth Trading reported strong online sales to offset continued declines in in-store sales in the third quarter. The retailer warned that in-store traffic had worsened in recent weeks in line with surges in COVID-19 cases. Steve Schlecht, executive chairman and CEO, told analysts, “The resurgence of COVID-19 is a concern regarding in-store shopping, and it also clouds the outlook for consumer spending.”

Speaking at Morgan Stanley’s Virtual Global Consumer & Retail Conference, Shoe Carnival officials elaborated on plans to start ramping up expansion efforts in 2021 after closing a number of underperforming locations over the last three years that reduced its store count from 417 to 383 currently.

Sportsman’s Warehouse Holdings reported sales jumped 59.1 percent in the third quarter to far outpace Wall Street’s targets as the hunt & fish chain was challenged keeping up with hot demand for hunt, fish and camping products. Said Jon Barker, CEO, “We worked closely with our vendors and provided our customers with inventory levels that we believe were unmatched by our direct competitors.”

At Morgan Stanley’s Virtual Global Consumer & Retail Conference on Wednesday morning, Lauren Hobart, president at Dick’s Sporting Goods, expressed confidence that strength in core categories, access to new customers and a potential rebound in team sports will contribute to ongoing sales momentum in 2021.

Online sales again saw record growth on Black Friday while in-store traffic tumbled by half in an expected subdued start to the traditional holiday season.

Tributes poured across social media from former co-workers, footwear partners, tech investors and political pundits following the shocking death of Tony Hsieh, Zappos’ visionary, at the age of 42.

Athleta delivered 35 percent sales growth in the third quarter, with September reaching the highest sales comp in the history of the brand. Said Sonia Syngal, CEO, Gap Inc., “Athleta is our fastest growing and most profitable brand.”