Author: SGB Executive

Shares of Dick’s Sporting Goods barely budged on Tuesday despite the retailer reporting third-quarter results that nearly doubled Wall Street’s targets on accelerating same-store growth and also announcing that Lauren Hobart would be succeeding long-time CEO Ed Stack. Wall Street was nonetheless impressed by the performance with some gaining more confidence in Dick’s growth prospects for 2021.

Dick’s Sporting Goods reported the best quarterly store comp in its history as a public company as home fitness and outdoor activities continue to be embraced during the pandemic. However, the performance was overshadowed by the announcement that Ed Stack, CEO since 1984, will soon be succeeded by Lauren Hobart, the retailer’s president.

With growth returning in every business unit in the September quarter, Delta Apparel reported year-over-year sales growth of 8.1 percent and a 70 percent improvement in operating profit in the fiscal fourth quarter ended October 3. Highlights include nearly 30 percent growth in its digital print business, DTG2Go, and a 12 percent climb at Salt Life.

Hibbett Sports Inc. reported third-quarter earnings skyrocketed more than four-fold on a 21.2 percent same-store gain. Highlights of the quarter included overall apparel comps climbing in the mid-thirties, overall footwear comp gains in the low-twenties, and a women’s comps across footwear and apparel leaping in the low-fifties.

Foot Locker said continued strength in its basketball footwear business and a pickup in apparel due to stay-at-home trends helped drive same-store sales ahead 7.7 percent in the third quarter and lifted earnings well ahead of Wall Street’s targets. Men’s, basketball, boots and seasonal footwear as well as women’s footwear overall delivered double-digit comp gains in the quarter.

The TJX Cos.’s third-quarter results exceeded Wall Street targets with strength in activewear, home and beauty categories. However, TJX officials warned that holiday selling would likely be hampered by a surge in COVID-19 cases here in the U.S.

Shoe Carnival delivered its most profitable quarter in the company’s history helped by reduced promotional activity and strength in performance sandals and athletic footwear. The off-price retailer also posted a comp gain in the period despite delayed back-to-school selling.

Wells Fargo upgraded Under Armour’s stock due in part to expectations that the stock could be the “Next Big Athletic Turnaround.” Wrote analyst Tom Nimic in a note, “A major reason why athletic turnaround stories work so well is that the fundamental improvement in the companies tends to be extremely robust.”

Under the new leadership of John Scipio and Jason Lutz, Schuylkill Valley Sports (SV Sports), the sporting goods chain based in Pottstown, PA, is looking to reinvent itself with a goal of bringing greater personalization, experiential activations and technological innovations to the staid team sports retailing space.

Kohl’s active category continued its momentum in the third quarter and officials elaborated on its recently announced goal to expand active assortments from 20 percent to “at least” 30 percent of sales. Said Michelle Gass, Kohl’s CEO, “Our insights show that more people are focusing on health & wellness, whether it’s working out or spending time outdoors. In addition, their active and athleisure wardrobe is expanding into many new occasions, and we expect this trend to continue.”

Sequential Brands Group reported its recently-hired CEO, David Conn, had departed as the brand-management company reported its active brands, AND1, Gaiam, SPRI and Avia, again outperformed in the third quarter.

seminar held last Thursday by SFIA and featuring top executives from the National Federation of State High School Associations, the National Hockey League and USA Volleyball, explored the health risks as team sports moves indoors for the upcoming winter sports season. Ensuring safety protocols, as risks rise, headlined the major challenges facing winter team sports.

Cowen’s third annual Gen Z and Millennial survey found sustainability and social impact among the high-level themes increasingly resonating with 18-to-34-year-old consumers and their purchase decisions. Nike was ranked first among apparel and footwear brands that most align with younger consumers’ social values and beliefs around sustainability, followed by Adidas, Vans and The North Face.

Fox Factory Holding Corp said it achieved the highest volume of shocks and forks ever shipped in a quarter as bike riding has soared in popularity during the pandemic. Mike Dennison, CEO, doesn’t see the potential arrival of a COVID-19 vaccine significantly slowing momentum.

Adidas AG’s third-quarter sales and profitability recovered smartly with revenues only slightly below year-ago levels. However, a hoped-for return to growth in the fourth quarter has been dashed as the second wave of coronavirus outbreak in Europe has led to lockdowns and pandemic-related risks increase in other regions.