Author: SGB Executive

Town Sports International LLC, the parent of New York Sports Clubs, Boston Sports Clubs, and numerous other gyms, on Monday, became the latest fitness chain to land in bankruptcy court due to the pandemic.Wrote Phillip Juhan, CFO of Town Sports, in an affidavit filed in Delaware’s bankruptcy court, “COVID-19 has hit the health club industry particularly hard.”

Peloton Interactive marked its first quarterly profit as sales vaulted 172 percent in the fiscal fourth quarter ended June 30. The company also forecasted first-quarter and fiscal 2021 sales that far exceeded analysts’ expectations. John Foley, Pelton’s CEO, said on a conference call, “American consumers have said that they want fitness at home. It just hasn’t worked until now.”

Analysis by eMarketer found online sales grew 44 percent year-over-year in the second quarter and the research firm predicted online sales would reach 18 percent of U.S. retail sales in 2021. Recent retail surveys and studies also explored growing comfort by consumers in returning to stores, the U.S. economy’s recovery, 3D-shopping and road trips.

Designer Brands Inc. vowed do double-down on its efforts to expand athletic assortments as its DSW off-price chain as its core dressier styles are seeing meager traction in the stay-at-home economy. Said Roger Rawlins, CEO at Designer Brands and interim president, DSW, “Designer Brands has the flexibility and the necessary vendor relationships to become a go-to sneaker headquarters during this time.”

Tilly’s reported sales declined 16 percent in the second quarter ended August 1 and warned that third-quarter sales would decline sharply due to soft traffic as stores have reopened as well as delayed back-to-school (BTS) selling. Tilly’s officials also noted that BDG by Urban Outfitters, Nike Women and Fjällräven have been added to the action-sports chain’s mix.

Duluth Holdings Inc., the parent of Duluth Trading, delivered significant improvements in earnings in the second quarter as sales grew 12.6 percent, led by online sales. Said Steve Schlecht, executive chairman and CEO, on a conference call with analysts, “Comfort was key.”

Sportsman’s Warehouse’s earnings vaulted in the second quarter as sales jumped 79 percent on significant increases in firearms, ammunition, fishing, and camping. The performance benefited from market share gains, a surge in outdoor participation and civil disorder. Said Jon Barker, CEO, on a conference call with analysts, “Quite simply, demand outstripped supply for many of our products.”

Macy’s on its second-quarter conference call indicated that it is planning conservatively for the second half and continues to expect same-store sales to be down in the low-to-mid 20 percent range during the fall season. However, officials called out active, as well as home, among categories seeing strong demand and believe luxury overall is benefiting due to a shift away from experiential purchases.

Shoe Carnival Inc. said sales of adult athletic styles jumped 30 percent in the second quarter to fuel record sales in the period. Officials also don’t see a slowdown this year in the casual and athletic footwear trends that has emerged with the pandemic. Said Cliff Sifford, vice chairman and CEO, “The trend of casual lifestyle will continue.”

Caleres Inc. said sales at Famous Footwear rebounded strongly with a record month in June as stores reopened, but disruption to school openings is expected to lead to a 15-to-20 percent decline in the third quarter. The off-price shoe chain expects to benefit from its heavy concentration of sports performance and leisure-oriented styles aligned with stay-at-home and work-from-home trends.

A study from MBLM found Amazon to be the most intimate retailer in the U.S. followed by Walmart and Costco. Recent retail surveys and studies also explored consumer’ heightened COVID-19 concerns, the pace of the recovery, the benefits of inventory visibility, consumers turning more frugal, and stress over back-to-school spending.

Hibbett Sports reported blockbuster second-quarter results and announced goals to take significant market share in the months ahead, particularly from challenged department store competitors. Inventory levels at the quarter’s end were down 33 percent, but inventory flow is expected to improve to drive second-half gains. 

Athleta’s same-store sales climbed 19 percent in the second quarter as the chain tapped into the overall momentum in active apparel in the quarter, according to the quarterly results of its parent, Gap Inc. Online sales at Athleta grew 74 percent to offset a 45 percent drop in in-store sales.

SGB Executive talked to Terry Schalow, executive director, Running Industry Association (RIA) as his organization wrapped up KICK On-Demand, its first virtual trade show, as a result of COVID-19. RIA also just released its third COVID-19 Retail Survey of run specialty stores that revealed some positives and negatives for the run specialty channel.

Shares of Dick’s Sporting Goods jumped 16 percent on Wednesday after the retailer reported record earnings and sales for the second quarter as many sporting goods and outdoor products are finding new appeal amid the stay-at-home economy. A number of Wall Street analysts see Dick’s building on its renewed momentum in the quarters ahead, but a few were skeptical about how COVID-19 trends would shake out in 2021.