Author: SGB Executive

Hyperice, Bombas, Ororo Wear, Blenders Eyewear, OrderMyGear, Sellmark Corp, Sparx Hockey and Blink Fitness were among a number of companies in the active lifestyle space landing on the 2020 Inc. 5000, the magazine’s annual ranking of the fastest-growing private companies in America.

TJX Cos.’s second-quarter results missed Wall Street’s targets as the off-pricer’s sales slowed towards the quarter’s end after witnessing a strong response to store reopenings. Below-plan in-store inventories also impacted sales. Sales have continued to trend down double-digits so far in the third quarter, and inventories are expected to remain below plan for much of the second half.

Susquehanna International Group on Wednesday raised its price target on Nike Inc. to $150 from $130 due to the expected strong payback from its accelerated focus on digital and DTC as well as the benefits from restructuring efforts.

Kohl’s Inc. warned that back-to-school was off to a slow start and a promotional climate is expected for holiday selling. However, the middle-market chain expects to gain significant market share as COVID-19 causes competitors to close and accelerates trends toward casualization and active lifestyles.

Recent retail surveys and studies, including Accenture’s forecasting a “Decade of the Home” as the discomfort of public spaces and travel, coupled with financial fear amid the widespread decline in household income, continues to keep consumers sheltering at home. Other surveys explore back-to-school spending expectations, personal data tradeoffs and the importance of employer values for job seekers.

Stories of perseverance, promise and perspiration have played out online, and in some cases across television media, in recent months as many of the active outdoor industry-leading brands have rolled out inspirational ad and outreach campaigns on YouTube in the wake of COVID-19.

On Sequential Brands Group’s second-quarter conference call with analysts, David Conn, CEO, said the company’s active brands—AND1, Avia, Gaiam, and SPRI—have “been resilient” and a “bright spot” amid the challenges presented by COVID-19.

In an affidavit filed in the U.S. Bankruptcy Court Middle District Of Florida, Hunt Hawkins, Stein Mart’s CEO, said the off-pricer’s bankruptcy filing was partly due to struggles in recent years as the apparel category has faced online pressures. But COVID-19’s arrival, and in particular a resurgence in cases in July, made the off-pricer unable to pay its bills.

According to a report published by The NPD Group, five outdoor activities – Cycling, Paddle Sports, Golf, Camping, Bird-watching and Nature Sightings – continued their momentum with robust growth in June.

REI Co-op announced it is pursuing a sale of its newly completed corporate campus in the Spring District neighborhood of Bellevue, while shifting to a mix of multiple satellite campuses in the Seattle area and remote working to support its corporate staff. Ben Steele, REI’s EVP and chief customer officer, told SGB Executive, “To take advantage of all the flexibility that remote working allows, we think that’s going to have an impact that will benefit every employee.”

Canada Goose Inc. reported sales collapsed 63.3 percent in its seasonally-slow first quarter while predicting a significant decline in the second quarter and lower wholesale revenues for the full fiscal year. Continued investments in digital and retail are expected to support DTC growth. Said Dani Reiss, CEO, “We made the call early in the pandemic to temporarily put our wholesale business on pause. This helped us maintain whole price integrity in what became a promotional environment for many other brands.”

Propelled by a spike in bike sales, Dorel Sports delivered record profitability in the second quarter as sales jumped 18 percent despite significant supply chain restraints. Martin Schwartz, president and CEO at Dorel Industries, told analysts, “As the factories were ramping back up, demand for bikes took off to an extent never seen before.”

Nautilus Inc. reported its strongest year-over-year growth since becoming a public company as the at-home fitness trend took off during the coronavirus crisis. On a conference call with analysts, James Barr, CEO, said he sees temporary and long-term boosts for the company.

Clarus Corp. reported sales slumped 36.2 percent in the second quarter, to $30.0 million. A sales plunge of 47 percent at Black Diamond was only partly offset by a 7 percent gain at Sierra Bullets. Black Diamond’s climbing business is expected to slowly improve in the second half while the ski side is projected to find a boost from heightened interest in backcountry skiing.

Recent retail surveys and studies included McKinsey finding consumers optimism eroding amid spikes in COVID-19 cases in several states and an IBM study detailing concerns over heading back to work as well as to malls and other public places. Other surveys explored expectations for back-to-school and holiday spending, consumers increasing their saving behaviors and changing purchasing behaviors amid the downturn.