Author: SGB Executive

Adidas on Wednesday announced its new five-year growth plan, “Own The Game,” which promises to accelerate digital, direct-to-consumer growth and doubling of its “key cities” focus to 12 cities. However, the plan is guided by five industry trends that accelerated due to the pandemic. 

Dick’s Sporting Goods reported record sales and earnings for the fourth quarter and year and predicted continued strong demand across golf, outdoor, fitness and active lifestyle categories as well as recovery for team sports in 2021. Conservative guidance was still provided for 2021 as the company seeks to hurdle 2020’s pandemic-driven gains.

Clarus Corp. reported total sales were up 24.4 percent in the fourth quarter ended December 31 on the back of accelerating growth of the Sierra Bullets brand and continued recovery of Black Diamond. The gains came despite continued supply chain constraints holding back gains in both segments.

Both TJX Cos. and Ross Stores missed Wall Street’s expectations in the fourth quarter due to temporary store closures tied to upticks in COVID-19 cases. Both also continue to be held back by general weakness in the broader apparel category amid the pandemic. Burlington Stores managed to top Wall Street’s targets as store traffic picked up with the arrival of colder weather despite the pandemic.

Hibbett Sports reported significant gains in fourth-quarter earnings and sales and expressed confidence that new customers captured during the pandemic would boost sales in the years ahead. However, Hibbett officials also warned of supply chain disruptions and provided muted guidance for 2021 due to uncertainties in the marketplace.

Gap Inc. said it plans to open 20 to 30 Athleta stores in 2021 after the women activewear chain’s fourth-quarter sales jumped 29 percent on a reported basis and 26 percent on a same-store basis. Sonia Syngal, Gap Inc’s CEO, told analysts, “Athleta is our highest margin business and like Old Navy has made continuous market share gains each quarter year-to-date.”

“It starts with the runner,” said Dan Sheridan, EVP, COO, Brooks Running, explaining how the brand’s run-centric focus paved the way for a 27 percent hike in sales in 2020 amid the pandemic. But the performance, in particular, reflects the payback from recent investments in two areas—establishing a multichannel strategy and creating an internal runner research hub, the Run-Sight Lab.

On Nordstrom’s fourth-quarter earnings call, Pete Nordstrom, president, said the retailer’s partnership with Tonal, the at-home connected gym start-up, is just one part of the chain’s efforts to build on recent success in the active category.

Driven by the trifecta of robust sales growth, margin expansion and a leaner cost structure, Big 5 Sporting Goods reported its third successive quarter of record earnings while predicting continued momentum in 2021. Steve Miller, CEO, told analysts, “We are pleased with all we accomplished in 2020, and we are even more excited by the prospect than many of the recreational and product trends initially driven by the pandemic will prove to be sustainable even as the disruption of the pandemic subsides.”

Kohl’s reported activewear outperformed in the fourth quarter and remains one of the chain’s “most productive categories.” Kohl’s reiterated plans to increase in-store space dedicated to active assortments by at least 20 percent in 2021. Michelle Gass, Kohl’s CEO, told analysts, “Our vision is to be the most trusted retailer of choice for the active and casual lifestyle.”

Fox Factory Holding Corp. reported sales at Specialty Sports Group (SSG), its cycling component division, rose 44.6 percent in the fourth quarter, marking SSG’s best quarter to date for revenue. Officials were also bullish on continued robust segment growth in 2021 while citing supply chain risks.

Foot Locker Inc.’s fourth-quarter earnings topped Wall Street’s targets with the boost of healthy full-price sell-throughs. However, congestion at U.S. ports in part caused a sales shortfall in the period and resulted in a double-digit decline in inventory levels at year end that promises to challenge spring selling. Said Dick Johnson, chairman and CEO, “The bottleneck situation at the ports remains in flux.”

Acushnet Holdings reported fourth-quarter sales grew 14.2 percent, led by strength in the Titleist golf clubs range. The company predicted robust growth for the majority of its businesses in 2021 as its rides golf’s resurgence in the wake of the pandemic. David Maher, Acushnet’s CEO, said, “The game and industry are in good shape, golfer engagement is strong and trade inventories are generally healthy and in some cases low.”

Wolverine World Wide Inc. reported its fourth straight quarter of double-digit declines in sales but predicted a strong recovery in 2021 with the help of its investments in digital and DTC e-commerce. Sales for 2021 are projected to grow in the range of 22 to 26 percent with a return to double-digit growth expected for Saucony, Merrell and Wolverine in the first quarter.

Rocky Brands reported sales jumped 16 percent in the fourth quarter, riding momentum in work and western footwear styles, combined with ongoing strength in direct-to-consumer business. Rocky Brand officials also spoke enthusiastically about the growth potential from its proposed acquisition of Honeywell’s lifestyle footwear business, which includes The Original Muck Boot Company and XTRATUF.