Author: SGB Executive

A little over three years after completing its mega-acquisition of Cabela’s, Bass Pro is looking to shake up the Hunt & Fish channel again with its agreement to acquire the smaller Sportsman’s Warehouse chain. The acquisition could provide Bass Pro with a prime opportunity to capitalize on unprecedented demand for the Hunt & Fish categories coming out of the pandemic.

Nike Inc. reported both earnings and sales that came in well ahead of Wall Streets’ targets with a boost from triple-digit growth online in North America and a continued strong recovery in China. Nike raised its outlook for the year and said it planned to accelerate its move away from nonstrategic wholesale accounts.

Winnebago Industries Inc.’s earnings more than doubled on an adjusted basis in the first quarter ended November 28 as sales ran up 34.8 percent. Michael Happe, president and CEO, expects the robust appeal of the outdoors tied to the pandemic to continue to drive sales of recreation vehicles (RVs) in the year ahead.

At Compass Diversified’s 2020 Investor Day, Shawn Neville, CEO of Boa Technology, provided a bullish outlook on the lacing system’s growth potential, believing Boa could quadruple its market share over the next decade.

Stephens initiated coverage on Dick’s Sporting Goods with an “Underweight” rating. In a note, Daniel Imbro, Stephens’ analyst, highlighted the retailer’s recent same-store momentum while expressing concerns over potential gross margin pressures.

SGB Executive talked to Ken Hicks, chairman, president and CEO at Academy Sports + Outdoors, about the retailer’s record third-quarter sales and earnings in its first report as a public company. Hicks discusses the positive impact of the pandemic on Academy’s business and how many newer initiatives put in place over the last few years are positioning the retailer for sustainable growth.

Johnson Outdoors reported revenues surged 58 percent in the fiscal fourth quarter ended October 2 as pent-up demand drove significant sales gains across its fishing, camping and watercraft segments. The performance propelled the company to positive growth for the full fiscal year. Said Johnson-Leipold, “Overall, this year’s performance was fueled by demand created through people’s eagerness to get outdoors.”

Vail Resorts, North America’s largest ski resort operator, saw record sales of Epic Passes, but overall sales in the fiscal first quarter ended October 31 declined 50.8 percent, and CEO Robert Katz warned investors of a “very challenging” 2020/21 North American ski season ahead as COVID-19 cases spike across the country.

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.