Author: SGB Executive

REI Co-op launched an ambitious new climate platform that will see the Co-op more than halve its carbon footprint over the next decade while also completing a 14-year commitment to be carbon neutral in its operations in 2020. Here, SGB Executive talked with REI’s President and CEO Eric Artz about the retailer’s stepped-up climate goals, what it means for the Co-op’s strategic partners and community, and how REI’s business has adjusted to the economic disruptions from COVID-19.

Nike Inc. delivered essentially flat sales in the first quarter ended August 31, recovering from a 38 percent slide in its fiscal fourth quarter, due to the coronavirus pandemic. Online sales continued to accelerate, climbing 82 percent, to offset still eroding store sales.

In what sounds like bad news for shoelaces, Compass Diversified (CODI) told analysts its acquisition of BOA Technology is supported by its belief the BOA’s growth is just getting started. BOA’s sales from 2017 through 2019 grew at an 18 percent CAGR.

Modell’s Sporting Goods Inc., after nearly six months in bankruptcy proceedings, filed its Chapter 11 liquidation plan that calls for unsecured creditors, including trade vendors with claims, to recover less than one percent of their claims.

At the International Health, Racquet & Sportsclub Association’s (IHRSA) Innovation Summit held virtually last week, the theme was “Reimagine. Reinvigorate. Rebuild.” The loudest call, however, was the elevated messaging around both the safety and the health benefits of fitness clubs and letting members know that it’s safe to return to their favorite gym.

Underscoring its commitment to expanding athleisure assortments, DSW has partnered with Reebok to sell apparel for the first time. A collection was introduced Thursday on its website DSW.com.

John Donahoe, Nike’s CEO, recently talked with PayPal’s CEO, Dan Schulman, about leadership and purpose-driven business in PayPal’s “Never Stand Still” online leadership discussion series. The two also discussed navigating each company through  COVID-19 and against racism within each CEO’s respective business.

Mountain Equipment Co-op (MEC), Canada’s largest outdoor chain, will end its 49 years as a co-operative with a sale to Kingswood Capital Management, a Los Angeles-based private investment firm. The sale is designed to help stabilize the struggling business.

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.”