Author: SGB Executive

Wells Fargo upgraded Under Armour’s stock due in part to expectations that the stock could be the “Next Big Athletic Turnaround.” Wrote analyst Tom Nimic in a note, “A major reason why athletic turnaround stories work so well is that the fundamental improvement in the companies tends to be extremely robust.”

Under the new leadership of John Scipio and Jason Lutz, Schuylkill Valley Sports (SV Sports), the sporting goods chain based in Pottstown, PA, is looking to reinvent itself with a goal of bringing greater personalization, experiential activations and technological innovations to the staid team sports retailing space.

Kohl’s active category continued its momentum in the third quarter and officials elaborated on its recently announced goal to expand active assortments from 20 percent to “at least” 30 percent of sales. Said Michelle Gass, Kohl’s CEO, “Our insights show that more people are focusing on health & wellness, whether it’s working out or spending time outdoors. In addition, their active and athleisure wardrobe is expanding into many new occasions, and we expect this trend to continue.”

Sequential Brands Group reported its recently-hired CEO, David Conn, had departed as the brand-management company reported its active brands, AND1, Gaiam, SPRI and Avia, again outperformed in the third quarter.

seminar held last Thursday by SFIA and featuring top executives from the National Federation of State High School Associations, the National Hockey League and USA Volleyball, explored the health risks as team sports moves indoors for the upcoming winter sports season. Ensuring safety protocols, as risks rise, headlined the major challenges facing winter team sports.

Cowen’s third annual Gen Z and Millennial survey found sustainability and social impact among the high-level themes increasingly resonating with 18-to-34-year-old consumers and their purchase decisions. Nike was ranked first among apparel and footwear brands that most align with younger consumers’ social values and beliefs around sustainability, followed by Adidas, Vans and The North Face.

Fox Factory Holding Corp said it achieved the highest volume of shocks and forks ever shipped in a quarter as bike riding has soared in popularity during the pandemic. Mike Dennison, CEO, doesn’t see the potential arrival of a COVID-19 vaccine significantly slowing momentum.

Adidas AG’s third-quarter sales and profitability recovered smartly with revenues only slightly below year-ago levels. However, a hoped-for return to growth in the fourth quarter has been dashed as the second wave of coronavirus outbreak in Europe has led to lockdowns and pandemic-related risks increase in other regions.

Clarus Corp.’s earnings came in well above Wall Street’s targets as Black Diamond’s revenue declines were significantly lower sequentially and Sierra Bullets’ expanded more than two-fold year-over-year. Continued recovery is expected for Black Diamond in the fourth quarter. John Walbrecht, Clarus’ president, “We are expecting a strong back country snow season.”

Callaway Golf’s third-quarter results exceeded expectations as a faster-than-expected bounce back drove golf equipment sales ahead 27 percent in the period.  The soft goods segment also showed some recovery but was still down year-over-year. Said Chip Brewer, president and CEO, “Golf retail, outside of resort locations, remains very strong at present and barring a shutdown situation has not been sensitive to the upticks in COVID cases.”

VF Corp. announced plans to acquire Supreme, the streetwear brand with a cult following, eyeing a $1 billion global opportunity over time. Said Steve Rendle, VF’s CEO, on a conference call with analysts, “Supreme sits at the epicenter of this market opportunity as the original and global category leader.”

Canadian Tire Corp. reported Sport Chek’s comparable sales growth declined 1.4 in the third quarter. The decline was attributed to fewer promotional events, a slower back-to-school season and a decline in hockey and team sports compared to the prior year.

Champion’s sales declined 9 percent year-over-year in the third quarter. The shortfall was traced primarily to the brand’s Sports Apparel business where COVID-19-related headwinds essentially shut down sporting events and business at college bookstores.

Riding strong double-digit growth in both its Shooting Sports and Outdoor Products segments, Vista Outdoor Inc. reported robust growth in the second quarter ended September 27, provided a bullish outlook for its holiday quarter and detailed how the newly-acquired Remington brand will support future growth.

Powered by strong growth at Saucony, improving trends at Merrell, its work brands, and explosive growth online overall, Wolverine Worldwide reported both earnings and sales topped expectations during its third quarter. Sales are expected to decline no more than 25 percent in the fourth quarter in part due to the timing of deliveries, but a strong return to growth is predicted for Q121.