Author: SGB Executive

SGB Executive talked to Terry Schalow, executive director, Running Industry Association (RIA) as his organization wrapped up KICK On-Demand, its first virtual trade show, as a result of COVID-19. RIA also just released its third COVID-19 Retail Survey of run specialty stores that revealed some positives and negatives for the run specialty channel.

Shares of Dick’s Sporting Goods jumped 16 percent on Wednesday after the retailer reported record earnings and sales for the second quarter as many sporting goods and outdoor products are finding new appeal amid the stay-at-home economy. A number of Wall Street analysts see Dick’s building on its renewed momentum in the quarters ahead, but a few were skeptical about how COVID-19 trends would shake out in 2021.

Dick’s Sporting Goods Inc. reported its highest-ever quarterly sales and earnings as Americans have embraced home fitness and socially-distanced outdoor activities to ride out the pandemic. Said Ed Stack, CEO, on a conference call with analysts, “Our product assortment is well-tailored to the recent consumer trends, supported by strong relationships with our key brands.”

Nordstrom Inc., as expected, took it on the chin with fiscal second-quarter top-line results, but company management saw a silver lining to the dark clouds of the COVID-19 experience.

Nike said its move to stop selling to a number of major accounts marks an acceleration of its effort to clean up its distribution following the recent launch of its Consumer Direct Acceleration strategy. Nike said in a media statement, “We are doubling down on our approach with Nike digital and our owned stores, as well as a smaller number of strategic partners who share our vision to create a consistent, connected and modern shopping experience.”

The third COVID-19 Retail Survey of run specialty stores from The Running Industry Association (RIA) found sales for the wide majority of respondents recovered in June. However, sales slowed somewhat in July and many run specialty stores remain somewhat pessimistic about sales returning to pre-COVID-19 levels in the foreseeable future.

Recent retail surveys and studies have found that increasing expectations of online classes have altered back-to-school spending plans, as well as insights into holiday spending, entrepreneurism, brand trial, and digital wallets.

Foot Locker Inc.’s Q2 comps surged 18.6 percent with the help of explosive digital growth and momentum in basketball, providing management with enough confidence in the business to reinstate its dividend. However, Foot Locker warned that the second half packs a high degree of uncertainty.

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.