Author: Thomas J. Ryan

Hopes by several global players in the active lifestyle space that a strengthening recovery in China would offset weakness in North America this year were dimmed Monday after China’s second-quarter GDP growth arrived below expectations.

A study from Les Mills, “Gen Z Fitness: Cracking the Code,” found that 36 percent of the Gen Z generation exercise regularly and 50 percent, identified as the “untapped market.” want to work out regularly but said they need help getting started.

RG Barry, the parent of Dearfoams slippers and Baggallini handbags and backpacks, has seen sales double over the past five years with a 15 percent compound annual growth rate. Bob Mullaney, CEO, talked with SGB Executive about the company’s recent progress, growth potential and key brand initiatives.

Coresight Research’s U.S. Back-To-School (BTS) 2023 study found the big BTS winner is expected to be Walmart with Amazon and Target losing ground. Dollar stores and off-pricers were also seen gaining BTS share with those channels, as well as Walmart, benefiting from the post-pandemic recovery in-store shopping.

Tanya and Bert Pictor, the founders of Balega Socks, are partnering with Luke Rowe, the running industry veteran, to launch a new running sock brand, Jogology, that will be sold exclusively at run specialty stores. Tanya Pictor talked to SGB Executive about inspiration behind Jogology and how the brand plans to differentiate itself in the crowded sock market.

On today’s analyst call, Julien Mininberg, Helen Of Troy’s CEO, said Osprey, acquired in December 2021, surpassed expectations for the second straight quarter, but Hydro Flask continued to be pressured by a shift in consumer preference from insulated bottles to tumblers.

On Holding, Adidas, Deckers Outdoor, Amazon, Smith & Wesson and Skechers USA delivered share price gains of more than 30 percent in the first half of 2023 in an overall mixed performance for stocks in the active lifestyle space. Laggards included VF Corp., Hibbett, Under Armour and Foot Locker.

Signa Sports reported a steeper loss in its fiscal second quarter ended March 31 as sales fell 23.5 percent. The operator of niche sports e-commerce websites also warned of further sales declines and margin compression in coming quarters as it believes another 12-to-18 months is needed for elevated bike inventories to fully clear.

A market report from Capstone Partners found that M&A activity has slowed in 2023 as sellers and buyers have approached transactions with increased caution amid economic headwinds. However, the company found that price multiples remained robust for making deals as the industry continues to benefit from elevated spending and participation rates since the pandemic.

UBS raised its rating on Adidas to “Buy” from “Neutral” due to its expectations that renewed momentum in the brand’s lifestyle offerings, particularly the Gazelle and Samba styles, support broader top-line growth.