Author: Thomas J. Ryan

In Kantar’s 2023 BrandZ Most Valuable Global Brands Report, Nike continues to reign as the highest-valued brand; however,  the company lost ground year-over-year due to a slowdown at retail, challenges from an inventory glut, the post-pandemic shift away from activewear, and increased competition from Chinese brands.

Shares of VF Corp. were up slightly Tuesday despite the company’s surprising move to go outside the industry to hire Bracken Darrell, former CEO of computer accessories maker Logitech International, as its new CEO. Analysts were hopeful Darrell’s track record for driving growth, executing turnarounds and global expertise offsets his lack of experience in the apparel and footwear space.

The 2023 Outdoor Participation Report shows that the outdoor recreation participant base grew 2.3 percent in 2022 to 168.1 million people, or 55 percent of the U.S. population over age six, and is increasingly more diverse in ethnicity, race, age, sexual, and gender identity.

Rockport survived a steep drop in sales in 2020 during the first year of the pandemic, but an inventory glut to capitalize on the return to working in offices post-pandemic failed to deliver and led to the iconic footwear company’s second bankruptcy in five years, according to court papers.

Ammo, Inc. reported a loss in its fiscal year ended March 31, as sales dropped 20.3 percent; however, company officials forecasted improved profitability in FY24 due to its focus on premium brass and large-caliber ammunition rounds within its ammunition business and several enhancements, including a payment suite and cart platform, to its GunBroker.com marketplace.

For many retailers with a prominent presence in the active lifestyle space, the first quarter worsened as the months went on with a large part of the blame placed on inflationary and macro-economic pressures. Seven retailers – Academy Sports, Hibbett, Foot Locker, Genesco, Shoe Carnival, Designer Brands and Macy’s – reduced their outlook for the year, although three – Lululemon Athletica, TJX Cos. and Ross Stores – bucked the trend by raising guidance.

Bernstein analysts upgraded their rating on Adidas from “Market Perform” to “Outperform” in part due to Lionel Messi’s move to join Inter Miami to become Major League Soccer’s biggest star. In 2017, Messi signed a lifetime contract with Adidas worth a reported $1 billion.

Recent survey data from analysts at Citi found Nike’s consumer appeal remained vibrant in North America with the brand by far the most-popular athletic brand in the region. Among Chinese consumers surveyed, Nike generated sequential improvement in consumer sentiment and held a slight lead as the favorite brand in the country.

Speaking at William Blair’s 43rd Annual Growth Stock Conference, Jim Conroy, Boot Barn’s president and CEO, said that while Boot Barn may have been founded as a western boot retailer in 1978, its growth trajectory has resized multiple times as it has expanded across work, fashion and country lifestyle categories.

Vail Resorts saw a pickup in visitation and spending in March and April to help wrap up a healthy 2022/23 North American ski season, is seeing encouraging early season pass sales for the upcoming season, and believes its ski resorts are positioned well to mitigate many of the impacts of a potential economic downturn.

Designer Brands, the parent of DSW, joined several retailers lowering its outlook for the year after seeing a first-quarter shortfall, but officials are hopeful that heightened focus on value and an increase in casual footwear brands will drive improved results in the back half of the year.

Designer Brands reported that Nike would return to DSW’s selling floors in October following its exit from the retail chain in fall 2021 and following recent moves by Nike to repair relationships with Macy’s and Foot Locker.

Speaking at Baird’s 2023 Global Consumer, Technology & Services Conference, Andrew Rees, Crocs’ CEO, said HeyDude is expected to see U.S. wholesale sales decline in the second and third quarters of 2023 as it comped against aggressive initial distribution at several major U.S. retailers in 2022. However, he insisted that the demand for casual remains strong.

Speaking at the Stifel 2023 Cross Sector Insight Conference,  On’s Co-CEOs, Marc Maurer and Martin Hoffmann, said that while the faster growth is expected to come from DTC, the running-focused brand is just getting started expanding to more mainstream wholesale accounts, marked by its recent expansion at Dick’s Sporting Goods and Foot Locker.

Favorable notes arrived on Topgolf Callaway Brands Corp. and Acushnet Holdings Corp., the parent of Titleist, from Jefferies and B. Riley following news of the merger of PGA Tour with Saudi-backed rival LIV Golf as analysts project the deal will heighten interest in golf.