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.
Author: Thomas J. Ryan
Thomas J. Ryan
Senior Business Editor | SGB Media
tryan@sgbonline.com | 917.375.4699
Smith x Aleck Integrate Crash Sensor Technology Into Smith Bike Helmets For S24
Aleck, the maker of wireless helmet audio systems for outdoor sports, and Smith, the manufacturer of snow goggles and helmets and innovator across bike helmets, sport, lifestyle, and prescription eyewear, announced a strategic partnership to integrate Aleck Crash Sensor technology (Aleck CS) into a selection of Smith’s cycling helmets for Spring 2024. Aleck CS is […]

EXEC: Jordan Brand Shines For Nike In FY23
On Nike’s fourth-quarter analyst call, John Donahoe, president and CEO, Nike, Inc. talked up progress and untapped opportunities for Nike Brand around global football (soccer), basketball and running categories, but Jordan Brand was by far the star performer for Nike’s fiscal year ended May 31.

EXEC: Nike Delivers Rare Quarterly EPS Miss, Cloudy Outlook
Nike missed on earnings for the first time in three years as compressed margins weighed on profits during its fiscal fourth quarter ended May 31. The sportswear giant also forecast first-quarter revenue below Wall Street targets as North America softness overshadowed China’s recovery. On the positive side, Nike indicated demand remains healthy across regions and inventories have been rebalanced to position the company for profitable growth going forward.

EXEC: Signa Sports’ Q2 Results Waylaid By Bike Inventory Overhang
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.

Report: Outdoor Recreation M&A Slower But Valuations Holding Up Amid Turmoil
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.

EXEC: Adidas Earns Stock Upgrade On Expected Favorable Fashion Cycle
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.

Research: Team Sports Equipment Holds Onto Pandemic Boost, Private Label Share Grows
Team sports equipment was the only category in the sports equipment space that grew in the twelve months through April, continuing to add to its pandemic gains, according to Matt Tucker, the director of client development for sports equipment at Circana, who recently presented its finding at the Outdoor Retailer Summer 2023 show.

Spring U.S. Outdoor Sales Pressured By Footwear And Equipment Weakness
U.S. outdoor industry sales slid 1 percent in dollars (-4 percent in units) in the 12 months through April to total $28 billion, Julia Clark Day, Circana’s executive director of business development, Sports, said in a presentation she gave at the Outdoor Retailer Summer 2023 show.

EXEC: Nike’s Valuation Declines In Kantar’s 2023 Most Valuable Brands Study
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.

EXEC: Wall Street Cautiously Optimistic On VF’s “Outsider” CEO Hire
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.

EXEC: Outdoor Participation Holding Onto Pandemic Gains
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.

EXEC: Rockport Blames Bankruptcy On Lackluster Back-To-Work Recovery
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.

EXEC: Ammo, Inc. Eyes Recovery Year With Focus On Premium Offerings
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.

EXEC: A Cautious Look Ahead After Retail’s Bumpy Ride In First Quarter
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.