Author: Thomas J. Ryan

Shares of Lululemon are aligned to start trading up 15 percent after the yoga-themed retailer defied inflationary pressures by reporting better-than-expected first-quarter results and lifting its full-year outlook. China stood out, with sales up 79 percent, but the core business continued to see strength, with North American sales ahead 17 percent and its women’s leggings category growing by 22 percent.

Caleres, Inc. said Famous Footwear’s same-store sales fell 8.5 percent in the first quarter due to a weather-related delay in the sandal season and a pullback in spending from its “more moderate-income customer” due to inflationary pressures. Sequential improvement in sales is expected in coming quarters but Famous Footwear’s comps are expected to be negative for 2023.

Speaking Wednesday at the Bernstein Strategic Decisions Conference, Foot Locker officials said elevated inventory levels across the marketplace and consumer caution are now driving promotional activity above pre-pandemic levels with margin pressures expected to continue through 2023.

Shares of Hibbett Inc. are down about 10 percent in mid-day trading Friday after the retailer reduced its full-year guidance as first-quarter sales missed plan and sales weakness continued into May. Promotions are expected at least through the third quarter to rebalance inventories.

Gap Inc. reported Athleta’s sales fell 11 percent in the first quarter to $321 million due to “continued product acceptance challenges.” On an analyst call, Gap officials said Julia Leach has been hired as its new chief creative officer to help revive assortments.

Shares of Genesco crashed 32 percent Thursday after the company axed its outlook for the year as weak demand and heavy discounts in the marketplace for athletic footwear pulled down sales at Journeys. Mimi Vaughn, CEO, told analysts, that even as spring assortments arrived in stores, Journeys’ consumers continued “to trade down to lower price points and take advantage of the abundance of discounted athletic products elsewhere in the market.”

On Kohl’s first-quarter analyst call, Tom Kingsbury, its recently-appointed CEO, said the active category was “healthier in the period, outperforming the company average with a positive growth in apparel and continued success in outdoor.” The top-performing national brands for the department store chain were many active-lifestyle brands, including Nike, Izod, Columbia, Hurley and Eddie Bauer.

Shoe Carnival lowered its full-year guidance as the first quarter was impacted by consumers pulling back due to inflation and lower federal tax refunds. However, improved inventory levels are expected to help the family footwear chain gain share in athletic footwear this coming back-to-school season.

Dick’s Sporting Goods reported first-quarter earnings that topped analyst expectations on healthy sales growth while reiterating its outlook for the year. Officials told analysts it hadn’t seen any pullback in spending due to inflationary or macro-pressures that other retailers have felt, from Walmart to Foot Locker.

Shares of Nike remained under pressure on Monday following the arrival of Foot Locker’s subpar first quarter and the sneaker retailer’s move to slash its outlook for the year. Some analysts also expressed concerns about broader weakness in the U.S. athletic space.

Foot Locker saw stock downgrades from Citi and Williams Trading on Monday following its first-quarter miss and move to significantly reduce its full-year guidance. Some analysts were still hopeful that improved Nike allocations and benefits from its new Lace Up transformation plan would eventually pay dividends.

Shares of Foot Locker, Inc. collapsed about 25 percent in mid-day trading Friday after the sneaker giant axed its guidance for the year and indicated it will miss medium-term targets only set in March as sales have dropped sharply below expectations. Mary Dillon, CEO and president, told analysts, “Since our Investor Day in the face of increasing macro headwinds, our sales trends have slowed significantly, just in the past month and a half, which will have an impact on our near-term results.”

Canada Goose Holdings reported better-than-expected results in the fiscal fourth quarter ended April 2 on strength in its EMEA region and China. However, Canada Goose’s shares are trading down about 11 percent in late-afternoon trading Thursday as company officials struck a cautious note on its U.S. business as luxury spending cools.

Nike bounced back substantially to regain its position as the most popular apparel and footwear brand selling on Amazon, overtaking the e-tailer’s private label range after two years, according to Coresight Research’s sixth annual Amazon Apparel U.S. Consumer Survey.

On Holdings raised its revenue outlook for 2023 after delivering a better-than-expected first quarter. The Americas led the regional growth, surging 91.9 percent to CHF 270.2 million ($301 mm), boosted by a strong reception for the brand at Dick’s Sporting Goods, On officials said on an analyst call.