Author: Thomas J. Ryan

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.

Speaking at the Deutsche Bank Global Consumer Conference, John Vandemore, CFO of Skechers USA, said the U.S. wholesale business is “probably our single most challenged marketplace” due to ongoing elevated inventory levels with the pressures expected to continue for a few more quarters.

Academy Sports and Outdoors, Inc. trimmed its outlook for the year as first-quarter results missed plan. However, company officials predicted improving sales in the back half of the year on confidence that more favorable weather and strong injections of newness will help offset macroeconomic pressures.

At an investor meeting, Artie Starrs, CEO of Topgolf, discussed the fast growth and improving unit economics of the golf-entertainment concept as well as the benefits the chain is just starting to realize from newer digital activations and marketing pushes. He said, “I believe we’re just getting started.”

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.