Author: Thomas J. Ryan

Big 5 Sporting Goods Corp. reported same-store sales declined 7.1 percent in the first quarter ended April 1 with cold and rainy weather stalling the start of baseball, softball and other spring sports seasons. On an analyst call, Steve Miller, president and CEO, said comps are down 11 percent for the second quarter to date and expected to decline in the high single-digit range due to macro pressures.

Clarus Corp. reported modest growth in its Black Diamond segment as gains in its direct-to-consumer and international channels helped offset fewer shipments to its North American wholesale channel due to elevated inventory levels and reduced open-to-buy dollars. Clarus also indicated BD’s inventories would not be rebalanced until the fall.

Fleet Feet has been busy, acquiring Boston’s Marathon Sports last year on top of its 2021 acquisition of the JackRabbit chain. Here, Joey Pointer, CEO, discusses the reasons behind the Marathon Sports’ acquisition and its ongoing expansion appetite, its recent performance, key initiatives and more.

On Newell’s first-quarter analyst call, Ravi Saligram, Newell’s CEO, attributed the steep quarterly sales decline seen at the Outdoor & Recreation segment to “a slower-than-expected start to the season, primarily due to wet and cold weather in the western part of the country.”

On an analyst call, Julien Mininberg, CEO, said Hydro Flask’s sales declined in the fiscal fourth quarter ended February 28 in large part due to a shift in consumer preference from insulated bottles to tumblers. Osprey, acquired December 30, 2021, outperformed expectations.

Skechers USA reported domestic wholesale sales tumbled 18 percent in the first quarter due to elevated inventories across the U.S. marketplace and difficult year-ago comparisons. However, strong growth in U.S. DTC (direct-to-consumer) and across international regions helped overall results handily top guidance.

Crocs, Inc. lifted its sales and earnings guidance for the year after witnessing a better-than-expected performance by the Crocs brand in the first quarter. However, the company’s shares are trading down about 16 percent in afternoon trading Thursday as investors appear still spooked by the sales slowdown expected for the rest of the year as well as lower-than-expected sales in the first quarter at HeyDude.

Puma SE CEO Arne Freundt revealed company sales in North America declined 18.6 percent in the first quarter, and the company now expects a further decrease in 2023 as Puma reduces its exposure to off-price sellers and elevates its position as a sports brand.

Life Time Group Holdings, Inc. raised its earnings outlook for the year after reporting first-quarter earnings topped guidance. On an analyst call, Bahram Akradi, CEO, shown above, said membership attrition had come down steadily each quarter and forecasted that June would be the first month with attrition rates below 2019.

Oofos President Steve Gallo spoke recently with SGB Executive about drivers of the company’s robust growth, the active recovery opportunity, plans for the current year, and the recovery brand’s dedicated fans.

Brooks Sports Inc. filed a lawsuit against Skechers U.S.A. Inc., alleging the company is infringing on the “BEAST” trademark used on Brooks running shoes since 1992.

Fenix Outdoor International AG reported sales climbed 9 percent in the first quarter on strength in the Americas and German regions as well as with the Fjällräven and Hanwag brands. Profits were down slightly, and Fenix Outdoor warned that results in upcoming quarters could be pressured by elevated inventories and promotions in the marketplace.

SGB Executive talked to Jim Duffy, veteran sell-side industry analyst at Stifel Financial Corp., about the headwinds and tailwinds facing the active lifestyle space, his favorite stocks, the DTC trend, his affinity for covering the active lifestyle space, and the company’s sponsorship of the U.S. ski team.

Recent surveys timed to Earth Day, April 22, indicate economic pressures are working against sustainability measures despite continued commitments and show that consumers are challenged by rising inflation in support of “green” products.

SFIA’s 2023 State of the Industry Report finds the outlook for the sports and fitness industry remains strong, although current macroeconomic headwinds and uncertainty have dimmed that optimism slightly from 2020 and 2021 levels.