Author: Thomas J. Ryan

The majority of stocks in the active lifestyle space took it on the chin in 2022 as broader stock markets in the U.S. saw their worst performance since the 2008 financial crisis. Stocks managing gains included Academy Sports + Outdoors, Deckers Outdoor, Dick’s Sporting Goods, Xponential Fitness, and TJX Cos.

SGB reached out to key leaders in the Active Lifestyle space to share their outlook for 2023. In the first installment, here are a series of responses that gauge what they see for the year ahead.

Mergers & acquisitions in the active lifestyle space continued at a healthy pace in 2022 despite macroeconomic pressures having the stock market reporting its least favorable annual performance since 2008. Below is the complete list of M&A transactions SGB Media reported on in 2022.

Rocky Brands’ sales climbed 17.5 percent in the third quarter as the strong appeal for the retailer’s wide range of functional, affordable footwear offset inflationary consumer pressures. Jason Brooks, president & CEO, in an interview with SGB Executive, talked about his long run at the family-run business, the acquisition of Honeywell’s lifestyle footwear business, and how the company is managing a challenging macroeconomic environment.

Sports Endeavors, the parent of Soccer.com, recently sold a majority stake in the company to Seawall Capital. In an interview with SGB Executive, CEO Mike Moylan, shown left above, said the funding is expected to support continued momentum around the sport of soccer that’s expected to reach another inflection point when North America hosts the 2026 World Cup.

According to the Aspen Institute’s youth sports parent survey, part of the nonprofit’s State of Play 2022 report, the number of hours kids played sports is back to pre-pandemic levels. The report also highlighted strong recoveries for community sports programs and travel leagues but also highlighted challenges with funding and encouraging kids to be active.

Academy Sports + Outdoors last week again raised its earnings outlook for the year as robust merchandise margins elevated its Q3 profits ahead of analyst targets. Ken Hicks, Academy’s chairman, president and CEO, discusses the retail chain’s continued momentum coming out of the pandemic with SGB Executive, its robust transformation over the last five years and rising promotional pressures. 

Moosejaw is celebrating its 30th anniversary as an irreverent outdoor specialty retailer and its fifth year reimagaining  the outdoor opportunity under the ownership of Walmart. Eoin Comerford, Moosejaw’s CEO, discusses with SGB Executive ‘Moosejaw Madness’ and other keys to the retailer’s success, the Walmart acquisition and launch of the Moosejaw More Collection and how inflationary pressures have impacted the business.

Speaking at Morgan Stanley’s Global Consumer & Retail Conference, Chris Metz, Vista Outdoor’s CEO, said the company sees “a bifurcation” in its performance amid inflationary pressures “where the more well-heeled consumers and the more well-heeled products we have—higher-end premium products—are doing better than the entry-level.”

Johnson Outdoors, Inc. said a strong bounce back in its Fishing segment, due to the easing of supply chain issues, drove an 18.1 percent sales increase and improved profitability in its fiscal fourth quarter ended September 30. Helen Johnson-Leipold, chairman and CEO, told analysts, “Managing the challenging supply chain environment remains a key priority, and we will continue to evaluate all avenues to mitigate cost pressures into the next fiscal year.”

Lululemon Athletica, Inc. raised its full-year outlook on robust third-quarter results that surpassed plans, but soft guidance for the fourth quarter sent the stock down about 12 percent Friday in mid-day trading. Speaking to analysts, CEO Calvin McDonald acknowledged a “challenging” environment for sales. The tempered guidance came despite Black Friday ranking as LULU’s most profitable for revenue and traffic, driven by worldwide sales.

Sportsman’s Warehouse, Inc. saw record results over Black Friday weekend but warned analysts that promotions have returned to pre-COVID levels. The hunt & fish chain also reported that same-store sales fell 15.0 percent in the third quarter due to inflationary pressures and difficult year-over-year comparisons, but the retailer met plan.

On its first quarterly call since acquiring Johnny Was in September, Oxford Industries Inc. said the California-based lifestyle apparel brand complements the company’s other brands and is well-positioned for continued double-digit growth.

Academy Sports and Outdoors Inc.’s shares jumped 15 percent on Wednesday after the retailer raised its EPS guidance as healthy merchandise margins elevated Q3 profits ahead of analyst targets. Sales missed plan due to weakness in the hunt category.

Shares of Smith & Wesson Brands, Inc. lost about 17 percent of its value on Wednesday after the firearms maker reported a 47.5 percent drop in sales in the second quarter ended October 31 due to ongoing inventory rebalancing in the marketplace, combined with the impact of promotional activity by competitors and the trading down by consumers to a lower-priced product.