Author: Thomas J. Ryan

Wolverine Worldwide delivered operating margin ahead of expectations and EPS at the high-end of guidance but revenue in the quarter came in softer than expected and guidance for the full year was reduced on expectations that the marketplace will become increasingly promotional in the back half. Positives in the quarter included growth of 14 percent for Merrell and 16 percent for the Wolverine brand as sales for Saucony, Sperry and Sweaty Betty missed plan.

Nautilus, Inc. had another brutal quarter as sales tumbled 70.3 percent in the first quarter ended June 30 to drive a steep loss. However, Jim Barr, CEO, said consumer enthusiasm for JRNY, Nautilus’ digital membership platform, remains strong, and he believes Nautilus’ value-focused approach positions the company to gain significant share as the at-home fitness opportunity stabilizes.

Shares of Allbirds fell about 20 percent on Tuesday after the eco-friendly footwear company slashed its full-year guidance and announced a cost-cutting plan, including layoffs, to compensate for lower-than-planned sales. Joey Zwillinger, co-founder and co-CEO, told analysts, ““Since our May earnings call, persistently high inflation has started to take its toll on consumers.”

The Beachbody Company, Inc. reported a 20 percent decline in sales in the second quarter ended June 30, in line with expectations. Carl Daikeler, co-founder, chairman, and CEO, told analysts the focus would continue to be on expense control as demand for at-home fitness “could remain variable in the near-term” with increased uncertainty around the broader economic climate.

On Mondelez International’s second-quarter analyst call, Dirk Van de Put, chairman and CEO, said the acquisition of Clif Bar & Co. “will improve our position in the attractive and fast-growing snack bar category,” helping expand the company’s global snack bar business to more than $1 billion.

Fox Factory Holding Corp. reported sales in its Specialty Sports Group (SSG), its cycling component segment, delivered its ninth consecutive record revenue quarter in the three months ended July 1. Sales reached $178 million, up 28.1 percent on a year-over-year basis. Fox Factory’s CEO Mike Dennison, told analysts, “We are, however, seeing the signs of return to normal, and consequently, we expect SSG to return to more typical growth rates beginning in Q3 and return of seasonality in Q4.”

Johnson Outdoors reported a sharp decline in earnings in its fiscal third quarter ended July 1 due to supply chain challenges, especially within its fishing segment, as well as rising raw materials costs also tied to supply chain dynamics. Helen Johnson-Leipold, chairman and CEO, told analysts, “We’ve implemented price increases across our product lines and we’re focused on fulfilling demand and reducing our expenses where possible.”

Delta Apparel reported sales grew 6.9 percent in the third quarter ended July 2, driven by growth at the Salt Life lifestyle brand, the DTG2Go on-demand digital print business and Global Brands activewear unit. With continued growth expected in the fourth quarter, Delta expects to exceed its goal of 10 percent revenue growth for the fiscal year.

Acushnet Holdings Corp. raised its sales guidance for the year as the parent of Titleist and Footjoy was able to catch up on inventory shortages to drive second-quarter results above expectations.

Adidas AG reported currency-neutral sales grew 4 percent in the second quarter, constrained by the impact of last year’s lockdowns in Vietnam, the suspension of operations in Russia and continued COVID-19-related lockdowns in Greater China. Despite expectations for continued macroeconomic pressures, CEO Kasper Rorsted vowed to analysts that Adidas would accelerate growth in the second half.

Shares of Crocs, Inc. lost 11 percent of their value on Thursday after the cushy-shoe maker slightly lowered its sales and earnings guidance for the year. The company now expects sales for the Crocs brand to grow approximately 14 percent to 17 percent in 2022 or 10 percent to 13 percent on a currency-neutral basis.

Shares of Yeti Holdings, Inc. fell 19 percent on Thursday after the maker of coolers and mugs reported a shortfall in its second-quarter results and slashed guidance for the year due to worsening consumer trends. Matt Reintjes, president and CEO, told analysts, “We have prudently adjusted our full-year outlook to both reflect some of these ongoing uncertainties and our commitment to making the right near, mid- and long-term decisions for the Yeti growth story.”