Author: Thomas J. Ryan

In what will mark its largest acquisition to date, Vista Outdoor Inc. announced that it had agreed to acquire Fox Racing for $540 million. The acquisition of the motocross and mountain bike helmet and apparel specialist moves Vista deeper into the adventure sports space that the firm already dabbles in with its QuietKat e-bike brand and its cycling brands that are led by Giro and Bell.

Several Wall Street analysts trimmed their EPS targets and dropped price target expectations on Kohl’s, Inc. after the department store chain ended buyout negotiations with retail holding company Franchise Group and lowered its second-quarter sales guidance.

In 2020, Houston businessman Bill Voss quietly launched Everest.com, which claims to be the first community-driven online marketplace for outdoor gear ranging from hunting and fishing to hiking, camping, and rock climbing. Today, Everest.com offers products from over 1,000 U.S.-based merchants with plans for rapid expansion in the current year.

Ammo, Inc., the owner of GunBroker.com, saw revenues in the fiscal year ended March 31 soar 285 percent to $240.3 million. On a call with Fred Wagenhals, chairman and CEO of Ammo Inc., the owner of GunBroker.com, said Ammo remains “well-positioned” to double its market share over the next two to three years.

Wall Street analysts across the board reduced their price targets and go-forward EPS estimates on Nike, Inc. after the sportswear giant guided FY23 EPS below analyst targets as significant markdowns are expected over the next two quarters to recalibrate China’s bloated inventory levels. Most analysts still kept favorable ratings on Nike’s stock.

Shares of Nike fell about 7 percent Tuesday toward a two-year low after the company reported earnings for the fiscal fourth quarter that topped Wall Street estimates but warned that surging transport costs and a strong U.S. dollar would eat into profit margins over its coming fiscal year.

Smith & Wesson Brands, Inc. does not see a spike in firearms sales arising out of the latest pushes for gun-control legislation. Indeed, Mark Smith, president and CEO, predicted a decline in sales in its current year ended April 2023 as demand returns to calendar 2019 levels.

Winnebago Industries reported another record quarter, but also announced plans to reduce RV production for the rest of the year in line with an expected broader decline in sales of RVs this year. Winnebago’s CEO Michael Happe told analysts, “We continue to still be a pretty economically viable option for people that want to spend time in the outdoors.”

JD Sports’ North American operations, including The Finish Line, Shoe Palace and DTLR, reported combined profit before tax and exceptional items of £343.0 million in its year ended January 29, marking a significant year-over-year improvement. However, JD officials warned that shortages of Nike products would restrain sales growth in the first half of the current year.

Speaking at Jefferies Consumer Conference, Chris Metz, CEO, Vista Outdoor, said the company across several brands continues to see softening in demand for opening price point products due to inflation’s impact on lower-income consumers.

Cowen & Co. reduced its rating on Under Armour from “Outperform” to “Market Perform” due to concerns over the company’s momentum amid elevated inventory levels across the marketplace and increasing inflationary pressures.

A Stifel survey found that most U.S. consumers value sustainability when purchasing active/casual lifestyle brands, though they are reassessing spending priorities as inflation soars. 

At last week’s Outdoor Retailer Summer Market, Kelly Davis, director of research for OIA provided a generally upbeat “State of The Outdoor Market” update, believing the industry is poised to benefit from the throngs of people who discovered the outdoors over the pandemic as well as from trends ranging from remote working to the aging American population.

L.E.K. Consulting’s First U.S. Footwear and Apparel Brand Heat Index* found that Nike was the most popular brand across athletic categories, while The North Face, Patagonia and Columbia paced the outdoor space. However, many newer brands gained traction and brand recognition that varied across genders and generations.

On Wednesday, Morgan Stanley and UBS joined several other investment firms recently lowering their price targets on Nike due to the impact of COVID-lockdowns in China and the overall stock market’s correction.