Author: Thomas J. Ryan

Last week at Outdoor Retailer Summer Market, NPD officials conducted a presentation detailing that while the first quarter presented challenges for many categories against consumer stimulus spending in the year-ago period, overall sales across core outdoor industry retail ran up ahead 19 percent in the twelve months through March 2022 on top of historic gains the prior year.

In an interview with SGB Executive, Steve Lawrence, EVP and chief merchandising officer, Academy Sports + Outdoors, elaborated on the progress the chain delivered in the first quarter that saw earnings arrive well above Wall Street’s consensus estimates. Merchandise margins continued to improve and inventories are in the best shape since the pandemic began.

Speaking at the Evercore ISI Consumer and Retail Conference, Dick Johnson, Foot Locker’s chairman and CEO, expressed confidence that the sneaker cycle received a significant boost during the pandemic. He also believes the retailer’s ongoing push to amplify assortments of non-Nike brands will better position Foot Locker to capitalize on the trend.

On a conference call announcing its deal to acquire Primaloft, officials at Compass Diversified (CODI) said Primaloft’s sales had grown at a 16 percent CAGR (compound annual growth rate) since 2017 and forecasted robust growth would continue due to its sustainability appeal and potential as an alternative to down insulation.

G-III Apparel said it’s still finding growth from its casual categories, including jeans and athleisure, but its above-plan first quarter was driven by a pivot toward dressier offerings. Morris Goldfarb, G-III chairman and CEO, told analysts, “As people go back to work, resume socializing and life continues to return to normal, customers are shopping to refresh their wardrobes, and demand for our product remains strong.”

Boosted by robust sales in the outdoors and footwear categories and higher merchandise margins, Academy Sports + Outdoors’ first-quarter earnings came well above Wall Street’s consensus estimates. 

At Levi Strauss & Co.’s Investor Day, Michelle Wahler, CEO and co-founder of Beyond Yoga, said the athleisure brand will surpass $100 million in sales in 2022. Growth should accelerate through category and channel expansion, including opening its first brick-and-mortar doors.

Lululemon Athletica was able to overcome supply chain disruption and inflationary pressures to deliver first-quarter sales and earnings well past company targets, driven by outperformance in North America. As it’s done regularly over the course of the pandemic, the yoga-themed retailer raised its outlook for the year.

Tilly’s, Inc. reported first-quarter results that were, as expected, well below year-ago levels due to difficult comparisons. Officials expect inflationary pressures and elevated inventory levels to remain headwinds in the quarters ahead.

Zumiez reported first-quarter sales declined sharply due to tough year-ago comparisons but were at the high end of guidance. Earnings, however, fell short of guidance. Rick Brooks, CEO, told analysts, “The operating environment has become increasingly more challenging due to the supply chain bottlenecks, higher logistics costs, a tight labor market, and high levels of inflation.”

Designer Brands Inc. said sales at its flagship DSW chain continue to benefit from a “narrower and deeper” buying approach that focuses on the chain’s top 50 brands. Roger Rawlins, CEO, also told analysts that other brands are stepping up to make up for the loss of Nike in athletic categories.

Duluth Holdings, the parent of Duluth Trading, reported both sales and earnings topped Wall Street estimates in the fiscal first quarter ended May 1, benefiting from greater full-price selling and improving inventory levels.

Sportsman’s Warehouse reported first-quarter results that topped expectations but warned that the high inflation rate influenced consumer shopping habits, including higher-ticket items. CEO Jon Barker told analysts, “Although there is inflationary pressure impacting the consumer, we believe that our positioning as a value-priced leader will allow us to capture additional market share of those people seeking to enjoy the benefits of the outdoors.”

SFIA’s 2022 State of the Industry Report showed the sporting goods industry recorded a banner year in 2021 and the majority of survey participants are bullish on the industry’s future.

At the J.P. Morgan Global Technology, Media and Communications Conference, Barry McCarthy, Peloton Interactive’s new president and CEO, discussed the many challenges facing Peloton, including costs and supply chain, but also about the “customer love” that encouraged him to take the job and tackle the turnaround opportunity.