Author: Thomas J. Ryan

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.

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.