Author: Thomas J. Ryan

Shares of Smith & Wesson Brands Inc. are trading down about 16 percent in early-afternoon trading Friday after the company reported sales fell 31 percent in the third quarter ended January 31, well below analyst targets. President and CEO Mark Smith told analysts firearms’ demand has “cooled significantly from the height of the pandemic surge, returning to more normal levels throughout our entire Q3.”

Brooks surpassed $1 billion in annual sales for the first time in 2021, expanding 31 percent year-over-year after climbing 27 percent in 2020. Playing a critical role in driving that growth has been Dan Sheridan, who was recently promoted to President and will partner with CEO Jim Weber to drive the next phase of the company’s growth.

Rocky Brands reported fourth-quarter earnings that were nearly double Wall Street’s targets as sales ran up 93.4 percent. For the full year, adjusted net income jumped 40.9 percent on an 85.4 percent sales gain.

Acushnet Holdings Corp., the parent of Titleist, Footjoy and KJUS, reported sales came in better-than-expected in the fourth quarter, jumped 33.2 percent overall for 2021, and are expected to expand around mid-single digits in 2022. David Maher, Acushnet’s president and CEO, told analysts that demand across product lines and regions continues to outpace pandemic-strained supply.

Kohl’s Inc. estimated that sales growth in the fourth quarter was impacted by approximately 400 basis points as a result of deteriorating supply chain disruption, but earnings topped expectations due to gross margin improvement. Kohl’s also provided upbeat revenue guidance for the current year with the benefit of Sephora in-store shop roll-outs, expected improved stock levels, and continued momentum across active categories.

Fox Factory Holding Corp. reported sales in its Specialty Sports Group bicycle components segment surged 46.7 percent in the fourth quarter despite continued supply chain constraints. Fox said it will take another nine months to 12 months to fully replenish inventory levels.

Shares of Foot Locker Inc. were trading down about 35 percent in mid-day trading Friday after the sneaker giant announced that a sharp reduction in allocations from Nike would likely result in a high-single-digit decline in comps in the current year. On a call with analysts, Dick Johnson, CEO, stressed his belief that Foot Locker will be better off in the long run by offering consumers a greater variety of brands.

Compass Diversified Holdings (CODI) said sales in the fourth quarter grew 55 percent at BOA and surged 71 percent at Marucci Sports while declining 5 percent at its Velocity Outdoor subsidiary. 5.11’s sales grew 4 percent, but the big news was that the tactical gear maker postponed its IPO.

Sturm, Ruger & Co. reported a 0.8 percent year-over-year decline in sales in the fourth quarter, marking the first quarterly decline since Q419. The decline, in part, reflects challenging comparisons against the year-ago period. Ruger’s CEO Chris Killoy said demand for firearms remains solid.

Wolverine Worldwide said Merrell lost at least $50 million in sales in the fourth quarter due to the fallout from the Vietnam factory closures and supply chain challenges are expected to continue to limit growth for Merrell and Saucony in the early part of 2022. However, actions taken to improve supply capacity are set to drive 15 percent to 18 percent overall growth in 2022.

With sales running up 14 percent on a currency-neutral basis in the fourth quarter, Puma recorded record sales and operating profit levels in 2021. For 2022, Puma expects sales growth of “at least ten percent” as strong demand in most countries offsets continuing challenges in China.

Macy’s provided an upbeat outlook after reporting strong quarterly results that exceeded Wall Street estimates despite a host of challenges from inflation to supply chain disruption. Said Macy’s CEO Jeff Gennette on a call with analysts. “We continue to make good progress on the transformation of our company and build momentum.”

SportChek’s comparable sales jumped 15.9 percent in the fourth quarter, elevated by a 78 percent surge in the hockey category and the resumption of organized team sports play, officials at Canadian Tire, its parent, said on an analyst call.

Yeti, Inc. reported sales and profits in the fourth quarter that surpassed analyst targets on demand for both its drinkware and coolers while predicting another year of strong growth in 2022. However, management cautioned that supply chain pressures would impact sales in the first part of the year.

Garmin Ltd. saw a mixed performance from its sports-related segments as tough comparisons and supply chain disruptions distorted results. For the current year, Garmin predicted flat sales for the Fitness segment but growth of 20 percent for the Outdoor and 15 percent for the Marine segments.