Author: Thomas J. Ryan

Crocs, Inc. delivered stellar results for the fourth quarter and year ended December 31 but warned that $40 million of orders would shift from the first into the second quarter of the current year due to pandemic-related transit delays. Andrew Rees, Crocs’ CEO, told analysts, “I would say it’s a combination of delays in loading, delays in transit and delays unloading.”

Under Armour Inc. reported a fourth-quarter beat but a cautious outlook amid foreboding supply chain warnings caused the stock to slide. Analysts generally felt the stock’s pullback offers a more attractive entry point into a brand on the rebound although a few were seeking more visibility.

Newell Brands reported revenues at its Outdoor & Recreation segment rose 22.1 percent in the fourth quarter and 14.9 percent for the year. The gains were led by Coleman, Bubba and Contigo.

Under Armour’s earnings and sales topped Wall Street estimates in the fourth quarter as demand continues to improve, led by North America. However, officials warned on an analyst call that supply chain headwinds tied to the pandemic, including heightened freight costs and stalled deliveries, would weigh on further progress for the next several quarters. Shares of Under Armour were off about 10 percent in early afternoon trading.

Canada Goose delivered strong gains in earnings and sales in the fiscal third quarter ended January 2 but significantly reduced its top-line growth projections for the year. On a call with analysts, Dani Reiss, president and CEO, said new COVID outbreaks and related restrictions have impacted revenue growth and retail traffic starting the latter part of its third-quarter in both the APAC and EMEA regions.

Nautilus, Inc. reported another loss on a steep decline in sales in the fiscal third quarter ended December 31 and slightly lowered its full-year guidance due to heightened promotions in the marketplace. However, CEO Jim Barr told analysts he remains bullish on the at-home fitness opportunity and Nautilus’ potential around it.

Analysts were generally optimistic that Peloton’s move to bring in subscription industry veteran, Barry McCarthy, as CEO could help right-size its business to drive sustainable growth. Peloton is still seen facing hurdles reigniting growth while winding down its bloated overhead structure to better match demand.

Fueled by double-digit growth in its Salt Life Group and Delta Group segments, Delta Apparel, Inc. notched a first-quarter sales record as net profits more than tripled.

On his last quarterly call as CEO, Peloton’s John Foley admitted to “missteps” as the connected-fitness leader attempted the scale the business during the pandemic. His comments came after Peloton on Tuesday morning announced a CEO change, significant job cuts as part of a restructuring and slashed its revenue outlook for its current year.

Shares of Peloton shot up about 20 percent on Monday after the arrival Friday night of takeover rumors. While Peloton is not formally for sale, the list of potential suitors has grown to included Nike, Amazon, Apple, Google, Netflix, Microsoft, and Google. Analysts were mixed on a potential deal.

Johnson Outdoor, Inc. continued to deliver double-digit revenue gains in its Watercraft Recreation, Camping and Diving segments in the fiscal first quarter. However, sales in its Fishing segment were impacted by supply chain disruptions and component delays. Helen Johnson-Leipold, chairman and CEO, said, “The ongoing global supply chain environment and uncertainties associated with the pandemic continue to be challenging and unpredictable.”

Skechers USA Inc. saw both sales and earnings easily surpass Wall Street targets as the company was able to navigate supply chain congestion to meet robust demand for its comfort footwear. On an analyst call, David Weinberg, COO, said the supply chain situation finally appears to be improving.

Hanesbrands Inc. lifted its sales targets for Champion, now expecting the brand to reach $3.2 billion by 2024, up from a previous goal of $3 billion. The higher expectations come as Champion delivered 10 percent global growth in the fourth quarter despite tough comparisons.

Vista Outdoor delivered its sixth consecutive quarter of record-breaking financial results, elevated by a continuing surge in ammunition demand and healthy double-digit gains across its Outdoor Recreation and Action Sports brands. CamelBak, Giro, QuietKat, Bushnell Golf, Foresight Sports, Federal, and Remington all delivered outsized growth for Vista in the period.

Morgan Stanley raised its rating on Under Armour to “Overweight” from “Equal Weight” due to the stock’s pullback in recent months and the company’s opportunity to “outperform peers” as a result of the combination of lower relative supply chain risk, stronger relative China performance, favorable channel checks, and the likely conservative 2022 guidance.