Author: Thomas J. Ryan

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.

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.