Author: Thomas J. Ryan

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.

On Glassdoor’s 2022 Top 100 Best Places To Work in the U.S., Lululemon ranked number nine among the Top 25 employers. Other retailers in the Active Lifestye space to make this year’s Top 100 list included Vans at number 85, Scheels, #90 and REI at #95. 

Olin Corporation reported sales in its Winchester ammunition segment grew 14.7 percent in the fourth quarter, and Olin officials expect an uptick in hunt participants over the last two years to continue to drive growth in the quarters ahead.

Shares of VF Corp. slid 6.5 percent on Friday after the company reported better-than-expected third-quarter results but lowered its sales outlook due to a deteriorating performance by Vans and weakness in China. A number of analysts lowered their price targets and downwardly adjusted estimates on VF while indicating the stock’s improvement is largely tied to Vans regaining top-line momentum.

VF Corp.’s third-quarter earnings topped analyst targets, with The North Face accelerating momentum during the critical holiday quarter. However, shares were trading down in mid-day trading Friday as VF trimmed its sales outlook due to a deteriorating performance by Vans.

New analysis by Kearney shows that continued supply chain disruptions could cost the North American apparel and footwear industry between $9 billion and $17 billion in lost EBITDA (earnings before taxes, depreciation and amortization) in 2022.

Levi Strauss & Co. reported its top-line momentum accelerated in the fourth quarter ended November 28 after seeing sales return to pre-COVID levels in the third quarter, helping the denim giant reach its highest annual revenue since 1998. Chip Bergh, president and CEO, sees “several multi-year tailwinds,” including the casualization trend, driving future growth.