Author: Thomas J. Ryan

Lululemon raised its full-year guidance as strong momentum in its core business in North America is expected to offset dimmed near-term expectations for its Mirror connected fitness platform as well as supply chain headwinds. Calvin McDonald, CEO, told analysts, “Our strength continues to be broad-based and balanced across every facet of our business, including channel, category, activity, gender, and geography.”

Sportsman’s Warehouse Holdings Inc., in its first quarterly report since its merger with Bass Pro was scuttled, managed to generate modest growth in the third quarter ended October 30. The gains came despite grueling comparisons in the year-ago period due to the surge in interest in hunt and outdoor activities in the early stages of the pandemic.

Thor Industries’ earnings doubled in the first quarter ended October 31 and sales jumped 56.0 percent, again crushing Wall Street targets. Bob Martin, president and CEO said, “It seems the market focuses on the supply chain and labor challenges that our industry is facing right now more than it does our performance in the face of those challenges.”

In its first quarterly report since going public on October 28, Solo Brands reported sales vaulted 138.3 percent in the third quarter ended September 30 with strength across its four brands—Chubbies, Isle Paddle Boards, Oru Kayak, and Solo Stove. John Merris, CEO, said, “The key attributes of our platform are (1) our direct connection to our community of customers, (2) our innovative product development capabilities and (3) our scalable global infrastructure.”

Designer Brands Inc. said athleisure comps at the DSW chain in the third quarter surged 38 percent year-over-year and 30 percent compared to the third quarter of 2019. Officials remain bullish on DSW’s ability to continue to capture market share in the overall athletic footwear category despite Nike’s move to stop selling to the off-price chain.

Powered by a robust back-to-school (BTS) season and scant markdowns at its flagship Journeys chain, Genesco Inc. reported third-quarter earnings that came in well ahead of Wall Street’s targets and offered a bullish outlook for the year. Mimi Vaughn, Genesco’s CEO, told analysts, “The current fashion cycle, which I’ve been describing as shifting more into casual, plays into Journeys strength with a nicely diversified assortment.”

Aided by new digital frontiers, advances in sustainability and hopefully a return to more socializing, McKinsey’s The State of Fashion 2022 conducted in collaboration with the Business of Fashion (BoF) found the fashion industry positioned to rebound in 2022. Executives in its study predicted that supply chain pressures, the rise of domestic luxury spending amid muted international travel and the continuing evolution of digital channels would have the greatest impact on their businesses in 2022.

Hibbett Inc. raised its outlook for the year after reporting its fifth straight robust quarter that topped Wall Street’s targets. Mike Longo, CEO and president, told analysts a focus on positioning stores in underserved communities is helping Hibbett secure products from major vendors in an inventory-constrained environment. Inventories were up 22.8 percent.

Tilly’s Inc. racked up its third consecutive quarter of record quarterly net sales and EPS with results easily exceeding Wall Street targets. Same-store sales rose 27.4 percent compared to the pre-pandemic third quarter of fiscal 2019, led by double-digit percentages gains in women’s, men’s, girls’ and accessories.

Zumiez Inc. managed to increase earnings in the third quarter despite challenging year-ago comparisons as strength in men’s and footwear drove sales gains and product margins improved slightly. Rick Brooks, CEO, on Zumiez analyst call, “Our third quarter was a historic one.”

Boosted by significantly improved gross margins, Duluth Trading’s earnings more than tripled in the third quarter as sales grew 7.2 percent. The company sharply raised its guidance for the year and indicated progress is being made with its new Big Dam Blueprint long-range growth plan.

At the Morgan Stanley Virtual Global Consumer & Retail Conference, Lauren Hobart, president and CEO, Dick’s Sporting Goods, and Navdeep Gupta, its new CFO, took a deep dive into how the pandemic experience likely improved the long-term prospects for the retailer’s sales and profit margins.

Allbirds, Inc., in its first earnings report since completing its initial public offering, widened its loss in the third quarter but sales rose 33 percent, led by a 42.0 percent hike in the U.S. as well as new product introductions.

Finding success with its acquisition of Hydro Flask in 2016, Helen of Troy hopes to repeat the formula with its $414 million acquisition of Osprey Packs. Julien Mininberg, Helen of Troy’s CEO, told analysts, “We believe this acquisition is a classic story of two companies that are better together.”

Allbirds attracted largely positive ratings from Wall Street as the quiet period from its initial public offering ended.