Author: Thomas J. Ryan

Shares of Crocs fell 11.6 percent last Thursday after the company announced plans to acquire casual shoemaker Hey Dude for a whopping $2.5 billion. On an analyst call, Crocs’ CEO Andrew Rees identified eight strategic advantages to the acquisition while analysts generally found more potential benefits than risks.

Shares of Nike Inc. rose 6.1 percent on Tuesday after the sportswear giant reported fiscal second-quarter results that surpassed Wall Street’s expectations and maintained its guidance for the fiscal year. Analysts were impressed with the performance that was driven by better-than-expected gross margins and accelerated growth in North America although concerns included a steep sales decline in China and the timing of the supply chain recovery.

At Compass Diversified Holdings (CODI) recent Investor Day event, Kurt Ainsworth, CEO of Marucci Sports, told the story on Marucci’s success, its devotion to the game of baseball and identified five incremental growth opportunities.

Stifel lowered its ratings on Under Armour due to sales and margin concerns and Columbia Sportswear on weather risks. Both stocks were reduced to “Hold” from “Buy.” Stifel reiterated its “Buy” rating on Nike but lowered its price target.

Winnebago Industries’ earnings surged 73.5 percent in the first quarter ended November 27 on a 46 percent sales gain, easily outperforming Wall Street’s expectations. Mike Happe, president and CEO, said, “The way in which consumers have increasingly embraced an excitement for the outdoor lifestyle remained a powerful tailwind, driving demand for Winnebago Industries’ premium products, whether on land or water.”

In an interview with SGB Executive, Steve Lawrence, EVP and chief merchandising officer, Academy Sports + Outdoors, discussed the chain’s record third-quarter performance that marked its sixth straight quarter of double-digit gains, as well as the chain’s upbeat outlook.

Most retailers in the active lifestyle space again broadly delivered third-quarter results that topped Wall Street’s targets and lifted their 2021 guidance as sales momentum remained resilient. However, supply chain concerns, marked by port congestion and factory shutdowns in Vietnam, were widely discussed on recent quarterly calls. Insights from Dick’s Sporting Goods, Hibbett, Academy Sports + Outdoors, Big 5, Kohl’s, Foot Locker, Lululemon, and others follow.

Nike Inc.’s acquisition of RTFKT, a virtual sneaker design company and a studio for non-fungible tokens (NFTs), is yet another sign that the sportswear giant is a big believer in crypto-technology and sees major revenue opportunities in both the metaverse and digital footwear.

American Outdoor Brands reported sales fell 10.5 percent in the fiscal second quarter ended October 31, to $70.8 million. Officials blamed it on the timing of orders from traditional brick-and-mortar channels and underlying demand remains healthy. Brian Daniel Murphy, president, CEO, said certain retail customers accelerated their inventory purchases into the first fiscal quarter to mitigate their own supply chain risk.

Johnson Outdoors Inc. reported sales inched up one percent in the fiscal fourth quarter ended October 1 but ended the fiscal year with a 26 percent gain to reach record annual sales levels. Softer sales in the fourth quarter in Fishing, its largest segment, offset gains at its other three segments, Camping, Watercraft Recreation and Diving.     

Academy Sports + Outdoors, Inc reported its ninth consecutive quarter of positive comparable sales, including double-digit increases for the last six quarters. Third-quarter results easily topped expectations and Academy Sports lifted its outlook for the third time this year. Ken Hicks, CEO, told analysts “We believe there is much more to come as we continue to improve our merchandise processes, develop new capabilities and open new stores to drive growth and profits.”

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.”