Author: Thomas J. Ryan

Dick’s Sporting Goods for the third quarter in a row raised its outlook for the year as earnings again came in well above Wall Street targets and sales topped tough year-ago comparisons. Comps are now expected to expand about 25 percent for the year. Lauren Hobart, president and CEO, told analysts, “During a time when consumers are making lasting lifestyle changes with an increased focus on health and fitness and greater participation in outdoor activities, we believe that Dick’s Sporting Goods has become synonymous with sport in the United States.”

Delta Apparel reported broad-based top-line growth and solid margin expansion in the fourth quarter ended October 2. The company’s Delta Group activewear segment began to benefit from heightened interest in onshore and nearshore supply chain strategies while its lifestyle brand, Salt Life, achieved a record-high level of customer engagement.

Foot Locker raised its guidance for the full year after reporting better-than-expected third-quarter results with a boost from strong demand and full-price selling. Officials expressed confidence they’ll be able to offset the severe supply chain headwinds in coming quarters.

Caleres said Famous Footwear generated third-quarter sales of $495 million, a nearly 11 percent improvement over the third quarter of 2019 and the highest level of quarterly sales in the history of the brand despite supply chain constraints. Diane Sullivan, chairman and CEO at Caleres, said, “What was really a powerful driver was having the right level of inventory behind the key brands and styles.”

Kohl’s Inc. reported sales of active accelerated in the third quarter to help propel the department store chain to record earnings. Sales in the active category climbed more than 25 percent to last year and more than 20 percent on a two-year basis, led by its four key national brands: Nike, Under Armour, Adidas, and Champion.

Economists at BofA Global Research, in a new report, found that while production disruptions in Vietnam have begun to ease, a return to full capacity by the end of 2021, especially in the labor-intensive apparel and footwear sectors, could be optimistic due largely to labor challenges.

Shoe Carnival Inc. said strong product allocations amid supply chain disruptions helped make the third quarter the best in the off-pricer’s 43-year history. The off-price chain’s officials said they’re being rewarded for supporting the vendor community in the early stages of the pandemic.

On Holding AG, in its first report since going public, reported third-quarter results that far outpaced Wall Street’s targets. The Swiss-running shoe company also provided a bullish outlook for the full year and 2022 despite the warning that supply chain constraints would cap growth over the next three quarters.

The Beachbody Company, which recently went public in an initial public offering, reported sales dropped 17 percent in the third quarter in part because new subscribers to its fitness content weakened amid a softening in at-home fitness demand.

At SFIA’s Trends & Insights conference, Joe Preston, New Balance CEO and president, said his company’s sales are on a path to climb about 30 percent this year and move past 2019 levels as it strongly recovers from the pandemic. The brand also continues to pack momentum going forward. Preston said, “Our trajectory feels really strong right now.”

On November 5, Fleet Feet announced that it agreed to acquire JackRabbit, marking the biggest acquisition in the franchisor’s 45-year history. Here, Joey Pointer, Fleet Feet’s CEO and president, discusses the reasons behind the acquisition, integration plans and its recent strong performance.

Canadian Tire Corp., Ltd. reported comparable-store sales at its SportChek segment climbed 11.2 percent in the third quarter and 7 percent compared to 2019, boosted by the return of hockey and organized sports. Canadian Tire officials also detailed the advantages the Canadian retail giant has in managing supply chain disruption. 

Yeti Holdings Inc. was able to circumvent supply chain hurdles to deliver third-quarter results that surpassed Wall Street targets and slightly raise its outlook for the full year. Sales grew 23 percent year-over-year and are up 58 percent against the second quarter of 2019. Officials said price actions will be taken to offset cost pressures

Wolverine World Wide Inc. reported strong demand for most brands and record bookings but reduced its earnings guidance in the year due to supply chain challenges that are expected to continue at least until the end of the year. In the third quarter, Wolverine officials indicated they lost at least $60 million in sales due to factory closures in Vietnam and logistics delays.

Adidas AG downgraded its full-year sales and profit forecasts and predicted costly disruptions from supply-chain snags will carry into the first quarter of 2022, after factory closures in Vietnam and consumer boycotts in China weighed on top-line growth in the third quarter.