Author: Thomas J. Ryan

Skechers USA reported strong earnings and sales gains in the third quarter but delays tied to supply chain constraints caused both to come in below guidance and the company’s outlook was slightly reduced for the full year. Skechers officials see the logistics challenges easing somewhat and remained upbeat on holiday selling.

Deckers Brands reported sales and earnings missed Wall Street’s targets in its fiscal second quarter ended September 30 as numerous supply chain challenges slowed Ugg’s growth in the quarter. However, the company still maintained its revenue outlook for the full year, driven by its projected 50-plus percent growth at Hoka One One.

Boot Barn’s momentum continued in the second quarter ended September 28 with sales ahead running up 69.5 percent against the year-ago period and 67.1 percent against the 2019 quarter. Jim Conroy, president and CEO, attributed much of the gains to new customer acquisitions that benefited from a combination of operational strategies, marketing, aggressive inventory procurement and fashion trends.

Puma SE lifted its sales and earnings outlook for the second quarter in a row despite the warning of shortages due to supply chain constraints. Sales continued to expand strongly in the third quarter, paced by the Americas and EMEA region.

Garmin Ltd. raised its guidance for the second consecutive quarter as third-quarter results topped Wall Street targets due to outperformance by its Marine and Aviation segments. CEO Cliff Pemble said, “Our vertically integrated business model and commitment to safety stock was a key factor driving revenue growth for the quarter. But supplies are tight and we expect freight costs to remain elevated as we rush to fill retail shelves in time for the important holiday selling season.”

Winchester’s sales grew 93.8 percent in the third quarter to $400 million from $206.4 million in the year-ago third quarter, boosted by strong hunting demand stemming from the pandemic experience.

Wall Street generally remained upbeat about VF Corp.’s prospects despite the company’s reported earnings and sales in its second quarter ended October 2 coming in slightly below consensus targets. Concerns include reigniting growth in China and Vans’ overall momentum.

VF Corp. said the wide majority of its brand portfolio performed at or above expectations in the second quarter ended October 2, including outsized gains at The North Face, Dickies and Timberland. Earnings and sales, however, were slightly below analyst targets due to the continued underperformance at Vans, its largest brand, as well as supply chain challenges.

Crocs Inc. reported sales jumped 73 percent in the third quarter and predicted a robust holiday selling quarter. However, the comfy shoemaker warned that continued supply chain challenges, largely tied to pandemic-related factory shutdowns in Vietnam, will hold back revenue growth in the first half of 2022. Planned investments include $75 million in air freight ahead of the 2022 spring/summer selling season.

Winnebago Industries Inc.’s sales jumped 40.4 percent and 54.1 percent in the fiscal year ended August 28 as healthy demand for outdoor recreation coming out of the pandemic boosted its RV and boat businesses. Said Michael Happe, CEO ““The pandemic has undoubtedly catalyzed accelerated powerful demand for outdoor experiences.”

Xero Shoes, Bombas, Stone Glacier, William Murray Golf, Vibe Kayaks, PXG, and JLab Audio were among several companies in the active lifestyle space that landed on the 2021 Inc. 5000 annual ranking of the fastest-growing private companies in America.

According to the sixth edition of PwC’s Sports Survey, executives across the broader sports industry, including sports federations, broadcasting and marketing agencies, have become more optimistic about the sports industry’s prospects amid signs of recovery from the pandemic.

Cowen’s fourth annual Gen Z and Millennial survey found that Nike, Air Jordan and Lululemon have solid traction by preference in the active lifestyle space among the younger demographic. The North Face and Amazon also ranked high by preference, and the overall survey suggested ESG and social commerce gained greater momentum in 2021.

In initiating coverage of Nike Inc. with a “buy” rating, Goldman Sachs noted that sportswear giant is facing more macro headwinds, including weakness in China, supply chain disruption and cotton inflation, “than it has in some time.” However, analyst Kate McShane said Nike’s underlying fundamentals remain solid, and the recent pullback offers some stock upside.

Aspen Institute’s just-released State Of Play 2021 survey found that most kids are back playing sports with their families feeling more comfortable about their safety amid the ongoing pandemic. However, challenges remain with more kids feeling less physically fit and mentally drained.