Author: Thomas J. Ryan

In the prospectus for its initial public offering, IFit Health & Fitness identified seven growth drivers designed to capitalize on the expanding connected fitness marketplace.

Genesco Inc.’s recovery gained further momentum in the second quarter with strong gains at Journeys and its U.K.-based Schuh chain, but officials warned that supply chain disruption continues to deplete inventory levels and is expected to drive higher freight costs in the quarters ahead. Said Mimi Vaughn, president and CEO, “We’re seeing good product flow right now, but it’s lower than we would like.”

Allbirds, which, on Tuesday, filed for an initial public offering, expects to grow by expanding across categories, raising brand awareness, deepening its engagement with consumers, and opening “hundreds” of additional stores. The San Francisco-based manufacturer wrote in its prospectus, “We believe there is continued opportunity to grow our closet share as we further expand our brand and product selection.”

Sequential Brands has reached an agreement to sell its active division brands, including Gaiam, Avia and And1, to Galaxy Universal for $333 million. Galaxy will serve as a stalking horse bidder to explore higher bids for the active segment as part of Sequential Brands bankruptcy filing.

Despite the pending exit of Nike from its mix, DSW’s athletic footwear momentum continues with comps in the category in the second quarter running up 90 percent year-over-year and 45 percent against the 2019 second quarter. The strength across athleisure helped drive quarter results for DSW’s parent, Designer Brands, far above plan although supply chain constraints could restrain second-half growth.

Shares of Peloton Interactive fell $9.75, or 8.5 percent, on Friday to $104.34 after the connected fitness leader announced plans for a price cut on its original Bike product and a lower-than-expected outlook for its current first quarter and FY22 following a massive treadmill recall. Many analysts nonetheless remain bullish on Peloton’s growth prospects, including the potential for a strong Tread launch.

Citing its capacity to retain new customers picked up during the pandemic, Hibbett Inc. reported both earnings and sales crushed Wall Street’s targets in the second quarter and strongly lifted its full-year guidance. Same-store sales are now expected to land in the positive mid-teens range in 2021 on top of gains of 22.2 percent in 2020.

Athleta, owned by Gap Inc., delivered another quarter of strong growth and said its affiliation with two Olympic ambassadors, Simone Biles and Allyson Felix, is driving brand awareness. Sonia Syngal, Gap’s CEO, said, “As the perfect amplifier of the brand’s values, Athleta’s sponsorship of world-class athletes in Tokyo boosted brand awareness of 33 percent, versus 26 percent last year.”

Shares of Dick’s Sporting Goods jumped 13.3 percent on Wednesday after the retailer reported earnings far ahead of Wall Street’s targets and aggressively raised its guidance for the year. Analysts roundly raised price targets with many believing Dick’s has proven it has shown structural improvement over the last year. Supply chain disruption was cited among the near-term risks.

Emboldened by a record-breaking second quarter, Dick’s Sporting Goods said it now expects same-store sales in 2021 to climb in the range of 18-to-20 percent, up from guidance of 8-to-10 percent previously,  while hiking its earnings targets. Dick’s officials also delivered their most upbeat comments on potential long-term benefits coming from changed behaviors due to the pandemic.

Most vendors in the active lifestyle space reported better-than-expected second-quarter results and raised their 2021 guidance as demand remained resilient. However, supply chain concerns, marked by continued port congestion and recent factory shutdowns in Vietnam that could limit second-half growth, were widely discussed on recent quarterly calls with analysts from VF Corp., Columbia Sportswear, Deckers Brands, Inc., Under Armour, Vista Outdoor, Yeti, Skechers USA, and Wolverine Worldwide. 

On, the Swiss running brand backed by tennis champion Roger Federer, filed for an initial public offering on Monday in the U.S. The company is reportedly seeking a valuation between $4 billion and $6 billion. The filing details the company’s rapid growth, including sales surging 85 percent in the first half of 2021.