Author: Thomas J. Ryan

Modell’s Sporting Goods, unable to find a buyer, announced plans to liquidate its remaining 141 stores in bankruptcy proceedings. The retailer claims to be the oldest sporting goods chain in the U.S.

Genesco Inc. reported fourth-quarter earnings that came in well above Wall Street’s target but also indicated that the first quarter has gotten off to a slow start due to unseasonably warm weather impacting boot sales and softening traffic in tourist areas tied to the coronavirus.

Adidas reported 2019 results came in better than initially expected as all regions recorded sales growth for the first time since 2016. But the big news was the massive impact the company expects in the near-term to China due to coronavirus as well as ongoing uncertainty stemming from the increasingly global epidemic.

Dick’s Sporting Goods reported earnings in the fourth-quarter that again topped Wall Street’s targets as same-store sales jumped 5.3 percent. Plans for 2020 included big investments in golf and soccer categories as well as women’s overall. But all the attention went to the retailer’s decision to remove the hunt category from another 440 stores.

Hyperice’s merger with NormaTec is expected to help both companies accelerate their growth. But NormaTec’s CEO Gilad Jacobs tells SGB Executive that the bigger impact will be helping drive both companies’ shared goal of bringing recovery solutions to everyday people.

The sporting goods industry showed some resilience in 2019. SFIA’s 2020 Manufacturers’ Sales Reports showed overall U.S. sports and fitness products industry revenues grew 3.9 percent in 2019, accelerating from 2.3 percent growth in 2018. Stand-out categories include athleisure, coolers, water bottles, tents, running footwear and exercise bikes.

UBS reduced its price target on Nike to $123 down from $136 due to the coronavirus. However, the investment firm said Nike still has an “Exceptional Long-Term Story” and maintained its “Buy” rating due to strong fundamentals.

Kohl’s Inc.’s 2019 results missed expectations due to weakness in home and women’s as well as margin pressures. Traffic and new customer acquisition, however, grew in the second half of the year. Moreover, the active category saw momentum throughout the year and the chain plans to build on that in 2020.

Velofix has become the largest fleet of mobile bike shops in North America with more than 125 franchise partners in Canada and across the U.S. and plans to accelerate that growth with fresh funding and the introduction of corporate-owned vans. Chris Guillemet, CEO and co-founder, talk to SGB Executive about Velofix’s disruptive business model.

Foot Locker Inc.’s fourth-quarter sales came in below expectations due to ongoing challenges in the apparel category and underperformance by Adidas in footwear. But sales growth is expected to resume in 2020 as demand for Nike and Jordan product remains strong and several newer initiatives – including its Power Centers, FLX rewards program, and dedicated women’s spaces – are showing promise.

HSBC Global Research issued a bullish report on the sporting goods space, believing industry growth in the years ahead will be fueled by younger and more health-focused consumers, a global shift towards casualization, and the growing importance of sustainability among consumers.

In a further sign that it’s extensive restructuring efforts are paying off, Crocs Inc. reported a profit against a loss in the fourth quarter as sales climbed 21.8 percent. Crocs, however, joined other firms in warning of a near-term hit to revenues due to the coronavirus outbreak.

Big 5 Sporting Goods Corp. reported a strong 2019, marked by a comp gain and its strongest margin performance in more than 10 years. However, inclement winter weather has led to a poor start to 2020. CEO Steve Miller said, “Although this year began with solid winter weather conditions in our geography, unfortunately, the conditions turned highly unfavorable over the course of the quarter, particularly in our key California market.”

Wolverine World Wide reported another quarter of accelerated growth in the fourth quarter for its two biggest brands, Merrell and Sperry, and predicted a recovery year in 2020 for Saucony. Conservative guidance, however, was given for 2020 due to the expected fallout from the coronavirus outbreak and some continued challenges facing the U.S. wholesale channel.

Gildan Activewear reported sales declined 11.3 percent in the fourth quarter and 2.9 percent in the year due to lower imprintables volumes in North America but growth is expected to return in 2020.