Exec: Active Lifestyle Stocks Face Turbulence In 2022

The majority of stocks in the active lifestyle space took it on the chin in 2022 as broader stock markets in the U.S. saw their worst performance since the 2008 financial crisis.

All three of the major averages suffered their worst year since 2008 and snapped a three-year win streak. The Dow fared the best of the indexes in 2022, down 8.8 percent in 2022. The S&P 500 dropped 19.4 percent, and is more than 20 percent below its record high, while the tech-heavy Nasdaq tumbled 33.1 percent.

Sticky inflation and aggressive rate hikes from the Federal Reserve battered growth and technology stocks and weighed on investor sentiment throughout the year. Geopolitical concerns and volatile economic data also kept markets on edge.

Most active lifestyle stocks underperformed the broader indexes after solidly outperforming over the prior two years. Due to heightened interest in outdoors and fitness activities, many were able to deliver above-plan results in the earlier stages of the pandemic.

Several active lifestyle stocks fell last year but remain well above price levels prior to the pandemic’s arrival.

Vista Outdoor closed the year at $24.37, down from $46.07 at the start of the year but well above the $7.48 level it began in 2020. Crocs, Lululemon and Acushnet, the parent of Titleist, also lost ground in 2022 but the company’s stock prices remained well above pre-pandemic levels.

Shares of Deckers Corp. grew 8.9 percent despite the bearish market due to strong performances by its Ugg and Hoka One One brands and closed the year up 136 percent versus its closing in 2019.

Shares of sporting goods chains performed well as sales did not fall back as much as some forecasted as the pandemic began to subside.

Academy Sports + Outdoors added 19.7 percent to close 2022 at $52.54 after climbing 112 percent in 2021. The Texas-based chain went public at $13 in August 2020. Dick’s Sporting Goods tacked on 4.6 percent in 2022 and has run up 143 percent since the start of 2020. Shares of Hibbett Sports were down slightly but more than doubled since the start of 2020.

Fitness chains, including Xponential Fitness and Planet Fitness, comparatively performed well as traffic to gyms returned close to pre-pandemic levels.

Among the major sports vendors, Nike faired best, albeit down 29.8 percent in a year undermined by supply chain challenges. Nike’s stock is up about 15 percent since the start of 2020. Both Adidas and Under Armour saw steeper declines last year and are hovering well below pre-pandemic stock levels.

In the outdoor space, VF Corp. and Wolverine Worldwide are now trading well below pre-pandemic stock prices while shares of Columbia Sportswear are trading slightly below. Peloton and Nautilus soared earlier in the pandemic, but each lost about 75 percent of their value in 2022 as the at-home fitness trend fizzled.

No active lifestyle stocks went public in the rocky market, and many that recently tapped the market faced volatility. Allbirds went public in November 2021 at $13 and closed in 2022 at $2.42. On Holding went public in September 2021 at $24 a share and shot up to $37.81 by the close of 2021, but finished 2022 at $17.16.