SGB Executive

On its first-quarter conference call, Roger Rawlins, CEO of Designer Brands and interim president, DSW, vowed to continue DSW’s push to become a much bigger player in the athleisure space while expressing confidence the chain would be able to secure enough inventory from other athletic vendors to replace Nike.

Dick’s Sporting Goods significantly hiked its guidance for 2021 as stellar first-quarter results provided more confidence that the surge seen across many categories during the pandemic would continue to pay dividends in the future. On a conference call with analysts, Lauren Hobart, president and CEO, said team sports “came back with a vengeance” in the first quarter and pandemic-helped categories such as golf, home fitness and outdoor are “still really, really strong.”

A survey of U.S. consumers from Morgan Stanley found that while Nike remains the most dominant athletic shoe and apparel brand among U.S. consumers, Adidas and Puma may be gaining ground at Nike’s expense. The survey showed Adidas is now the favorite athletic shoe and apparel brand in the U.S.

Foot Locker Inc. surprised investors by reporting first-quarter results that came in well above Wall Street’s estimates and then in a bigger way by announcing its decision to close the Footaction chain. Dick Johnson, Foot Locker’s CEO, said, “Given the timing of the lease expiries, given the timing of the digital effort that we’ve seen, this is the time to make this decision.”

“It was the best of times; it was the worst of times.” That quote, by Charles Dickens, could sum up the topsy-turvey paddlesports industry this season as boat manufacturers scurry on the supply side to keep up with demand.

With a blow-out final quarter, Deckers Brands said revenue in its fiscal year ended March 31 exceeded pre-pandemic expectations. Deckers now plans to accelerate investments to scale the company’s supply chain and logistics infrastructure as well as beef up talent as growth opportunities for Hoka One One and Ugg are emerging faster than expected out of the pandemic.

VF Corp. predicted that all four of its big brands—Vans, The North Face, Timberland and Dickies—will not only recover revenue lost during the pandemic but deliver strong growth relative to prior peak levels. On its fiscal fourth-quarter call Steve Rendle, chairman, president and CEO, outlined the path for Vans, the current laggard, to return to double-digit growth.

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of April 26, 2021 covered in the SGB Updates and delivered to your inbox every business day. This week’s Ambassador Athlete is Shelma Jun, Arc’teryx sponsored Climber and featured in the recently released children’s book from Garmin titled “Women of Adventure: Being Brave in a Big World.”

Kohl’s Inc. hiked its earnings outlook for the year after first-quarter earnings came in well ahead of Wall Street’s targets. Koh’s said its shift last year to amplify its focus on athletic and casual lifestyles continues to gain traction. Nike, Under Armour, Adidas and Champion continued to drive active gains in the quarter with a major Eddie Bauer launch planned for the second half.

Led by athletics and seasonal categories, Shoe Carnival reported first-quarter results that far exceeded Wall Street’s guidance and predicted record earnings for the second quarter. Carl Scibetta, senior EVP, chief merchandising officer, told analysts, “Both men’s and women’s athletic had strong performances with sales driven by the basketball, skate and running categories.”

Addaday is on a roll. The maker of massage and other recovery tools recently announced a number of major hires to capitalize on emerging growth opportunities as it continues to tap accelerated demand for percussion tools, including its BioZoom Edge cordless massager. Here, Hugh Williams, president, discusses the Addaday story, new hires and growth opportunities ahead.

Smaller specialty retailers and manufacturers picked up a few pointers on leveling the playing field against e-commerce and other giants in a mid-May webinar on the State of Retail 2021 presented by Snowsports Industries America.

A global study from Signa Sports United, Europe’s sports commerce platform, and Boston Consulting Group (BCG) predicts tailwinds from COVID-19 will accelerate sports participation rates in the years ahead and drive sports retail revenues at twice the pace of global GDP. The study predicted strong growth prospects for “online category champions” and e-commerce overall.

As COVID-19 cases decline and vaccination rates climb, Fleet Feet is positioned to benefit from the return of races to build on the momentum the sport of running gained over the last year. Joey Pointer, CEO and president, talks about Fleet Feet’s battle plan to manage the pandemic and the outlook for the sport of running and Fleet Feet.

Wedbush on Monday raised its price target on Dick’s Sporting Goods from $85 to $97 on the investment firm’s belief that sales trends have accelerated since the company’s 4Q20 earnings report.