SGB Executive

Fox Factory continued to deliver – both literally and figuratively – in the 2021 first quarter as the company rode sales growth of more than 50 percent while doubling their non-GAAP earnings per share results for the period.

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 Kimi Werner, Professional Freediving Spearfisherwoman and sponsored athlete working with Patagonia, Yeti, OluKai, and Costa.

Peloton Interactive Inc. reported sales more than doubled in its third quarter ended March 31 and indicated delivery wait times improved. However, a controversial recall of its treadmills is now expected to pull down revenue and profit going forward. CEO John Foley told analysts, “We’re going to take some short-term financial pain to be able to invest in building something that’s built to last for decades.”

Vista Outdoor Inc.’s sales grew 40 percent in the fourth quarter ended March 31 with robust growth across its Outdoor Products and Shooting Sports segments. Management sees few signs of a slowdown in demand. Vista’s CEO Chris Metz told analysts, “The pandemic accelerated many of the consumer trends that were already in motion and we believe will help fuel our continued success and FY22 and beyond.”

Acushnet Holdings’ sales jumped 34 percent on a currency-neutral basis in the first quarter, paced by gains from Titleist Pro V1 and Pro V1x golf balls, TSi drivers, and FootJoy golf shoes. David Maher, Acushnet’s CEO, told analysts, “We remain enthused about strong demand for Acushnet products, healthy participation rates in most regions and the overall energy and interest for the men’s and women’s professional games across worldwide tours.”

Sturm, Ruger & Company’s sales jumped 49.2 percent in the first quarter. On a conference call with analysts, Chris Killoy, CEO, said the company still hadn’t been able to catch up to demand for firearms despite a 22 percent expansion of its workforce over the last twelve months.

Big 5 Sporting Goods reported its fourth consecutive quarter of record quarterly earnings as the pandemic continues to elevate demand for many fitness and outdoor products. Big 5 officials also expressed confidence they’ll be able to manage Nike’s pending exit from the chain. Steve Miller, Big 5’s CEO, told analysts, “Although we are disappointed by Nike’s decision, we are encouraged by the response of other vendors, both new and existing about the opportunity to expand their presence in our stores.”

Under Armour Inc. significantly increased its guidance for the year after reporting first-quarter results that came in well above expectations due to strong sell-throughs at both its wholesale and direct-to-consumer segments. Marketing investments will be ramped up in the second half to build on momentum seen in North America, China and Germany.

SGB Executive caught up with its vice president of marketing, TJ McMeniman, on the brand’s partnerships geared toward preservation, ongoing conservation initiatives and new styles of shades hitting retailers’ shelves.

With the rapid rollout of COVID-19 vaccines, Emerald Holding expects a full resumption of its in-person events calendar beginning this summer, CEO Hervé Sedky believes the event business is “at an important inflection point” as vaccines are rolled out with many states scheduling their reopening dates for large in-person gatherings over the next two months.

Newell Brands said strong sales of Coleman coolers, tents and stoves and improving trends at Marmot and ExOfficio helped drive a 9.4 percent sales gain for its Outdoor & Recreation Segment in the first quarter. The beverage business, including Bubba and Contigo, continued to face challenges due to stay-at-home trends.

Compass Diversified Holdings (CODI) reported healthy double-digit revenue gains for Velocity Outdoor, Marucci Sports, Boa Technology, and Liberty Safe in its first quarter ended March 31, 2021. The company’s 5.11 brand achieved more modest growth but saw robust retail gains.

Columbia Sportswear Inc. increased its full-year financial outlook based on what company chairman and CEO Tim Boyle described as first-quarter sales growth that outpaced expectations, favorable early season spring sell-through, the visibility provided by the company’s fall order book, and an “improvement in business fundamentals.”

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 Meagan Ethell, Professional Wakeboarder, Body Glove and Red Bull Sponsored Athlete.

On Puma’s quarterly media call, CEO Bjørn Gulden said the brand’s 26 percent jump in first-quarter sales came despite ongoing coronavirus lockdowns and congestion at U.S. ports and reflected strength across running, golf, basketball and lifestyle offerings. He also predicted a return to sport with the help of the Olympics and EURO Cup.