SGB Executive

In today’s hard-pressed, brick & mortar retail world, it’s much harder to leave a family legacy for the next generation to take over the business. SGB Executive caught up with two outdoor specialty retailers, one on the East Coast and one out West, whose businesses are thriving.

Dick’s Sporting Goods reported record sales and earnings for the fourth quarter and year and predicted continued strong demand across golf, outdoor, fitness and active lifestyle categories as well as recovery for team sports in 2021. Conservative guidance was still provided for 2021 as the company seeks to hurdle 2020’s pandemic-driven gains.

Clarus Corp. reported total sales were up 24.4 percent in the fourth quarter ended December 31 on the back of accelerating growth of the Sierra Bullets brand and continued recovery of Black Diamond. The gains came despite continued supply chain constraints holding back gains in both segments.

Both TJX Cos. and Ross Stores missed Wall Street’s expectations in the fourth quarter due to temporary store closures tied to upticks in COVID-19 cases. Both also continue to be held back by general weakness in the broader apparel category amid the pandemic. Burlington Stores managed to top Wall Street’s targets as store traffic picked up with the arrival of colder weather despite the pandemic.

Hibbett Sports reported significant gains in fourth-quarter earnings and sales and expressed confidence that new customers captured during the pandemic would boost sales in the years ahead. However, Hibbett officials also warned of supply chain disruptions and provided muted guidance for 2021 due to uncertainties in the marketplace.

Fiscal third quarter net sales increased 102.2 percent to $257.6 million compared with $127.4 million in the comparable quarter last year.

Gap Inc. said it plans to open 20 to 30 Athleta stores in 2021 after the women activewear chain’s fourth-quarter sales jumped 29 percent on a reported basis and 26 percent on a same-store basis. Sonia Syngal, Gap Inc’s CEO, told analysts, “Athleta is our highest margin business and like Old Navy has made continuous market share gains each quarter year-to-date.”

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of March 1, 2021 covered in the SGB Updates and delivered to your inbox every business day.

On January 25, 2021, kayak, surf and SUP company Hobie Cat Co. was discretely sold to a private equity group consisting of executives from Detroit industrial auction company Maynards Industries. SGB Executive caught up with its new Chairman, Taso Sofikitis, on what the future holds.

“It starts with the runner,” said Dan Sheridan, EVP, COO, Brooks Running, explaining how the brand’s run-centric focus paved the way for a 27 percent hike in sales in 2020 amid the pandemic. But the performance, in particular, reflects the payback from recent investments in two areas—establishing a multichannel strategy and creating an internal runner research hub, the Run-Sight Lab.

On Nordstrom’s fourth-quarter earnings call, Pete Nordstrom, president, said the retailer’s partnership with Tonal, the at-home connected gym start-up, is just one part of the chain’s efforts to build on recent success in the active category.

Driven by the trifecta of robust sales growth, margin expansion and a leaner cost structure, Big 5 Sporting Goods reported its third successive quarter of record earnings while predicting continued momentum in 2021. Steve Miller, CEO, told analysts, “We are pleased with all we accomplished in 2020, and we are even more excited by the prospect than many of the recreational and product trends initially driven by the pandemic will prove to be sustainable even as the disruption of the pandemic subsides.”

When GOA released its final 2020 year-to-year sales numbers from its 94 retailers operating 195 doors, it showed the up and down swings associated with the pandemic. SGB Executive caught up with Gabe Maier, vice president, GOA, to go behind the numbers, talk about the upcoming launch of its Switchback retail data tool, the outlook for 2021, and more.

The adventure travel industry has been hit hard by the pandemic. SGB Executive spoke with 50-year-old, family-owned adventure travel business OARS for insight into the market with Steven Markle, vice-president of sales and marketing.

Kohl’s reported activewear outperformed in the fourth quarter and remains one of the chain’s “most productive categories.” Kohl’s reiterated plans to increase in-store space dedicated to active assortments by at least 20 percent in 2021. Michelle Gass, Kohl’s CEO, told analysts, “Our vision is to be the most trusted retailer of choice for the active and casual lifestyle.”