SGB Executive

Zumiez Inc. managed to increase earnings in the third quarter despite challenging year-ago comparisons as strength in men’s and footwear drove sales gains and product margins improved slightly. Rick Brooks, CEO, on Zumiez analyst call, “Our third quarter was a historic one.”

Smith & Wesson Brands Inc. fell far short of Wall Street expectations in their fiscal second quarter as sales decreased versus the year-ago quarter amid reduced consumer demand and fuller inventories at retail.

Boosted by significantly improved gross margins, Duluth Trading’s earnings more than tripled in the third quarter as sales grew 7.2 percent. The company sharply raised its guidance for the year and indicated progress is being made with its new Big Dam Blueprint long-range growth plan.

At the Morgan Stanley Virtual Global Consumer & Retail Conference, Lauren Hobart, president and CEO, Dick’s Sporting Goods, and Navdeep Gupta, its new CFO, took a deep dive into how the pandemic experience likely improved the long-term prospects for the retailer’s sales and profit margins.

Allbirds, Inc., in its first earnings report since completing its initial public offering, widened its loss in the third quarter but sales rose 33 percent, led by a 42.0 percent hike in the U.S. as well as new product introductions.

Finding success with its acquisition of Hydro Flask in 2016, Helen of Troy hopes to repeat the formula with its $414 million acquisition of Osprey Packs. Julien Mininberg, Helen of Troy’s CEO, told analysts, “We believe this acquisition is a classic story of two companies that are better together.”

Allbirds attracted largely positive ratings from Wall Street as the quiet period from its initial public offering ended.

Traffic both in-store and online on Black Friday was subdued due to fewer doorbusters on the day and earlier holiday shopping in a season being increasingly dictated by supply chain challenges. On the positive side, in-store traffic saw a strong recovery year over year.

Shares of Dick’s Sporting Goods fell 4.1 percent Tuesday despite the retailer reporting third-quarter results that crushed analyst estimates. The decline was attributed to conservative Q4 guidance and concerns over Dick’s losing momentum in 2022. Most sell-side analysts remained bullish on the stock and expressed confidence Dick’s will be able to overcome supply chain challenges and brutal comparisons in the quarters ahead. 

Gap Inc. shocked Wall Street by slashing its outlook for the current year due to shipment delays but its Athleta chain remains on a roll. The women’s active brand grew brand awareness to 33 percent versus 27 percent last year and more than doubled new customer acquisition.

Dick’s Sporting Goods for the third quarter in a row raised its outlook for the year as earnings again came in well above Wall Street targets and sales topped tough year-ago comparisons. Comps are now expected to expand about 25 percent for the year. Lauren Hobart, president and CEO, told analysts, “During a time when consumers are making lasting lifestyle changes with an increased focus on health and fitness and greater participation in outdoor activities, we believe that Dick’s Sporting Goods has become synonymous with sport in the United States.”

While it’s hard to point to many silver linings of the pandemic from a retail perspective, one has surfaced that several manufacturers — and even retailers — have taken advantage of: facemasks, in all shapes and forms, as a new, fast-selling SKU to the retail arsenal.

Delta Apparel reported broad-based top-line growth and solid margin expansion in the fourth quarter ended October 2. The company’s Delta Group activewear segment began to benefit from heightened interest in onshore and nearshore supply chain strategies while its lifestyle brand, Salt Life, achieved a record-high level of customer engagement.

Foot Locker raised its guidance for the full year after reporting better-than-expected third-quarter results with a boost from strong demand and full-price selling. Officials expressed confidence they’ll be able to offset the severe supply chain headwinds in coming quarters.

Caleres said Famous Footwear generated third-quarter sales of $495 million, a nearly 11 percent improvement over the third quarter of 2019 and the highest level of quarterly sales in the history of the brand despite supply chain constraints. Diane Sullivan, chairman and CEO at Caleres, said, “What was really a powerful driver was having the right level of inventory behind the key brands and styles.”