SGB Executive

Kohl’s active category continued its momentum in the third quarter and officials elaborated on its recently announced goal to expand active assortments from 20 percent to “at least” 30 percent of sales. Said Michelle Gass, Kohl’s CEO, “Our insights show that more people are focusing on health & wellness, whether it’s working out or spending time outdoors. In addition, their active and athleisure wardrobe is expanding into many new occasions, and we expect this trend to continue.”

Sequential Brands Group reported its recently-hired CEO, David Conn, had departed as the brand-management company reported its active brands, AND1, Gaiam, SPRI and Avia, again outperformed in the third quarter.

seminar held last Thursday by SFIA and featuring top executives from the National Federation of State High School Associations, the National Hockey League and USA Volleyball, explored the health risks as team sports moves indoors for the upcoming winter sports season. Ensuring safety protocols, as risks rise, headlined the major challenges facing winter team sports.

While last year’s skiing and riding season was cut short by COVID-19, overall participation numbers still increased, a harbinger that snowsports are on solid footing.

Cowen’s third annual Gen Z and Millennial survey found sustainability and social impact among the high-level themes increasingly resonating with 18-to-34-year-old consumers and their purchase decisions. Nike was ranked first among apparel and footwear brands that most align with younger consumers’ social values and beliefs around sustainability, followed by Adidas, Vans and The North Face.

Fox Factory Holding Corp said it achieved the highest volume of shocks and forks ever shipped in a quarter as bike riding has soared in popularity during the pandemic. Mike Dennison, CEO, doesn’t see the potential arrival of a COVID-19 vaccine significantly slowing momentum.

As part of People for Bikes’ plan last summer to take a firm stance on fighting racial injustice, it conducted an industry-wide survey, benchmarking member experiences, perspectives and competencies on racial and mobility justice.

Adidas AG’s third-quarter sales and profitability recovered smartly with revenues only slightly below year-ago levels. However, a hoped-for return to growth in the fourth quarter has been dashed as the second wave of coronavirus outbreak in Europe has led to lockdowns and pandemic-related risks increase in other regions.

Clarus Corp.’s earnings came in well above Wall Street’s targets as Black Diamond’s revenue declines were significantly lower sequentially and Sierra Bullets’ expanded more than two-fold year-over-year. Continued recovery is expected for Black Diamond in the fourth quarter. John Walbrecht, Clarus’ president, “We are expecting a strong back country snow season.”

Callaway Golf’s third-quarter results exceeded expectations as a faster-than-expected bounce back drove golf equipment sales ahead 27 percent in the period.  The soft goods segment also showed some recovery but was still down year-over-year. Said Chip Brewer, president and CEO, “Golf retail, outside of resort locations, remains very strong at present and barring a shutdown situation has not been sensitive to the upticks in COVID cases.”

Nautilus Inc. reported breakout third-quarter results, but the report came on the same day very positive news broke regarding progress with a COVID-19 vaccine.

VF Corp. announced plans to acquire Supreme, the streetwear brand with a cult following, eyeing a $1 billion global opportunity over time. Said Steve Rendle, VF’s CEO, on a conference call with analysts, “Supreme sits at the epicenter of this market opportunity as the original and global category leader.”

Acushnet Holdings Corp. reported third-quarter results that easily exceeded Wall Street’s targets. On a conference call with analysts, David Maher, president and CEO, said Titleist’s Ball Plant III and Ball Plant IV are “operating 24/7” to catch up to demand and will continue to do so in the foreseeable future.

Canadian Tire Corp. reported Sport Chek’s comparable sales growth declined 1.4 in the third quarter. The decline was attributed to fewer promotional events, a slower back-to-school season and a decline in hockey and team sports compared to the prior year.

Peloton Interactive reported another quarter of explosive growth amid the booming at-home fitness trend during the pandemic with revenues running up 233 percent in its first quarter ended September 30; however, fulfillment bottlenecks and shipping delays continue to frustrate efforts to catch up to demand.