SGB Executive

Town Sports International LLC, the parent of New York Sports Clubs, Boston Sports Clubs, and numerous other gyms, on Monday, became the latest fitness chain to land in bankruptcy court due to the pandemic.Wrote Phillip Juhan, CFO of Town Sports, in an affidavit filed in Delaware’s bankruptcy court, “COVID-19 has hit the health club industry particularly hard.”

Zumiez, Inc. saw a 9.6 percent increase in fiscal second quarter year-over-year revenues despite a shift in government orders that restricted the number of stores that could be open during the period. Net income for the second quarter was $25.4 million or $1.01 per share, compared to net income of $9 million or 36 cents per share for Q2 2019.

Peloton Interactive marked its first quarterly profit as sales vaulted 172 percent in the fiscal fourth quarter ended June 30. The company also forecasted first-quarter and fiscal 2021 sales that far exceeded analysts’ expectations. John Foley, Pelton’s CEO, said on a conference call, “American consumers have said that they want fitness at home. It just hasn’t worked until now.”

Academy Sports’ IPO prospectus details the numerous steps Ken Hicks has put in place since taking over as CEO in May 2018 to drive steady improvement over the last few years and has now positioned the Texas-based chain for accelerated growth amid the pandemic. Hicks in a letter to shareholders in the prospectus, “We are at the beginning of an incredible journey and still have much to accomplish.”

Consumer events all over the country were canceled this year, but perhaps none created as big a blow among outdoor participants as the GoPro Mountain Games, held annually in Vail, CO.

At Goldman Sachs’ Annual Retailing Conference Wednesday morning, Ed Stack, chairman and CEO, said “some pull forward” helped drive the retailer’s whopping 20.7 percent comp gain in the second quarter. However, strong demand for many categories that have benefited from lifestyle changes amid the COVID-19 pandemic are expected to continue into 2021. Stack said, “We’re fortunate we’re in a great lane for what’s going on right now.”

Lululemon has been a Wall Street darling during the pandemic but second quarter results hardly set the world on fire during the fiscal second quarter ended August 2 and the company’s earnings call left analysts yearning for more in back half outlook.

On September 3, Washington, D.C.’s Outdoor Recreation Roundtable hosted an industry conference call outlining the state of outdoor recreation, as well as results from its recent member survey addressing the COVID-19 impacts on the industry.

With their ease of use and ability to roll up and store away in an urban apartment back home, many people are turning to inflatable paddle craft as the million-dollar solution to getting fresh air while social distancing in the Great Outdoors.

Analysis by eMarketer found online sales grew 44 percent year-over-year in the second quarter and the research firm predicted online sales would reach 18 percent of U.S. retail sales in 2021. Recent retail surveys and studies also explored growing comfort by consumers in returning to stores, the U.S. economy’s recovery, 3D-shopping and road trips.

Designer Brands Inc. vowed do double-down on its efforts to expand athletic assortments as its DSW off-price chain as its core dressier styles are seeing meager traction in the stay-at-home economy. Said Roger Rawlins, CEO at Designer Brands and interim president, DSW, “Designer Brands has the flexibility and the necessary vendor relationships to become a go-to sneaker headquarters during this time.”

Tilly’s reported sales declined 16 percent in the second quarter ended August 1 and warned that third-quarter sales would decline sharply due to soft traffic as stores have reopened as well as delayed back-to-school (BTS) selling. Tilly’s officials also noted that BDG by Urban Outfitters, Nike Women and Fjällräven have been added to the action-sports chain’s mix.

Smith & Wesson handgun unit shipments increased 122 percent to 441,000 units, while long gun unit shipments increased 89 percent to 108,000 units.

Duluth Holdings Inc., the parent of Duluth Trading, delivered significant improvements in earnings in the second quarter as sales grew 12.6 percent, led by online sales. Said Steve Schlecht, executive chairman and CEO, on a conference call with analysts, “Comfort was key.”

Sportsman’s Warehouse’s earnings vaulted in the second quarter as sales jumped 79 percent on significant increases in firearms, ammunition, fishing, and camping. The performance benefited from market share gains, a surge in outdoor participation and civil disorder. Said Jon Barker, CEO, on a conference call with analysts, “Quite simply, demand outstripped supply for many of our products.”