SGB Executive

Canada Goose Inc. reported sales collapsed 63.3 percent in its seasonally-slow first quarter while predicting a significant decline in the second quarter and lower wholesale revenues for the full fiscal year. Continued investments in digital and retail are expected to support DTC growth. Said Dani Reiss, CEO, “We made the call early in the pandemic to temporarily put our wholesale business on pause. This helped us maintain whole price integrity in what became a promotional environment for many other brands.”

Propelled by a spike in bike sales, Dorel Sports delivered record profitability in the second quarter as sales jumped 18 percent despite significant supply chain restraints. Martin Schwartz, president and CEO at Dorel Industries, told analysts, “As the factories were ramping back up, demand for bikes took off to an extent never seen before.”

Nautilus Inc. reported its strongest year-over-year growth since becoming a public company as the at-home fitness trend took off during the coronavirus crisis. On a conference call with analysts, James Barr, CEO, said he sees temporary and long-term boosts for the company.

Clarus Corp. reported sales slumped 36.2 percent in the second quarter, to $30.0 million. A sales plunge of 47 percent at Black Diamond was only partly offset by a 7 percent gain at Sierra Bullets. Black Diamond’s climbing business is expected to slowly improve in the second half while the ski side is projected to find a boost from heightened interest in backcountry skiing.

Recent retail surveys and studies included McKinsey finding consumers optimism eroding amid spikes in COVID-19 cases in several states and an IBM study detailing concerns over heading back to work as well as to malls and other public places. Other surveys explored expectations for back-to-school and holiday spending, consumers increasing their saving behaviors and changing purchasing behaviors amid the downturn.

Callaway Golf reported second-quarter results came in better-than-expected as the golf equipment business quickly bounced back as stores and golf courses reopened and golf participation spiked. The apparel businesses, Jack Wolfskin and TravisMathew, have also recovered albeit to a lesser degree.

Vista Outdoor Inc., parent company of Camelbak, Bushnell, Bell, Giro, Federal and many more outdoor-oriented brands, said that outdoor recreation quickly became the go-to form of exercise and entertainment during the COVID-19 shutdown, which drove stronger-than-expected sales in most categories in the fiscal first quarter ended June 28.

Canadian Tire Corp. reported sales dropped 24.9 percent at its SportChek segment during the quarter while sales sunk 21.4 percent at Helly Hansen as both were impacted by store closures. Both businesses turned positive in June, led by online growth.

The overall positive jobs report trend for July got a boost from the sector that includes the sporting goods retail business. The U.S. Bureau of Labor Statistics reported that total nonfarm payroll employment rose by 1.8 million in July and the Establishment Survey Data that includes breakdowns for specific sectors of the market saw the Sporting Goods, Hobby, Book, and Music Stores segment add 18,700 jobs in July, or a 4.4 percent increase, lagging the overall retail sector.

Winchester’s sales increased 16.8 percent to $192.6 million for the second quarter, compared to $164.9 million in the second quarter 2019.

Benefitting as people spend time outdoors during the pandemic, Yeti Inc. reported earnings and sales in the second quarter that handily topped Wall Street targets. Said Matt Reintjes, president and CEO, “Yeti’s product performance, durability and versatility are key as customers rely on, and invest in, brands that help them enjoy outdoor activities.”

Adidas said it expects revenue to recover in the third quarter as stores continue to reopen and digital sales thrive after the coronavirus lockdowns pushed the company into a net loss in the second quarter.

“I think you’re seeing new entrants into the sport and we’re also benefiting from the fact that there is just so much demand against the bikes that are available, but that also pushes people into higher premium-level bikes that may have been looking at lower-level bikes prior”, said Company CEO Mike Dennison

Acushnet Holdings Corp., the parent of Titleist, FootJoy and KJUS, said that after a brutal first two months of the second quarter due to store and golf-course lockdowns, sales bounced back strongly in June, accelerated in July, and are expected to continue strong through the third quarter. Said David Maher, Acushnet’s president and CEO, on a conference call with analysts, “The game and business of golf have been incredibly resilient.”

Wolverine Worldwide’s sales in the second quarter fell 39 percent but came in significantly better than internal expectations due to a 96 percent hike in online sales and strong trends towards the end of the quarter around outdoor, run and work. Said Blake Krueger, chairman, CEO and president, “The company’s performance significantly exceeded our expectations entering the quarter on virtually every financial metric.”