SGB Executive

Johnson Outdoors reported revenues surged 58 percent in the fiscal fourth quarter ended October 2 as pent-up demand drove significant sales gains across its fishing, camping and watercraft segments. The performance propelled the company to positive growth for the full fiscal year. Said Johnson-Leipold, “Overall, this year’s performance was fueled by demand created through people’s eagerness to get outdoors.”

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of December 7, 2020, covered in the SGB Updates and delivered to your inbox every business day.

Vail Resorts, North America’s largest ski resort operator, saw record sales of Epic Passes, but overall sales in the fiscal first quarter ended October 31 declined 50.8 percent, and CEO Robert Katz warned investors of a “very challenging” 2020/21 North American ski season ahead as COVID-19 cases spike across the country.

Lululemon’s third-quarter results arrived well above Wall Street’s expectations due to improved store productivity, nearly double-digit online growth and greater acceptance of Lululemon’s broader offerings. Total comps jumped 19 percent with increases of 22 percent in women’s and 14 percent in men’s. Said Calvin McDonald, CEO, “These results demonstrate that our brand is becoming stronger.”

Elevated by the continued momentum across outdoor and home fitness categories due to the pandemic, Academy Sports reported record earnings and sales in the third quarter in its first report as a public company. Double-digit comps were seen across bicycles, outdoor games, fitness equipment, fishing, camping and hunting.

Morgan Stanley and Cowen both raised their price targets on Nike Inc. Both firms cited the benefits of the company’s digital transformation and potential margin improvement.

SGB Executive talked with Chris Speyer, REI’s VP of product and Nicole Browning, REI’s manager of marketing inclusion, about its updated Product Impact Standards that puts a bigger focus on fighting climate change and supporting diversity and inclusion.

DSW’s strong pivot toward athleisure over the last year has made the off-price chain the second-largest retailer of women’s athleisure in the U.S. behind only Nike, Roger Rawlins, CEO of Designer Brands, DSW’s parent, said on his company’s third-quarter analyst conference call. But that wasn’t enough to offset DSW’s exposure to dressier looks that remain out of fashion amid the pandemic.

G-III Apparel Group reported third-quarter sales were sharply below year-ago levels and predicted a 30 percent fourth-quarter slump. However, results recovered better than expected as shifts toward athleisure and more casual offerings are paying off. Said Morris Goldfarb, G-III’s CEO, “Our merchants early on were able to identify the meaningful shift in consumer demand toward casual and comfortable clothing, as well as outdoor active attire.”

With design improvements making it easier than ever, snowboarders are also venturing off-piste thanks to the burgeoning category of splitboards.

Mimi Vaughn, president and CEO, said, “While the casual part of Journeys’ assortment has been gaining ground over fashion athletic all year, Q3 delivered the largest quarterly growth so far.”

Smith & Wesson Brands reported its second consecutive record-breaking quarter for the 168-year-old company. Mark Smith, president and CEO, also expressed confidence that new hunt customers gained during the pandemic would drive growth for the company in the years ahead.

Tilly’s reported sales slumped 9.4 percent in the third quarter ended October 31 as a result of delayed Back-to-School selling and COVID-19-related restrictions on in-store operations. Women’s was the only positive sales category in the period.

Boosted by a recovery in sales in September and October, Zumiez reported earnings soared 51.6 percent in the third quarter as same-store sales jumped 8.1 percent. Rick Brooks, CEO, said, “Strong digital activity and robust full-price selling across all geographies highlighted our top-line performance.”

Duluth Trading reported strong online sales to offset continued declines in in-store sales in the third quarter. The retailer warned that in-store traffic had worsened in recent weeks in line with surges in COVID-19 cases. Steve Schlecht, executive chairman and CEO, told analysts, “The resurgence of COVID-19 is a concern regarding in-store shopping, and it also clouds the outlook for consumer spending.”