SGB Executive

In April, several thousand pickleball players descended upon Naples, FL, to compete in the emerging sport’s pinnacle event, the U.S. Open Pickleball Championships. SGB Executive caught up with Franklin Sports President Adam Franklin, who was on hand at the event.

With double-digit growth across its Direct and Retail segment, Nautilus Inc. delivered record-breaking results for the second straight quarter to produce the highest revenue quarter in company’s 35-year history. Jim Barr, CEO, told analysts, “Results were driven by leveraging the continued strong demand for at-home fitness, along with the team’s impressive efforts to solve unprecedented challenges in global logistics, bringing supply much closer to matching demand.”

Callaway Golf Company President and CEO Chip Brewer talked a lot about exceeding expectations in all three business segments in the first quarter during a recent conference call with analysts but the company’s namesake golf equipment brand lost share in the period as the broader U.S. golf market outpaced the brand’s performance.

While snowpack levels are below average across much of the Western U.S., rafting outfitters are anticipating a solid season coming up as COVID-19 restrictions slowly ease and customers are craving a chance to get outside.

Clarus Corp. raised its annual sales targets for both Black Diamond Equipment and its Sierra/Barnes ammo segment as both businesses accelerated growth during the first quarter. Clarus officials said the company is benefiting from its ability to overcome supply chain challenges.

Delta Apparel achieved second-quarter sales growth of 12 percent with double-digit growth in both its Delta Group and Salt Life Group segments. Significant earnings expansion benefited from manufacturing efficiencies and cost control.

Boosted by significant double-digit growth in all geographies for Cannondale, Dorel Sports’ sales jumped 43.6 percent in in the first quarter. Martin Schwartz. president and CEO of Dorel Industries, told analysts, “In the U.S., IBD channel organic growth has been very strong. The demand for bikes continues to outpace supply, keeping inventory low and margins up. Dealers are now actually placing orders into 2022 to ensure supply.”

With its Camping and Watercraft Recreation seeing the largest percentage gains, Johnson Outdoors Inc. reported sales jumped 26.4 percent in the second quarter ended April 2. Helen Johnson-Leipold, CEO, said, “The pandemic has been a catalyst for people to get outdoors.”

Adidas raised its 2021 sales outlook as it expects strong demand for its products and DTC growth momentum to help overcome a number of challenges, including continued lockdowns in Europe, supply chain hurdles and political tensions in China.

Fox Factory continued to deliver – both literally and figuratively – in the 2021 first quarter as the company rode sales growth of more than 50 percent while doubling their non-GAAP earnings per share results for the period.

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of April 26, 2021 covered in the SGB Updates and delivered to your inbox every business day. This week’s Ambassador Athlete is Kimi Werner, Professional Freediving Spearfisherwoman and sponsored athlete working with Patagonia, Yeti, OluKai, and Costa.

Peloton Interactive Inc. reported sales more than doubled in its third quarter ended March 31 and indicated delivery wait times improved. However, a controversial recall of its treadmills is now expected to pull down revenue and profit going forward. CEO John Foley told analysts, “We’re going to take some short-term financial pain to be able to invest in building something that’s built to last for decades.”

Vista Outdoor Inc.’s sales grew 40 percent in the fourth quarter ended March 31 with robust growth across its Outdoor Products and Shooting Sports segments. Management sees few signs of a slowdown in demand. Vista’s CEO Chris Metz told analysts, “The pandemic accelerated many of the consumer trends that were already in motion and we believe will help fuel our continued success and FY22 and beyond.”

Acushnet Holdings’ sales jumped 34 percent on a currency-neutral basis in the first quarter, paced by gains from Titleist Pro V1 and Pro V1x golf balls, TSi drivers, and FootJoy golf shoes. David Maher, Acushnet’s CEO, told analysts, “We remain enthused about strong demand for Acushnet products, healthy participation rates in most regions and the overall energy and interest for the men’s and women’s professional games across worldwide tours.”

Sturm, Ruger & Company’s sales jumped 49.2 percent in the first quarter. On a conference call with analysts, Chris Killoy, CEO, said the company still hadn’t been able to catch up to demand for firearms despite a 22 percent expansion of its workforce over the last twelve months.