SGB Executive

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of June 22, 2020 covered in the SGB Updates — delivered to your inbox every business day. Photo courtesy the New York City marathon which was canceled this week despite infection rates of the coronavirus dropping in the NYC […]

Speaking at the 2020 Jefferies Virtual Consumer Conference, Christopher Rondeau, CEO, Planet Fitness, said gym visits continue to improve with member workouts at almost 80 percent to 85 percent year-ago levels, but he sees ongoing challenges continuing and expects pressures will create sizeable market share opportunities for Planet Fitness.

Winnebago Industries, one of the leading manufacturers of recreational vehicles (RVs), said backlogs at the close of the third quarter ended May 30 vaulted 86.7 percent in units in Towables and 99.2 percent in Motorhomes. The gains reflect a strong rebound in dealer demand in May as April was the month most impacted by COVID-19 coupled with a yearning by consumers to be outdoors.

Cowen on Wednesday lifted its rating on Dick’s Sporting Goods as the investment firm sees accelerating share gains amid improving footwear allocations as well as greater adoption of its e-commerce platform. Analyst John Kernan wrote in a note, “We expect market share gains to continue and accelerate as regional smaller sporting goods providers weaken financially or file for bankruptcy.”

GNC Holdings Inc., the parent company of health and wellness retailer GNC, filed for Chapter 11 bankruptcy protection in Delaware with plans to sell the company and close “at least 800 to 1,200 stores.” The move comes after its latest effort to manage its debt load unraveled amid the coronavirus pandemic.

SGB Executive reached out to a handful of executives in the active lifestyle space to explore what adjustments they’ve made as a result of the pandemic and which ones will likely continue once the crisis subsides. Responses from Rab, Allied Feather & Down, Sweet Protection, RovR Products, and Salewa.

Speaking at the Stifel Cross Sector Insights Conference, Jim Swanson, CFO at Columbia Sportswear, said the Company’s diversified business model, accelerated investments in digital in recent years and the heightened appeal for outdoor products will help it manage the fallout from the pandemic.

SGB Executive reached out to a handful of executives in the active lifestyle space to explore what adjustments they’ve made as a result of the pandemic and which ones will likely continue once the crisis subsides. Responses from Prana, Purist Collective, Teton Gravity Research, North x North, Snow Peak, and California Innovations.

At the Stifel Cross Sector Insights Conference, Patrik Frisk, CEO and president of Under Armour, said he believes the brand’s amplified focus on athletic performance will pay off as the pandemic drives increased interest in fitness and health. Frisk also talked about recent traction gained in digital engagement and running footwear.

Smith & Wesson Brands, Inc. reported its last full year as a combined Company this week as it prepares for the spin-off of its non-firearms business to a new publicly traded entity in August.

Designer Brands, the parent of the DSW chain, said it plans to prioritize its Top 50 brands as part of a rationalization of its vendor base while increasing emphasis on athleisure and kids that have been its strongest categories amid the pandemic. Roger Rawlins, CEO, told analysts, “We’re excited actually about the kind of conversations we’ve been having with the top athletic brands.”

Read the top National stories and the Latest headlines across the Active Lifestyle Market during the week of June 15, 2020 from this week’s SGB Updates — delivered to your inbox every business day.

Raymond James analyst Matthew McClintock raised his price target on Nike Inc. as the virus has heightened consumers’ desire to refocus on health and wellness. The upgrade also takes into account expected faster paybacks from its digital investments as well as a positive consumer response to its recent marketing efforts.

The 2nd edition of the COVID-19 Industry Impact Report from the Sports & Fitness Industry Association (SFIA) finds that while most sporting goods categories are seeing significantly decreased sales year-over-year, 56 percent of respondents reported sales growth from April to May 2020. Big year-over-year gains were seen in e-commerce and slightly more optimism was seen around the return of youth sports.

Speaking at the 2020 Stifel Cross Sector Insights Conference, Steve Rendle, VF Corp.’s chairman, president and CEO, said moves beginning in 2017 to reposition the business are serving the company “very, very well to navigate these times.” But he also believes VF is well-positioned to take advantage of four emerging trends accelerated by COVID-19: outdoor appreciation, health and well-being, sustainability and casual lifestyle.