SGB Executive

Winnebago Industries Inc.’s earnings more than doubled on an adjusted basis in the first quarter ended November 28 as sales ran up 34.8 percent. Michael Happe, president and CEO, expects the robust appeal of the outdoors tied to the pandemic to continue to drive sales of recreation vehicles (RVs) in the year ahead.

At Compass Diversified’s 2020 Investor Day, Shawn Neville, CEO of Boa Technology, provided a bullish outlook on the lacing system’s growth potential, believing Boa could quadruple its market share over the next decade.

Stephens initiated coverage on Dick’s Sporting Goods with an “Underweight” rating. In a note, Daniel Imbro, Stephens’ analyst, highlighted the retailer’s recent same-store momentum while expressing concerns over potential gross margin pressures.

Benefiting from strong interest in camping, hunting and fishing during the pandemic, American Outdoor Brands reported sales soared 65.7 percent in its second quarter ended October 31. Brian Murphy, president and CEO, said he expects many Americans will continue to pursue their newfound outdoor interests despite the arrival of a vaccine.

SGB Executive talked to Ken Hicks, chairman, president and CEO at Academy Sports + Outdoors, about the retailer’s record third-quarter sales and earnings in its first report as a public company. Hicks discusses the positive impact of the pandemic on Academy’s business and how many newer initiatives put in place over the last few years are positioning the retailer for sustainable growth.

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.