SGB Executive

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of September 28, 2020, covered in the SGB Updates + delivered to your inbox every business day.

Bank of America reinstated coverage of Lululemon with a “Buy” rating. Wrote analyst Lorraine Hutchinson in a note, “We view LULU as one of the best growth stories in retail and expect the brand to be a winner in a COVID and post-COVID environment.”

Cowen upgraded Canada Goose to “Outperform” from “Market Perform” as analyst Oliver Chen believes the outerwear brand is well-positioned as an outdoor resource amid the pandemic, a leading brand in stores and a likely strong beneficiary of China as it recovers faster than other regions.

While significant progress has been made over the last six months to bring youth sports back safely, the process has been frustrating, according to participants at two sessions at SFIA’s “Back on Track: Insights and Strategies” virtual conference. Roundtable participants included executives from The National Federation of State High School Associations, NFL, Good Sports, and Augusta Sportswear.

Everyone knows that bikes have been going gangbusters at retail this year. But what other surprises have been selling well at retail this year, leaving shelves high and dry, cash registers ringing and store managers scrambling for inventory? To find out, we queried outdoor retailers across the country to see what outdoor products COVID-19 helped sell this season. The answers might surprise you.

A survey of small- to medium-sized retailers commissioned by PayPal found that 20 percent of respondents felt that their future depended on sales generated from this year’s holiday selling season. Other surveys explored how retailers are preparing for the potential of a second wave of the coronavirus, rent relief, an early holiday selling season, and their frustrations with e-commerce.

Remington Outdoor will be broken up and sold after a multiday bankruptcy auction with Vista Outdoor, Sierra Bullets, Sturm Ruger and Sportsman’s Warehouse among the successful bidders.

Vail Resorts reported a 68 percent decline in revenue in the fiscal fourth quarter ended July 31 as its resorts were closed for much of the quarter. On a positive side, skiers are buying the company’s Epic Pass for the coming season, offering some hope that locals will help salvage the upcoming ski season.

Speaking at SFIA’s virtual conference, “Back on Track: Insights and Strategies,” Puma North America’s president and CEO Bob Philion discussed how the digital shift has helped Puma secure space on retail selling floors.

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of September 21, 2020, covered in the SGB Updates — delivered to your inbox every business day.

REI Co-op launched an ambitious new climate platform that will see the Co-op more than halve its carbon footprint over the next decade while also completing a 14-year commitment to be carbon neutral in its operations in 2020. Here, SGB Executive talked with REI’s President and CEO Eric Artz about the retailer’s stepped-up climate goals, what it means for the Co-op’s strategic partners and community, and how REI’s business has adjusted to the economic disruptions from COVID-19.

Nike Inc. delivered essentially flat sales in the first quarter ended August 31, recovering from a 38 percent slide in its fiscal fourth quarter, due to the coronavirus pandemic. Online sales continued to accelerate, climbing 82 percent, to offset still eroding store sales.

In what sounds like bad news for shoelaces, Compass Diversified (CODI) told analysts its acquisition of BOA Technology is supported by its belief the BOA’s growth is just getting started. BOA’s sales from 2017 through 2019 grew at an 18 percent CAGR.

Modell’s Sporting Goods Inc., after nearly six months in bankruptcy proceedings, filed its Chapter 11 liquidation plan that calls for unsecured creditors, including trade vendors with claims, to recover less than one percent of their claims.

With 107 retail outlets and an outdoor product mix as diverse as its store locations, publicly-traded Sportsman’s Warehouse has weathered COVID-19 better than perhaps any other major outdoor retailer (its second-quarter report heralded a five-fold growth in earnings and sales up 79.9 percent). SGB Executive caught up with CEO Jon Barker to shed light on its success during the pandemic.