SGB Executive

A number of Wall Street firms have raised their price targets on Peloton Interactive Inc. in recent weeks amid signs that fitness enthusiasts are discovering, and embracing, its interactive exercise equipment and programs as a replacement for shuttered gyms.

Big 5 Sporting Goods sales were crushed by the pandemic in March and April but May’s comps have turned positive as stores have gradually reopened. On its first-quarter conference call, Big 5 officials also said quick moves to manage inventories and expenses have put the retailer in solid shape to absorb any fallout from the pandemic.

Hibbett Sports, like many retailers, saw sales fall off the table after the coronavirus spread across the U.S. in mid-March, but online sales thereafter accelerated and in-store sales accelerated toward the end of April and have continued into May as many of its stores reopened. Hibbett officials, however, said the sales outlook remains uncertain.

Over 70 percent of sports and fitness manufacturers and businesses reported a sales drop of over 25 percent for the month of April as most of the country’s stores were closed to prevent the spread of the coronavirus, according to a survey of industry participants by the SFIA. But the survey indicated aggressive steps are being taken to minimize the damage with some improvement expected in the back half.

After closing most of its stores on March 17, Foot Locker is regaining traction at a slow pace as stores re-open in part because many of Foot Locker’s stores are in urban tourist areas that are seeing weaker traffic. However, even online sales were held back in the quarter as footwear sales are in lower demand with consumers focused on groceries and other essentials.

Deckers Brands’ fourth-quarter results missed targets due to the arrival of COVID-19 but continued momentum from Hoka One One as well as triple-digit online growth is helping limit the damage. Hoka’s revenues are up in the low 30 percent range quarter-to-date period after expanding 51.8 percent in the fourth quarter.

Asics North America (ANA), which includes the U.S., Canada and Mexico, showed a loss of ¥1,578 million ($14.7 mm) in the first quarter as healthy online sales were unable to offset the impact of store closures due to the pandemic.

Top National Stories and the Latest Headlines from SGB Updates across the Active Lifestyle Market during the week of May 18, 2020.

Macy’s said its store reopenings are generating sales higher than expected and its digital momentum has not fallen off. The department store giant provided an update while pre-releasing first-quarter results that included a forecast for an operating loss of up to $1.1 billion for the period

Shoe Carnival Inc. reported a loss in the first quarter on a steep sales decline due to stores closures tied to COVID-19. But online sales are increasing more than three-fold and officials believe a decision not to furlough any workers is helping drive above-plan sales as stores reopen.

In a webinar, “The Future of Youth Sports Economic Impact & Business Strategy Ahead,” professors at the American University in Washington, D.C. detailed the many obstacles the return of youth sports faces, includes rebuilding critical infrastructure amid the depletion of funding and parental buy-in.

As the country enters this next phase of the COVID-19 crisis, the run specialty channel is facing a particularly hard slog with many brands and retailers unlikely to keep pace if the economy reopens too slowly. The latest survey from the Running Industry Association (RIA) highlighted just how bad things are—and how much worse they could get.

Kohl’s Corp. reported a dismal first quarter as sales were “materially impacted” by COVID-19. However, the department store operator introduced several initiatives, including a continued active push, to accelerate market share gains in the future.

Studies and Observations Group (SOG), the Seattle, WA-based maker of knives, tools and packs, is taking the brand in a new direction. The company’s leadership talks about what the next chapter entails and why the economic uncertainty of the coronavirus pandemic is a perfect backdrop for the reconfiguration.

VF Corp. missed fiscal fourth-quarter earnings and revenue estimates and now faces a soft retail demand environment, but the company remains resolute about pursuing M&A amid this challenging economy. We look at how VF’s financial strength and appetite for adding assets has set the stage for a deal.