SGB Executive

Acushnet Holdings Corp., the parent of Titleist, FootJoy and KJUS, reported a steep decline in earnings in the first quarter and expects the second quarter to be “significantly impacted” by COVID-19. But company officials were confident that results will improve in the back half of the year as golf play resumes.

Callaway Golf Co. reported first-quarter net sales decreased 14 percent due to the negative impact of the COVID-19 pandemic on both the golf equipment and soft goods operating segments globally, but the company is hopeful that the short-term pain will eventually yield to long-term success as the golf industry returns to normal.

Carried by thriving outerwear and-accessories revenues, SportChek’s comps were up 3.2 percent in the first quarter through March 11, the date the global pandemic was declared.  Store traffic and sales then declined the week after and began dropping at a double-digit rate after stores were temporarily closed on March 18 and consumer demand for apparel and footwear eroded significantly.

The timing of a strategy shift can be just as important as what it entails, and Camping World Holdings Inc.’s decision to exit outdoor retail last year—well ahead of the current COVID-19 pandemic—has proved rather auspicious.

Sturm, Ruger & Company Inc. has seen a tremendous surge in demand since mid-March with the firearms purchasing activity accelerating much faster than the last gun surge in late 2012 through 2013 that was tied to the mass shooting at Sandy Hook Elementary School.

Top National Stories and the Latest Headlines from SGB Updates across the Active Lifestyle Market during the week of May 4, 2020.

Yeti Inc.’s sales climbed 21 percent year-over-year in the first quarter through mid-March, with low-double-digit gains at wholesale and 31 percent growth in direct-to-consumer (DTC). But COVID-19’s arrival quickly reversed those trends as sales declined 25 percent in the final two weeks of the quarter.

When Vista Outdoor Inc. ended its fiscal fourth quarter on March 31, the Anoka, MN-based company closed the book on a transformational year that included a portfolio shakeup, business segment realignment and, of course, an economy-crushing pandemic that drastically altered the demand environment.

In the early days of the coronavirus, when shelter-in-place orders were announced and gyms around the country were forced to close, Peloton Interactive Inc. was identified as a potential beneficiary. Things didn’t go quite so well for Peloton initially, but the company’s fortunes have improved, as evidenced by its fiscal third-quarter earnings.

Puma reported a steep erosion in profit in the first quarter and indicated the second quarter will be worse as half of its retail base remains closed globally in coronavirus lockdowns. But officials are encouraged by the pick-up being seen in China and see a benefit as the crisis has motivated more people to exercise.

Count Nautilus Inc. among the so-called “winners” to emerge during the time of coronavirus. Not only did shelter-in-place orders result in closed gyms and heightened social distancing measures over the last two months, forcing people to exercise in the comfort—and safety—of their own homes, but fears of a second wave of COVID-19 are likely to further drive that trend.

Planet Fitness expects to benefit from expected consolidation in the fitness space, heightened interest in health and wellness and pent-up demand for workouts. But the key will be a 100-page COVID-19 operations playbook developed with its franchise partners to elevate sanitation protocols and convince members that it’s safe to return.

On Johnson Outdoors’ second-quarter conference call, Helen Johnson-Leipold, chairman and CEO, warned third-quarter results will be “significantly impacted” as COVID-19 has arrived “at the heart of our primary selling season.” Government mandates have restricted activities across the fishing, dive, camping and watercraft markets the company serves.

April was another slow month for M&A in the active-lifestyle market as the coronavirus continued to ravage traditional business transactions, but a few deals were either announced or completed, including those from Compass Diversified Holdings (CODI), Exxel Outdoors and Vicis.

Schoeller North America has been working closer than ever with its brand partners on forecasting, sharing information and finding ways to be flexible to help each other manage through the pandemic. Stephen Kerns, president, Schoeller North America, talks to SGB Executive about the many ways the crisis has impacted Schoeller, heightened demand for functional fabrics, and what he hopes will be post-coronavirus benefits to healthy lifestyles, the environment and the family.