SGB Executive

Johnson Outdoors Inc. reported steep declines in profits and revenues in its fiscal third quarter ended June 26 but indicated orders have increased significantly in May and June in its Fishing, Watercraft Recreation and Camping segments as quarantined-consumers head outdoors for recreation. Helen Johnson-Leipold, chairman and CEO, said on a conference call with analysts, “At this time, we are working overtime to keep pace with continuing demand in all three of these businesses.”

VF Corp. reported results for the first quarter ended June 30 that were significantly sidetracked by COVID-19 but still ahead of internal expectations due to strength in international and digital. The highlight of the challenging quarter was the widespread digital momentum that drove both sales and consumer engagement.

Under Armour Inc.’s revenues tumbled 41 percent in the second quarter, but significant declines are also expected in the second half – in the range of 20-to-25 percent – due to uncertain consumer spending, inventory constraints and a likely promotional climate.

Deckers Brands saw a “robust” direct-to-consumer business in the fiscal first quarter ended June 30, driven by triple-digit online growth in both the Ugg and Hoka One One brands. Net sales for the first fiscal quarter ended June 30 increased 2.3 percent to $283.2 million.

Columbia Sportswear’s second-quarter direct-to-consumer e-commerce business grew 72 percent year-over-year and represented 28 percent of global net sales during the quarter as the company managed through the impact of the global COVID-19 pandemic.

Powered by resiliency in the U.S. region and skyrocketing e-commerce gains, Crocs Inc. became one of the rare industry players to deliver strong earnings gains in the pandemic-sidetracked second quarter. Sales declined only slightly. Lean inventories, however, will limit second-half growth.

Puma reported a sharp decline in its second-quarter sales due to COVID-19, but sales were only down 6 percent in June and ran approximately flat in July as stores reopened. A bright spot has been online as Puma’s e-commerce vaulted 97 percent in Q2.

Driven by a better-than-expected performance from both its apparel and its new PPE (personal protection equipment) businesses, Hanesbrands swung to a surprise profit in the second quarter. Point-of-sale (POS) in its U.S. basics and Champion businesses in May and June exceeded pre-COVID levels.

Compass Diversified Holdings said it’s 5.11, Velocity Outdoor and Liberty Safe businesses all exceeded expectations to lead better-than-expected performance in the second quarter. Momentum in those business units helped offset softness at newly-acquired Marucci Sports as well as its non-sports businesses.

Garmin Ltd. reported sales and earnings were down in the second quarter ended June 27 but both came in well ahead of Wall Street’s targets due to a stellar performance from the Fitness segment as well as solid performances from Garmin’s Outdoor and Marine segments.

Shares of Big 5 Sporting Goods were trading up about one-third after the sporting goods chain reported that the strong recovery in sales seen in the latter part of the second quarter only accelerated in the third quarter with same-store sales soaring 31.9 percent in July. Steve Miller, CEO, told analysts, “One of our biggest challenges in recent months has been keeping up with robust consumer demand.”

Rocky Brands Inc.’s sales were slightly down and adjusted earnings flat year-over-year in the second quarter despite COVID-19’s impact, handily topping Wall Street’s targets. On a conference call with analysts, Jason Brooks, president and CEO, said, “Despite being up against the most difficult operating conditions we have ever experienced, our business exhibited increasing strength as the quarter progressed.”

While scores of fitness enthusiasts have embraced connected fitness over the last 12-to-18 months, connectivity has become an expectation for home and club workouts as COVID-19 has accelerated adoption, contends Mark Watterson, iFit’s president.

In court papers, Ken D’Arcy, Remington Outdoors’ CEO, said the firearm’s giant’s second bankruptcy in two years was partly due to elevated inventory levels and a wide range of brands that extended the company beyond its “core focus” coming out of its first bankruptcy. He added, “Most importantly, the unfavorable business trends continued after exit from the prior cases.”

It’s a return to paddlesports for Jackson Adventures’ new VP of sales Brad Taylor, who brings 25 years of experience in the paddling world to the brand. SGB Executive caught up with Taylor for his take on Jackson, the paddlesports market and all things COVID-19 and kayak.