SGB Executive

Skechers USA saw sequential improvement in its business in the third quarter as trends for work and school during the pandemic was seen to fit well within its product and brand assortment as consumers locked down and focused more on comfort.

Deckers Brands said Hoka One One’s sales surged 83.2 percent in the second quarter ended September 30 and the running brand is now on track to reach its milestone of $500 million in annual sales by fiscal year-end. Coupled with a strong recovery for Ugg, Deckers’ quarterly results far exceeded Wall Street’s targets. Officials, however, warned that inventory shortages could curb growth over the holiday quarter.

Under Armour reported third-quarter results that far exceeded expectations with the aid of strength in footwear and women’s, provided a rosier outlook for the holiday quarter and said it’s on track to deliver slightly positive EPS in 2021. New developments include plans to sell MyFitnessPal and exit certain undifferentiated wholesale distribution, primarily in North America, starting next year.

Columbia Sportswear Inc. saw a strong double-digit decline in revenues in the third quarter and resulting net earnings were nearly cut in half versus the year-ago comparable quarter but company President and CEO Tim Boyle was bullish on the company’s return to solid growth trends in 2021.

Boot Barn Inc. made considerable sequential progress in its fiscal second quarter from its fiscal first quarter results as the trend in comps, net sales and earnings all saw improvement. Consolidated same-store sales results improved throughout the quarter, turning positive in September and continuing into October.

Sturm, Ruger & Company Inc.’s sales climbed 53.4 percent in the third quarter, accelerating on gains of 35.3 percent in the second quarter and 8.4 percent in the first. Ruger’s CEO Chris Killoy told analysts the company is increasingly confident that the firearms buying surge during the pandemic will pack long-term benefits for the firearms industry.

Compass Diversified Holdings (CODI) said Liberty Safe, Marucci, and Velocity Outdoor all delivered healthy double-digit growth in the third quarter. 5.11’s sales were flat, but its profitability significantly improved.

Powered by its Marine, Fitness and Outdoor segments, Garmin Ltd. reported sales rose 19 percent and adjusted earnings climbed 25.5 percent in the third quarter ended September 26. Garmin also updated its full-year guidance with an outlook well above Wall Street estimates.

Callaway Golf Co. reached an agreement to purchase the rest of driving-range operator Topgolf Entertainment Group in a move that will bring a company known for its clubs and golf balls into the fast-growing sports-entertainment business. Said Callaway’s CEO Chip Brewer told analysts, “This is a great day for the future of our two companies and the sport of golf.”

Rocky Brands, Inc. saw trends in its wholesale business “bounce back nicely” in the third quarter and that resurgence, combined with the “continued strength” in its DTC channels, led to an outstanding quarter from both a top and bottom-line perspective.

Big 5 Sporting Goods Corp.’s earnings more than tripled in the third quarter ended September 27 as the West Coast chain benefited from participation shifts toward fitness and outdoor activities during the pandemic. Same-store sales jumped 14.8 percent for the quarter and are up 15.1 percent so far in the fourth quarter.

Crocs, clearly benefiting from an acceleration in casualization trends in the work-from-home economy, reported third-quarter sales jumped 15.7 percent to record levels and projected fourth-quarter revenues will expand between 20 and 30 percent. Said Andrew Rees, CEO, “We’re even more confident now than a year ago about Crocs brand strength and our long term growth potential.”

In a bullish note, HSBC said the sporting goods industry “has turned out to be even more resilient than we could have hoped for,” aided by strong online growth, heightened interest in healthy lifestyles and a quicker-than-expected recovery in Western countries,

With many resorts restricting their operations this winter due to COVID-19, consumers are spending less on the purchase of ski and snowboard passes and instead buying dream gear for backcountry use. SGB Executive asked retailers and manufacturers if that’s where they think the category is tracking.