SGB Executive

Designer Brands Inc. announced an extensive cost-savings plan to offset the expected fallout from the coronavirus outbreak. The parent of DSW also announced it is temporarily closing its stores while reporting fourth-quarter results showed some sequential improvement.

Tilly’s Inc., as previously reported, saw its first negative quarterly comp in over three and a half years. With a new chief merchant in place, the action sports-themed chain on its fourth-quarter conference call laid out its revised merchandise priorities for 2020.

Zumiez Inc.’s fourth-quarter earnings came in better than expected and momentum continued into February with particular strength in skateboards. Sales are generally holding up well in its home state of Washington despite the coronavirus although officials aren’t sure to what extent social distancing will hurt sales.

Sequential Brands Group Inc. began 2020 with a key leadership change, and the New York, NY-based parent of Avia, And1 and Gaiam is eyeing further transformational moves this year with a strategic review that could include acquisitions, divestitures and more.

SGB Executive’s update on the latest closures, cancellations and postponements due to the ongoing coronavirus outbreak.

The coronavirus fallout on supply chains and increasingly consumer spending was addressed extensively on quarterly conference calls last week. Many expressed vast uncertainty on what disruptions the coronavirus may have on retail. Dick’s CEO Ed Stack said, “We have no idea. I don’t think we’ve seen anything like this in a very, very long time.”

The coronavirus has hit mountain towns especially hard, and Saturday afternoon was an inflection point for the ski industry. When Vail Resorts Inc. announced it was suspending operations at its North American ski areas, most others followed suit.

Caleres Inc., the parent of Famous Footwear, reported fourth-quarter earnings came in below internal plans due to weakness in fashion footwear and slower growth in sport-inspired product. 

Dorel Sports’ revenues grew for the third consecutive quarter as new models, particularly Cannondale, saw a good response in the marketplace, according to Dorel Industries Inc.

Athleta’s revenues were up “just shy” of $1 billion with growth of 12 percent on the top-line and low-double-digit in earnings, Teri List-Stoll, GAP’s’ EVP and CFO, said on the company’s fourth-quarter conference call. Another 20 stores are expected to open in 2020.

The Week’s Top Headlines across the Active Lifestyle Industry as reported in SGB Updates during the week of March 9, 2020.

Modell’s Sporting Goods, unable to find a buyer, announced plans to liquidate its remaining 141 stores in bankruptcy proceedings. The retailer claims to be the oldest sporting goods chain in the U.S.

Adidas and Nike both landed at the top of the Top 20 unsecured creditors list in the bankruptcy case of Modell’s Sporting Goods, each owed nearly $9 million. Under Armour was third with an unsecured claim of $3.8 million.

Genesco Inc. reported fourth-quarter earnings that came in well above Wall Street’s target but also indicated that the first quarter has gotten off to a slow start due to unseasonably warm weather impacting boot sales and softening traffic in tourist areas tied to the coronavirus.

Adidas reported 2019 results came in better than initially expected as all regions recorded sales growth for the first time since 2016. But the big news was the massive impact the company expects in the near-term to China due to coronavirus as well as ongoing uncertainty stemming from the increasingly global epidemic.