SGB Executive

BSN Sports dominated last month’s M&A activity. The Dallas, TX-based team sports apparel and equipment distributor announced a trio of acquisitions in February, bringing the company’s 2020 total to four. Also, the boutique outdoor and active lifestyle public relations firm CGPR found a new home with a larger agency in a deal that provides synergies for both.

Acushnet Holdings Corp. is riding an impressive wave of momentum into 2020. But the Fairhaven, MA-based parent of Titleist and other brands is facing a sizeable hazard midway through the first quarter, one that should be a drag on the top and bottom lines for at least the first half of the year—the coronavirus.

Foot Locker Inc.’s fourth-quarter sales came in below expectations due to ongoing challenges in the apparel category and underperformance by Adidas in footwear. But sales growth is expected to resume in 2020 as demand for Nike and Jordan product remains strong and several newer initiatives – including its Power Centers, FLX rewards program, and dedicated women’s spaces – are showing promise.

Last year, Camping World Holdings Inc. closed or sold more than 60 locations that didn’t sell or service RVs, a move took a toll on 2019 results by causing some short-term revenue and earnings pressure. But as Camping World turns the page on its retail model and refocuses on its core RV business, the company appears better positioned for 2020 and beyond.

Top headlines from across the active lifestyle industry featured in SGB during the week of February 24, 2020.

HSBC Global Research issued a bullish report on the sporting goods space, believing industry growth in the years ahead will be fueled by younger and more health-focused consumers, a global shift towards casualization, and the growing importance of sustainability among consumers.

5.11 Tactical, the apparel and gear brand owned by Compass Diversified Holdings LLC (CODI), truly found its stride in 2019 and Q4, in particular. The brand posted its second consecutive quarter of double-digit revenue growth and fourth consecutive quarter of double-digit EBITDA growth. Here’s how 5.11 did it and what’s in store for 2020 and beyond.

In a further sign that it’s extensive restructuring efforts are paying off, Crocs Inc. reported a profit against a loss in the fourth quarter as sales climbed 21.8 percent. Crocs, however, joined other firms in warning of a near-term hit to revenues due to the coronavirus outbreak.

The TJX Cos. Inc. clearly doesn’t subscribe to the “retail apocalypse.” The parent of T.J. Maxx, Marshalls, Sierra and other retailers added 223 net stores in 2019 even as competitors shuttered doors. On TJX’s earnings call this week, CEO Ernie Herrman shared some of the reasoning behind the company’s ability to buck the wider industry trend.

When Rocky Brands Inc. was awarded “seller-fulfilled status” on Amazon Prime last year, it opened up a new channel—and significant new high-margin revenue opportunities—for the Nelsonville, OH-based company. The program provided a lift for Rocky Brands in the fourth quarter and should boost the company throughout 2020.

Big 5 Sporting Goods Corp. reported a strong 2019, marked by a comp gain and its strongest margin performance in more than 10 years. However, inclement winter weather has led to a poor start to 2020. CEO Steve Miller said, “Although this year began with solid winter weather conditions in our geography, unfortunately, the conditions turned highly unfavorable over the course of the quarter, particularly in our key California market.”

Wolverine World Wide reported another quarter of accelerated growth in the fourth quarter for its two biggest brands, Merrell and Sperry, and predicted a recovery year in 2020 for Saucony. Conservative guidance, however, was given for 2020 due to the expected fallout from the coronavirus outbreak and some continued challenges facing the U.S. wholesale channel.

On Monday’s fourth-quarter earnings conference call, Nautilus Inc. CEO Jim Barr admitted that the Vancouver, WA-based fitness manufacturer got a late start bringing connected equipment to the marketplace. Despite being late to the category, Nautilus has shifted into high gear and is spinning furiously to gain ground on leaders like Peloton, Echelon and others.

FW Apparel (the FW is pronounced “forward”) is the skiwear brand that launched last fall. With its inaugural season not yet completed, FW Apparel—whose sister company is Faction Skis—has already begun targeting bigger aspirations for year two. Brand director Olivier Gouby, aka “OG,” spoke with SGB Executive at the recent Outdoor + Snow Show about FW’s lofty expectations.

Gildan Activewear reported sales declined 11.3 percent in the fourth quarter and 2.9 percent in the year due to lower imprintables volumes in North America but growth is expected to return in 2020.