SGB Executive

Hit by a double-whammy of closures of stores and resorts to slow the spread of the coronavirus, sales across the snowsports industry were down 43 percent in dollars and 45 percent in units in the month of March according to SIA’s U.S. Snow Industry Retail Market Report. The tough month caused the snow industry to show a near mid-single-digit decline for the 19/20 snow season.

On Monday, NYC started to reopen 100 days after the city reported its first case of the coronavirus. As the epicenter of the outbreak here in the U.S., many stores are offering curbside and in-store pickup. More top National Stories and the Latest Headlines across the Active Lifestyle Market during the week of June 8, 2020 follow in this week’s reporting in the SGB Updates.

The coronavirus didn’t stop Sea to Summit from acquiring its North American distribution partner, but it did delay the closing date by more than a month. Founder Roland Tyson and NA General Manager Josh Simpson spoke with SGB Executive about how the brand overcame integration challenges amid the pandemic and what lies ahead.

Last June, The Running Industry Association (RIA) successfully launched the first RIA KickShow with a promise to “create a true working environment that fosters buying efficiency and connects retailers with brands in a new way.” A year later, the show returns with a virtual format but the same mission.

Oppenheimer upgraded its rating for Dick’s SG to “Outperform” from “Perform” due to expected strength in the sporting goods category amid the pandemic. Brian Nagel, Oppenheimer’s lead analyst in the space wrote in a note, “The company’s robust omnichannel business model is positioned well to capitalize upon improving consumer demand for items associated with consumers now spending more time at home and poised to further benefit as shoppers shift back to team sports and licensed products.”

Genesco Inc.’s business was devastated by COVID-19-related store closures, but online sales have accelerated to more than 300 percent growth in May and sales at its flagship Journeys chain that have reopened are comping “nicely positive.”

May was another slow month for M&A in the active-lifestyle marketplace with only a few deals announced and one high-profile acquisition formally abandoned at the finish line. Now that struggling businesses are seeking a lifeline and aggressive buyers are eyeing distressed assets, was this the bottom?

Vail Resorts plans to reopen its North American resorts for summer activities in late June or early July after being forced to close its 34 ski areas on March 14 due to COVID-19. On its Q320 conference call, Robert Katz, CEO, said he expects enthusiasm for outdoor experiences amid the pandemic to help support a recovery.

The May Edition of the COVID-19 Impact Survey from the World Federation of the Sporting Goods Industry (WFSGI) found that 37 percent of global sports industry leaders saw their business dropping by 50 percent in June. While dismal, the findings mark an improving trend versus the nearly 50 percent that had expected May sales to drop 50 percent.

Zumiez Inc. underscored its commitment to its employees when management made the early decision to pay all full-time staff throughout the pandemic.

Gap Inc. reported a modest decline in sales at Athleta in the first quarter as online sales, boosted in part by the introduction of curbside pickup and a virtual concierge service, helped limit the damage from store closures. Overall, reopened stores are showing an encouraging performance, particularly at Old Navy.

Top National Stories and the Latest Headlines from SGB Updates across the Active Lifestyle Market during the week of June 1, 2020. 

Faced with surging demand for firearms and ammunition, Sportsman’s Warehouses reported sales in the first quarter ended May 2 grew 41.8 percent, to $246.8 million. The gains would have been even stronger if not for out-of-stocks across firearms, ammunition and fishing.

Duluth Trading managed to show only a 3.8 percent decline in first-quarter revenues, to $109.9 million. Accelerated growth in digital and women’s business helped mitigate the closing of all its stores for seven weeks in the quarter in response to COVID-19.

Caleres, Inc. used a now-familiar retail playbook on their road to recovery after the worst of the Covid-19 health crisis passed. The business was on track for a 13 percent increase in comp-store sales at Famous Footwear in the first quarter and was showing positive signs in its wholesale business before the health crisis intensified and forced the closure of all stores.