SGB Executive

In his opening remarks on this week’s earnings call with analysts, Sturm, Ruger & Co. President and CEO Chris Killoy called 2019 a “challenging” year for Ruger and the entire firearms industry, both of which were rankled by a host of headwinds. But could those winds be shifting as the 2020 presidential campaign heats up?

Top headlines from across the active lifestyle industry featured in SGB during the week of February 17, 2020.

SFIA’s 2020 Annual Topline Participation Report found three million more Americans took part in some form of sports in 2019 with fitness, outdoor activities and select traditional team sports showing the most growth. However, the healthier trend is being driven by casual participants and the overall study found income disparities continuing to affect participation in sports and fitness activities and the majority of team sports losing participants.

Puma warned that fallout from the coronavirus outbreak will impact first-quarter results but otherwise delivered another stellar quarter with healthy momentum across categories and regions. Among regions on a currency-neutral basis, sales grew 17.6 percent in the Americas, 23.2 percent in EMEA and 14.5 percent in Asia/Pacific.

Fresh off an acquisition and the opening of a new Woodward facility, Park City, UT-based Powdr is feeling flow. In this SGB Executive conversation, Powdr Co-President Wade Martin dishes on everything from the health of the ski resort industry to the importance of capital investment allocation to why the company doesn’t view M&A like it’s a game of Risk.

Led by robust growth in its Fitness segment, Garmin Ltd. reported revenues and earnings in the fourth quarter topped expectations. Officials also delivered an upbeat outlook for 2020 with 10 percent growth expected across its Fitness, Outdoor and Marine segments.

Adidas and Puma on Wednesday became the latest companies in the active lifestyle space to report that the coronavirus outbreak was taking its toll on results in 2020 while warning of further struggles if the epidemic isn’t soon contained. Read how the outbreak has been affecting Nike, VF, Columbia Sportswear, Under Armour, Canada Goose, Skechers and other industry players.

Cole Haan, which has seen a strong turnaround in recent years with a pivot towards casual and athletic styles, has filed for an initial public offering seven years after being sold by Nike.

Meier Skis dubbed its Denver, CO, digs a “craft skiery”—a combination manufacturing facility and bar where patrons can learn about the brand, watch the production process and knock back a cold one. At last month’s Outdoor + Snow Show, company owner Ted Eynon dished on the concept and other initiatives brewing at the independent ski maker.

Newell Brands said its Outdoor & Recreation segment, which includes Coleman, Contigo and Marmot, again saw declines in the fourth quarter with another challenging year for growth expected for 2020.

Utah’s outdoor industry enters 2020 on a roll. Not only did the state land the headquarters of newcomer brands Jack Wolfskin and Ventum, but it’s also seeing investments from stalwarts like Amer, Black Diamond and Gregory, and this summer it welcomes a new outdoor hardgoods trade show—all despite a recent high-profile setback for the state. What’s driving the turnaround?

Partly reflecting fallout from a bankruptcy scare endured early last year, Modell’s Sporting Goods is facing a liquidity crisis. Mitchell Modell, the chain’s long-time CEO, said the retailer is seeking concessions around payments from vendors and landlords to provide time to enact a restructuring.

The decision to cancel Outdoor Retailer Winter Market last November and consolidate it with January’s Outdoor + Snow Show—thereby reducing the annual OR show cycle to two—cost parent company Emerald Expositions Events Inc. $5.5 million in the fourth quarter, the company said this week.

Top headlines from across the active lifestyle industry featured in SGB during the week of February 10, 2020.

Helly Hansen sales grew 20.4 percent in the fourth quarter, to Canadian $199.7 million ($151 mm). Allan Angus MacDonald, EVP of retail for Canadian Tire Corp., said on a conference call with analysts, “Helly Hansen has also been outstanding, ramping up fast, with sales doubling at Sport Chek year-over-year and nearly the same as Mark’s.”