SGB Executive

An SFIA webinar headlined by executives at LeagueSide and Morning Consult provided optimism from community youth sports organizations on recovery as teams returned to play over the summer and early fall. However, a warning about potential disruptions as winter sports gets underway was also heard.

Bank of America Merrill Lynch upgraded Foot Locker to “Buy” as the investment firm believes Foot Locker’s momentum improved significantly over September and October, given a shift in back-to-school sales in part due to Nike product momentum. Long-term, Foot Locker is expected to benefit from Nike’s moves to tighten wholesale distribution.

Baird Equity Research and Truist Securities both raised their price target on Peloton Interactive due to the continued adoption of at-home fitness as households quarantine during the pandemic.

At a State of the Industry Roundtable at SFIA’s “Back on Track: Insights and Strategies” virtual conference, top executives at Walmart, Molten, HanesBrands, and Technogym indicated the industry continues to adjust on the fly to the continued uncertainties presented by COVID-19 and said enhanced communications across stakeholders has become critical to managing amid the crisis.

While World Tourism Day is commemorated each year on September 27 to “foster awareness among the international community of the importance of tourism and its social, cultural, political, and economic value,” this year a dark cloud rained on its parade — concerns about one of the business sectors most affected by COVID-19 — tourism and, in particular, the adventure travel industry.

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of October 5, 2020, covered in the SGB Updates and delivered to your inbox every business day.

Nearly 3 out of 10 kids who played a sport prior to the coronavirus pandemic are no longer interested in participating, according to the latest national survey of sports parents commissioned by The Aspen Institute. That figure, (29 percent), captured in September, is up from 18 percent in May and 19 percent in June and underscores the growing challenges that lie ahead in keeping kids at play. 

Hydro Flask returned to growth in Helen of Troy’s second quarter ended August 31 “as more people return to the outdoors” with strong growth online and internationally. Incremental marketing investments are planned for the fiscal second half to support accelerated momentum for the water bottle brand.

Nike and Lululemon were again the big winners in the active lifestyle space in Piper Sandler’s 40th Biannual “Taking Stock With Teens” Fall 2020 Report*. Overall, athletic apparel and athletic footwear continue to gain mindshare among younger consumers according to its findings.

In another blow to the world of outdoor niche publishing, on Oct. 3 A360 Media, owner of Men’s Journal and other mainstream magazines and digital properties, shut down the print and digital products for Bike, Powder, and Surfer magazines, and the print version of Snowboarder magazine.

Academy Sports’ initial public offering was priced on Friday below the projected range and basically flat in its first day of trading. In an interview with SGB Executive, however, Academy’s CEO Ken Hicks said the retailer’s business is on an up-trend, and he’s confident in long-term success.

At the recent 2020 Tennis Industry Forum, executives at the United States Tennis Association (USTA), Tennis Industry Association (TIA) and the National Golf Foundation (NGF) discussed the rare opportunity tennis has to capture many Americans who have embraced the sport over the last few months due to COVID-19. Said Mike Dowse, USTA’s CEO, “Tennis is truly one of the safest sports or activities people can participate in.”

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of September 28, 2020, covered in the SGB Updates + delivered to your inbox every business day.

Bank of America reinstated coverage of Lululemon with a “Buy” rating. Wrote analyst Lorraine Hutchinson in a note, “We view LULU as one of the best growth stories in retail and expect the brand to be a winner in a COVID and post-COVID environment.”

Cowen upgraded Canada Goose to “Outperform” from “Market Perform” as analyst Oliver Chen believes the outerwear brand is well-positioned as an outdoor resource amid the pandemic, a leading brand in stores and a likely strong beneficiary of China as it recovers faster than other regions.