SGB Executive

As part of SGB Executive’s ongoing coronavirus coverage, we are highlighting companies and categories that are doing well. Our latest Coronavirus Notebook looks at how Salt Lake City, UT-based gear maker Petzl prepared for the pandemic. We also look at the potential freeze on M&A and recap our recent COVID-19 stories.

Brooks, Vans, Osprey and Alta Cycling Group are just a few of the brands that have launched programs to support independent specialty stores across the cycling, outdoor and run space amid the coronavirus pandemic. Many steer sales or customers to stores while a few are helping with outreach efforts to those sheltering at home.

With more people now looking to ride bikes, the coronavirus has presented a unique opportunity for Dorel Sports, the owner/operator of such brands as Cannondale, Schwinn, GT and Mongoose. “There has been a silver lining in this pandemic cloud,” said Dorel President and CEO Martin Schwartz.

While many opportunities have quickly dried up with the spread of the coronavirus pandemic, SFIA’s 2019 State of the Industry Report showed the industry had strong momentum coming into the year, offering some hope that pent-up demand will be there when the industry can relaunch. Decreasing inactivity levels and the increasing popularity of smaller, niche activities supported the gains.

Clarus Corp., the parent of core backcountry brand Black Diamond among others, took on the COVID-19 pandemic with a “climber’s mentality,” President John Walbrecht said on Monday afternoon’s earnings call. SGB Executive breaks down the company’s “live now, climb another day” approach to this crisis.

Under Armour reported a loss in the first quarter on a 22.8 percent drop in its sales while warning second-quarter revenues could slide as much as 50 percent to 60 percent as the COVID-19 fallout worsens. Measures were detailed to reduce 2020 operating expenses by $325 million and capital expenditures to $100 million.

In this latest installment of SGB Executive’s series of interviews with industry leaders exploring how businesses are coping with the coronavirus, Superfeet President and CEO John Rauvola discusses how the coronavirus has impacted Superfeet, why the company was called to help and the brand’s recovery plan.

Acushnet Holdings Corp., the parent of Titleist, FootJoy and KJUS, reported a steep decline in earnings in the first quarter and expects the second quarter to be “significantly impacted” by COVID-19. But company officials were confident that results will improve in the back half of the year as golf play resumes.

Callaway Golf Co. reported first-quarter net sales decreased 14 percent due to the negative impact of the COVID-19 pandemic on both the golf equipment and soft goods operating segments globally, but the company is hopeful that the short-term pain will eventually yield to long-term success as the golf industry returns to normal.

Carried by thriving outerwear and-accessories revenues, SportChek’s comps were up 3.2 percent in the first quarter through March 11, the date the global pandemic was declared.  Store traffic and sales then declined the week after and began dropping at a double-digit rate after stores were temporarily closed on March 18 and consumer demand for apparel and footwear eroded significantly.

The timing of a strategy shift can be just as important as what it entails, and Camping World Holdings Inc.’s decision to exit outdoor retail last year—well ahead of the current COVID-19 pandemic—has proved rather auspicious.

Sturm, Ruger & Company Inc. has seen a tremendous surge in demand since mid-March with the firearms purchasing activity accelerating much faster than the last gun surge in late 2012 through 2013 that was tied to the mass shooting at Sandy Hook Elementary School.

Top National Stories and the Latest Headlines from SGB Updates across the Active Lifestyle Market during the week of May 4, 2020.

Yeti Inc.’s sales climbed 21 percent year-over-year in the first quarter through mid-March, with low-double-digit gains at wholesale and 31 percent growth in direct-to-consumer (DTC). But COVID-19’s arrival quickly reversed those trends as sales declined 25 percent in the final two weeks of the quarter.

When Vista Outdoor Inc. ended its fiscal fourth quarter on March 31, the Anoka, MN-based company closed the book on a transformational year that included a portfolio shakeup, business segment realignment and, of course, an economy-crushing pandemic that drastically altered the demand environment.