SGB Executive

In the early days of the coronavirus, when shelter-in-place orders were announced and gyms around the country were forced to close, Peloton Interactive Inc. was identified as a potential beneficiary. Things didn’t go quite so well for Peloton initially, but the company’s fortunes have improved, as evidenced by its fiscal third-quarter earnings.

Puma reported a steep erosion in profit in the first quarter and indicated the second quarter will be worse as half of its retail base remains closed globally in coronavirus lockdowns. But officials are encouraged by the pick-up being seen in China and see a benefit as the crisis has motivated more people to exercise.

Count Nautilus Inc. among the so-called “winners” to emerge during the time of coronavirus. Not only did shelter-in-place orders result in closed gyms and heightened social distancing measures over the last two months, forcing people to exercise in the comfort—and safety—of their own homes, but fears of a second wave of COVID-19 are likely to further drive that trend.

Planet Fitness expects to benefit from expected consolidation in the fitness space, heightened interest in health and wellness and pent-up demand for workouts. But the key will be a 100-page COVID-19 operations playbook developed with its franchise partners to elevate sanitation protocols and convince members that it’s safe to return.

On Johnson Outdoors’ second-quarter conference call, Helen Johnson-Leipold, chairman and CEO, warned third-quarter results will be “significantly impacted” as COVID-19 has arrived “at the heart of our primary selling season.” Government mandates have restricted activities across the fishing, dive, camping and watercraft markets the company serves.

April was another slow month for M&A in the active-lifestyle market as the coronavirus continued to ravage traditional business transactions, but a few deals were either announced or completed, including those from Compass Diversified Holdings (CODI), Exxel Outdoors and Vicis.

Schoeller North America has been working closer than ever with its brand partners on forecasting, sharing information and finding ways to be flexible to help each other manage through the pandemic. Stephen Kerns, president, Schoeller North America, talks to SGB Executive about the many ways the crisis has impacted Schoeller, heightened demand for functional fabrics, and what he hopes will be post-coronavirus benefits to healthy lifestyles, the environment and the family.

With many of its trade shows—including Outdoor Retailer Summer Market in June—already canceled or postponed, Emerald Holding Inc. has shifted into full pivot mode as it works to maintain liquidity through this downturn and convert some events to virtual ones.

Without places for consumers to recreate or easily buy gear and apparel during the coronavirus, outdoor brands have gotten crushed in the process. And Newell Brands—parent of Coleman and Marmot—is the latest to publicly announce just how bad things have gotten in this space.

For Microban International. Ltd., the specialist in antimicrobial and odor control solutions, one benefit from COVID-19 has been the increased focus on sanitization and the company is accelerating the development of custom antiviral solutions for textiles. Here, Brian Aylward, Microban’s senior director, global textiles business, discusses the elevated opportunities around antimicrobial technologies created by the pandemic that he expects will make Microban a household name. 

The nationwide demand for prepping products helped 5.11 Tactical perform ahead of the expectations that parent company Compass Diversified Holdings LLC (CODI) laid out for the brand in the first quarter. In CODI’s overall branded consumer businesses, revenues and EBITDA increased 4.2 percent and 4.3 percent, respectively

Clarus Corp., in an 8-K filing Friday morning, said it was terminating its planned acquisition of protective case manufacturer S.K.B. Corporation (SKB) due to “recent events surrounding the COVID-19 global pandemic, and the economic uncertainties in the United States and globally.”

A Thursday webcast hosted by the Outdoor Industry Association outlined the ways that outdoor brands that make a variety of products can apply for tariff exclusions or deferrals, saving them money during this difficult time. It’s a tricky process, but here are a few tips on how to begin.

On its first-quarter conference call with analysts, Tim Boyle, chairman, CEO and president, said he believes his company’s trusted brands, strong balance sheet and an expected hike in outdoor participation will help the company manage COVID-19’s fallout. His confidence is particularly high because he contends the company already survived a more challenging period in the seventies.

Top National Stories and the Latest Headlines from SGB Updates across the Active Lifestyle Market during the week of April 20, 2020.