SGB Executive

Johnson Outdoors leveraged a nice performance from its camping business in the fiscal fourth quarter, which bolstered 14 percent companywide revenue growth in the period to go along with 3 percent companywide revenue growth for the fiscal year. Said Helen Johnson-Leipold, Johnson’s chairman and CEO: “There’s real opportunity for growth in this space long-term.”

Dick’s Sporting Goods reported its strongest quarterly same-store sales gain since 2013 in the third quarter with a 6 percent gain. At Morgan Stanley’s Global Consumer & Retail Conference, Dick’s officials expressed optimism that the healthy growth will continue, particularly due to the revival in growth at its physical locations.

Top headlines from across the active lifestyle industry featured in SGB during the week of December 2, 2019.

James Debney, the CEO of Smith & Wesson parent company American Outdoor Brands Corp., told analysts on this week’s earnings call that while the 2020 presidential election has not yet had an impact on firearms demand, that could change in the run-up to next November.

Boosted by continued strength of Journeys coupled with significant improvement at Schuh, Genesco Inc.’s third-quarter earnings came in well above Wall Street estimates and the company significantly lifted its EPS outlook for the year.

Helped by a hardgoods cycle that continues to boost comps and expense-control efforts, Zumiez Inc. reported net earnings jumped 39.1 percent in the third quarter to easily surpass guidance.

While the notion of physical stores might seem antithetical in today’s click-and-buy e-commerce landscape, Duluth Holdings Inc. (dba Duluth Trading Co.) continues to see them as a critical point of entry for consumers, even as the company’s store buildout has moderated in recent quarters.

Sportsman’s Warehouse Holdings Inc. said this week it projects some near-term pressure on ammunition sales in light of competitors like Walmart offering deep discounts as they sell off their inventory and exit the category. But Midvale, UT-based Sportsman’s has its eyes on a bigger prize—taking market share once those other players have gotten out of the ammo game altogether.

Tilly’s Inc. reported earnings and same-store sales landed at the top end of guidance in the third quarter and provided an upbeat comp outlook for the fourth quarter.  Said Ed Thomas, CEO, “Despite a slow start to the fourth quarter as a result of a later Thanksgiving this year, Black Friday weekend met our expectations, leaving us optimistic about our opportunity to deliver positive comps in the fourth quarter.”

After undergoing a rough patch a few years ago, the specialty run channel has stabilized and is seeing some growth, proving that the package of strong customer service and community involvement still pays off, according to two panels held Tuesday at The Running Event (TRE) in Austin. That’s not to say some reinvention isn’t required.

Morris Goldfarb, the chairman and CEO of G-III Apparel Group Ltd., fully understands the impact that tariffs have had on the New York-based fashion and apparel company he oversees. He also knows that if the trade war persists, tariffs will continue to wreak havoc on the company’s financial outlook. But Goldfarb is also resolute that G-III has the ways and means to mitigate the pressure that tariffs are placing on its business.

More consumers surfed rather than drove for their purchases on Black Friday as online sales accounted for a record $7.4 billion spent during the holiday shopping extravaganza, according to Adobe Analytics. But while analysts reacted positively to the overall buoyancy of Black Friday and the unofficial kickoff to the holiday shopping season, those who focus on the active lifestyle marketplace were more tempered in their reports.

What the active lifestyle marketplace lacked in M&A volume last month, it made up for in impact thanks to three industry-shifting deals that are sure to resonate with businesses and consumers alike. In our November M&A Roundup, SGB recaps the moves made by Snowsports Industries America, Alterra Mountain Co. and Fitbit Inc.

Dick’s Sporting Goods Inc. last week reported third-quarter earnings handily surpassed Wall Street targets and lifted its guidance for the third time this year. A few analysts saw the progress as another sign that the sporting goods chain is well-positioned to drive healthy comps in the years ahead, but a few were still worried about margins and the payoff from ongoing investments.

Raymond James on Wednesday upgraded Under Armour to “Strong Buy” from “Outperform,” describing the firm as “underrated” and an “underdog.” In the note, Matthew McClintock wrote that his team has “become more comfortable with the company’s risk/return profile, particularly regarding execution risk, headline risk, and valuation.”