SGB Executive

As businesses have been greatly impacted when the economy took a hit because of COVID-19, SGB Executive reached out to PR veterans in the active lifestyle space to ask how they are surviving the wave that has businesses shifting their attitudes and budgets. 

Lululemon Athletica’s acquisition of in-home fitness company Mirror for $500 million relies on a bet that more people are going to be pivoting to exercise inside their homes. CEO Calvin McDonald told analysts on a conference call, “Digital content is changing, and studio and trainer models for ambassadors are changing.”

Retail surveys and studies that arrived last week explored how COVID-19 has impacted Millenials and GenZ shoppers and their openness to discovery — as well as international expansion and changing organizational work structures during the pandemic.

While Nike missed earnings targets in the fiscal fourth quarter by a wide margin and elevated inventories remain a concern, analysts were encouraged about the brand’s positive online sales momentum and the resumption in growth in China. Most applauded Nike’s move to accelerate its digital transformation and heighten its focus on women’s and apparel. Insights from Piper Sandler, Jefferies, Susquehanna, Baird and Goldman Sachs.

Nike Inc., on Thursday, introduced a Consumer Direct Acceleration strategy designed to further drive digital engagement with consumers and consequently drive online growth. The program includes a heightened focus on delivering seamless experiences across channels; a realignment around Men’s, Women’s and Kid’s; and building an end-to-end technology foundation to support its digital transformation.

Nike Inc.’s online growth took off and China resumed growth during its fourth quarter ended May 31 but both provided little ammunition to overcome the impact of store closures caused by the emergence of COVI-19.

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of June 22, 2020 covered in the SGB Updates — delivered to your inbox every business day. Photo courtesy the New York City marathon which was canceled this week despite infection rates of the coronavirus dropping in the NYC […]

Speaking at the 2020 Jefferies Virtual Consumer Conference, Christopher Rondeau, CEO, Planet Fitness, said gym visits continue to improve with member workouts at almost 80 percent to 85 percent year-ago levels, but he sees ongoing challenges continuing and expects pressures will create sizeable market share opportunities for Planet Fitness.

Winnebago Industries, one of the leading manufacturers of recreational vehicles (RVs), said backlogs at the close of the third quarter ended May 30 vaulted 86.7 percent in units in Towables and 99.2 percent in Motorhomes. The gains reflect a strong rebound in dealer demand in May as April was the month most impacted by COVID-19 coupled with a yearning by consumers to be outdoors.

Cowen on Wednesday lifted its rating on Dick’s Sporting Goods as the investment firm sees accelerating share gains amid improving footwear allocations as well as greater adoption of its e-commerce platform. Analyst John Kernan wrote in a note, “We expect market share gains to continue and accelerate as regional smaller sporting goods providers weaken financially or file for bankruptcy.”

GNC Holdings Inc., the parent company of health and wellness retailer GNC, filed for Chapter 11 bankruptcy protection in Delaware with plans to sell the company and close “at least 800 to 1,200 stores.” The move comes after its latest effort to manage its debt load unraveled amid the coronavirus pandemic.

SGB Executive reached out to a handful of executives in the active lifestyle space to explore what adjustments they’ve made as a result of the pandemic and which ones will likely continue once the crisis subsides. Responses from Rab, Allied Feather & Down, Sweet Protection, RovR Products, and Salewa.

Speaking at the Stifel Cross Sector Insights Conference, Jim Swanson, CFO at Columbia Sportswear, said the Company’s diversified business model, accelerated investments in digital in recent years and the heightened appeal for outdoor products will help it manage the fallout from the pandemic.

SGB Executive reached out to a handful of executives in the active lifestyle space to explore what adjustments they’ve made as a result of the pandemic and which ones will likely continue once the crisis subsides. Responses from Prana, Purist Collective, Teton Gravity Research, North x North, Snow Peak, and California Innovations.

At the Stifel Cross Sector Insights Conference, Patrik Frisk, CEO and president of Under Armour, said he believes the brand’s amplified focus on athletic performance will pay off as the pandemic drives increased interest in fitness and health. Frisk also talked about recent traction gained in digital engagement and running footwear.