SGB Executive

Dorel Sports’ revenues grew for the third consecutive quarter as new models, particularly Cannondale, saw a good response in the marketplace, according to Dorel Industries Inc.

Athleta’s revenues were up “just shy” of $1 billion with growth of 12 percent on the top-line and low-double-digit in earnings, Teri List-Stoll, GAP’s’ EVP and CFO, said on the company’s fourth-quarter conference call. Another 20 stores are expected to open in 2020.

The Week’s Top Headlines across the Active Lifestyle Industry as reported in SGB Updates during the week of March 9, 2020.

Modell’s Sporting Goods, unable to find a buyer, announced plans to liquidate its remaining 141 stores in bankruptcy proceedings. The retailer claims to be the oldest sporting goods chain in the U.S.

Adidas and Nike both landed at the top of the Top 20 unsecured creditors list in the bankruptcy case of Modell’s Sporting Goods, each owed nearly $9 million. Under Armour was third with an unsecured claim of $3.8 million.

Genesco Inc. reported fourth-quarter earnings that came in well above Wall Street’s target but also indicated that the first quarter has gotten off to a slow start due to unseasonably warm weather impacting boot sales and softening traffic in tourist areas tied to the coronavirus.

Adidas reported 2019 results came in better than initially expected as all regions recorded sales growth for the first time since 2016. But the big news was the massive impact the company expects in the near-term to China due to coronavirus as well as ongoing uncertainty stemming from the increasingly global epidemic.

John Walbrecht, president of Clarus Corp. and its flagship brand Black Diamond (BD), said the Salt Lake City, UT-based company could be adding another asset to its portfolio that also includes Sierra Bullets, Pieps and SKINourishment. His comments came after a strong Q4 led by double-digit growth at Black Diamond.

Dick’s Sporting Goods reported earnings in the fourth-quarter that again topped Wall Street’s targets as same-store sales jumped 5.3 percent. Plans for 2020 included big investments in golf and soccer categories as well as women’s overall. But all the attention went to the retailer’s decision to remove the hunt category from another 440 stores.

Vail Resorts on Monday withdrew its fiscal 2020 guidance because it’s not yet sure how badly the coronavirus outbreak will sag its financial performance. The company plans to provide an update next week, but right now Vail plans to keep all its resorts open as scheduled, according to CEO Rob Katz, who addressed this issue and others on the fiscal second-quarter earnings call.

On Sunday, Eric Artz, REI’s president and CEO, became the latest retailer to try to reassure customers it’s safe to shop amid the coronavirus outbreak. A number of sporting and other events have already been canceled due to concerns.

Bjorn Fjellstad, managing director of the Norwegian apparel and protective gear maker Sweet Protection, is working to build momentum across the globe but especially in the U.S., which represents the brand’s biggest growth opportunity. He spoke with SGB Executive about Sweet Protection’s sharpened focus on this market, including the launch of a new category.

Hyperice’s merger with NormaTec is expected to help both companies accelerate their growth. But NormaTec’s CEO Gilad Jacobs tells SGB Executive that the bigger impact will be helping drive both companies’ shared goal of bringing recovery solutions to everyday people.

The fiscal third quarter brought significant change to American Outdoor Brands Corp. (AOBC), whose portfolio includes the iconic firearms maker Smith & Wesson plus several brands in the sportsman’s and outdoor gear categories. Despite some stumbles in Q3, look for AOBC’s post-spinoff companies to prosper.

Top headlines from across the active lifestyle industry featured in SGB during the week of March 2, 2020.