SGB Executive

Top headlines from across the active lifestyle industry featured in SGB during the week of October 28, 2019.

In an op-ed in the New York Times gaining wide attention, former prodigy runner Mary Cain, now 23, said she was “emotionally and physically abused” until she quit Nike’s Oregon Project, Nike’s elite track and field training program.

Vista Outdoor Inc. reported sales slid 7 percent on an organic basis in the second quarter ended September 29 with continuing weakening sales in its ammunition business. Encouragingly, however, earnings marked break-even results on an adjusted basis in, ahead of Wall Street’s targets, and adjusted earnings guidance was maintained for the year.

Led by combined growth of more than 11 percent on a currency-neutral basis at its biggest brands, Merrell, Sperry and Saucony, Wolverine World Wide Inc. reported adjusted earnings in the third quarter that topped Wall Street’s targets. Full-year guidance, however, was slightly lowered due to tariff headwinds.

On its third-quarter conference call, Emerald Expositions Events’ officials indicated that with the 2018 Outdoor Retailer Winter Market show delivered revenues over $5 million and was profitable, the decision to cancel the show was a “financial setback.”

Continuing to benefit from progress reducing its reliance on winter boots, Bogs’ sales were up 12 percent in North America on a wholesale basis in the third quarter, according to its parent, Weyco Group.

Adidas AG beat earnings estimates in the third quarter as sales picked up in the U.S. after months of trouble there from supply-chain snags and sales also recovered in Europe. Adidas reiterated its full-year guidance while predicting a “significant acceleration” in sales in the fourth quarter.

October was another busy month for M&A in the active lifestyle space, with footwear and apparel giant Nike Inc., outdoor retailer and gear brand Kathmandu Holdings Ltd., and sporting goods chain JackRabbit all pulling the trigger on market-shifting deals.

Peloton Interactive, in its first quarterly report since going public, reported a loss that was below Wall Street’s targets but revenues were better than expected due to a significant influx of new subscribers. John Foley, Peloton’s CEO, told analysts, “I believe if we pull back on growth we could be profitable tomorrow.”

Clarus Corp. reported another quarter of double-digit gains for its flagship Black Diamond brand but weakness at Sierra Bullets on top of the strengthening U.S. dollar and escalating trade war caused the company to cut its guidance for the full year.

Under Armour Inc. reported third-quarter earnings that exceeded expectations but shares fell about 19 percent on Monday as the company reduced FY19 revenue guidance and confirmed that it has been under federal investigation for its accounting practices since July 2017. CFO David Bergman said, “We firmly believe that our accounting practices and disclosures were appropriate.”

Fueled by a strong new product lineup and expanding gross margins, Yeti Holdings Inc.’s earnings on an adjusted basis increased 29 percent in the third quarter on a 17 percent sales jump. The company raised its guidance for the year.

Callaway Golf Co. reported third-quarter earnings increased three-fold due to strong growth in golf clubs, continued momentum at  TravisMathew and a “solid” quarter for recently-acquired Jack Wolfskin.

Acushnet Holdings, the parent of Titleist and Footjoy, reported a sharp hike in earnings in the third quarter with a boost from accelerated top-line growth.

Top headlines from across the active lifestyle industry featured in SGB during the week of October 28, 2019.