SGB Executive

Helped by a strong performance at 5.11 and improvement at Liberty Safe, Compass Diversified Holdings LLC (CODI) reported consolidated subsidiary EBITDA returned to growth in the third quarter, exceeding internal expectations. Velocity Outdoor, however, absorbed a $33.4 million impairment charge.

Excluding the C9 line that is being phased out of the Target chain, Champion’s sales on a currency-neutral basis jumped 26 percent in the third quarter, ahead of expectations for the third straight quarter this year. Gerald Evans, CEO of HanesBrands, said he believes Champion is well-positioned to generate another $1 billion of growth over the next several years.

Boosted by higher advance orders and earlier shipments of fall 2019 product for Columbia and Sorel, Columbia Sportswear Co. reported third-quarter earnings and sales that topped Wall Street’s targets and again raised its guidance for the year.

Led by the Americas region, Crocs Inc.’s Q3 earnings nearly tripled on a 19.8 percent revenue gain. Full-year revenue guidance was raised to 11 percent to 12 percent growth over 2018. The comfy footwear maker also provided initial guidance for 2020, projecting growth would accelerate to between 12 percent and 14 percent.

Boosted by its fourth consecutive quarter of same-store sales growth and a jump in merchandise margins, Big 5 Sporting Goods Corp. reported earnings in the third quarter more than doubled and were well ahead of guidance. Management also provided upbeat guidance for the fourth quarter. Shares of Big 5 climbed nearly 50 percent on Wednesday on the news.

Faction Skis, the Verbier, Switzerland-based premium ski manufacturer, has set its sights on the U.S. market for its next growth phase. CEO Alex Hoye spoke with SGB about recent moves to take share here, including a new North America headquarters, increased production and shifting sales in-house. Here’s what on tap for the next step in Faction’s evolution.

Unifi Inc. reported improved underlying profitability on a modest sales gain in the first quarter as stringent cost-control efforts and a more favorable raw material cost environment in the U.S. offset continuing pricing pressures in polyester.

Looking to capitalize on its 110-year athletic heritage, Russell Athletic in 2017 showed at Agenda in Las Vegas for the first time with a line of cotton t-shirts, fleece and French terries with graphic details that stood out for the return of the “Eagle R” logo. Over the last three weeks, the brand’s lifestyle push was on full display at its first-ever pop-up in downtown Manhattan.

Jon Frederick, U.S. country manager for outdoor brands Rab and Lowe Alpine, spoke with SGB recently about the companies’ differing strategies. While Rab’s focus is building on current momentum by launching new categories, Lowe Alpine is looking to re-establish itself in this market after a rocky couple of decades. Frederick outlines the path forward for each.

On Thule’s third-quarter conference call, Magnus Welander, CEO and president, said the company’s sales in the U.S. were down 6 percent in the period as rattled retailers focused on reducing inventories due to tariff concerns and consumers fretted over related higher prices. The bike category has been particularly impacted and Thule is planning some reorganizational changes in the challenged region.

VF Corp. underperformed in the fiscal second quarter, missing EPS and revenue estimates due to headwinds ranging from unfavorable currency exchange to geopolitical unrest in Hong Kong to the ongoing trade war between the U.S. and China. But one of the bright spots for Denver, CO-based VF amid the mixed quarter was The North Face, specifically the brand’s new, potentially game-changing innovation.

Deckers Brands lifted its full-year guidance after reporting both earnings and sales for the second quarter handily surpassed guidance due to accelerated sales momentum at Hoka One One. Hoka’s revenues are now expected to be up in the mid to high 40 percent range in the current fiscal year.

More than half of the footwear that Rocky Brands Inc. imports is made in Chinese factories, so the fourth tranche of tariffs that went into effect in September should place significant pressure on the company’s bottom line beginning in Q4. But, like many others entangled in the trade war, the Nelsonville, OH-based company is working to mitigate the effect of tariff increases on its balance sheet. Here’s what Rocky Brands is planning.

Top headlines from across the active lifestyle industry featured in SGB during the week of October 21, 2019.

Puma cautioned on Thursday that U.S. tariffs on China would hurt its American region margins in the fourth quarter but still raised its sales forecast and narrowed its profit target for the full year after a strong third quarter in all regions.
Puma’s CEO Bjorn Gulden said on a conference call with a journalists, ““So far everybody is eating the tariffs in their margins.”