SGB Executive

Less than a year after being sold by Vista Outdoor Inc. to a European private equity firm, Bollé Brands is bolstering its eyewear platform with the acquisition of U.S.-based Spy Optic. Financial terms of the deal were not disclosed, but the addition of the Carlsbad, CA-based eyewear brand gives Bollé a strategic play in the U.S. market and tees up plenty of expansion opportunity for the company.

Representatives from outdoor brands NEMO Equipment Inc., VF Corp., Columbia Sportswear Co. and Nester Hosiery spoke Thursday about the wide-ranging impact that tariffs are having on their companies. The cost of the trade war, they said, extends far beyond a dollar amount and is taking a toll on hiring, expansion and, perhaps most worrisome, product innovation.

Top headlines from across the active lifestyle industry featured in SGB for the Week of September 9, 2019.

In his first conference call since returning as Duluth Trading’s CEO, Steve Schlecht said markdowns required to clear slow-selling inventory led to an earnings shortfall in the second quarter and a lowered outlook for the year. The founder also said new store growth would be slowed in the near-term to focus on profitability while also expecting improvement in the second half.

Two of the biggest names in the active lifestyle industry will close their doors and their cash registers on September 20 to participate in the Global Climate Strike. Burton and Patagonia in recent weeks announced they won’t open their retail stores, process online sales or otherwise engage in day-to-day business practices next Friday so company employees can join one of the events happening worldwide. Here’s why they’re putting purpose over profit.

JD Sports, the U.K.-based sports fashion retailer, delivered stellar results in the first half as EBITDA (earnings before taxes, interest, depreciation & amortization) rose 37 percent on a 12 percent same-store gain at its core Sports Fashion banners. Just as encouragingly, same-store sales at Finish Line grew 5 percent including both physical stores and online in a continued promising start to its U.S. entry.

Analysts generally came away impressed with Vista Outdoor team’s full probe of its turnaround strategy provided at its Investor Day held Tuesday in New York City, although a number of headwinds, particularly in the hunt space, is keeping a few from turning bullish on the company.

CamelBak is officially coming back to REI Co-op. The hydration pack and bottle brand last week inked its first contract with the outdoor retail giant in more than a year and announced plans to scale up over the coming seasons with a full line of products on REI shelves by Spring 2021, according to CamelBak President Greg Williamson.

At Vista Outdoor’s Investor Day held Tuesday in New York City, company officials lowered revenue guidance for the current year due to Walmart’s decision to stop selling certain forms of ammunition. But a three-year plan was also revealed that calls for a return to modest growth in ensuing years along with significant improvement in profitability.

With another round of tariffs arriving on September 1, tariff-mitigation strategies were again detailed on recent quarterly conference calls. Only a few companies significantly reduced earnings forecasts at least for 2019 due to their likely impact. Tariff insights from Sportsman’s Warehouse, Genesco, Lululemon, Designer Brands, Zumiez, Shoe Carnival and others.

As Lululemon Athletica Inc. continues on a five-year vision of growing its core business in the low-double digits annually, the company’s aspirations go far beyond executing on the three pillars of product innovation, omni-guest experience and market expansion. It also requires working up a good sweat.

Helped by the ongoing success of fashion athletic styles, Journeys delivered a better-than-expected 3 percent comp in the second quarter to help its parent, Genesco Inc. significantly exceed Wall Street’s consensus targets.

Continuing to be driven by footwear and hard lines, Zumiez Inc.’s second-quarter earnings increased two-fold and came in well above guidance. Combined with a strong start to back-to-school selling in August, the action-sports chain hiked its outlook for the year.

Top headlines from across the active lifestyle industry featured in SGB for the Week of September 2, 2019.

Clarus Corp. President John Walbrecht took his message about the company’s “superfan” brand strategy on the road this week when he presented at the 2019 Gateway Conference in San Francisco. Here’s what he shared about Clarus’ unwavering vision for its portfolio.