SGB Executive

The health club industry is continuing to prosper. Club visitation is growing at a steady clip as 2018 notched a record number of consumers visiting a club, and health club revenues jumped nearly 8 percent over the previous year, according to a recent study by IHRSA, The International Health Racquet & Sportsclub Association.

Top headlines from the active lifestyle industry you may have missed this week, including Gearhead Outfitters, an Arkansas-based outdoor specialty retailer, acquiring Rock/Creek Outfitters in Tennessee and Uncle Dan’s Outdoor Store in Illinois from Camping World Holdings Inc.

Legitimate claim that Nike Inc. made illegal payments to high school hoops stars, or malicious attempt by desperate lawyer to clear his name of wrongdoing? That’s the question at the heart of the motion that attorneys for Michael Avenatti filed in federal court Wednesday to dismiss his recent indictment. SGB breaks down the latest in this ongoing saga, which includes accusations of payments to such stars as Zion Williamson.

Shares of Canada Goose Holdings Inc. didn’t take quite the nosedive Wednesday they suffered in May after the previous quarter’s softer profit outlook, but the company’s Q1 2020 performance—most notably margin decline and a widened loss—once again took a toll on its stock. CEO Dani Reiss shed some light on the reasons why in addition to what’s on the horizon for the brand.

Some apparel and footwear brands, along with a host of electronics companies, will see tariff hikes on their Chinese imports delayed until December 15 as President Trump hopes to keep the economy from tanking during the holidays. But the trade war rolls on with U.S businesses and consumers—including those in the sporting goods and outdoor industries—suffering the most.

Seattle, WA-based Outdoor Research recently opened a manufacturing facility in California to meet growing demand for tactical gear, primarily for military contracts. The company’s president, Michelle Wardian (center), spoke with SGB about the new plant and what else is happening at the longtime gear brand.

As Nike Inc. pursues its goal of $50 billion in annual revenue by 2022, the company is targeting both organic and acquisition growth. In the past week, the Beaverton, OR-based sports footwear and apparel giant hit milestones along each of those paths.

July was a busy month for M&A in the active lifestyle space, with a number of companies either acquiring growth in hopes of expanding their empires or shedding assets to rightsize their portfolios. This month’s M&A Roundup breaks down recent deals from Vail Resorts, Vista Outdoor and others.

Callaway Golf Co.’s $476 million acquisition of Jack Wolfskin, which was announced last fall and completed in January, raised plenty of eyebrows across the business world. But this newest asset paid off for Callaway in Q2 by delivering $48 million in sales, helping the company not only post a revenue beat in the period but also raise guidance for 2019.

Vista Outdoor Inc. CEO Chris Metz on Thursday cited a host of “challenging” headwinds that led to the company’s disappointing fiscal first-quarter performance. However, he also spent a lot of time on this week’s earnings call with analysts detailing how the executive team plans to revamp and revitalize the beleaguered Anoka, MN-based company and its brands, including CamelBak.

Iconix Brand Group’s operating losses were significantly reduced in the second quarter due to aggressive cost-cutting efforts. Sales, as expected, fell sharply but Iconix officials said they’re making progress lining up new licensing partners for many of its brands.

SportChek saw same-store sales climb 3.7 percent in the second quarter, marking its fourth consecutive quarter of growth and boosted by the Toronto Raptors being crowned NBA champions. Company-owned brands vaulted 47 percent at SportChek, led by Helly Hansen’s expansion.

Top headlines from the active lifestyle industry you may have missed this week, including Fox International, Europe’s largest privately owned fishing tackle company, announcing that it has agreed to be acquired by Lew’s Holdings Corp., a leader in the U.S. fishing equipment market.

Adidas AG’s second-quarter operating profit missed estimates, squeezed by the cost of flying apparel from Asia to North America to address supply shortages. But the company reaffirmed its outlook for the year, predicting top-line growth will accelerate in the second half.

Record revenue in the second quarter couldn’t keep Camping World Holdings Inc.’s stock from nosediving Thursday. As investors saw the impact of margin pressures on the company’s revised full-year guidance, CWH shares dipped 28 percent in early morning trading before closing the day down $1.67, or 16.1 percent, to $8.71.