SGB Executive

Six former Cabela’s employees are running the startup outdoor gear seller Nexgen Outfitters Inc. in Sidney, NE, where Cabela’s had been headquartered before being acquired by Bass Pro Shops. With the recent expiration of a noncompete injunction, the online provider is feeling a surge of momentum. SGB checks in on Nexgen’s journey.

The surprise acquisition of Olympia Sports extends JackRabbit deeper into the sporting goods space, but Bill Kirkendall, CEO of JackRabbit, said the Maine-based sporting goods chain is “right in our wheelhouse” because of its focus on specialty retail. The acquisition follows a strong turnaround in the JackRabbit running business.

Smartwool, Icebreaker and Napapijri aren’t the largest assets in VF Corp.’s $12 billion portfolio, combining for about $600 million in annual sales. But the company has big plans for these so-called “emerging” brands, including each one hitting double-digit growth over the next five years to reach $1 billion together.

Nike has been in the news lately over risks the brand may face due to the NBA’s recent controversy in China considering its exposure to the NBA, the basketball category and China. A number of favorable Wall Street notes have arrived over the past week, however, touting the brand’s strong prospects.

Stifel’s second annual Athletic Consumer Survey found Nike solidifying its spot as the primary brand in both athletic footwear and apparel, Adidas retaining its hold on younger consumers and Under Armour demonstrating meaningful year-over-year brand perception improvement.

Top headlines from across the active lifestyle industry featured in SGB during the week of October 7, 2019.

Illustrating the challenges embracing free speech and avoiding taking a political position, Nike, Vans and the National Basketball Association (NBA) have all found themselves facing potential boycotts this week after getting caught in the middle of the Hong Kong protests.

Having gained some traction in turning around the JackRabbit run specialty business, CriticalPoint Capital is moving deeper into sporting goods with its acquisition of Maine-based Olympia Sports. About half of Olympia Sports more than 150 stores will close but the acquired stores will continue to operate under the Olympia Sports’ banner.

A year and a half ago, Helen of Troy Ltd. committed to growing Hydro Flask sales in the Eastern U.S., a goal centered on both amplifying the brand’s message and expanding its distribution across the region. Those efforts are paying off for Hydro Flask and its El Paso, TX-based parent company, both of which have been focused for the past six or so quarters on raising the brand’s awareness and increasing market share in the East.

Athletic brands once again commanded the top-spots among fashion preferences for teens, according to Piper Jaffray’s 38th semi-annual Taking Stock With Teens survey. In fact, 75 percent of females and 87 percent of males prefer an athletic brand of footwear – both new peaks. Some brands increasing appeal with teens were Nike, Lululemon, Vans, Crocs and Champion.

At VF Corp’s recent 2019 Investor Day, VF officials said an “intense reset” has positioned Timberland for sequential acceleration in growth after the brand fell short of expectations over the last few years. Martino Scabbia Guerrini, EVP and group president, said, “Men’s footwear has been probably the most challenged category in our business in the last few years.”

At VF Corp’s 2019 Investor Day, Doug Palladini, global brand president, predicted Vans would expand in the range of 12-to-13 percent over the next five years. The “emotional connectivity” Vans drives with fans is expected to continue to be fuel the outsized growth. Other newer drivers include a more diverse product range, improved segmentation, new retail formats, enhanced customization tools and accelerated growth in China.

Top headlines from across the active lifestyle industry featured in SGB during the week of September 30, 2019.

On Wednesday, Caleres Inc. at its 2019 Investor Day laid out a path for modest sales growth and double-digit earnings growth on average over the next three years. The three-year plan marks a shift from heavy investments in brand acquisitions and infrastructure investment in recent years to a greater focus on driving earnings growth and was applauded by Wall Street analysts.

September was another busy month for M&A in the active lifestyle space. Notable transactions occurred in outdoor eyewear (Bollé Brands acquired Spy Optic), sporting goods retail (Sportsman’s Warehouse acquired eight Field & Stream stores from Dick’s) and recreational vehicle manufacturing (Winnebago acquired Newmar). SGB digs into the important details of each deal.