SGB Executive

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.

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.