SGB Executive

Amid a challenging political climate for the firearms industry, American Outdoor Brands Corp. (AOBC), the parent of Smith & Wesson, announced it would split into two publicly traded companies— Smith & Wesson Brands Inc. (firearms) and American Outdoor Brands Inc. (outdoor products and accessories, or OP&A). SGB digs into why the company chose the spinoff route.

Nike’s move to stop selling footwear and apparel directly through Amazon is apparently an admission that the art of policing Amazon’s third-party sellers is becoming more challenging as the marketplace continues to grow. But it also reinforces Nike’s ambition to directly connect with consumers.

Despite Canada Goose Holdings Inc.’s upbeat second quarter—which included revenues doubling in Asia—its shares tumbled $4.22, or 10.8 percent, to $34.82 at market close Wednesday on the news that political turmoil in Hong Kong is disrupting the company’s operations and sales.

Iconix Brand Group said cost-control efforts led to improved operating profits in the first quarter. Sales fell sharply due to the loss of direct-to-retail (DTR) agreements – including Danskin at Wal-Mart – but Starter delivered healthy gains.

As Camping World Holdings Inc. pivots away from outdoor retail and as the recreational vehicle market continues to sputter, the Lincolnshire, IL-based company sees the sale of used RVs as a logical path forward for the business, according to Chairman and CEO Marcus Lemonis.

GoPro, as expected, reported dismal third-quarter results in part due to production delays but management forecast a robust fourth quarter due to strong early reads on the Hero8 Black and Max cameras. Said Nicholas Woodman, CEO, on a conference call with analysts, “Simply put all signs indicate Hero8 Black and Max are unquestionable hits”

Sturm, Ruger & Co., seeing little improvement in demand for firearms, reported net earnings declined 47.8 percent in the third quarter as sales slumped 17.3 percent.

SportChek’s comparable sales grew 4.6 percent in the third quarter, boosted by robust online growth, according to the quarterly report of its parent, Canadian Tire. Helly Hansen’s sales jumped 16 percent, boosted by expansion in Canada.

Dorel Industries Inc. reported third-quarter revenue at Dorel Sports increased 14.2 percent, to $250.3 million. The gains were driven by revenue growth across all three divisions, driven by strong performances at the Cycling Sports Group (CSG).

Sequential Brands Group Inc., the parent of Avia, And1 and Gaiam, said it is in the “final stages” of selecting a new CEO and has drawn interest in its exploration of the sale of some of its brands.

Nautilus Inc. posted a loss in the third quarter that was significantly below Wall Street’s expectations as shipment delays tied to the trade war dragged down sales in the Retail segment and the timing of launches held back the Direct segment.

Top headlines from across the active lifestyle industry featured in SGB during the week of October 28, 2019.

In an op-ed in the New York Times gaining wide attention, former prodigy runner Mary Cain, now 23, said she was “emotionally and physically abused” until she quit Nike’s Oregon Project, Nike’s elite track and field training program.

Vista Outdoor Inc. reported sales slid 7 percent on an organic basis in the second quarter ended September 29 with continuing weakening sales in its ammunition business. Encouragingly, however, earnings marked break-even results on an adjusted basis in, ahead of Wall Street’s targets, and adjusted earnings guidance was maintained for the year.

Led by combined growth of more than 11 percent on a currency-neutral basis at its biggest brands, Merrell, Sperry and Saucony, Wolverine World Wide Inc. reported adjusted earnings in the third quarter that topped Wall Street’s targets. Full-year guidance, however, was slightly lowered due to tariff headwinds.