February M&A Roundup: Vail Resorts, Garmin, BSN Sports Make Key Moves
Vail Resorts Inc., Garmin Ltd. and BSN Sports made significant market moves in February, elevating an otherwise mundane month for mergers and acquisitions in the active lifestyle space. SGB Media’s latest M&A Roundup digs into the notable deals.
Foot Locker Scores Best Quarterly Comp Since 2014
With hot sellers ranging from Adidas Yeezy to Jordan, Nike’s Max Air, Fila and Champion, Foot Locker Inc. belted out a 9.7 percent same-store gain in the fourth quarter – its best quarterly gain since the fourth quarter of 2014. Fourth-quarter earnings and 2019 guidance also arrived well ahead of expectations. Some setbacks include the planned closing of its SIX:02 women’s chain and more impairment charges for Runners Point, but a bigger investment has been made into in Carbon38, the women’s activewear upstart.
Overall Health Of Golf Industry Keeps Acushnet On Course
Inclement weather around the globe in 2018 took a toll on golf rounds played, but Acushnet Holdings Corp., the parent of Titleist, was among the companies benefiting from an important industry theme that has trumped poor playing conditions: The sport’s health continues on the upswing.
Store Closures, Job Cuts Dominate Department Store Q4 Headlines
Department stores reported a mixture of earnings results in the fourth quarter, but the big news from the period included store closures (J.C. Penney Co.) and job cuts (Macy’s). Last quarter also saw the untimely passing of Blake Nordstrom, who died on January 2 at age 58.
Aisle Talk Week Of February 25
Top headlines from the active lifestyle industry you may have missed this week, including Congress passing a public lands bill that would permanently reauthorize the federal Land and Water Conservation Fund.
5.11 And Velocity Outdoor Deliver Double-Digit Growth For CODI In 2018
Compass Diversified Holdings’ (CODI) reported 5.11’s 2018 revenues expanded 12.2 percent in 2018 while Velocity Outdoor’s revenue increased 10.3 percent. Liberty Safe saw a 10.1 percent decline last year.
Athleta Becomes Prime Growth Engine With Old Navy’s Exit
Gap Inc.’s move to spin off Old Navy is expected to accelerate growth opportunities for Athleta, the already fast-growing women’s activewear chain. The fourth quarter for Athleta marked a two-year comp hike of nearly 30 percent.
Crocs’ Americas Sales Jump 15 Percent In Q4
Crocs Inc. reported revenues in the fourth quarter topped Wall Street’s expectations, boosted by healthy double-digit growth in the Americas region. The loss for the company in the period also came in better than expected due to cost-cutting initiatives.
TJX Rebranding Sierra Trading Post To Simply ‘Sierra’
Sierra Trading Post, the retailer that operates an online and brick-and-mortar presence and is owned by The TJX Cos., has undergone a rebranding and is now known simply as Sierra, the company announced Wednesday during the earnings call with analysts.
Fitbit’s Shares Sink On Weak Guidance
Fitbit in the fourth quarter managed to show its first quarterly year-over-year increase in device sales since the fourth quarter of 2016. But shares were trading down about 16 percent in late-afternoon trading amid warnings of softer-than-expected sales for the first quarter and margin deterioration for the year.
Big 5 Turns Bullish As Winter Kicks In
Big 5 Sporting Goods Corp. said its holiday quarter came out better than expected as chilly weather goosed sales. Continued seasonal weather into February also has the California-based chain upbeat for the first quarter.
Fox Factory Shares Climb As CEO Succession Plan Unveiled
Shares of Fox Factory Holding Corp. grew in the double digits before closing the day up $2.32, or 3.4 percent, to $63.45 after the company a day earlier not only announced a strong fourth quarter performance but also a CEO succession plan. Mike Dennison takes over as CEO on June 29, replacing Larry Enterline, who is retiring after eight years in the role.
Slow Start To New Digital Platform Stymies Nautilus In Q4
Last November, Nautilus Inc. introduced its new digital platform, Max Intelligence, with hopes of driving stronger sales in the company’s direct segment, but slower-than-expected adoption rates contributed to a soft fourth quarter for the company. Nautilus on Monday reported net sales for Q4 of $115.4 million, a 9.7 percent decrease compared to the same quarter of 2017.
Rocky Brands Q4 Boosted By Higher Margins, Plant Efficiencies
Helped by vibrant sales at its higher-margin retail segment and steps to improve efficiencies at company-operated manufacturing facilities, Rocky Brands Inc. reported earnings on an adjutted basis rose 28.6 percent in the fourth quarter ended December 31.
Adidas Earns Upgrade On Yeezy Momentum
Wells Fargo raised its rating on Adidas to “Outperform” from “Market Perform” due to the success the brand is finding with its “democratization” of Yeezy, its sub-brand collaboration with Kanye West.
