EXEC: Skechers Sees U.S. Wholesale Challenges Continuing
Speaking at the Deutsche Bank Global Consumer Conference, John Vandemore, CFO of Skechers USA, said the U.S. wholesale business is “probably our single most challenged marketplace” due to ongoing elevated inventory levels with the pressures expected to continue for a few more quarters.
EXEC: Academy Sports Bets On Revenue Bounce Back In Second Half
Academy Sports and Outdoors, Inc. trimmed its outlook for the year as first-quarter results missed plan. However, company officials predicted improving sales in the back half of the year on confidence that more favorable weather and strong injections of newness will help offset macroeconomic pressures.
EXEC: Topgolf Primed For Growth
At an investor meeting, Artie Starrs, CEO of Topgolf, discussed the fast growth and improving unit economics of the golf-entertainment concept as well as the benefits the chain is just starting to realize from newer digital activations and marketing pushes. He said, “I believe we’re just getting started.”
EXEC: REI SoHo Employee Union Takes Issue With New REI Legal Team, Pay Changes
The union representing employees at REI’s SoHo store in New York City said this week that REI had notified the union through its new legal counsel that many workers at the SoHo, New York store employees would be receiving pay cuts in their next paycheck amid a shakeup of the company’s legal representation at the bargaining table.
EXEC: Workers Unions Send Open Letter To Adidas CEO Over Yeezy Profit Payouts
While Adidas has received some accolades for its recent decision to sell off remaining Yeezy product and donate the proceeds to organizations combating discrimination and hate, unions representing workers in the Adidas supply chain are also looking for a piece of the pie.
EXEC: Lululemon Delivers Blowout Q1, Led By China
Shares of Lululemon are aligned to start trading up 15 percent after the yoga-themed retailer defied inflationary pressures by reporting better-than-expected first-quarter results and lifting its full-year outlook. China stood out, with sales up 79 percent, but the core business continued to see strength, with North American sales ahead 17 percent and its women’s leggings category growing by 22 percent.
EXEC: Famous Footwear Expected To Show Negative Comps In 2023
Caleres, Inc. said Famous Footwear’s same-store sales fell 8.5 percent in the first quarter due to a weather-related delay in the sandal season and a pullback in spending from its “more moderate-income customer” due to inflationary pressures. Sequential improvement in sales is expected in coming quarters but Famous Footwear’s comps are expected to be negative for 2023.
EXEC: Foot Locker Sees Little Near-Term Relief From Promotional Pressures
Speaking Wednesday at the Bernstein Strategic Decisions Conference, Foot Locker officials said elevated inventory levels across the marketplace and consumer caution are now driving promotional activity above pre-pandemic levels with margin pressures expected to continue through 2023.
EXEC: FitFlop Looks To Boost Global Growth Through New Distributors
FitFlop reported it entered a partnership with new distributors to fuel global growth, focused on Canada, Spain, Eastern Europe, the Baltic states, and Vietnam. The partnership will enable FitFlop to expand into new markets.
EXEC: Sportsman’s Warehouse Sees Cuts Ahead As Weather, Inflation Weaken Q1 Outside Firearms
Sportsman’s Warehouse has been experiencing a moderation in demand over the last few quarters after doubling its business over a three-year period, with “significant inflation” identified as the primary reason for the weakening demand. Sales in the first quarter were said to be also impacted by unfavorable weather conditions in the Western U.S.
EXEC: Hibbett Warns On Sales Weakness, Markdown Pressures
Shares of Hibbett Inc. are down about 10 percent in mid-day trading Friday after the retailer reduced its full-year guidance as first-quarter sales missed plan and sales weakness continued into May. Promotions are expected at least through the third quarter to rebalance inventories.
EXEC: Athleta’s Q1 Revenues Stumble Again, Hires New Chief Creative Director
Gap Inc. reported Athleta’s sales fell 11 percent in the first quarter to $321 million due to “continued product acceptance challenges.” On an analyst call, Gap officials said Julia Leach has been hired as its new chief creative officer to help revive assortments.
EXEC: Deckers’ Q4 Is A Tale Of Two Diverging Brands With A Common DTC Focus
Deckers Brands saw Hoka drive global revenue growth of 58 percent versus the prior year to eclipse $1.4 billion while Ugg revenue held steady in constant currency with the brand increasing its mix of both direct-to-consumer and international business.
EXEC: Ugg Brand Looks To Europe And DTC For Growth After Fiscal 2023 U.S. Weakness
Ugg performed in line with expectations as the brand focused on driving growth through DTC and international markets, while facing tough comparisons from the prior fiscal year related to refilling domestic wholesale inventories as well as currency exchange rate pressures overseas.
EXEC: Hoka Added $521 Million In New Revenue In Fiscal 2023; DTC Remains Focus
Hoka plans to emphasize growth in the DTC channel, driving high full-price sell-through and building market share with existing points of wholesale distribution, especially in light of a dynamic consumer environment.
