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.
EXEC: Journeys Stung By Promotional Sneaker Space; Closing 100 Doors
Shares of Genesco crashed 32 percent Thursday after the company axed its outlook for the year as weak demand and heavy discounts in the marketplace for athletic footwear pulled down sales at Journeys. Mimi Vaughn, CEO, told analysts, that even as spring assortments arrived in stores, Journeys’ consumers continued “to trade down to lower price points and take advantage of the abundance of discounted athletic products elsewhere in the market.”
EXEC: Vans Bets Big On MTE, Ultra And A 30 Percent SKU Cut In Turnaround Plan
Vans revenues were down 14 percent (-12 percent constant-currency) to $857.0 million in fiscal Q4 but sees encouraging green shoots from new product launches and focus following a 30 percent SKU reduction.
EXEC: The North Face Posts Double-Digit Fiscal Year Sales Growth In All Regions, All Channels
The VF Corp, Outdoor segment, which includes The North Face, Timberland, Icebreaker, Smartwool and Altra, reportedly saw ongoing strength in the fourth quarter, increasing 3.6 percent (+7 percent constant-currency) to $1.32 billion in the 13-week period. Operating profits were down 13.5 percent to $114.8 million in the prior-year comp quarter.
EXEC: Kohl’s Sees Active Category Recovery In First Quarter
On Kohl’s first-quarter analyst call, Tom Kingsbury, its recently-appointed CEO, said the active category was “healthier in the period, outperforming the company average with a positive growth in apparel and continued success in outdoor.” The top-performing national brands for the department store chain were many active-lifestyle brands, including Nike, Izod, Columbia, Hurley and Eddie Bauer.
EXEC: Shoe Carnival Eyeing Opportunity To Gain Share In Athletic Footwear
Shoe Carnival lowered its full-year guidance as the first quarter was impacted by consumers pulling back due to inflation and lower federal tax refunds. However, improved inventory levels are expected to help the family footwear chain gain share in athletic footwear this coming back-to-school season.
EXEC: VF Sees Weak Vans, Timberland Offset Strong TNF In Mostly Flat Q4
VFC delivered revenue and profit in line with guidance for the fiscal fourth quarter and grew full-year revenue 3 percent in constant-currency terms in fiscal 2024, with 10 out of the company’s 12 global brands flat or growing revenue for the year – and five of those brands delivering double-digit growth.
