SGB Executive

At its Investor Day on Monday, Mary Dillon, Foot Locker’s new CEO and president, outlined an ambitious “Lace Up” growth plan and said progress is being made in repairing the company’s relationship with Nike. However, shares of Foot Locker fell $2.43, or 5.8 percent, to $39.83 as earnings for the current year were guided sharply below analyst targets as the business undergoes a “reset.”

As consumers return to fitness clubs, publicly-traded club operators Planet Fitness, Life Time Fitness and Xponential Fitness reported fourth-quarter results topping expectations and delivered upbeat forecasts for continued growth in 2023. The results were in sharp contrast to the in-home fitness equipment brands that saw revenues take a dive following pandemic-driven growth.

Following two years of robust growth, L.L.Bean’s sales fell about 1 percent in 2022, to $1.8 billion a year ago. In a statement, L.L.Bean noted that it was able to hold “onto recent gains to yield its second-strongest revenue performance in company history.”

Academy Sports + Outdoors saw fourth-quarter sales come in below plan due in part to weakness in the hunt category,  but strength in apparel and footwear as well as lower freight costs helped earnings easily top analyst targets. Officials also gave an upbeat outlook for 2023 due to improved inventory content, healthy demand across most categories and the benefit of its value positioning in a more-challenged economic climate.

Speaking at the UBS Global Consumer and Retail Conference, Andrew Rees, CEO of Crocs, Inc., said the company is “off to a great start” in 2023, driven by innovation and new product introductions from its Crocs and Hey Dude brands.

Speaking at the BofA Securities 2023 Consumer & Retail Conference, Lauren Hobart, president and CEO at Dick’s Sporting Goods, and Ed Stack, executive chairman, discussed the chain’s transformation and other factors expected to drive continued robust top-line growth for Dick’s in the years ahead as well as why the chain is faring better than other retailers in the current inflationary climate.

Famous Footwear’s comparable store sales increased 0.7 percent in the fourth quarter, better than initial expectations, due to a strong second half in driven by athletic footwear. On a call with analysts, Jay Schmidt, CEO of Caleres, said, “This late quarter performance was driven by robust demand for key athletic brands, which the Famous team was able to capitalize on due to a stronger in-stock position compared to last year.”

J.P. Morgan lowered its rating on Under Armour to “Neutral” from “Overweight” due in part to elevated inventory levels that drive promotions across the retail marketplace and more direct competition from Nike and Adidas.

According to Roth MKM’s 2023 Millennial Survey, Millennials increasingly prioritize health and wellness and favor Nike, Adidas and Lululemon over other activewear brands.

American Outdoor Brands reported a 27.4 percent sales decline in the third quarter and slashed its growth targets for the current fiscal year. Company officials warned on an analyst call that the cautious ordering patterns due to elevated inventories at retail would not recover until the second half of 2023.

On the retailer’s fourth-quarter analyst call, Bob Martin, Gap, Inc.’s executive chairman and interim CEO, insisted the departure of Mary Beth Laughton as president is due to continued product missteps and not from the deteriorating health of its women’s activewear brand.

DLTH reported net sales of $241.8 million for the fourth quarter, down 10.7 percent compared to $270.8 million in the prior-year quarter. For the full fiscal year 2022, net sales were $653.3 million and were said to be within the range of recent guidance.