SGB Executive

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.”

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.

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.