SGB Executive

Adidas significantly reduced its sales, margin and earnings guidance for the year as it now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year. 

At the Emerging Growth Conference, Rob Blair, COO at RYU Apparel, Inc., discussed the Vancouver-based activewear brand’s major reset that includes a digital-first approach complemented by a wholesale push.
Blair believes RYU can stand out within the sea of “me-too” offerings in the athleisure marketplace.

Citing high inventories, lower traffic and early promotions, Stifel on Wednesday reduced operating earnings estimates and price targets on nearly all companies under its coverage in the active lifestyle space while downgrading Wolverine World Wide and Allbirds.

Despite signs of lessening port congestion in the U.S., several recent surveys conducted with supply chain professionals show that economic conditions, rising inflation and global tensions prevent a return to normal. Carl Marks Advisors (supply chain unlikely to stabilize until first half of 2024 or beyond) A recent survey of supply chain executives conducted by Carl […]

Last year, Wilson Sporting Goods launched its first lifestyle apparel collection and opened its first retail doors. SGB Executive talked to Gordon Devin, general manager, Wilson Sporting Goods, and president of DTC, soft goods and brand, about the moves and future plans.

American Outdoor Brands reported results for the fiscal fourth quarter that topped Wall Street targets. Still, shares in mid-day trading Friday were down about 10 percent after the outdoor accessories maker declined to provide guidance for the current fiscal year due to an uncertain inventory environment at retail in the back half of the year.

McKinsey teamed up once again with the World Federation of the Sporting Goods Industry (WFSGI) to update the sporting goods industry on new challenges facing the business from inflation and an emerging economic downturn, adding to existing pressures on input costs and supply chains.

The majority of active lifestyle stocks underperformed the broader stock market in the first six months of 2022 after outperforming many indexes over the last two years. Only three—Academy Sports & Outdoors, Caleres and Emerald Holding—of the 76 stocks tracked by S.G.B. Executive showed gains.

Peloton announced plans to exit all in-house manufacturing operations and shift to outsourcing in an effort to simplify its operations and reduce costs. About 570 jobs are reportedly impacted.

Shares of Lululemon Athletica and Under Armour were under pressure on Monday after downgrades by Jefferies. Analysts led by Randal Konik said Lululemon faces tough comparisons and “rising competition” while Under Armour is being sidetracked by “management volatility and lagging fundamentals.”

Footwear Distributors & Retailers of America’s (FDRA) second-quarter survey of footwear executives found 87.1 percent of respondents seek a six-month outlook for shoe shoppers turning “weaker” or “very weak,” the fourth straight quarter of eroding sentiment and nearly double the share noted in its first-quarter survey.

Seawall Capital earlier this year rebranded Kent Watersports to Kent Outdoors to signal its interest in acquiring companies beyond water sports. In an interview with SGB Executive, Matt Eby, founder and managing partner, Seawall Capital discusses Seawall’s interest in the outdoors space, its acquisition strategy and the recent acquisitions of BOTE paddle boards and Kona Bicycles.

Shares of Helen of Troy, Ltd. lost about 9 percent of their value on Thursday after the company slashed its outlook for the fiscal year due to inflationary pressures and macroeconomic concerns. Sales in the Home & Outdoor segment, which includes Hydro Flask, Osprey and OXO, are now expected to grow from 9.0 percent to 11.0 percent in its fiscal year ending February 2023, down from previous guidance for 19.0 percent to 21.0 percent.

In what will mark its largest acquisition to date, Vista Outdoor Inc. announced that it had agreed to acquire Fox Racing for $540 million. The acquisition of the motocross and mountain bike helmet and apparel specialist moves Vista deeper into the adventure sports space that the firm already dabbles in with its QuietKat e-bike brand and its cycling brands that are led by Giro and Bell.

Several Wall Street analysts trimmed their EPS targets and dropped price target expectations on Kohl’s, Inc. after the department store chain ended buyout negotiations with retail holding company Franchise Group and lowered its second-quarter sales guidance.