Foot Locker Sees Non-Nike Brands Boosting Sneaker Opportunity
Speaking at the Evercore ISI Consumer and Retail Conference, Dick Johnson, Foot Locker’s chairman and CEO, expressed confidence that the sneaker cycle received a significant boost during the pandemic. He also believes the retailer’s ongoing push to amplify assortments of non-Nike brands will better position Foot Locker to capitalize on the trend.
Why Did Compass Diversified Acquire PrimaLoft?
On a conference call announcing its deal to acquire Primaloft, officials at Compass Diversified (CODI) said Primaloft’s sales had grown at a 16 percent CAGR (compound annual growth rate) since 2017 and forecasted robust growth would continue due to its sustainability appeal and potential as an alternative to down insulation.
EXEC: G-III Apparel’s Q1 Benefits From Wardrobe Upgrades
G-III Apparel said it’s still finding growth from its casual categories, including jeans and athleisure, but its above-plan first quarter was driven by a pivot toward dressier offerings. Morris Goldfarb, G-III chairman and CEO, told analysts, “As people go back to work, resume socializing and life continues to return to normal, customers are shopping to refresh their wardrobes, and demand for our product remains strong.”
EXEC: Academy Finds Footwear And Outdoors Drives Q1 Outperformance
Boosted by robust sales in the outdoors and footwear categories and higher merchandise margins, Academy Sports + Outdoors’ first-quarter earnings came well above Wall Street’s consensus estimates.
EXEC: Beyond Yoga Sees Sales Surpassing $100 Million In 2022
At Levi Strauss & Co.’s Investor Day, Michelle Wahler, CEO and co-founder of Beyond Yoga, said the athleisure brand will surpass $100 million in sales in 2022. Growth should accelerate through category and channel expansion, including opening its first brick-and-mortar doors.
EXEC: Lululemon Lifts Full-Year Guidance On Robust Activewear Demand
Lululemon Athletica was able to overcome supply chain disruption and inflationary pressures to deliver first-quarter sales and earnings well past company targets, driven by outperformance in North America. As it’s done regularly over the course of the pandemic, the yoga-themed retailer raised its outlook for the year.
EXEC: Tilly’s Sees Inflation, Elevated Inventories Weighing On 2022 Results
Tilly’s, Inc. reported first-quarter results that were, as expected, well below year-ago levels due to difficult comparisons. Officials expect inflationary pressures and elevated inventory levels to remain headwinds in the quarters ahead.
EXEC: Zumiez Misses Q1 EPS Guidance And Lowers Full-Year EPS Outlook
Zumiez reported first-quarter sales declined sharply due to tough year-ago comparisons but were at the high end of guidance. Earnings, however, fell short of guidance. Rick Brooks, CEO, told analysts, “The operating environment has become increasingly more challenging due to the supply chain bottlenecks, higher logistics costs, a tight labor market, and high levels of inflation.”
EXEC: DSW Benefits From Narrower And Deeper Buys
Designer Brands Inc. said sales at its flagship DSW chain continue to benefit from a “narrower and deeper” buying approach that focuses on the chain’s top 50 brands. Roger Rawlins, CEO, also told analysts that other brands are stepping up to make up for the loss of Nike in athletic categories.
EXEC: Duluth’s Q1 Profits Propped By More Inventories And Less Clearance
Duluth Holdings, the parent of Duluth Trading, reported both sales and earnings topped Wall Street estimates in the fiscal first quarter ended May 1, benefiting from greater full-price selling and improving inventory levels.
EXEC: Sportsman’s Warehouse Warns On Inflationary Pressures
Sportsman’s Warehouse reported first-quarter results that topped expectations but warned that the high inflation rate influenced consumer shopping habits, including higher-ticket items. CEO Jon Barker told analysts, “Although there is inflationary pressure impacting the consumer, we believe that our positioning as a value-priced leader will allow us to capture additional market share of those people seeking to enjoy the benefits of the outdoors.”
SFIA Report: Bullish On Outdoor Industry’s Future
SFIA’s 2022 State of the Industry Report showed the sporting goods industry recorded a banner year in 2021 and the majority of survey participants are bullish on the industry’s future.
EXEC: Peloton’s CEO Discusses “Customer Love” At J.P. Morgan Conference
At the J.P. Morgan Global Technology, Media and Communications Conference, Barry McCarthy, Peloton Interactive’s new president and CEO, discussed the many challenges facing Peloton, including costs and supply chain, but also about the “customer love” that encouraged him to take the job and tackle the turnaround opportunity.
EXEC: Hibbett Remains Bullish On Second-Half Sales Recovery
Hibbett, Inc. reported that first-quarter earnings were in line with expectations but down against a year-ago period that was boosted by federal stimulus spending. However, improving inventory levels encouraged Hibbett officials to reiterate its outlook for the year calling for a return to growth in the second half. Inflationary pressures also aren’t considered much of a concern.
EXEC: Athleta Expects To Moderate Growth In Near Term On Active Slowdown
Gap, Inc. said Athleta expects to deliver a mid-double-digit revenue CAGR (compound annual growth rate) over the next several years, but growth could slow over the next few quarters due to weakening in the active category.
