SGB Executive

SGB Executive talked to Jim Duffy, veteran sell-side industry analyst at Stifel Financial Corp., about the headwinds and tailwinds facing the active lifestyle space, his favorite stocks, the DTC trend, his affinity for covering the active lifestyle space, and the company’s sponsorship of the U.S. ski team.

Recent surveys timed to Earth Day, April 22, indicate economic pressures are working against sustainability measures despite continued commitments and show that consumers are challenged by rising inflation in support of “green” products.

Designer Brands, the parent of DSW, paid $123.3 million to acquire the Keds business from Wolverine World Wide and paid $19.1 million to acquire majority ownership of Topo Athletic, according to the company’s recently-released annual report.

REI Co-op reported a loss in 2022, impacted by lower margins but said it made significant investments in its employees, community and other areas. Sales reached $3.85 billion in 2020, up 4.1 percent year-over-year after posting a 36 percent increase in 2021.

Melody Ehsani, CEO of the Melody Ehsani brand and creative director at Foot Locker Women, is leaving her role at Foot Locker.

SFIA’s 2023 State of the Industry Report finds the outlook for the sports and fitness industry remains strong, although current macroeconomic headwinds and uncertainty have dimmed that optimism slightly from 2020 and 2021 levels.

361 Degrees International Limited reported that retail sales of 361º core branded products for the first quarter posted approximately low-teens growth versus the comparable period in 2022. Retail sales of 361º kids branded products grew approximately 20 percent to 25 percent in the quarter.

Lululemon Athletica, Inc. is working with an adviser to explore selling the Mirror connected fitness business, which has underperformed since LULU acquired the company in 2020, sources told Bloomberg. The report comes as LULU, on March 29, said it absorbed after-tax impairment and other charges against fourth-quarter earnings totaling $442.7 million related to Mirror.

Goldman Sachs upgraded its stock rating on VF Corp. to “Buy” from “Sell” as the investment firm believes strategic actions, including overhauling Vans’ management team, have improved VF’s outlook for profitability.

Sportsman’s Warehouse’s shares fell Thursday on weak first-quarter guidance and the abrupt retirement of CEO John Barker. Analysts slashed price and earnings targets on the hunt & fish retailer while generally remaining cautious on the stock, given the low visibility into a return to positive same-store growth.

Omega Sports, the sporting goods retailer based in Greensboro, NC, reported it is its brick-and-mortar and e-commerce operation after 45 years of business.

Sportsman’s Warehouse Holdings, Inc., as expected, reported a sharp decline in sales and earnings in the fourth quarter as inflationary and recessionary pressures slowed sales of higher-ticket items. However, the hunt & fish retailer unexpectedly delivered dismal guidance for the first quarter as unseasonally snowy and rainy weather in the West stalled the start of the shooting, fishing and camping seasons.