SGB Executive

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.

On Kohl’s first-quarter analyst call, Tom Kingsbury, its recently-appointed CEO, said the active category was “healthier in the period, outperforming the company average with a positive growth in apparel and continued success in outdoor.” The top-performing national brands for the department store chain were many active-lifestyle brands, including Nike, Izod, Columbia, Hurley and Eddie Bauer.

Shoe Carnival lowered its full-year guidance as the first quarter was impacted by consumers pulling back due to inflation and lower federal tax refunds. However, improved inventory levels are expected to help the family footwear chain gain share in athletic footwear this coming back-to-school season.

VFC delivered revenue and profit in line with guidance for the fiscal fourth quarter and grew full-year revenue 3 percent in constant-currency terms in fiscal 2024, with 10 out of the company’s 12 global brands flat or growing revenue for the year – and five of those brands delivering double-digit growth.

Dick’s Sporting Goods reported first-quarter earnings that topped analyst expectations on healthy sales growth while reiterating its outlook for the year. Officials told analysts it hadn’t seen any pullback in spending due to inflationary or macro-pressures that other retailers have felt, from Walmart to Foot Locker.

Shares of Nike remained under pressure on Monday following the arrival of Foot Locker’s subpar first quarter and the sneaker retailer’s move to slash its outlook for the year. Some analysts also expressed concerns about broader weakness in the U.S. athletic space.

Foot Locker saw stock downgrades from Citi and Williams Trading on Monday following its first-quarter miss and move to significantly reduce its full-year guidance. Some analysts were still hopeful that improved Nike allocations and benefits from its new Lace Up transformation plan would eventually pay dividends.