SGB Executive

Cowen downgraded its rating on Adidas to “Market Perform” from “Outperform” due to signs of lower digital traffic and lower Average Unit Retail Prices for the brand, as well as the risk of the end of its Kayne West partnership.

Speaking at the Raymond James Consumer Conference, John Walbrecht, president at Clarus Corp., said he doesn’t expect the company’s portfolio of premium brands, such as Black Diamond Equipment and Sierra Bullets, to be significantly impacted by inflationary pressures because of “super-fan” enthusiasts’ affinity to their sport and their favorite brands.

At Nike’s annual meeting held in its headquarters in Beaverton, OR, John Donahoe, president and CEO, said the company continues to see “structural tailwinds,” including the consumer’s movement toward health and wellness as well as toward digital, helping empower its Consumer Direct Acceleration (CDA) strategy. Nike officials also discussed innovation success, China’s recovery and supply chain disruption.

Shoe Carnival is on a roll, with earnings for the first half of 2022 surpassing all full year of earnings in the 44 years since its founding, except for 2021. SGB Executive talked with Mark Worden, the family footwear chain’s CEO since 2021, about the company’s strengths in the apparel footwear category, recent success elevating margins and overall momentum.

In an affidavit, as part of the bankruptcy court filing of Olympia Sports Acquisitions, Mark Coffey, CEO since March 2022, attributed the filing to sales challenges brought on by the pandemic, a failed software contract and a restrictive loan agreement.

The list of trade creditors landing on the unsecured creditors’ list of Olympia Sports’ bankruptcy read like a Who’s Who of the active industry’s major players, including Nike, Columbia Sportswear, Rawlings, Olukai, and Mitchell & Ness. Fleet Feet holds the largest unsecured claim of $3 million.

Speaking at Goldman Sachs 29th Annual Global Retailing Conference, Jill Timm, CFO at Kohl’s, remains confident that the department store’s efforts to “be a destination for the active and casual lifestyle” shopper will pay off long-term despite active underperforming in the second quarter due to supply chain constraints impacting athletic footwear.

American Outdoor Brands’ sales in the first quarter ending July 31 dropped 28.1 percent, to $43.7 million. Gains in its direct-to-consumer e-commerce sales were more than offset by weakness in wholesale sales due in large part to bloated inventories in the marketplace that particularly impacted the shooting sports category.

Smith & Wesson Brands, Inc.’s sales plunged 69.3 percent in the fiscal first quarter ending July 31 and were also down 11.6 percent versus the pre-pandemic first quarter of 2019 due to extensive inventory correction in the marketplace. Mark Smith, president and CEO, order rates have also rebounded since the end of the first quarter and the company reiterated its cash generation and operating earnings for the full fiscal year.

Zumiez delivered a bleak outlook for the third quarter after reporting inflationary pressures caused sales and earnings in the second quarter to fall well below company guidance. Rick Brooks, CEO, told analysts, “Headwinds have materialized and then intensified, particularly in our U.S. business.”

Speaking this week at Goldman Sachs’ Annual Global Retailing Conference, Lauren Hobart, president and CEO, Dick’s Sporting Goods, said that beyond the pandemic, Dick’s had benefited from the structural changes it put in place in 2017, which helped elevate its assortment, including carrying more “high-heat” apparel and footwear products.

Shares of Academy Sports and Outdoors, Inc. rallied 14 percent on Tuesday after the sporting goods chain reported second-quarter earnings that topped Wall Street’s consensus estimates on strength in sports & recreation and improved merchandise margins. Academy officials reiterated its guidance for the year as the retailer’s momentum continues.

HydroJug, Brevite Backpacks, PXG, Crossrope, Hyperice, and G Fuel were a wide range of companies in the active lifestyle space to appear in the 2022 Inc. 5000 annual ranking of the fastest-growing private companies in America.

Lululemon Athletica, Inc.’s shares rallied on Friday after the retailer reported that traffic drove a 23 percent hike in same-store sales in the second quarter. Results easily topped analyst estimates, and guidance was lifted for the full year. Calvin McDonald, CEO, told analysts, “Importantly, we are not creating this traffic through markdowns or price promotions. Lululemon remains predominantly a full-price business.”

Sportsman’s Warehouse Holdings, Inc. reported that while earnings and sales in the second quarter weren’t able to reach record year-ago levels, results topped the high end of guidance and management remains confident the hunt & fish chain is well positioned to take advantage of greater interest in the outdoors post-pandemic.