SGB Executive

Athletic apparel mindshare reached record levels among teens in Piper Sandler’s Spring 2022 Taking Stock With Teens survey. Nike remained the dominant favorite apparel and footwear brand with teens. Among other active lifestyle brands, Lululemon, Crocs, Hey Dude, and Champion all strengthened their appeal, while Vans stood out for losing ground with the demographic.

Wells Fargo downgraded shares of VF Corp. as well as Ralph Lauren Corp and TJX Cos. to “equal weight” from “overweight” and reduced the price targets for many across its “softlines” universe due to heightening macro pressures and overly-optimistic 2022 outlooks.

In an interview with SGB Executive Steve Lawrence, EVP and chief merchandising officer, Academy Sports + Outdoors, elaborated on why Academy sees 2020 as a year of “stabilization” as the chain seeks to recoup the benefits of two gangbuster years of growth. He also discusses Academy’s renewed expansion plans.

Stretchy casual office wear that has become more acceptable amid the pandemic-fueled work-from-home trend is expected to help drive global sales in the athleisure market by 25 percent to $551 billion by 2025, according to U.K.-based GlobalData.

Powered by a seasonally-strong performance by its flagship fire pit brand, Solo Stove, Solo Brands reported sales in the fourth quarter ended December 31 surged 164 percent to $176.5 million. The company is seeing a slowdown in the first quarter but remains bullish on robust growth for 2022.

Lululemon Athletica’s shares jumped $32.95, or 9.6 percent, to $376.92 Wednesday, following a strong fiscal fourth quarter and full-year forecast that came in well above expectations.

Sportsman’s Warehouse reported earnings on an adjusted basis and sales were down in the fourth quarter as it anniversaried a surge in firearms sales in the year-ago period. However, results exceeded guidance and officials said  business fundamentals remain strong, with growth in all other categories, led by growth in footwear and apparel.

Shares of Academy Sports + Outdoors rose 9.2 percent Tuesday after the Texas-based retailer reported fourth-quarter earnings that handily topped Wall Street estimates to cap off a record year. Academy officials are bullish that many favorable conditions developed during the pandemic, including greater interest in sports and outdoor activities and a less promotional climate, will help drive profitable growth in the years ahead.

Cowen, on Monday, became the latest investment firm to downgrade Foot Locker since the sneaker retailer issued its fourth-quarter results. At the time, Foot Locker said reduced allocations of Nike products would lead to a significant decline in sales in the current year. Cowen’s downgrade was prompted by eroding digital traffic and search trends, inflationary pressures and mall exposure.

This past holiday quarter was one of the rare periods that saw companies talking more about supply than demand on analyst calls. Most vendors in the active lifestyle space were able to navigate closed factories, port congestion and other logistics turbulence to deliver better-than-expected performances but many warned of continued pressure at least through the first half of 2022. Insights from Nike, Adidas, Columbia Sportswear, VF Corp., Callaway Golf, Crocs, and others are rounded up in today’s post

Winnebago Industries, Inc.’s earnings surged in the second quarter ended February 26 as sales expanded 38.7 percent, including organic growth of 29 percent. Backlogs remain up well north of double-digits.

Wall Street analysts were impressed with Nike’s ability to deliver better-than-expected earnings for its fiscal third quarter ended February, fueled by continued strong demand and above-plan performances in North America and EMEA regions. Exposure to Russia/Eastern Europe and COVID-related volatility in China were seen as potential headwinds.

At its recent Investor Day, Kohl’s management team brought out the leaders at Adidas, Under Armour, Eddie Bauer, Columbia Sportswear, Levi Straus and Lands’ End to underscore its commitment to being retail’s authority in casual and active categories. Said Michelle Gass, Kohl’s CEO, “The pathway we’re already on to be a leader in active and casual before the pandemic has only become more relevant as consumer trends accelerated during the last couple of years.”

Nike, Inc. reported third-quarter earnings that handily topped Wall Street expectations as strong momentum continued in every region outside of China, and gross margins were boosted by higher full-priced sales and healthy growth in its DTC business. Nike officials said China’s sales are improving sequentially, supply chain pressure is easing and its moves to consolidate its wholesale base are largely complete.

On Holdings circumvented supply chain challenges to deliver fourth-quarter results that easily surpassed Wall Street targets. The Swiss running brand also lifted its outlook for 2022, projecting sales to expand at least 37 percent on top of 2021’s 70.4 percent gain.