EXEC: Tilly’s Sees Sharp Drop In Q3 As BTS Selling Trends Negative
Tilly’s, Inc. predicted a significant decline in third-quarter results as sales in the second quarter dropped off in the latter part of the period, attributed to inflationary pressures. Ed Thomas, president and CEO, told analysts, “Our customers continue to face the highest inflationary environment of the past 40 years.”
EXEC: Shares of Genesco Tumble On Lowered Outlook
Shares of Genesco, Inc. lost about 17 percent of their value on Thursday after the parent of Journeys slashed its outlook for the second half due to a sales slowdown in the latter part of the quarter at the Journeys chain amid inflationary pressures. Mimi Vaughn, Genesco’s CEO, told analysts, “We are seeing customers come out and shop when there is a reason to buy and retreat to conserve cash during the in-between period.”
EXEC: Duluth Trading Lowers Outlook As Sales Weaken
Duluth Trading said it sees a strong response to its new brand positioning, with the introduction of The Duluth by Duluth Trading and AKHG sub-brands. However, overall earnings in the second quarter fell below analyst targets due to macroeconomic pressures, and Duluth Trading lowered its guidance for the year.
EXEC: DSW’s Back-To-School Sales Boosted By Athletic Assortments
Designer Brands, Inc. lifted its EPS outlook for the year as DSW continues to benefit from shifting its mix “narrower and deeper” with its largest brands and emphasizing in-house brands. DSW has also had a strong start to the back-to-school season thanks to an increased assortment of athletic and kid’s products.
EXEC: Fitness Chains See Robust Recovery In Q2
Planet Fitness, Xponential Fitness and Life Time Group Holdings reported a significant uptick in revenues and membership growth in the second quarter, although not back to pre-pandemic levels. However, executives at the fitness chains told analysts they were confident they could overcome macroeconomic pressures.
EXEC: Stifel’s BTS Survey Finds Nike Dominance Continues
Stifel’s 15th annual back-to-school 2022 athletic footwear survey found that Nike’s popularity continues to be “enduring,” led by retro styles. Vans, Puma, Converse, and Hey Dude also scored high in the survey.
EXEC: Lululemon Downgraded To “Sell” By Jefferies On Long-Term Growth Concerns
Lululemon Athletica, Inc.’s shares were downgraded to “Sell” by analysts at Jefferies on expectations that the yoga-themed retailer would pull back on aggressive long-term guidance in the coming quarters.
EXEC: Athleta’s Sales Slump On Athleisure Softness
Athleta’s same-store sales slumped 8 percent in the second quarter due to a demand shift from athleisure to occasion and work-based categories as well as some fashion miscues on spring/summer product. On an analysts’ call, Bobby Martin, interim CEO of Athleta’s parent, Gap Inc., remained confident Athleta would return to its mid-teens growth target.
EXEC: Hibbett Eyes Robust Return To Growth In Second Half
Hibbett Inc. reported second-quarter earnings that fell short of analyst targets. However, the sporting goods chain raised its second-half comparable sales guidance due to improved inventories and favorable sales trends for the back-to-school shopping season to maintain its earnings guidance for the year.
EXEC: Shoe Carnival Shares Surge As Market Embraces Expanding Margins, Shrugs Off Q2 Miss
The parent company of the Shoe Carnival and Shoe Station retail banners sees profitability continuing to increase as the company’s strategic plans to double operating profit margins versus historical levels “continues to work,” according to management.
EXEC: Peloton’s Stock Crashes On Massive Q4 Loss
Shares of Peloton Interactive lost about 18 percent of their value on Thursday after the connect fitness leader posted a staggering loss and a bleak forecast that doused hopes of a quick turnaround. Barry McCarthy, CEO, said the loss “reflects the substantial progress we made this last quarter re-architecting the business to reduce the current and future inventory overhang, converting fixed to variable costs and addressing numerous supply chain issues.”
EXEC: Foot Locker Scores Upgrades With New CEO Announcement
Foot Locker, Inc. earned stock upgrades and upwardly adjusted price targets following the news that the company had hired Mary Dillon as CEO, the former CEO of Ulta Beauty.
EXEC: Famous Footwear Cautious On Back-To-School Selling
Famous Footwear marked its sixth consecutive quarter of double-digit return on sales in the second quarter that ended July 30 as the off-price chain continues to limit promotions. However, Diane Sullivan, chairman and CEO of Famous Footwear’s parent, Caleres, Inc., provided a muted outlook for third-quarter sales due to a later-developing back-to-school season and a recent sales slowdown.
EXEC: Dick’s SG Momentum Builds In Second Quarter
Dick’s Sporting Goods became one of the few retailers across channels to see second-quarter results surpass Wall Street targets and raise its guidance for the year. Lauren Hobart, president and CEO, told analysts Dick’s customers over the last two years have made “lasting lifestyle changes” that continue to drive robust demand while an increasingly differentiated product assortment elevates margins.
EXEC: Adidas CEO Sets Exit Amid Struggles In China
Adidas AG’s Supervisory Board announced that it has initiated a CEO transition. Kasper Rorsted, CEO of Adidas, and the Supervisory Board have mutually agreed upon that Rorsted will hand over the CEO position during the course of 2023. The search for a successor has started.
