EXEC: Foot Locker’s Brand Diversification Push Gaining Traction
The big news Friday from Foot Locker was hiring Ulta Beauty’s former CEO, Mary Dillon, as CEO. However, the retiring CEO, Dick Johnson, told analysts that the company’s ongoing push to amplify assortments of non-Nike brands continued to progress in the second quarter and back-to-school selling looked promising.
EXEC: Kohl’s Axes Guidance On Inflation Pressures, Active Underperforms In Q2
Kohl’s, Inc. significantly reduced its guidance for the year due to expectations of lower sales and escalating promotional activity. The department store chain also said athleisure and outdoor posted strong sales but the overall active underperformed in the second quarter.
EXEC: TJX Lowers Guidance On “Historically High Inflation”
The TJX Cos., Inc. reported its overall apparel business at Marmaxx was slightly positive every month during the second quarter, but overall, U.S. comps were down 5 percent due to a steep decline in the home category. The parent of T.J. Maxx and Marshalls increased its full-year pretax profit margin outlook but overall lowered its sales and EPS guidance.
EXEC: Signa Sports Cuts Guidance On Consumer And Supply Chain Concerns
Signa Sports United N.V. reported sales grew 29 percent in the third quarter ended June 30 but slashed its outlook for the year due to the sudden deterioration of consumer demand over the quarter and lingering supply chain constraints.
EXEC: On Delivers Blowout Q2 On North America Strength
On’s second-quarter results arrived far ahead of Wall Street’s targets as the Swiss running brand was able to overcome supply chain challenges and capitalize on particularly strong demand in North America. On raised its outlook for the year. Caspar Coppetti, executive co-chairman, said, ““All geographies, channels and categories contributed strongly to this outstanding result.”
EXEC: Why Is Ammo, Inc. Spinning Off GunBroker.com?
Ammo, Inc. acquired GunBroker.com, one of the largest online auction marketplaces dedicated to selling firearms, hunting, shooting, and related products, in May 2021. On Monday, Ammo announced plans to split its marketplace and ammunition businesses into two independent publicly traded companies.
EXEC: Escalade’s Q2 Sales Dragged Down By Weakness In Fitness and Outdoor
Escalade, Inc. reported sales declined 13 percent, excluding acquisitions, in the second quarter due to lower demand in the fitness category and a reduction in outdoor category sales, including archery and water sports. Margins were flat as cost controls and pricing actions helped offset inflationary pressures.
EXEC: Asics North America Slowed By Supply Chain Snarls In First Half
Asics reported an operational loss in its North America segment in the six months due to reduced gross margins as well as higher operating expenses tied to higher e-commerce sales. Sales declined 2.7 percent on a currency-neutral basis, impacted by supply chain disruption.
EXEC: Canada’s SportChek Boosted By Return To Team Sports
SportChek’s comparable sales climbed 4.1 percent in the second quarter ended July 2 over the same period last year, overcoming supply chain disruption and benefiting from the return to organized team sports.
EXEC: Canada Goose Not Seeing Demand Wane
Canada Goose reported revenues and bottom-line results surpassed its guidance in the first quarter ended July 3 profitability due to strength in North America. Dani Reiss, chairman and CEO, told analysts that demand for the high-end outerwear brand remained strong despite heightened macroeconomic pressures.
EXEC: Hanesbrands Bullish On Champion’s Growth Potential Despite Q2 Shortfall
Hanesbrands, Inc. said global Champion brand sales slumped 20 percent in the second quarter in constant-currencies due in part to a ransomware attack but also softer-than-expected point-of-sale trends. On an analyst call, Steve Bratspies, CEO, HanesBrands, remained confident in Champion’s growth potential despite the rare top-line miss.
EXEC: Wolverine Cuts Outlook On Promotional Concerns
Wolverine Worldwide delivered operating margin ahead of expectations and EPS at the high-end of guidance but revenue in the quarter came in softer than expected and guidance for the full year was reduced on expectations that the marketplace will become increasingly promotional in the back half. Positives in the quarter included growth of 14 percent for Merrell and 16 percent for the Wolverine brand as sales for Saucony, Sperry and Sweaty Betty missed plan.
EXEC: Nautilus CEO Remains Bullish On At-Home Fitness Rebound
Nautilus, Inc. had another brutal quarter as sales tumbled 70.3 percent in the first quarter ended June 30 to drive a steep loss. However, Jim Barr, CEO, said consumer enthusiasm for JRNY, Nautilus’ digital membership platform, remains strong, and he believes Nautilus’ value-focused approach positions the company to gain significant share as the at-home fitness opportunity stabilizes.
EXEC: Allbirds’ Shares Tumble Amid Outlook Reduction, Cost-Cutting Moves
Shares of Allbirds fell about 20 percent on Tuesday after the eco-friendly footwear company slashed its full-year guidance and announced a cost-cutting plan, including layoffs, to compensate for lower-than-planned sales. Joey Zwillinger, co-founder and co-CEO, told analysts, ““Since our May earnings call, persistently high inflation has started to take its toll on consumers.”
EXEC: Beachbody Sees “Uncertain Demand Patterns” For At-Home Fitness
The Beachbody Company, Inc. reported a 20 percent decline in sales in the second quarter ended June 30, in line with expectations. Carl Daikeler, co-founder, chairman, and CEO, told analysts the focus would continue to be on expense control as demand for at-home fitness “could remain variable in the near-term” with increased uncertainty around the broader economic climate.
