EXEC: Oppenheimer Turns Bullish On Active Lifestyle Stocks
Oppenheimer raised its rating on Dick’s Sporting Goods to “Outperform” and reiterated “Outperform” recommendations on Nike, Lululemon, Academy Sports and Under Armour on healthy fundamentals for the overall industry. Analyst Brian Nagel wrote in a note that Nike’s discussions around using aggressive promotions to clear inventories “served to further unnerve already recession-wary investors. We believe that markets are too pessimistically interpreting trends at NKE.”
EXEC: Winnebago’s Q4 Earnings Boosted By Pricing Actions
Winnebago’s fourth-quarter results exceeded Wall Street’s targets as pricing actions and growth in its Motorhome and Marine segments offset double-digit declines in Towables. Mike Happe, CEO, told analysts, “While recognizing the inevitable normalization of short-term outdoor demand, we continue to believe that growing interest in the outdoors by an increasingly diverse range of consumers are lasting in the long term.”
EXEC: Industry Leaders See Supply Chain Turmoil Far From Over
At an online webinar hosted by NSGA (National Sporting Goods Association), executives from CCM Hockey, Johnson-Lambe and Sports Specialists Limited (SSL) agreed ongoing supply chain disruption will likely linger through 2023 and reshape buying patterns and strategies well into the future.
EXEC: Lululemon Earns Stock Upgrade On Mindshare Gains With Teens
Piper Sandler upgraded its stock rating on Lululemon Athletica to “Overweight” due partly to the brand’s momentum with teens, as noted in its 44th Semi-Annual Generation Z Survey.
EXEC: Columbia Sportswear Aims To “Double Down” On Wholesale Growth
At Columbia Sportswear’s Investor Day, Tim Sheerin, SVP, global wholesale, Columbia said the outdoor brand plans to ”double down” on wholesale growth even as numerous other active lifestyle brands emphasize DTC initiatives. He said, “Retail partners make great connections to a broad consumer base.”
EXEC: Athletic’s Appeal Continues Strong With Teens
Athletic categories again delivered strong mindshare among teens with athletic footwear gaining share among females, according to Piper Sandler’s 44th Semi-Annual Generation Z Fall 2022 Survey. Nike and Lululemon were the most popular brands among teens in the active lifestyle space. Other popular brands included Converse, Crocs, Shein, On, and PacSun, while Vans, Adidas and Under Armour lost ground with teens.
EXEC: The North Face Eyes New Growth Targets
At VF Corp.’s Investor Day, Nicole Otto, global brand president, The North Face, highlighted major growth plans for trail/hike, footwear and owned stores while unveiling the brand’s new mission statement expected to guide growth over the next five years.
EXEC: Cowen Delivers Weak Holiday Forecast
Cowen issued a report offering a dismal view of holiday spending as it sees trends across discretionary spending weakening and inventories reaching peak levels to drive markdown pressures. The investment firm said it’s “cautious” on third-quarter and fourth-quarter guidance for Under Armour, Burlington Stores, Adidas, Allbirds, Hanesbrands, Puma, PVH, Skechers, and Figs.
EXEC: Vans Sets Plan To Reignite Growth
At VF Corp.’s Investor Day, Kevin Bailey, Vans’ global brand president, said the skate brand is “far from done in our growth potential” while detailing a series of missteps that recently slowed the brand’s growth. Bailey said, “Most of the recent challenges of the brand are executional and at the brand.”
EXEC: Levi Strauss Reduces 2022 Outlook And 2023 Inventory Buys
Levi Strauss reduced its guidance for its fiscal year ended November 30 while reducing inventory buys for the first half of 2023 by approximately 25 percent due to ongoing supply chain disruption and macro-economic pressures, particularly in the U.S. and Europe.
EXEC: Active Lifestyle Industry Grapples With Elevated Inventories
Last week Nike, Inc. warned that it would have to aggressively promote in the coming months as inventories in its latest quarter ballooned 44 percent year-over-year due mainly due to pandemic-driven supply chain disruptions. Other retailers in the active lifestyle space likewise face inventory surges, although they are hopeful of avoiding excessive markdowns.
EXEC: Hydro Flask Growth Slows Due To Cautious Buying By Retailers
On Helen of Troy’s second-quarter conference call, Julien Mininberg, CEO, said Hydro Flask’s market share was “down slightly” in the year-to-date period as retailers are more cautious about replenishment and orders stemming from concerns over a slowdown in consumer spending.
EXEC: Skechers Bullish On Market Share Gains
In a meeting at Morgan Stanley’s Global Sporting Goods Day, John Vandemore, Skechers’ CFO, said the company is well-positioned to gain market share in the challenging economic climate and benefitted from major footwear brands reducing their wholesale distribution to emphasize direct-to-consumer growth.
EXEC: Analysts Remain Bullish Long-Term For Nike Despite Inventory Woes
Analysts reduced their price targets for Nike after the company warned that gross margins would remain under pressure over the next few quarters as promotions would be required to clear bloated inventories. Most still held positive ratings on the stock on faith in Nike’s long-term fundamentals.
EXEC: Nike’s Share’s Crash As Inventories Pile Up
Shares of Nike Inc. are down about 12 percent in mid-day trading Friday after the company reported better-than-expected results for the first quarter ending August 31 on healthy demand but warned that gross margins would remain under pressure through the year as promotions would be required to clear bloated inventories. Inventories ended the quarter ahead 44 percent year over year, including 65 percent in North America, its largest market.
