SGB Executive

Vista Outdoor reported earnings and sales easily exceeded company guidance in the first quarter ended June 26 with strength in premium offerings; however, officials told analysts it was tempering its outlook for the fiscal year due to macroeconomic pressures, as category demand at lower-price points continues to be adversely affected by inflation.

Columbia Sportswear Co. slashed its guidance as sales weakness in June continued into July, with the blame being attributed to inflation and recessionary concerns. Officials told analysts the lower earnings guidance also reflected continued supply chain disruption and heightened promotion risks due to elevated market inventories.

Shares of Garmin fell $8.94, or 8.7 percent, to $93.56 on Wednesday after the wearables maker lowered its guidance for the year due to weakness in its fitness segment and supply constraints in its marine segment.

Puma reported stronger than expected second-quarter results as healthy double-digit growth in the Americas and the EMEA region offset weakness in China. Puma raised its sales guidance for the year but maintained its EPS outlook due to potential margin pressures.

Skechers USA’s sales and earnings topped its guidance in the second quarter, but the company maintained its outlook for the year given escalating macroeconomic headwinds worldwide. David Weinberg, COO, told analysts Skechers expects to have opportunities to gain share should the economy slow. He said, “We do have the opportunity, as in the past, to take advantage of an adverse situation by offering the right product at the right price.”

Adidas significantly reduced its sales, margin and earnings guidance for the year as it now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year. 

At the Emerging Growth Conference, Rob Blair, COO at RYU Apparel, Inc., discussed the Vancouver-based activewear brand’s major reset that includes a digital-first approach complemented by a wholesale push.
Blair believes RYU can stand out within the sea of “me-too” offerings in the athleisure marketplace.

Citing high inventories, lower traffic and early promotions, Stifel on Wednesday reduced operating earnings estimates and price targets on nearly all companies under its coverage in the active lifestyle space while downgrading Wolverine World Wide and Allbirds.

Despite signs of lessening port congestion in the U.S., several recent surveys conducted with supply chain professionals show that economic conditions, rising inflation and global tensions prevent a return to normal. Carl Marks Advisors (supply chain unlikely to stabilize until first half of 2024 or beyond) A recent survey of supply chain executives conducted by Carl […]

Last year, Wilson Sporting Goods launched its first lifestyle apparel collection and opened its first retail doors. SGB Executive talked to Gordon Devin, general manager, Wilson Sporting Goods, and president of DTC, soft goods and brand, about the moves and future plans.

American Outdoor Brands reported results for the fiscal fourth quarter that topped Wall Street targets. Still, shares in mid-day trading Friday were down about 10 percent after the outdoor accessories maker declined to provide guidance for the current fiscal year due to an uncertain inventory environment at retail in the back half of the year.

McKinsey teamed up once again with the World Federation of the Sporting Goods Industry (WFSGI) to update the sporting goods industry on new challenges facing the business from inflation and an emerging economic downturn, adding to existing pressures on input costs and supply chains.

The majority of active lifestyle stocks underperformed the broader stock market in the first six months of 2022 after outperforming many indexes over the last two years. Only three—Academy Sports & Outdoors, Caleres and Emerald Holding—of the 76 stocks tracked by S.G.B. Executive showed gains.

Peloton announced plans to exit all in-house manufacturing operations and shift to outsourcing in an effort to simplify its operations and reduce costs. About 570 jobs are reportedly impacted.

Shares of Lululemon Athletica and Under Armour were under pressure on Monday after downgrades by Jefferies. Analysts led by Randal Konik said Lululemon faces tough comparisons and “rising competition” while Under Armour is being sidetracked by “management volatility and lagging fundamentals.”