SGB Executive

Genesco Inc.’s recovery gained further momentum in the second quarter with strong gains at Journeys and its U.K.-based Schuh chain, but officials warned that supply chain disruption continues to deplete inventory levels and is expected to drive higher freight costs in the quarters ahead. Said Mimi Vaughn, president and CEO, “We’re seeing good product flow right now, but it’s lower than we would like.”

Southlake, TX Solo Stove recently acquired Chubbies Shorts, Oru Kayak and ISLE SUPs under its new Solo Brands banner. SGB Executive spoke with CEO John Merris before the announcement to learn more about the acquisitions and its direct-to-consumer business model.

Despite difficult comps versus very strong results from the comparable period last year, Smith & Wesson Brands Inc. utilized increased manufacturing capacity and relied on consumer product preferences and increased market share to post-sales growth of nearly 20 percent.

Allbirds, which, on Tuesday, filed for an initial public offering, expects to grow by expanding across categories, raising brand awareness, deepening its engagement with consumers, and opening “hundreds” of additional stores. The San Francisco-based manufacturer wrote in its prospectus, “We believe there is continued opportunity to grow our closet share as we further expand our brand and product selection.”

Sequential Brands has reached an agreement to sell its active division brands, including Gaiam, Avia and And1, to Galaxy Universal for $333 million. Galaxy will serve as a stalking horse bidder to explore higher bids for the active segment as part of Sequential Brands bankruptcy filing.

Caleres, Inc. posted sales of $675.5 million in net sales in the fiscal second quarter ended July 31, up 34.7 percent from Q2 but down 4.4 percent from the 2019 comparable period.

Despite the pending exit of Nike from its mix, DSW’s athletic footwear momentum continues with comps in the category in the second quarter running up 90 percent year-over-year and 45 percent against the 2019 second quarter. The strength across athleisure helped drive quarter results for DSW’s parent, Designer Brands, far above plan although supply chain constraints could restrain second-half growth.

Shares of Peloton Interactive fell $9.75, or 8.5 percent, on Friday to $104.34 after the connected fitness leader announced plans for a price cut on its original Bike product and a lower-than-expected outlook for its current first quarter and FY22 following a massive treadmill recall. Many analysts nonetheless remain bullish on Peloton’s growth prospects, including the potential for a strong Tread launch.

Citing its capacity to retain new customers picked up during the pandemic, Hibbett Inc. reported both earnings and sales crushed Wall Street’s targets in the second quarter and strongly lifted its full-year guidance. Same-store sales are now expected to land in the positive mid-teens range in 2021 on top of gains of 22.2 percent in 2020.

Athleta, owned by Gap Inc., delivered another quarter of strong growth and said its affiliation with two Olympic ambassadors, Simone Biles and Allyson Felix, is driving brand awareness. Sonia Syngal, Gap’s CEO, said, “As the perfect amplifier of the brand’s values, Athleta’s sponsorship of world-class athletes in Tokyo boosted brand awareness of 33 percent, versus 26 percent last year.”

The Top National stories and the Latest headlines across the Active Lifestyle Market for the week of August 23, 2021 covered in the SGB Updates and delivered to your inbox every business day. This week’s Ambassador Athletes are the “On Run Crew”.  A “collective team spirit that motivates us to achieve extraordinary goals together.”

Cliff Sifford participated in his final earnings conference call with analysts as Shoe Carnival CEO this week as the family footwear retailer once again reported fiscal Q2 results that exceeded expectations and drove the family footwear retailer to increase its third-quarter and full-year guidance.

Shares of Dick’s Sporting Goods jumped 13.3 percent on Wednesday after the retailer reported earnings far ahead of Wall Street’s targets and aggressively raised its guidance for the year. Analysts roundly raised price targets with many believing Dick’s has proven it has shown structural improvement over the last year. Supply chain disruption was cited among the near-term risks.

There has been a changing of the guard of sorts in the paddlesports category in the past few years, with new CEOs and companies behind such venerable brands as Hobie, Jackson Kayak, Confluence Watersports Kokatat, MTI/Ocean Kayak, and more. But what do these new owners think of the industry and its future, and what are their plans for their brands? To find out, SGB Executive canvased the companies and retailers to shed light on this new wave of ownership coming to the watersports world.

Emboldened by a record-breaking second quarter, Dick’s Sporting Goods said it now expects same-store sales in 2021 to climb in the range of 18-to-20 percent, up from guidance of 8-to-10 percent previously,  while hiking its earnings targets. Dick’s officials also delivered their most upbeat comments on potential long-term benefits coming from changed behaviors due to the pandemic.