SGB Executive Sports & Fitness
The retailer had a solid back-to-school season, and through the first eight weeks, sales were tracking above expectations, but warmer weather during the latter part of September and into October had a clear impact on demand for fall seasonal goods, especially in store.
Boosted by a “very strong” back-to-school selling season, Dick’s Sporting Goods posted above-plan third-quarter results, lifting its guidance for the year. Lauren Hobart, president and CEO, told analysts, “We are pleased with how our consumer is holding up within the sporting goods industry and then particularly that they’re choosing Dick’s increasingly to meet their needs.”
Men’s and kids were reportedly both down in low-single-digits, driven by a low-teens decrease in Apparel. Footwear results in both men’s and kids were said to be up in low-single-digits. The Women’s business was up in mid-single-digits, driven by a mid-teens increase in Footwear offset by weak Apparel results.
BTIG is taking the opportunity to step to the sidelines despite continuing to believe in the “significant low-hanging fruit at FL and the company’s potential as CEO Mary Dillon implements her playbook.”
A survey conducted by Aggregate Sports found Nike to be the top brand respondents felt supported women’s sports the most, followed by Gatorade and Coca-Cola.
Athleta’s sales declined 18 percent in the third quarter against “heavy discounting” a year ago and are expected to decline double-digits in the fourth quarter as the retailer’s recovery from recent fashion miscues has taken longer than expected.
In a recent analysis from Baird, the investment firm and financial services company forecasted that tech advances, improved player performance and safety features, elevated traditional and social media exposure, and other economic factors will accelerate the future of team sports participation, benefiting from both the sporting goods industry and its investors.
Korea-based Fila Holdings Corp. reported sales fell 8.3 percent in the third quarter as a 35.1 percent decline at the Fila brand segment offset a gain of 3.3 percent at Acushnet (Titleist, Footjoy). Fila brand’s sales tumbled in the U.S. due to the impact of elevated inventories.
Swiss running brand On delivered its seventh consecutive record quarter in revenues and achieved its highest gross margin since its August-2022 IPO. However, shares closed down slightly on Tuesday due to concerns over elevated inventory levels and its ability to deliver growth to match On’s stock’s high multiple.
For the third quarter, the Sports business was up 3 percent to ¥29.1 billion, after growing 19 percent in Q1 and 3 percent in Q2. Segment business profit was up 20 percent in the third quarter, to ¥2.5 billion.
According to the Aspen Institute’s recently released State of Play 2023 report, kids are trying sports about as much as they did before COVID-19, but they’re not playing as frequently.
Year-to-date revenue attributable to footwear manufacturing activity, including athletic/outdoor shoes, casual shoes and sports sandals, decreased by 20.4 percent to US$3.50 billion as average selling prices rose in mid single digits.