SGB Executive Sports & Fitness
Aisle Talk Week Of March 11
Top headlines from the active lifestyle industry you may have missed this week, including Brooks Running Company’s promotion of Dan Sheridan to a newly configured role of EVP and chief operating officer.
Dorel Sports Q4 Hurt By Softness In Mass Channels
Dorel Industries Inc. reported that profitability in its Dorel Sports’ segment came in below plan in the fourth quarter due to a slowdown in bicycle sales across the board at Pacific Cycle that targets the mass channel. Martin Schwartz, president and CEO of Dorel Industries, said the exit of Toys “R” Us didn’t benefit the mass channel as much as projected.
Strong Boot And Retro Sales At Journeys Lifts Genesco’s Q4
Powered by healthy momentum for the Journeys chain, Genesco Inc.’s earnings before non-recurring items rose 18.8 percent in the fourth quarter. The company was also aided by a better-than-expected performance by the recently-sold Lids Sports Group in its last quarter with the company.
Adidas’ Supply Chain Problems Stunt North America’s Momentum
Adidas warned investors it will miss its 2019 growth target because supply chain bottlenecks in the first half of the year are making it difficult to meet demand. The growth is particularly expected to slow in North America, where it has doubled its business in the last three years to take market share from rival Nike
Dick’s Traffic Doldrums Continue
Dick’s Sporting Goods reported better-than-expected fourth-quarter results and outlined a number of initiatives to jump-start comp growth, including replacing its hunt sections in another 120 stores with faster-turning categories and switching out its licensed Reebok brand for a new private-label athletic label. But shares of Dick’s fell as management predicted only minimal top-line recovery in the current year.
Wall Street: Nike’s Share Gains On Adidas Seen Accelerating
With quarterly results soon arriving from both firms, two reports from Stifel and Cowen arrived finding Nike’s growth accelerating largely at the expense of Adidas.
Patagonia, L.L. Bean Near Top Of Reputation Rankings
Patagonia ranked third and L.L. Bean fourth in this year’s Axios Harris Top-100 Poll’s survey ranking the public’s perception of the 100 most visible U.S. companies. Nike, Adidas, Under Armour and Dick’s Sporting Goods also landed on the list.
Active Offering Most Potential For Sequential Brands
Sequential Brands’ Active division – including Gaiam, AND1, and Avia – remains its largest and most profitable division and will continue to be a focus for investments, including potential acquisitions, in the years ahead, Sequential officials said on the company’s fourth-quarter conference call.
Kohl’s Seeing Share Gains In Active, Adding Nike Plus-Sizes
Kohl’s Corp said it continued to see strong momentum across its Active categories in the fourth quarter. The retailer also said that its test of expanded Active areas will be extended to 160 stores and Nike plus-size offerings will arrive this spring.
Foot Locker Scores Best Quarterly Comp Since 2014
With hot sellers ranging from Adidas Yeezy to Jordan, Nike’s Max Air, Fila and Champion, Foot Locker Inc. belted out a 9.7 percent same-store gain in the fourth quarter – its best quarterly gain since the fourth quarter of 2014. Fourth-quarter earnings and 2019 guidance also arrived well ahead of expectations. Some setbacks include the planned closing of its SIX:02 women’s chain and more impairment charges for Runners Point, but a bigger investment has been made into in Carbon38, the women’s activewear upstart.
Athleta Becomes Prime Growth Engine With Old Navy’s Exit
Gap Inc.’s move to spin off Old Navy is expected to accelerate growth opportunities for Athleta, the already fast-growing women’s activewear chain. The fourth quarter for Athleta marked a two-year comp hike of nearly 30 percent.
Fitbit’s Shares Sink On Weak Guidance
Fitbit in the fourth quarter managed to show its first quarterly year-over-year increase in device sales since the fourth quarter of 2016. But shares were trading down about 16 percent in late-afternoon trading amid warnings of softer-than-expected sales for the first quarter and margin deterioration for the year.
Big 5 Turns Bullish As Winter Kicks In
Big 5 Sporting Goods Corp. said its holiday quarter came out better than expected as chilly weather goosed sales. Continued seasonal weather into February also has the California-based chain upbeat for the first quarter.
Adidas Earns Upgrade On Yeezy Momentum
Wells Fargo raised its rating on Adidas to “Outperform” from “Market Perform” due to the success the brand is finding with its “democratization” of Yeezy, its sub-brand collaboration with Kanye West.
Retail Reports Roundup
Retail studies arrived over the last two weeks on the value of in-person customer service, in-app spending growth, mobile payments, virtual assistants, supply chain digitization and more…
