SGB Executive Sports & Fitness
How Asics Plans To Regain Its Stride In Run
Following 13 consecutive quarters of declines, Asics returned to growth in North America in the first quarter, led by the Performance Running category’s return to positive growth. In an interview with SGB Executtive, Richard Sullivan, EVP of sales, categories and marketing, Asics North America, discusses the reason Asics returned as title sponsor of the Los Angeles Marathon and its strategies for regaining its leadership positioning in the run category.
Cause Marketing Platforms Not Breaking Through With Gen Z
Several brands in the active lifestyle space, including Patagonia, Nike and Toms, are being recognized for their purpose-driven ethos and related cause-marketing efforts according to an extensive study from DoSomething.org. But the study still found it’s not easy to break through and create belief among consumers.
Cannondale Driving Rebound For Dorel Sports
Dorel Industries said its Dorel Sports’ segment showed some recovery in the first quarter. Growth at Cycling Sports Group (CSG), led by Cannondale, helped offset continued pressures at the mass channel. Said Martin Schwartz, Dorel’s CEO, “We’re excited about prospects with the Cannondale line demonstrating excellent momentum.”
Sequential Brands’ Active Portfolio Gains Further Traction In Q1
Sequential Brands Group Inc. reported first-quarter earnings on an adjusted basis came in below plan due to transition challenges of licensing agreements at its Fashion segment. The company’s Active brands, led by Gaiam, And1 and Avia, continue to see strong growth
Delta Apparel Q2 Boosted By Triple-Digit Growth In Digital Printing
Delta Apparel’s profits in its second quarter ended March 30 were pulled by many expected and some unexpected cost pressures. Sales managed to increase almost 3 percent as continued momentum at DTG2Go offset weather-related sales declines at Salt Life and Soffe.
Advertising Missteps Sink Nautilus’ Q1 Performance
Leaders at Nautilus Inc. must be happy to put the first quarter behind them. Not only did the period see the company lose its CEO, but Monday’s first-quarter earnings report revealed much deeper problems than a C-suite transition, starting with advertising missteps that diminished its direct segment revenue.
April M&A Roundup: BSN Grows Again, Volcom Gets Liberated
BSN Sports has become a fixture in SGB Executive’s monthly roundup of M&A activity, and April saw the nation’s largest direct marketer and distributor of sporting goods to the school and league markets grow yet again with the addition of two more assets. In a busy month for deals in the active lifestyle market, surf, skate and snow brand Volcom found a new owner.
Adidas Continues Hot Streak In Q1
Adidas AG reported first-quarter earnings that topped Wall Street’s targets as the company benefited from strong growth in China and online as well as significantly higher gross margins. More encouragingly, strong spring launches are expected to set the stage for accelerated growth in the second half and the supply-chain issues slowing growth in North America are expected to be resolved by the end of the year.
Champion’s Growth Accelerates Again In Q1
HanesBrands Inc. said its Champion business, excluding the C9 line being phased out at Target, catapulted 75 percent globally on a currency-neutral basis in the first quarter, accelerating from gains of 50 percent in the fourth quarter and 40 percent in the third quarter.
Under Armour Believes North America Has Stabilized
Under Armour’s earnings and sales that topped analysts’ expectations due to healthy overseas growth and efficiencies gained from its extensive restructuring efforts and stringent inventory controls. The most encouraging sign, however, was that the North America region is stabilizing.
Gildan Activewear Q1 Dragged Down By Lower Imprintables Restocking
Gildan Activewear reported a steep decline in earnings in the first quarter, as expected, as sales were impacted by lower levels of distributor restocking. Higher raw material and other input cost pressures also pressured margins.
Fitbit Tops Guidance On Robust Smartwatch Sales
FtbIit Inc.’s first-quarter results topped expectations, driven by a 117 percent hike in smartwatch sales. Another encouraging development was tracker device sales rising for the first time since the third quarter of 2016.
Garmin CEO Talks Tacx Acquisition, Strong Q1
Garmin Ltd. President and CEO Cliff Pemble spent only a little time on Wednesday’s Q1 earnings call with analysts discussing the company’s acquisition of Tacx, but he did shed some more light on how Garmin would go to market with its newly acquired Dutch business, which designs and manufactures indoor bike trainers, tools and accessories, as well as indoor training software and applications.
Unifi Lowers Outlook Again
Unifi Inc. for the third quarter in a row lowered its outlook for the year due to competitive pressures in the polyester space, especially from low-cost imports heading into the U.S.
Big 5 Delivers Robust First Quarter But Weak Outlook
Big 5 Sporting Goods Corp. delivered a strong first quarter as cold weather boosted its winter business. But the California-based sporting goods chain also warned of a loss in the current quarter due to a later Easter this year and also warned that overall sales appear soft.
