SGB Executive Sports & Fitness
Jim Weber Discusses Brooks’ Renewed Momentum
In October, Brooks Running Co. reported a whopping 29-percent increase in global revenue in the first nine months of this year, representing a strong bounce back for footwear’s run specialty leader. Here, Brooks Running CEO Jim Weber discusses Brooks’ return to strong double-digit growth, the recovering run specialty channel, the challenges around potential tariffs and what’s ahead for Brooks in 2019.
Morgan Stanley Bearish On JD Sports/Finish Line Merger
In a report entitled, “Is the Finish Line a step too far?,” Morgan Stanley initiated coverage of JD Sports Fashion Plc with an “Underweight” rating largely due to concerns over its recent mega-acquisition of The Finish Line. Part of that concern is that the merger comes as Nike and Adidas are rapidly expanding their direct-to-consumer (DTC) channels.
Canadian Tire Touts Growth Potential For Helly Hansen, Looks To Reset Sport Chek
On its third-quarter conference call, Canadian Tire officials indicated that Helly Hansen, acquired in early July, is off to a “good start” with its integration process and should find a bigger presence across the company’s Canadian stores by mid-2019. They also laid out plans for Sport Chek to re-merchandise departments by categories instead of by brand, expand private labels, and improve inventory productivity.
Active Brands Making Progress In Sequential’s Q3
While posting a steep loss on impairment charges in the third quarter, Sequential Brands reported that its three active brands – Avia, Gaiam and AND1 – are all gaining traction in the marketplace
Adidas Finds Yeezy Boost Can’t Offset Europe Slowdown
Adidas lifted its profitability guidance for the year after reporting robust third-quarter earnings due to better-than-expected margins and strong double-digit growth in North America, China and across e-commerce channels. Yeezy delivered Adidas’ largest digital-release. But the year’s sales outlook was lowered as softness arriving in Europe earlier in the year worsened in the third quarter.
Retail Reports Roundup
Retail studies arrived on increasing rates of discretionary spending online, online personalization disappointing consumers, disconnects around consumers pricing perceptions, unplanned absence creating selling floor shortages, and rewards members desire for cash.
Asics Sees 8 Percent Q3 Sales Drop In The Americas
Asics Corp. reported an operating loss in its American region of ¥398 million ($3.5 mm) in the third quarter as sales declined 8.1 percent. Companywide, Asics slashed its earnings guidance for the year as it also saw a steep decline in profits in the Europe and a modest decline in Japan.
October M&A Roundup: Implus Nets 20th Acquisition
Acquisitions made by a fitness accessories company, a sporting goods retailer and a bike components manufacturer—each with vastly different track records of making deals—highlighted a busy month for M&A across the sporting goods, outdoor and active lifestyle industries.
Acushnet Lifts Outlook On Promising Q3
Acushnet Holdings Corp. slightly lifted its full-year guidance for earnings and sales after reporting robust growth in Titleist golf clubs and solid growth in Titleist balls that led to better-than-expected third-quarter results.
Aisle Talk Week of October 29
Top headlines from the active lifestyle industry you may have missed this week, including the outlook for U.S. apparel and footwear manufacturers being changed to positive from stable, according to Moody’s Investors. The agency cited the progress of companies like VF Corp. (pictured) in the report.
Champion’s Sales Soar Again In Q3
While Hanesbrands faced a number of challenges in the third quarter, including absorbing a bad-debt charge from Sears, currency headwinds and replenishment lags in Innerwear, the Champion business remains on fire. Champion’s sales grew in excess of 30 percent globally on a currency-neutral basis in the quarter and 40 percent excluding the mass channel.
Fitbit’s Smartwatch Entry Propels Rebound In Q3
Shares of Fitbit Inc. rose $1.22, or 25.8 percent, to $5.95 Thursday after the fitness tracker leader returned to profitability on a non-GAAP basis for the first time in two years on surging sales of smartwatches. The just-launched Fitbit Charge3 is also seeing a strong reception.
Big 5 Outlines Strategy For Adapting To Market Pressures
Though Big 5 Sporting Goods Corp.’s third quarter earnings fell within guidance, the company was shy of expectations as August and September sales were “disappointing,” company President and CEO Steven Miller said on Tuesday afternoon’s earnings conference call with analysts.
Fitness And Outdoor Wearables Shines For Garmin In Q3
Boosted by double-digit gains for both its Fitness and Outdoor segments on strength in wearables, Garmin Ltd.’s adjusted earnings climbed 32.0 percent in the third quarter ended September 29, easily topping Wall Street’s target. The Fitness segment was led by advanced wearables, led by the GPS-enabled Vívo line of products. The Fēnix’s series continues to drive Outdoor.
Behind The Deal: Hibbett Makes Strong Retail Play With City Gear Acquisition
Hibbett Sports Inc. CEO Jeff Rosenthal spoke with SGB about the company’s $88 million (plus undisclosed incentives) acquisition of Memphis, TN-based “city specialty” retailer City Gear, which the Birmingham, AL-based retailer believes will be transformational for both companies as they leverage each other’s strengths.
