SGB Executive Sports & Fitness
Performance Bicycle, ASI Parent Company ASE Files For Chapter 11
Advanced Sports Enterprises Inc.—parent company of retail chain Performance Bicycle, wholesale distributor ASI and five bike brands—on Friday announced it is seeking Chapter 11 protection in U.S. Bankruptcy Court. The company said in a press release that “the move is intended to facilitate the company’s long-term, strategic goals of enhancing profitability and reaffirming its commitment to its employees, vendors and the communities it serves.”
Delta Apparel Boosted By Digital Print Growth
Delta Apparel reported a sharp uptick in earnings in its fourth quarter ended September 29. Strong results from its expanding digital print and fulfillment businesses offset weakness at both Salt Life and Soffe tied to Hurricane Florence.
Aisle Talk Week of November 12
Top headlines from the active lifestyle industry you may have missed this week, including Tony Hawk announcing the launch of D/CAL, a hybrid brand consultancy and creative agency, with Adam Wilson, Jared Prindle and Ryan Maconochie.
New Era Plan To Close Derby Plant Causes Political Brouhaha
A number of legislators and union officials decried New Era’s plan to close its manufacturing plant in Derby, NY, the company’s only headwear-manufacturing facility in the U.S. Charles Schumer, the Senate Minority Leader who represents New York, said, “This is devastating news for Buffalo. I sincerely hope that New Era, a hometown Buffalo company, will reconsider.”
Life Fitness Sees Connectivity Driving Fitness Equipment Growth
In essentially its initial public offering, Life Fitness Holdings, the commercial fitness equipment leader being spun off from Brunswick Corp., predicted generally modest growth for the fitness equipment sector overall in the years ahead. But the company expects to continue to grab share through its reach into an increasingly digitized commercial fitness landscape.
New Iconix CEO Seeks More Global Approach
Noting that the majority of the company’s 29 brands “have more mindshare than closet share,” Bob Galvin in his first conference call as president and CEO of Iconix Brand Group Inc. promised to push collaboration among licensing partners in a more unified approach. Unfortunately, a bad debt charge from Sears’ bankruptcy stalled progress in the latest quarter.
Mizuno’s Americas Region Returns To Profitability In Six Months
Mizuno Corp. reported that sales in the Americas dropped 16 percent in the second quarter ended September 30 but the region returned to the black in the six months.
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.
