SGB Executive Sports & Fitness
Cowen Downgrades Finish Line On “Skyrocketing” Promotions
Cowen & Co. lowered its rating on The Finish Line to “underperform” from “market perform” due to signs of “skyrocketing” promotions at the retailer. The investment firm also found that Finish Line was continuing to undercut prices of Nike and Adidas online, posing a risk it may see less access to those key brands in the future.
Adidas Q3 Boosted By North America And China
The Adidas brand, which grew 13.6 percent on a currency-neutral basis in the quarter, was led by growth of 31 percent in North America, 28 percent in Greater China and 39 percent across global e-commerce.
Aisle Talk, Week Of November 6
Top headlines from the active lifestyle industry you may have missed this week.
Mizuno’s Americas Sales Decline 7 Percent In Q2
Mizuno Corp’s sales declined 7.4 percent in the second quarter ended September 30 in the Americas region, improving from a 10.0 percent drop seen in the first six months of the year.
Parent Of Titleist Eying Golf Recovery In U.S.
David Maher, COO, Acushnet Holdings, stated, “It is encouraging that the U.S. retail market is weathering its structural correction fairly well. The general consensus from our trade partners is that they are faring better now than they did in 2016 or 2015 as there are fewer competitive doors and a greater percentage of their sales is generated from inline products.”
Badger Sportswear’s CEO Discusses Alleson Athletic Merger
In an interview with SGB, John Anton, CEO, Badger Sportswear, said its acquisition of Alleson Athletic helps position the company as the preeminent “one-shop” solution for dealers across the country. The deal also signals that Badger is indeed ramping up its growth ambitions following its own acquisition last August by private-equity firm CCMP Capital Advisors.
Under Armour Upgraded Due To Re-Accessed Expectations
In a note, Susquehanna analyst Sam Poser that while Under Armour’s business “will be challenging for some time,” the downside to owning the stock is “more limited as UAA may have set the bar low enough to allow the company to hit the reset button.”
Asics Sales Slides 4.4 Percent In North America In Q3
Sales in the U.S. were down 11.4 percent on a currency-neutral basis in the first nine months of 2017.
Aisle Talk, Week Of October 30
Top headlines from the active lifestyle industry you may have missed this week.
VF Doubles Down On Merino Wool With Icebreaker Acquisition
VF Corp. looks to secure a dominant position in the fast-growing natural fiber category while Icebreaker believes it’s found a partner to help it become a $1 billion brand.
Gildan Activewear’s Top-Line In Q3 Impacted By Sock Slowdown
The overall sock business was down in the quarter due to weak demand in the sock category, particularly for higher-margin sock brands in department stores, national chains, and sporting goods.
Dorel Sports Revenues Plunge In Q3, Eyes Bounce Back In Q4
Dorel Sports’ 18 percent drop in sales in the third quarter was blamed on disruption in the mass channel, rainy weather and the bankruptcy of Toys”R”Us.
Newell’s Play Segment Sees Strong Earnings Uptick
On a conference call with analysts, Michael Polk, Newell’s CEO, highlighted mid-single-digit growth from the Fishing and Team Sports segments although the improved earnings largely reflects the absence of year-ago inventory writeoffs post-acquisition.
Fitbit’s Sales Show Some Recovery, Fitbit Ionic Off To Strong Start
Fitbit Inc. reported a steep loss and sales decline in the third quarter amid its transitional year, but indicated that sales are improving in most regions sequentially and its first smartwatch, the Fitbit Ionic, has launched strongly.
Champion’s Sales Climb Double Digits In Q3
Asked if the Champion brand is feeling pressure from the promotions being employed by Nike and Under Armour to reduce inventories in the U.S. market, Gerald Evans, HanesBrand’s CEO, said the core Champion business “was up 20 percent in our sporting goods and department store mid tiers. We now have the TSA bankruptcy behind us and we saw nice growth in our Sports License Apparel business as well.”
