Retail: 75
12.52%
Retail: 184
1.41%
Monday, November 11, 2019
Volume 3, Issue No. 45

Footwear Insight
Adidas Eyes ‘Significant’ Topline Q4 Acceleration; Closing Speedfactories

The Three Stripes, citing the discontinuation of supply chain shortages and easier year-over-year comparisons, is poised for sales growth in Q4 that will help the company meet its FY19 outlook of 5 to 8 percent revenue expansion (likely coming in at 6.5 percent) and a gross margin slightly above 52 percent. (Read More)

FOOTWEAR INSIGHT
Under Armour Playing ‘Long Game’ in Footwear

With President and COO Patrik Frisk set to assume Kevin Plank’s CEO role in January, Frisk says Under Armour’s expectations for its footwear business are unchanged despite a 12 percent drop in Q3 revenues to $251 million. (Read More)

Quotable

“Sustainability is one of the most prolific and important differentiators in our industry, and that’s why we are pushing it so aggressively.”

– Kasper Rorsted, CEO of adidas Group

Trade
As U.S.-China Stalemate Continues, Some Good News for Outdoor Firms

Reports last week that already imposed tariffs on Chinese imports into the U.S. will be rolled back in any interim trade accord between the two nations were denied by Trump Administration officials on Friday. Peter Navarro, director of the White House National Trade Council and director of the Office of Trade and manufacturing Policy, believes the U.S. needs to keep current tariffs... (Read More)

Footwear Insight
Wolverine CEO Predicts ‘Breakout Year’ for Saucony in 2020

A number of current brand trends have Wolverine Worldwide CEO Blake Krueger excited about the prospects for its Saucony business through Q4 and into 2020—Q3 sales growth in the mid-teens exceeded expectations, a new pipeline of performance and lifestyle products, the brand’s ecommerce sales growth and improving at-once sales trends for the brand that is currently lean on inventory. (Read More)

Footwear insight
Reebok On Road to Sustainable, Profitable Growth in 2020

The Adidas-owned Reebok brand is returning exclusively to its 30-year old Vector logo and “drop-R” wordmark on its products in 2020 — with the exception of the Delta logo used on UFC and CrossFit items. (Read More)

Quotable

“We feel really good about how we think about the future of this brand, all the work and the foundation that that we’ve done…And as we turn the corner now into the Perform With Balance chapter…we feel we have the product, the marketing and the team to be able to really drive the business more going forward.”

– Patrik Frisk, president and COO of Under Armour who becomes company CEO on Jan. 1

What's New? What's Hot!

New Balance’s Fresh Foam Hierro Boa is the first dual dial trail running shoe. The Boa Fit System activates a tri-panel canopy for stability and a more consistent connection to the midsole. Available in men’s and women’s versions. MSRP: $160. (Read More)

The Buzz: Carhartt, Helly Hansen, National Sporting Goods Association

Carhartt launches Carhartt Company Gear, a collection of nine styles for the direct-to-corporate market. United Airlines will outfit all Below the Wing crew members with in the collection starting Dec. 1. (Read More)

Tubes of the Week

Mon, Aug 28, 2017
Vol 1, Issue No. 33
Numbers In Play
The Sports Insight Index is our opinion of what we think are the 30 most important public companies in the industry, 15 vendors and 15 retailers. Space considerations prevent us from tracking more, but we will make changes over time.
Retail
Segment’s decline for the period is deceiving, caused by the currency impact on JD Fashion’s stock price. Excluding JD, the segment rose 2.6 percent for the period with 12 stocks up and only two down. Dick’s Sporting Goods will offer customers more than 20 Doorbuster deals in-store and online starting on Thanksgiving through 2 p.m. on Black Friday. The offers include 50-percent off a Prince table tennis table and $40 off select NCAA hoodies. On Thanksgiving, most Dick’s locations will open at 6 pm local time through 2 am on Black Friday before re-opening again at 5 am local time. Meanwhile, the retailer’s SVP/Chief Human Resources Officer Holly Tyson is leaving Jan. 1 but will remain a consultant through April 30, 2020. Camping World will spend between $42,3 million and $49.3 million in total costs to exit 31 outdoor lifestyle locations where it does not sell RVs and two specialty retail doors operated by TheHouse.com. Foot Locker is one of three industry retailers, along with Patagonia and REI, ranked among the top 15 best workplaces in retail by Great Places to Work and Fortune magazine. Walmart hits a 52-week high with shares up more than 29 percent since the start of 2019.
Brands
Segment inches nearly 1 percent after two consecutive weeks of decline, behind the Dow’s 1.96 percent increase for the period. There were 11 gainers, paced by Acushnet, and four decliners headed by double-digit dips for Under Armour and Yeti. Under Armour told market analysts its 4 percent drop in Q3 North American revenues, caused in part by lower sales in the off-price channel, was in line with its expectations. Adidas will face less air freight costs and minimal topline impact from supply chain shortages in 2020, but negative implication from tariffs and currency starting in Q4. Wolverine is forecasting high-single constant currency sales growth from Merrell in Q4 after the brand’s sales rose high-single digits in Q3. Also, WWW expects its CAT brand to post double-digit revenue growth in 2019. Columbia, following the recent passing of Chairman Gert Boyle, will address the appointment of a new COB at its Jan. 2020 board meeting. Peloton shares fall more than 5 percent for the period as it announces its first results as a public company—a $49.8 million loss for Q1/20. Yeti prices its secondary offering of 10 million shares by certain shareholders at $29. GoPro shipped 50,000 camera units and had $250 million worth of inventory on hand at Q3 end due to a delay in shipping its HERO8 Black. The issue was caused by production delays related to the company’s decision to move its sourcing base to Mexico from China.

Weekly Review

Retail Name
(Ticker Symbol)

% Change over week
Price 10/31/19 • 11/07/19

Big 5 Sporting Goods
(BGFV)

2.50%

$3.20 • $3.28

Sports Direct
LON: SPD

0.00%

$400.28 • $400.28

Camping World
CWH

3.28%

$9.46 • $9.77

Dick's Sporting Goods
DKS

6.32%

$38.93 • $41.39

JD Fashion
jD

6.03%

$955.40 • $935.41

Foot Locker
FL

6.88%

$43.49 • $46.48

Genesco
GCO

4.25%

$38.84 • $40.49

Hibbett Sports
HIBB

2.22%

$23.86 • $24.39

Kohl’s
KSS

10.69%

$51.26 • $56.74

Macy’s
M

6.99%

$15.16 • $16.22

Sportsman’s Warehouse
SPWH

6.02%

$6.81 • $7.22

Shoe Carnival
SCVL

9.61%

$33.19 • $36.38

Tilly’s
TLYS

3.02%

$10.26 • $10.57

Walmart
WMT

2.53%

$117.26 • $120.23

Zumiez
ZUMZ

0.09%

$31.91 • $31.88

TOTAL
WEEK OVER WEEK

2.12%

$1,819.31 - $1,780.73

Brand Name
(Ticker Symbol)

% Change over week
Price 10/31/19 • 11/07/19

Acushnet Holdings
GOLF

7.82%

$28.53 • $30.76

adidas
addyy

1.21%

$153.35 • $151.50

Callaway
ELY

0.30%

$20.22 • $20.28

Columbia Sportwear
COLM

2.91%

$90.45 • $93.08

Deckers Brands
DECK

5.91%

$153.02 • $162.06

GoPro
GPRO

6.97%

$4.16 • $4.45

lululemon
LULU

0.71%

$204.27 • $202.82

Nike
NKE

0.94%

$89.56 • $90.40

Peleton
PTON

5.19%

$23.87 • $22.63

Puma
PUMA

3.33%

$77.15 • $74.58

Skechers
SKX

5.27%

$37.37 • $39.34

Under Armour
UA

13.08%

$18.50 • $16.08

VF Corp.
VFC

5.02%

$82.28 • $86.41

Wolverine Worldwide
WWW

6.61%

$29.66 • $31.62

Yeti
‍‍YETI

12.64%

$33.32 • $29.11

TOTAL
WEEK OVER WEEK

0.90%

$1,045.71 - $1,055.12

RETAIL: 73

26.72%

BRANDS: 186

85.52%

Index base of 100 is key to the closing prices of 12/31/14

Sports Insight Extra Podcast Series