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Athleta, a specialty retail chain owned by Gap Inc., has shown significant growth potential and a distinct brand positioning focused on women's sports. The company's partnership with US gymnast Simone Biles and US competitive swimmer Katie Ledecky has further boosted its profile. In the first quarter of the year, Athleta saw a 5 percent increase in comparable store sales, with total sales rising by 2 percent to $329 million. However, the chain did experience challenges, including a drop in sales outside of the US and the need for discounting to move excess inventory. Despite these obstacles, Athleta remains an important player in the cultural conversation surrounding women's sports. [Extracted from the article]

Lululemon, a Canadian athletic apparel company, reported strong Q1 results and raised its FY guidance. The company acknowledged that its recent problems in the US market were due to its own mistakes, such as not having certain sizes available for female customers and a limited color range in its leggings. However, Lululemon emphasized that the US market remains strong and that it will address these product issues in the second half of the year. The company expects annual sales to grow by 11 to 12 percent and plans to open new stores and expand its retail square footage. Despite a slight increase in markdowns, Lululemon's gross margin improved. The company also saw growth in China and the Rest of the World, while sales in the Americas were impacted by issues in the women's and bags' segments. Lululemon believes there are still growth opportunities in the US and plans to launch new products and test a television advertising campaign targeting the men's market. Additionally, the company is acquiring its franchise partner in Mexico, but this transaction will not significantly affect its results. [Extracted from the article]

Puma is expecting ongoing challenges in the first half of 2024 due to geopolitical and macroeconomic factors, as well as currency fluctuations. Despite this, the company is forecasting mid-single-digit sales growth and an operating profit of €620 million to €700 million for the year. Puma plans to work closely with retail partners and launch a major brand campaign in April. In the fourth quarter of 2023, Puma saw an improvement in gross margin and strict cost controls, resulting in a 133% increase in operating profit. However, net income declined due to a decrease in total sales. Regionally, Asia-Pacific had higher sales, while EMEA and Americas saw declines. For the full year, Puma's sales increased by 1.6% on a reported basis and by 6.6% currency adjusted. The company had a negative currency impact of over €400 million for the year. Puma's key strategies for 2023 focused on brand elevation, product focus, and distribution quality, with a particular emphasis on the US and China. [Extracted from the article]

Mizuno Corp. has reported strong financial results for the nine months ending December 31. The company raised its annual operating profit and net income outlooks, while maintaining its annual revenue forecast. Total sales for the nine months increased by 14.0 percent, with footwear sales improving by 23 percent and apparel revenues rising by 15 percent. Mizuno saw double-digit sales increases in all geographies, with Asia/Oceania and the Americas leading the way. However, the EMEA region's profitability was negatively impacted by high inventory levels and purchase-price increases. [Extracted from the article]

Norwegian retailer XXL ASA has reported weak Q4 and FY 2023 results and plans to implement its "Reset & Rethink" strategy to improve Ebitda by 500-750 million Norwegian kroner over the next 12 to 18 months. The strategy includes consolidating markets and sales channels, exiting Denmark, closing its mobile app, and downsizing stores. Low consumer confidence and reduced demand for sporting goods contributed to the decline in sales. The company aims to focus on lower-priced merchandise and improving product availability. [Extracted from the article]

GoPro, despite reporting operating losses and declines in revenues for Q4 and FY 2023, is expanding its retail presence and product range while increasing brand exposure at global sporting events. The company's Q4 operating loss was $9.4 million, with revenues falling by 8 percent to $295.4 million. However, GoPro.com revenues, excluding subscriptions and services, fell by 33 percent due to the elimination of subscription-related camera discounts. Despite these challenges, GoPro plans to continue its growth strategy, focusing on greater distribution in retail stores and launching new entry-level products. The brand's retail channel sales have grown in various regions, and it will receive exposure at over 100 sporting events this year. [Extracted from the article]

Columbia Sportswear has reported a decline in operating income and total revenues due to a warm winter and a challenging US marketplace. In response to economic uncertainty and cautious retailers, the company has implemented a profit improvement plan aimed at generating annualized savings. Columbia is also focusing on attracting new consumers, streamlining product collections, and strengthening marketing strategies for its brands. Sales declined in all geographies except for Latin America/Asia Pacific, and footwear and apparel/accessories/equipment sales were lower. However, the company experienced positive sales growth in the EMEA and LAAP regions for the full year. [Extracted from the article]

Financial reporting Market chatter about Nike's 9 percent stock price decline over the last month,recent high inventory levels, and 23 percent drop in market value this year hadthe bears out in force ahead of the company's Q1 results yesterday. Nike Q1 figures in brief Nike reported a 10 percent Ebit decline in Q1 to $1.65 billion on 2 percentrevenue expansion to $12.94 billion. In the brand's home North American market, Q1 reported ebit improved by 4percent to $1.43 billion despite a 1 percent drop in total revenues to $5.42billion. [Extracted from the article]

Article Zumiez, despite reporting a Q2 loss of $8.5 millionagainst a profit of 3.1 million and an 11.6 percent dropin revenues to $194.4 million for the period ended July29, remains encouraged by key elements of its overallbusiness. "Our second quarter sales improved from theprevious quarter's trend line and finished ahead of ourguidance. [Extracted from the article]

Brand platform GMV isforecast to be "broadly flat", while digital platform GMV isexpected to increase by 10 percent year-over-year to $3.85billion. Financial reporting Farfetch Limited reported an adjusted Ebitda loss of $30.6million and a 1.3 percent drop in revenues to $572.1 million forQ2 ended June 30. [Extracted from the article]

Yonex maintains FY24 outlook With the results, Yonex maintained its full-year outlook despiteuncertainty over the global business environment and expectedhigher costs for marketing and personnel. Financial reporting Higher sponsorship and athlete contract expenses coupled withcurrency headwinds and a depreciation of the Japanese yendragged down Yonex's Q1 operating income, despite an 18 percentrevenue growth, to ¥27,992 million (€187.5m) from¥23,694 million for the three months ended June 30. [Extracted from the article]

Financial reporting Profit attributable to Yue Yuen (YY) shareholders declined by 52percent to $83,601,000 from $175,049,000 for the six monthsended June 30, as sales fell by 12 percent to $4,154,968,000from $4,709,792,000. The globe's largest producer of footwear cited decliningsix-month export figures from China (-6.3%), Vietnam (-16.8%) andIndonesia (26.9%) to confirm its statement on softening globaldemand for footwear. [Extracted from the article]

Hanesbrands, whose revised FY23 outlook calls for net sales fromcontinuing operations of $5.80 to $5.90 billion, says productinput costs have fallen significantly. Financial reporting Hanesbrands senior management described Champion's Europeanbusiness as "holding ground" in a tough market with a challengedconsumer, with Footwear performing well. [Extracted from the article]

Financial reporting The fitness company Nautilus, which sold off its namesake brandtrademark and related assets earlier this year for about $13million, posted numerous improved financial metrics in Q1 but still reported lower sales and a netloss for the period. With the Q1 results, Nautilus reiterated its FY guidance thatcalls for annual revenues of $270 to $300 million that includes60 to 65 percent of the total in H2 and full-year adjustedEbitda of $15 million to breakeven. [Extracted from the article]

Financial reporting Barington Capital Group, a New York hedge fund manager, firedoff a five-page letter to Hanesbrands' Chairman Ronald L. Nelsonon Aug. 7 demanding significant changes at the apparel firm andparent of Champion. The activist investor, led by JamesMitarotonda, wants the underwear and activewear company tocreate long-term shareholder value through its suggestedactions. [Extracted from the article]

Topgolf revenues increased by 17 percent to $470.8 million,driven by new venues and same venue sales growth of 1 percent,within the company's guidance range and up by 9 percent on atwo-year stack basis. Financial reporting Topgolf Callaway's Q2 results are on-track to reaffirm thegroups full year 2023 revenue. [Extracted from the article]

Apparel/Equipment sales, fueled by strong sales in Japan andGreater China, rose by 5 percent to ¥18,075 million(€121.1m) and reported ¥1,319 million (€8.8m)in segment operating income. Financial reporting Suggesting its annual sales are likely to reach a record high,helped by contributions from its core Performance Sports,Sportstyle and Onitsuka Tiger segments, Asics Corp. has raisedits FY23 outlook. [Extracted from the article]

Equipment sales, led bybaseball and golf, grew 13 percent year-over to ¥15.7billion (€105.0m) and service/others revenues rose by 23percent to ¥8.5 billion to €57.0 million. Financial reporting A recovery from year-ago supply chain disruptions coupled withstrong sales growth outside Japan contributed to record Q1operating income for Mizuno. Baseball revenues rose by 21 percent to ¥11.6 billion(€75.1m) and golf sales ticked up by 12 percent to¥9.9 billion (€66.3m). [Extracted from the article]

Financial Grupo SBF, the operator of Brazil's top sporting goods chain inCentauro, said its Q2 results were negatively impacted by "stillhigh inventory levels" in its Fisia business, where anaggressive markdown strategy wiped out the gross margin gainsgenerated by its DTC segment. Centauro's Q2 net revenues rose by 1.8 percent to R$802.9million (€149.0m) with brick-and-mortar sales increasingby 6.1 percent to R$619.6 million (€115.0m) and same-storesales improvement of 7.2 percent. [Extracted from the article]

Gross margin came in at 31.6 percent, some 190 basispoints below a target of 33.5 percent, due in part to salesgrowth of the entry-level price point camera that accounted for25 percent of all camera revenues and exceeded companyprojections by 50 percent. Financial reporting New market strategies began to take hold in Q2 as revenues forthe period clicked 9.5 percent higher, above expectations, to$241 million. [Extracted from the article]

Financial reporting While still facing hurdles in its recovery and path toprofitability in 2025, Adidas began to show some positivedevelopments in Q2 that included improved sell-throughs for someproducts and a €400 million boost from the sale of surplusYeezy shoes that will reduce the group's expected FY23 loss. CEO Bjørn Gulden was pleased with the Q2 developments,which also included a higher-than-forecast operating profit of€176 million but remained cautious. [Extracted from the article]

Financial reporting Boosted by more than $29.6 million in interest income and gainson foreign currency, Garmin posted 11.7 percent net incomegrowth to $287.9 million from $257.9 million. Second quarter operating income fell by2.9 percent to $284.4 million. [Extracted from the article]

While its overall Q2 results exceeded expectations and some"green shoots" were seen at PrimaLoft in the form of increasedbookings, CoDi opted to maintain its FY23 outlook that calls for$430 to $460 million in adjusted Ebitda and $110 to $135 millionin adjusted earnings. Financial reporting Net income from continuing operations in Compass Diversfied's(CoDi) branded consumer companies related to sports, outdoor andapparel (5.11 Tactical, Boa, Marucci Sports, PrimaLoft, andVelocity Outdoor) declined by 68 percent to $6.94 million from$21.4 million for the period ended June 30. [Extracted from the article]

TNF was the only sales gainer in the period, rising by 12percent to $538.2 million, and the company is forecastingcontinued momentum for the brand aided by China andstrong DTC trends in the EMEA. Article VF Corp., the parent of The North Face (TNF) and Vans,welcomed its new President and CEO Bracken Darrell, 12days on the job, to his first results call by reporting aQ1 loss of $57.4 million against a loss of $55.96 millionin the year-ago period on an 8 percent revenue decline to$2.09 billion from $2.26 billion. [Extracted from the article]

Article Deckers Brands, intent on growing both itsdirect-to-consumer and international businesses in themonths ahead, generated a 42 percent increase in Q1/24net income to $63.6 million versus 44.8 million for thethree months ended June 30. Elsewhere,Teva sales fell by 18.8 percent to $48.4 million; Sanukquarterly sales sunk by 32.3 percent to $9.6 million; andOther brands, primarily Koolaburra, suffered a 33.9percent sales drop to $1.8 million. [Extracted from the article]

The sales and profits of the biggest footwear companies in Q1 2023 Sales and profits in the sporting goods Equipment sector Q1 2023 How did the sporting goods Diversified/Retail sector perform in Q1 2023? Our 2023 Q1 Scorecard includes the revenue and profit development of 48 sporting goods companies, as well as the headlines and analysis The sporting goods industry Q1 numbers at at glance How did sporting apparel companies perform in Q1 2023?. [Extracted from the article]

For Q2, Lululemon expects revenue growth of 15 to 16 percent to a range of $2.14 to $2.17 billion with gross margin improvement of 200 to 220 basis points due to lower air freight expenses. Keywords: Lululemon; Lululemon Athletica EN Lululemon Lululemon Athletica Fueled by a 30 percent increase in traffic, a 79 percent jump in sequential Greater China quarterly sales, and a 430-basis-point improvement in product margin as air freight costs abated, Lululemon Athletica Inc. reported strong Q1 results that exceeded its sales and profit expectations. Gross margin improved 360 basis points to 57.5 percent despite a 30-basis-point increase in product and supply costs and a 50-basis-point impact from currency headwinds. [Extracted from the article]

North Americaconstant-currency revenues, impacted by thediscontinuation of the Yeezy business, fell by 19.6percent to €1,177 million as the region generated a€46 million operating loss compared to a €257million profit in Q1/22. Sizing up Greater China Total market revenues declined by 11.4 percent to€884 million in Q1 and were down by 9.4 percent ona constant-currency basis, although there was adouble-digit sales increase in Adidas-owned stores in themarket on higher demand. [Extracted from the article]

Article Significant recoveries in China, Southeast and South Asiaand its home market of Japan were big contributors toAsics Corp.'s largest Q1 sales quarter ever as thecompany generated a 120 percent increase in operatingincome to ¥22,120 million (€161.5m) for theperiod ended March 31. North America, where the group saw a 550-basis-pointimprovement in gross margin to 42.4 percent and iscontinuing to reduce its number of entry price-pointmodels (under $80) in performance running to 30 percent,the region reported a Q1 operating loss of ¥346million (€2.5m) despite 24 percent revenue growthto ¥26,154 million (€190.9m). [Extracted from the article]

Adidas formally terminated a seven-year partnership withWest, now known as Ye, on Oct. 25, 2022, with an officialstatement that began, "Adidas does not tolerateantisemitism and any other sort of hate speech." Article The proposed class action suit, filed in U.S. federalcourt in Oregon on April 28, names Adidas AG, thecompany's former CEO Kasper Rorsted, and current CFO HarmOhlmeyer as defendants. [Extracted from the article]

Article Hanesbrands, the Champion parent, is excited about thelong-term outlook for the activewear brand despitecurrent brand challenges in the U.S. and China. Hanesbrands, which reported Q1 results within itsguidance, is maintaining its FY23 outlook that calls forrevenues of $6.05 to $6.20 billion, including a $40million headwind from currency exchange impact and anadjusted operating profit from continuing operationsrange of $500 to $550 million. [Extracted from the article]

Other footwear revenues rose 11 percent to R$42.7 million(€7.7m), and apparel/accessories sales lifted 37.7percent higher to R$67.2 million (€12.1m). Article Despite unstable macroeconomic conditions and achallenging retail environment, the Brazilian Vulcabrasgroup reported record revenues and strong gross marginand Ebit growth in Q1, which ended March 31. [Extracted from the article]

Outlook remains confident, yet not expecting "greatthings" in 2023 With the Q1 results, the company maintained its FY23revenue outlook of 3 to 6 percent revenue growth to arange of $3.57 to $3.67 billion, offering that its orderbook is based on a conservative outlook from its retailpartners with "no one expecting great things from theback half of 2023", Boyle offered. Article While Columbia Sportswear generated both lower gross andoperating margins in Q1, the company was able to report10 percent constant-currency revenue growth to $820.6million thanks to early shipments of Spring 2023wholesale orders and a reported 4 percent increase indirect-to-consumer sales to $368.1 million. [Extracted from the article]

Wolverine Worldwide, a footwear and apparel company, has made progress in its turnaround efforts under the leadership of President and CEO Chris Hufnagel. The company has focused on reducing excess inventory, shedding businesses, lowering debt levels, and improving the supply chain. While there have been setbacks, such as operating losses and declining sales, Wolverine expects to see improvements in profitability and gross margin in the coming year. The company is also implementing brand protection measures and introducing new products to drive growth. [Extracted from the article]

Xponential Fitness, the global franchisor of boutique fitness brands, reported Q4 operating income of $2.6 million against an operating loss of $26.9 million for the period ended Dec. 31. Annual operating income came in at $15.1 million versus an operating loss of $30.8 million in FY21. [Extracted from the article]

Financial year 2022 and beyond For thefull FY22, XXL ASA reported a net loss of NOK 411 million (€39.5m)versus a profit of NOK 440 million on a 12.2 percent drop in revenues toNOK 8,426 million (€810.6m) from NOK 9,597 million. XXL ASA Key figures (adjusted) (NOK million)2022 2021 Change Q4 Operating revenue 2,264 2,609 -13.2% Growth-13.2% 6.5% -19.7 pt Gross profit 749 1,105 -32.2% Gross margin 33.1%42.3% -9.2 pt Additional write-down of inventory 301 - - OPEX % 30.2%26.9% 3.3 pt EBITDA 65 403 -83.9% EBITDA margin 2.9% 15.5% -12.6 ptÌmpairment losses 0 13 -100.0% EBIT -107 174 - EBIT margin -4.7% 6.7%-11.4 pt Net income -72 165 - Earnings per share -0.28 0.66 - FYOperating revenue 8,426 9,597 -12.2% Growth -12.2% -3.4% -8.8 pt Grossprofit 3,022 3,949 -23.5% Gross margin 35.9% 41.1% -5.2 pt Additionalwrite-down of inventory 301 - - OPEX % 29.5% 26.7% 2.8 pt EBITDA 5381,386 -61.2% EBITDA margin 6.4% 14.4% -8.0 pt Impairment losses 1 13-92.3% EBIT -165 615 - EBIT margin -2.0% 6.4% -8.4 pt Net income -109453 - Earnings per share -0.43 1.80 - Source: XXL ASA Norway representedmost of the sales, at 53 percent or an implied €115.4 million. In Finland, revenues dipped by 6 percent toNOK 416 million (€40.0m) and gross margin shrunk to 15.6 percent from40.8 percent, as the group took an additional inventory write-down ofNOK 62 million (€6.0m). [Extracted from the article]

Asics Corp., citing performance run gains in Greater China and Oceania and continued sales increases in its core performance sports segment across all regions, has elevated its annual outlook for the 12 months ending Dec. 31, 2022. Fueled by strong sales in the Southeast and South Asia regions, Onitsuka Tiger profits are up 17.6 percent to ¥6,411 million (€46.2m) as sales increased by 4.9 percent to ¥31,868 million (€229.4m). [Extracted from the article]

The U.S. market, up 31.8 percent in revenues year-to-date, represents 34.3 percent of the year-to-date manufacturing sales. Yue Yuen reported a 171 percent increase in nine-month profit attributable to shareholders of $270.1 million versus $99.6 million. Implied Q3 results for YY reflected a 38 percent increase in revenues to $2,262 million from $1,634 million and a profit attributable to shareholders of $95.1 million against a loss of more than $70.6 million. [Extracted from the article]

Editorial Currency headwinds from a stronger U.S. dollar impactedGoPro's total revenues and gross margin in the thirdquarter. The company is targeting thesale of 950,000 units, a gross margin in the 35.0 percentrange and total revenues of $325 million or more despitethe likelihood of increased promotions and a reduction of"open to buy" dollars due to excess inventories atretail. [Extracted from the article]

The group is now forecasting annual revenue growth of 52 percent to 1.1 billion Swiss francs (€1.07b) and a corresponding adjusted Ebitda of CHF 145 million (€141.2m) that will result in an adjusted Ebitda margin of 13.2 percent. On achieved its highest quarterly net sales ever in the second quarter on continued strong demand across all global regions, with June revenues topping CHF 100 million. On the own-store front, the group realized solid results from its Zurich and Tokyo flagships and a "significant" sales increase at its New York City flagship during the period. [Extracted from the article]

Elsewhere, casual shoes/sport sandal sales rose 3.9 percent in H1 to $440.7 million, and revenues from soles/components/other inched up 0.7 percent to $283.0 million. Yue Yuen reported a 2.8 percent increase in first-half net income of $175.0 million versus $170.3 million for the six months ended June 30. Implied Q2 results for YY reflect flat revenues of $2,315,423,000 versus $2,313,815,000 for the three months ended June 30, but a 27 percent increase in net income to $77.9 million from $61.4 million. [Extracted from the article]

FY23 outlook adjusted With the Q2 results and citing current softness in the U.S. andEurope, coupled with lower demand from third-party distributors,Wolverine Worldwide adjusted its FY23 outlook. Chris Hufnagel, who was just named the President and CEO ofWolverine Worldwide, Inc. with immediate effect following thesudden departure of Brendan L. Hoffman, faces numerous headwindsfrom day one, with the group's Q2 figures now released. [Extracted from the article]

Despite 28 percent year-over-year sales growth in the direct-to-consumerchannel, Clarus Corp. reported a Q2 loss of $2.1 millionagainst a profit of $3.8 million for the period ended June 30. Nonetheless, the Black Diamond parent has lowered its FY23outlook, dropping its annual revenue range by 4.8 to 8.3 percentfrom prior guidance of $420 million to a range of $385 to $400million. [Extracted from the article]

While its overall Q2 results exceeded expectations and some "greenshoots" were seen at PrimaLoft in the form of increased bookings,CoDi opted to maintain its FY23 outlook that calls for $430 to$460 million in adjusted Ebitda and $110 to $135 million inadjusted earnings. Net income from continuing operations in Compass Diversfied's(CoDi) branded consumer companies related to sports, outdoor andapparel (5.11 Tactical, Boa, Marucci Sports, PrimaLoft, andVelocity Outdoor) declined by 68 percent to $6.94 million from$21.4 million for the period ended June 30. [Extracted from the article]

With the Q2 results, Garmin adjustedits FY23 guidance to total revenues of $5.05 billion and pro formaEPS of $5.15. Boosted by more than $29.6 million in interest income and gains onforeign currency, Garmin posted 11.7 percent net income growth to$287.9 million from $257.9 million. [Extracted from the article]