Retail: 67
0.31%
Retail: 201
1.78%
Monday, February 19, 2019
Volume 3, Issue No. 7

Obituary: Jon Epstein

Jonathan G. Epstein, the president of Fila North America, has died. Epstein, 63, spent 16 years at Fila North America over two tenures. The ultimate, passionate "shoe dog" had also spent 21 years at adidas America. Epstein died Feb. 15 in his St. Louis home, a week after undergoing heart surgery. (Read More)

Footwear Insight
Puma Eyes Further Momentum

After a blockbuster 2018 where full-year, currency-adjusted revenues rose nearly 18 percent to the equivalent of more than $5.48 billion, Puma’s early outlook for FY19 calls for currency-adjusted organic revenue and operating profit growth of 10 percent each and a slight improvement in gross margin to a range of 49-50 percent. (Read More)

Quotable

“…We’ve been facing continued softness in consumer demand for the past two years, particularly for hunting and shooting-related products. This period of soft demand has persisted longer than any previous market cycle in history. Most correction cycles last between 12 and 18 months. We are currently at 24 months. There’s simply no precedent for this trend.”
– Chris Metz, CEO, Vista Outdoor

Under Armour Looks for Traction

Facing flat revenue growth in its home North American market in FY19 but also a 12 percent year-over-year contraction in total inventory worldwide, Under Armour is “doubling down” on performance and aiming to stabilize its N.A. business with more premium positioning and full-price sales from a myriad of product introductions this year, including more HOVR styles in running. (Read More)

McCarthy Era Over at Asics America

Coming out of FY18 when its Americas’ region lost the equivalent of more than $36 million on a 15 percent drop in total revenues to approximately $817.7 million due to weak U.S. sales, Asics America is making structural and executive suite changes. (Read More)

INSIDE RETAIL
Payless Is Done; Plus Other Retail News

Going-out-of-Business sales are expected to commence this week or shortly thereafter at more than 2,100 Payless ShoeSource stores as the privately-held retailer prepares to file for Chap. 11 bankruptcy for the second time in two years. When Payless last filed for bankruptcy protection in 2017, the chain had 4,400 doors. (Read More)

Director of product development for Star Micronics discusses world of retail point-of-sale and customer engagement.
Music from https://filmmusic.io: "Werq" by Kevin MacLeod (https://incompetech.com)
Licence: CC BY (
http://creativecommons.org/licenses/by/4.0/)

Execs on the Move
REI CEO Leaving; Macy’s Hires Chief Merchant

REI last week promoted Eric Artz, its EVP and COO, to interim CEO following an announcement that current President and CEO Jerry Stritzke will be leaving the co-operative on March 15. Stritzke’s pending departure after five years stems from a “personal and consensual relationship” he had with someone in the outdoor industry that violates the Seattle company’s conflict of interest policy. (Read More)

SFIA Participation Report
Good News Among Youth, But Income Still a Drag on Participation

For a fourth consecutive year, inactivity levels among youth (ages 6-12 and 13-17) continued to decline in 2018. But the trend failed to dent the U.S.’s overall inactivity rate of 27.3 percent, according to latest SFIA Topline Participation Report. (Read More)

The Buzz

The Bangladesh government is being urged not to abandon the country’s Accord for Fire and Building Safety until it is able to ensure the safety of over 1,600 apparel factories and two million workers covered by it. (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.
Index base of 100 is key to the closing prices of 12/31/14
Retail
A second consecutive declining week for the segment, down more than 1.1 percent for the period compared with a 1.59 percent gain for the Dow. Nine stocks rose and six fell in a week when the U.S. Commerce Dept. reported only a 2.3 percent year-over-year sales gain in December, below market estimates. JD Sports, whose parent acquired the Finish Line chain for $558 million last June, has acquired an 8.3 percent-stake in Footasylum, a publicly traded, 70-door footwear and apparel chain that is headed by 30-year old Clare Nesbitt. JD is prepared to raise its Footasylum stake to 29.9 percent, the highest allowed without triggering a bid, according to The Guardian. Walmart, which reports year-end and Q4 results today, is projected to post a 2.9 percent increase in same store sales. Camping World shares got a lift in January after the Gander Outdoor parent announced a senior management re-alignment.  With Payless ShoeSource’s second bankruptcy filing in three years apparently imminent, Coresight Research reports retail bankruptcies during the first six weeks of 2019 are equal to one-third of the 2018 total.
Brands
Segment essentially flat for second consecutive week as 11 stocks rise and four decline. Skechers purchases the minority interest in its India joint venture to make the business a wholly-owned subsidiary. SKX, which currently has 223 retail stores in the country (61 company-owned), intends to open 80-100 more this year. Amer Sports is reportedly actively seeking buyers for its cycling brands-Mavic and Enve. The Finnish company put the segment under strategic review in Sept. 2018. Nautilus reduces its headcount by 7 percent ahead of its Feb. 25 Q4 earnings report. The 30 layoffs hit customer service, IT, product development, operations and marketing. Under Armour says 2020 will mark its first product collection developed and brought to market under its new 17-month cycle. Nike and Adidas are probably none too pleased by a Qz.com report that North Korean government is urging local footwear producers to copy styles from well-known international brands. Puma SE CEO Bjorn Gulden says the brand will continue to invest in track & field, and he’s certain recent signee Juan Miquel Echevarria, a 20-year old Cuban long jumper, will be a factor in the Tokyo Games. The passing of Fila North America’s Jon Epstein late last week (See obituary) is a huge loss of a long-time, passionate “shoe dog.”

RETAIL: 56

43.81%

BRANDS: 188

88.00%

Weekly Review

Retail Name
(Ticker Symbol)

% Change over week
Price  1/31/19 • 2/7/19

Big 5 Sporting Goods
(BGFV)

5.88%

$3.74 • $3.96

Sports Direct
LON: SPD

1.77%

$354.11 • $347.

Camping World
CWH

11.25%

$13.69 • $15.23

Dick's Sporting Goods
DKS

1.54%

$35.82 • $36.37

JD Fashion
jD

2.81%

$590.45 • $573.84

Foot Locker
FL

4.19%

$56.57 • $58.94

Genesco
GCO

0.84%

$44.14 • $44.51

Hibbett Sports
HIBB

6.13%

$16.64 • $17.66

Kohl’s
KSS

0.77%

$66.54 • $66.03

Macy’s
M

2.03%

$25.66 • $25.14

Sportsman’s Warehouse
SPWH

9.25%

$5.30 • $5.79

Shoe Carnival
SCVL

2.54%

$35.37• $36.27

Tilly’s
TLYS

5.82%

$12.54 • $11.81

Walmart
WMT

1.86%

$96.72  • $98.52

Zumiez
ZUMZ

0.17%

$23.54 • $23.50

TOTAL
WEEK OVER WEEK

1.12%

$1,380.83 - $1,365.41

Brand Name
(Ticker Symbol)

% Change over week
Price  1/31/19 • 2/7/19

Acushnet Holdings
GOLF

1.12%

$23.21 • $23.47

adidas
addyy

1.86%

$113.50 • $111.39

Amer Sports
AGPDY

0.20%

$44.80 • $44.71

Callaway
ELY

2.38%

$15.55 • $15.92

Columbia Sportwear
COLM

12.45%

$92.45 • $103.96

Deckers Brands
DECK

1.41%

$140.68 • $142.66

GoPro
GPRO

12.56%

$5.14 • $5.79

lululemon
LULU

4.90%

$147.62 • $154.85

Nautilus
NLS

5.15%

$7.38 • $7.76

Nike
NKE

2.77%

$82.40 • $84.68

Puma
PUMA

4.98%

$542.00 • $515.00

Skechers
SKX

18.60%

$27.69 • $32.84

Under Armour
UA

6.06%

$18.65 • $19.78

VF Corp.
VFC

0.08%

$86.04 • $85.97

Wolverine Worldwide
WWW

10.45%

$34.93 • $38.58

TOTAL
WEEK OVER WEEK

0.38%

$1,382.04 - $1,387.36

Sports Insight Extra Podcast Series