Sporting Goods Industry News for July 24, 2017
VF is starting to see growth again in its Big Three brands but that is almost entirely driven by DTC activity as it reported net income of $109,889,000, up 115% from $51,015,000 last year on a 2% improvement in sales to $2,333,288,000 from $2,294,762,000 for the three months ended Jun. 30.
HIBB stock fell over 30% on heavy trading as the retailer pre-announced a weak second quarter that will see comps decline an expected 10% in Q2 citing very challenging sales trends and pressure on gross margin that will produce a loss expected to be 19-22 cents per share ($4.4 million) compared to a consensus estimate of a 15 cents per share profit.
North American retail, which includes Sunglass Hut and Oakley, increased 1.8% in the second quarter (down 0.6% constant currency) to €1,138 million ($1,325 million) from €1,118 million benefitting from improved in-store execution but negatively affected by the reduction of promotional activities here.
San Diego Hat Company has purchased property and will build an 83,000-sq.-ft. industrial warehouse and office building in So. CA.