February 22, 2023
Net loss in the final quarter was $361.6 million against a loss of $14.6 million prior, pulled down by a $428.7 million impairment charge, on 5% higher revenues of $665.0 million up from $635.6 million, that would have been up more than 8% constant currency.
Final quarter net income was down 52% to $83.9 million from $173.9 million on an 8% slip in sales to $720.0 million from $784.3 million, including a 5% drop in activewear sales to $595.4 million fewer points of sale in retail end-markets, along with some North American distributor declines.
Team sports are clawing their way back to near pre-pandemic levels, some “pandemic-friendly” sports are continuing their rally, and inactivity is tracking at its lowest since 2010, according to SFIA’s latest top line participation report.
Fitness sales dropped 28% in the fourth quarter to $336,553,000 from $470,146,000 on declines across all categories, and operating income fell 62% to $39,844,000 from $100,317,000.
Dick’s will add the outdoor retailer, which operates 13 retail stores and a “thriving” e-commerce business, to its Public Lands segment, in a deal expected to close by the end of the first quarter.
The Big a will pay $830 million over the next seven years to continue as official sponsor and footwear and apparel provider to the MLS, extending a partnership that began with the League’s inception in 1996.
Net income tumbled 44% in the fourth quarter to $2,704,000 from $4,871,000, on 2% lower revenues of $72,136,000 against $73,444,000 with strong indoor games and pickleball sales together with the contribution from Brunswick Billiards offset by soft demand in outdoor categories and excess inventories.
The 550-door specialty footwear and lifestyle chain hummed along to $555 million in revenues last year, a 10% improvement over 2021.
The Finish Line, Shoe Palace and DTLR Villa parent’s new CEO, Regis Schultz provided more detail about U.S. expansion plans in an interview with the Sunday Times newspaper.
Citing a similar rationale to Moody’s, S&P downgraded The Big a’s long- and short-term issuer credit ratings to A-/A-2 from A+/A-1.
The ratings agency has repeatedly praised ASO’s conservative financial management and diligent debt repayment since shortly after its IPO, and has now upgraded its corporate family rating and debt ratings to Ba2 from Ba3.
An aggressive store opening campaign last year grew the TJX-owned omnichannel outdoor banner’s store count by nearly a third to 78 locations from 59, with 18 more openings planned for 2023.
Venture fund Digsbury Ventures is facilitating the merger of the two running apparel brands that will help both expand into new markets and establish a strong omni-channel footprint.