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Across the outdoor space, public companies have started reporting their 2021 Q4 earnings. The outlook, for most of them, is rosy.
Gains in Q4 were always going to be difficult, given that they came against a tough comp; pandemic-fueled sales growth was strong in the fourth quarter of 2020, as it has been since the early days of Covid. Still, all but one of the companies in Part 1 of our quarterly earnings recap saw revenue climb in the period, with most experiencing strong double-digit sales growth.
Adding to the optimism, most of those companies also posted profits in the period—though some did see their net income dip and, overall, gains narrowed from the year-ago quarter.
Important to note: All of these reported gains, though impressive, were achieved before the broader market began to slide in January—a decline spurred by rising inflation and the Fed’s signals that it will raise interest rates in March.
Supply chain issues and tariffs also remain a challenge for many businesses in the outdoor space, as evidenced by comments on recent earnings calls. Numerous executives addressed supply-chain and tariff concerns on their calls, but stressed calm, assuring the investing community that they have the scale and resources to navigate those challenges through centers of excellence and shared synergies across their portfolios.
Finally, while the escalating conflict between Russia and Ukraine wasn’t discussed on recent calls, that situation is likely to have an impact on stock prices for companies in the OBJ Outdoor Index in coming months.
Below are the individual performances of 16 companies on our index. Part 2 of our outdoor industry Q4 2021 earnings recap will be out next month.
Callaway Golf Co. (NYSE: ELY): +90%
The parent company of European-based outdoor brand Jack Wolfskin (whose NA headquarters is in Park City, Utah) reported sales for the fourth quarter of $711.7 million, a 90 percent increase from the year-ago quarter. The company reported a loss of $26.2 million, narrowing its loss of $40.6 million in Q4 2020.
Callaway didn’t break out Jack Wolfskin’s sales in the quarter, but President and CEO Chip Brewer said of the brand, “Sales were up in the quarter as compared to both 2020 and 2019 as the public relaunch of the brand’s fresh new image was positively received by consumers. Feedback on prebooks has been outstanding, and we’re excited for the year ahead. On the sustainability front, Jack Wolfskin launched a new initiative in Q4 called the Nature Counts campaign, which is dedicated to forestry, rewilding, and conservation efforts. We love to see the brand stay true to its roots and continue to be an ambassador for environmentalism.”
Canada Goose Holdings Inc. (NYSE: GOOS): +23.6%
Apparel and footwear brand Canada Goose reported revenue of C$586.1 million (US$460.2 million) for the third quarter of fiscal 2022, up 23.6 percent from a year ago, while profit of C$151.9 million (US$119.3 million) was up 42 percent.
Said Dani Reiss, president and CEO, “Canada Goose’s brand momentum and supply chain resilience drove a strong performance in our largest quarter. Our digital business continued to exceed last year’s outsized gains, alongside a sharp improvement in retail productivity. We remain confident in our long-term trajectory for revenue growth and margin expansion, notwithstanding the emergence of temporary and unexpected COVID-19 disruptions in certain markets.”
Canadian Tire Corp. (OTC: CDNAF): +5.4%
The parent company of Helly Hansen (CTC also owns numerous sporting goods chains) reported revenue growth of 5.4 percent to C$5.1 billion (US$4 billion) in Q4. Helly Hansen’s external revenue was C$250.4 million (US$197.4 million), up 27.6 percent from the same period a year ago—though the company didn’t elaborate on the brand’s performance in the period.
During the quarter, however, Helly Hansen named Carrie Ask—formerly of Nike, Levi Strauss & Co., and Tailored Brands—as its new CEO. She replaced Paul Stoneham, who stepped down last year.
Columbia Sportswear Co. (Nasdaq: COLM): +23.4%
Columbia Sportswear Co.—the parent company of Columbia, Mountain Hardwear, prAna, and SOREL—reported fourth-quarter sales of $1.1 billion, a 23.4 percent increase from the year-ago period. Profit of $157 million was up 63.9 percent. All brands but prAna—which dipped 7 percent to $34.3 million in the period—saw their sales grow in Q4. Columbia sales improved 28 percent to $894.2 million, Mountain Hardwear sales climbed 30 percent to $37.8 million, and SOREL sales grew 9 percent to $163.4 million.
“In the quarter, robust consumer demand led to results that far exceeded our financial outlook driven by DTC outperformance and a highly favorable full-price selling environment, which benefited gross margin,” said Tim Boyle, Columbia’s chairman, president, and CEO. “Throughout the season, our Fall 2021 sell-through rates have been outstanding, including the successful global launch of Omni-Heat Infinity. As we begin 2022, we are acutely focused on unlocking the growth opportunities we see across the business while mitigating supply chain and inflationary pressures.” More details on Columbia’s website.
Deckers Outdoor Corp. (NYSE: DECK): +10.2%
Deckers—the parent of HOKA ONE ONE, Sanuk, Teva, and other footwear brands—posted sales for its fiscal third quarter of $1.2 billion, up 10.2 percent from the year-ago quarter. Profit dipped 8.4 percent to $232.9 million. HOKA, in its pursuit of $1 billion in annual revenue, notched 30.3 percent sales growth to reach fiscal Q3 total of $184.6 million. Teva’s sales increased 31.4 percent to $20.6 million, while Sanuk’s sales slipped 13.4 percent to $6.1 million.
“Our portfolio of brands delivered Deckers’ largest quarter in history, with balanced growth among our direct-to-consumer and wholesale channels and across multiple geographies,” said Dave Powers, Deckers president and CEO, who called HOKA one of “the strongest brands in the footwear industry” (along with portfolio mate and Deckers flagship brand UGG) and added that the company is adeptly “navigating a challenging supply chain and pandemic environment.”
Dometic Group AB (STO: DOM.ST): +31.5%
Dometic, the Swedish-based company that manufactures accessories for mobile-living end markets such as campers and RVs and which acquired Igloo Products Corp. for $677 million in 2021, reported sales for the fourth quarter of SEK 5.5 billion (US$606.5 million), up 31.5 percent from the same quarter a year ago. The company’s profit of SEK 197 million (US$21.6 million) was up from a loss of SEK 160 million (US$17.5 million) in the prior-year quarter.
Dometic President and CEO Juan Vargues said the company is bullish on Igloo and is already seeing a nice lift from the addition of the legacy cooler brand. “The acquisition of Igloo, our largest and strategically important platform acquisition in the consumer-orientated Outdoor field, offers Dometic new opportunities to increase our presence in the large and growing cooler and drinkware markets,” he said. “The planned integration activities, including price increases and other operational improvements, are implemented to secure expected synergies.”
Fenix Outdoor International AG (OTC: FNXTF): +31.5%
Fenix Outdoor—the Swiss parent company of Fjallraven, Royal Robbins, and Primus—reported revenue for the fourth quarter of €199.6 million (US$225.7 million), a 31.5 percent bump from the same period a year ago. Profit of €11.7 million (US$13.2 million) was up from a loss of €3.3 million (US$3.7 million) in the same period a year ago.
In August 2021, an affiliate of Fenix acquired UK retailer Trekitt. And in November, Fenix divested the Brunton brand after splitting it from Primus.
Said Martin Nordin, Fenix’s executive chairman: “The impressive recovery in North America continued, which means that we had both record Q4 and full-year sales in that market. The structure of sales has, however, changed, causing a decrease in the gross margin. This is due to our retail not fully recovering, despite the growth of our digital business. On the other hand, our wholesale to customers like REI, Nordstrom, and independent shops developed extremely well and is way ahead of 2019.”
Garmin Ltd. (NYSE: GRMN): +3%
Watch and fitness-tracker brand Garmin reported fourth-quarter revenue of $1.4 billion, up 3 percent from the prior-year quarter. The company’s outdoor segment, however, was the lone business unit to see a decline in the period, falling 8 percent to $378.2 million “primarily due to component constraints that limited the number of orders we could fulfill for our traditional handhelds and dog products,” the company said. Garmin’s profit of $286.1 million was down 14.2 percent from 4Q 2020.
GoPro (Nasdaq: GPRO): +9.3%
GoPro Inc. reported fourth-quarter revenue grew 9.3 percent to $391.1 million while Q4 profit jumped 18.3 percent to $52.6 million. GoPro continued to beat the drum on its heightened emphasis on direct-to-consumer (DTC) business. Q4 DTC revenue was $128 million, or 33 percent of revenue, up 10% year-over-year.
Those efforts contributed to the addition of 815,000 new GoPro subscribers in 2021 and brought the company’s subscriber total to approximately 1.6 million at year end, a 107 percent spike year-over-year.
On the Q4 earnings call, CEO Nick Woodhouse said, “We are happy to report that subscriber retention rates remained at the same favorable levels we have mentioned on previous earnings calls with several opportunities to further improve on this important metric.”
Helen of Troy (Nasdaq: HELE): +10.7%
The company reported sales for its Housewares segment—which includes insulated bottle brand Hydro Flask, OXO, and now legacy backpack brand Osprey—grew 10.7 percent to $246.1 million in the fiscal 2022 third quarter.
Said Julien R. Mininberg, Helen of Troy CEO, “Osprey will amplify our outdoor offerings. It will add an iconic ninth Leadership Brand that complements and diversifies our world-class portfolio and it will add more critical mass to our flywheel. With more than half of its sales outside of the United States, the brand increases our international presence, especially in EMEA and Asia-Pacific, the two international regions where we are most focused. We…believe there are attractive sales and marketing opportunities between Osprey, Hydro Flask, and the growing outdoors lineup for OXO, all of which serve like-minded consumers with premium products.”
Johnson Outdoors (Nasdaq: JOUT): -7.3%
Johnson Outdoors—the parent company of two outdoor brands (Eureka and Jetboil) and two watercraft brands (Old Town and Ocean Kayak)—reported sales for its fiscal first quarter of $153.5 million, a 7.3 percent dip from the same quarter a year ago. Net income of $10.9 million was almost half its profit of $19.8 million in the year-ago period.
Said Helen Johnson-Leipold, chairman and CEO, “Demand for outdoor recreation products continues to be strong; managing ongoing supply chain challenges and uncertainties associated with the pandemic remain our focus in the near term as we work hard to fill demand.”
Newell Brands Inc. (Nasdaq: NWL): +22.1%
Newell’s Outdoor & Recreation division, which includes Marmot and Coleman, saw sales spike 22.1 percent to $304 million in the fourth quarter, reflecting core sales growth of 23.9 percent partially offset by the effect of unfavorable foreign exchange. The group’s reported operating loss was $1 million, or negative 0.3 percent of sales, compared with $9 million, or negative 3.6 percent of sales, in the prior-year period.
“In 2021, our Outdoor & Recreation business grew core sales in each quarter demonstrating momentum and the strength of the turnaround strategy we began 18 months ago,” said Ravi Saligram, president and CEO. “For the full year, core sales improved across all regions with robust growth driven by Japan, US, Europe, and Latin America. The iconic and largest brand in our portfolio, Coleman, led this growth, showing our lifestyle brand-building focus is working.”
Thule Group AB (OTC: THUPY): +15%
Thule Group’s revenue improved 15 percent to SEK 1.8 billion (US$196.6 million) in the fourth quarter, while profit dipped slightly to SEK 154 million (US$16.4 million). The company said Region Americas sales increased 27 percent in the quarter and 48 percent in 2021 after currency adjustment.
“Growth was very strong in all product categories and in all of the region’s markets,” said Magnus Welander, CEO and president. “Of particular note is growth of 54 percent in the largest product category, sport and cargo carriers. The niche product offering in RV products also grew an entire 113 percent.”
VF Corp. (NYSE: VFC): +22%
Strong sales at The North Face drove VF Corp. to a revenue and earnings beat in its fiscal third quarter. VF, the Denver-based parent company of numerous outdoor and active brands, posted sales of $3.6 billion in the period, up 22 percent from the third quarter of fiscal 2021. Profit spiked 49.1 percent to $517.8 million in the quarter. The company’s outdoor segment—which includes Altra, Icebreaker, Smartwool, and Timberland in addition to TNF—saw revenue increase 23 percent to $1.9 billion. The outdoor portfolio posted a profit of $450.1 million, up 44.5 percent from a year ago.
TNF, whose sales grew a portfolio-best 28 percent in Q3, notched a solid bottom line too, noted Steve Rendle, VF’s chairman, president, and CEO. “The North Face also delivered significant improvements in profitability with strong brand positioning driving higher quality sales,” Rendle said. “All regions were ahead of plan and surpassed prior peak levels.”
Vista Outdoor (NYSE: VSTO): +38.3%
Vista Outdoor Inc. rode broad-based growth across its portfolio in its fiscal third quarter, posting sales growth of 38.3 percent to $794.7 million and net income growth of 49.8 percent to $118.1 million. The company’s newly reconfigured Outdoor Products reporting segment—which includes CamelBak, Camp Chef, Bell, Giro, Bushnell, QuietKat, and Venor—posted sales of $335 million, an increase of 17 percent.
Right after Q3 ended, Vista added a 39th brand to its portfolio with the acquisition of backcountry hunting apparel and gear brand Stone Glacier, bolstering the company’s outdoor cred.
Said CEO Chris Metz, “Two years into the pandemic, people continue to find enjoyment in their newly acquired and rediscovered outdoor passions. We continue to see increasing levels of activity and participation across outdoor recreation whether it be golfing, camping, hiking, biking, hunting, or recreational shooting. Whatever their chosen activity, Vista Outdoor will continue to be there with brands they trust to deliver innovative, quality products that enhance their outdoor experiences.”
Yeti Holdings Inc. (NYSE: YETI): +17.9%
The cooler, drinkware, and outdoor accessory brand reported sales grew 17.9 percent to $443.1 million and net income increased 16.8 percent to $72.9 million in the fourth quarter.
Said Matt Reintjes, president and CEO, “We drove demand across our omni-channel with 35% growth in our DTC business, delivered strong performance in both our product categories of drinkware and coolers and equipment, and approached a 10% international sales mix. This performance was capped by fourth quarter net sales growth of 18%, exceeding the high-end of our outlook despite the many supply chain challenges facing the entire industry.”
Part 2 of our outdoor industry Q4 2021 earnings recap will be out next month and is scheduled to include quarterly reports from the following public companies:
- Adidas AG (OTC: ADDYY)
- ANTA Sports Products Ltd. (OTC: ANPDY)
- Camping World Holdings Inc. (NYSE: CWH)
- Clarus Corp. (Nasdaq: CLAR)
- Compass Diversified (NYSE: CODI)
- Dick’s Sporting Goods Inc. (NYSE: DKS)
- Emerald Holding Inc. (NYSE: EEX)
- On Holding AG (NYSE: ONON)
- Samsonite International SA (OTC: SMSEY)
- Solo Brands (NYSE: DTC)
- Vail Resorts Inc. (NYSE: MTN)
- Wolverine World Wide Inc. (NYSE: WWW)