Industry News & Insights!
Welcome back to Virtua Weekly, where we break down the biggest stories emerging from the sports, fashion & outdoor industries each week!
Here's what you need to know:
Amer Sports has raised its full-year guidance after posting Q2 sales and earnings results that beat its expectations.
The newly public Finnish company, which owns the Salomon, Arc'teryx Equipment, Wilson Sporting Goods Co., Peak Performance and Atomic brands reported a 16% increase in sales in Q2 to $994 million.
CEO James Zheng commented, "I am very pleased by our financial and operational performance in the second quarter of 2024. Our unique portfolio of premium technical brands is taking share in sports and outdoor markets all around the world. Led by our flagship Arc'teryx brand, we well exceeded our own high expectations on all key financial metrics, positioning us to deliver another strong year in 2024."
CFO Andrew Page said, “Our strong financial performance in Q2 reinforces my confidence in our near- and long-term path forward. Organic revenue growth in the high-teens and significant gross- and operating-margin expansion reflects the combination of great brands, strong management execution, and a disciplined approach to expenses and working capital. These outstanding results give us the confidence to raise our full-year sales and earnings guidance."
HEYDUDE has enlisted Sydney Sweeney for a long-term, global partnership as the Crocs owned brand aims to boost its appeal to a broader audience.
The actress and producer will serve as the spokesperson for HEYDUDE, championing comfort and confidence in footwear. The multifaceted marketing strategy presents Sweeney as the "Director of Dudes," offering a behind-the-scenes look at her life beyond the spotlight.
“Hey Dude values comfort, both in the footwear space and in all aspects of life, which is a message that we can all get behind,” Sweeney said in a statement. “The brand never sacrifices style for comfort, which is why Hey Dude’s iconic styles are my favorite shoe option whether I’m traveling or commuting to set. I’m thrilled to represent the brand in 2024 and beyond.”
The announcement coincides with Hey Dude's intensified efforts to boost brand awareness and relevance under its new president, Terence Reilly. Before taking on the role at Hey Dude in April, Reilly was president of the Stanley brand, where he led the drinkware and gear company through a period of rapid growth starting in 2020. Now, Reilly is applying his successful strategy for building iconic brands at Hey Dude, which has faced multiple quarters of declining sales since its acquisition by Crocs Inc. in 2022.
In his approach to marketing, Reilly has focused on highlighting Hey Dude's comfort features. Beyond everyday wear, he identifies three specific areas where he believes Hey Dude can excel: travel, pre- and post-athletic activities, and music festivals.
“It’s not every day that a generational talent and style icon also authentically lives your brand. So, asking Sydney to join us to expand the perception of what it means to be a Dude was something we had to do,” Reilly said in a statement. “Sydney embodies the essence of Dude by always being comfortable in her own shoes. That makes her an undeniable fit for not only our shoes but our brand.”
the LEGO Group and Nike this week announced a multi-year partnership that will celebrate creative play and sport, offering new and exciting opportunities for children and families worldwide.
The Juggernaut brands have long histories of championing kids’ right to play. Both companies understand that creative and physical play are crucial for children's development, helping them build essential life skills that enable them to reach their full potential and thrive as they grow.
A recent LEGO Group study (1) revealed that for a third of children globally playtime is limited to just three hours a week and according to the World Health Organization (2), only 1 in 5 kids gets the physical activity they need to thrive. Today’s announcement reflects the LEGO Group and NIKE, Inc’s shared commitment to put creativity, fun, sport and imagination back into play, and inspire, engage and empower kids around the world.
Alero Akuya, VP of Brand Development at the LEGO Group: "At the LEGO Group, we believe in the power of play to inspire and develop the builders of tomorrow. By combining the creativity of LEGO play with the energy and passion of sport we want to inspire new ways for kids to play and be creative. We are excited to partner with NIKE, Inc. on this journey and help reimagine how creative play and sport can unite. Together, we will create unique experiences that will engage and excite kids around the world, inspiring them to explore their imaginations.”
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Cal Dowers, VP, Global Kids, NIKE, Inc. said: “At Nike, we believe in the power of sport to move the world forward, and that starts with kids. We’re committed to creating a more accessible and inclusive future that inspires kids of all ages and abilities to be more active. Together, with the LEGO Group, we’re excited to invite all kids into a new vision of sport and creative play.”
On is gaining momentum and set to capture the expanding fan base in Italy with the launch of its first flagship store in Milan.
The Swiss running brand, which is rapidly gaining momentum both within and beyond the running community, officially opened its new megastore this week on Milan's central Corso Vittorio Emanuele II. This move intensifies the sportswear competition on the street, which is already home to flagship stores from brands like Nike and Adidas.
Although Italy has historically been an important market for the brand, with a broad network of specialty retailers, On is focused on expanding its direct-to-consumer presence to improve the customer experience, explained Bianca Pestalozzi, On’s general manager for the Europe, Middle East, and Africa (EMEA) region.
“We’ve seen good growth in the levels of brand awareness for On, maybe more so in Milan than in cities like Rome, but we’re definitely seeing a lot of growth and brand momentum in the market,” she said.
The Milan store bows a month after the opening of the second Paris flagship on the Avenue des Champs-Élysées. Both cities and countries have huge potential according to Pestalozzi. “We’ve definitely invested in connecting with local communities, with the running community and we plan to continue to do so over the coming years,”
The Milan flagship offers men’s and women’s sneakers and apparel collections, along with limited edition releases and collaborations. The in-store experience will be further enriched by the On member’s app, launched in 2023, which provides access to exclusive benefits, early product releases, and more.
The Milan opening, following the retail rollout in Paris, suggests instead On’s renewed focus on Southern Europe including Spain, Italy and France, the executive explained. “I would say they’re a little bit the next chapter of On’s expansion within Europe. Because we’re still growing from a lower base in in those markets,” she offered mentioning activations such as the Barcelona Marathon that On sponsored this year.
French sporting goods retailer Decathlon said on Wednesday that it will invest 100 million euros in India over the next five years to expand its store count and manufacturing in what is one of its key markets.
The retailer, which entered the Indian market in 2009, offers a wide range of sports accessories, from footballs and yoga mats to bicycles and exercise equipment, capitalizing on the increasing interest in fitness and active living.
Decathlon competes with Nike , adidas , PUMA Group , and local brands in India's sports goods market, which, according to industry estimates, is expected to grow 69% to $6.6 billion from 2020 to 2027.
Decathlon, renowned for its expansive stores often featuring attached playing fields, announced plans to expand its network from the current 110 stores to 190. Globally, the brand operates 1,700 stores.
The company makes cricket bats, most of its hockey gear as well as other products in India. Currently, 68% of its India sales are locally-made products and the company aims to boost this figure to 85% by 2026.
The company's sales in India jumped 37% to 39.55 billion rupees ($471 million) in the year ended March 2023, outpacing the 1.14% sales rise at the group level, Economic Times had reported.