Asics Drops in NA, Under Armour Stock Sinks, Boot Barn Eyes Northeast Expansion, Crocs Anticipates Q4 Profit

Asics realized a 23 percent wider nine-month net loss in North America despite 2 percent topline growth to the equivalent of $531.5 million. The company reported strong sales in the performance running and core performance sports segments. Overall, parent Asics Corp. released a 5 percent global drop in performance running sales for the nine months to the equivalent of $1.17 billion.

Under Armour saw its stock sink after it downgraded its full-year expectations to 2 percent revenue growth and announced that its accounting practices are being investigated by federal authorities. Officials at Under Armour said the company has been cooperating with the investigators and “believes its accounting practices and disclosures were appropriate.” The stock drop comes after a rise that followed the announcement in October that founder Kevin Plank would be stepping down as CEO on Jan. 1.

Publicly traded Boot Barn, which is forecasting FY same-store sales growth of 6.5 percent and a total of 25 new or acquired doors before its Mar. 28, 2020 year-end, may make an aggressive expansion push into the heavily-populated Northeast U.S. as it eyes an eventual store count of 500 from its current 248 doors across 33 states. In Q2 ended Sep. 28, Boot Barn generated same-store sales growth of 7.8 percent as total revenues rose 11.3 percent to $187.2 million and a 170 basis-point improvement in operating margin. E-commerce sales grew 7 percent in the period as approximately 20 to 25 percent of customers who picked up their online order in store buying something else while there.

At Crocs, momentum continues to grow in the Americas, where Q3 revenues rose more than 35 percent to $185.2 million and Classic Clog inventories were restored to “appropriate levels.” The company is projecting its first Q4 profit in eight years as total revenues rise 13 to 18 percent. FY19 revenues for the company, which saw large institutional holder Blackstone divest 6.8 million shares on Oct. 31 for more than $248 million, are forecast to increase 11 to 12 percent as adjusted gross margin approaches 51 percent. With sandals seen as a significant long-term growth opportunity for the brand, Crocs is also banking on more widespread, global adoption of Crocs’ customization using its Jibbitz charms, which already have some momentum in the Americas’ region. In a separate development, the relocation of Crocs’ Americas’ distribution center to Dayton, OH from Los Angeles is on track with the California facility set for closure by year-end.