Earnings Report: Vail Resorts, Emerald, Others Project Sunny Outlook
Sales in Q4 of 2021 were strong for businesses on the OBJ Outdoor Index
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The second half of our 2021 Q4 earnings report is in. Its theme? Generally the same as that of part 1, which we published late last month. To sum things up, it’s looking good out there.
Sales were strong at all but one of the companies on our list: Adidas, whose Q4 sales were essentially flat year over year. On the winning side, Emerald led the pack, with sales soaring more than 200 percent against the year-ago period to land at $41.1 million.
As we reported in part 1 of our 2021 Q4 roundup, supply chain and tariffs remain a problem for many businesses in the outdoor space, an issue addressed by multiple executives on recent earnings calls.
Below are the numbers for part two of our quarterly earnings series, with one company—Solo Brands—still to report. We’ll update this list with those figures when they’re made public on March 29.
Adidas AG (OTC: ADDYY): -0.1%
Adidas reported revenue of €5.1 billion (US$5.7 billion), down 0.1 percent compared to Q4 2020, but a currency-neutral decline of 3 percent due primarily to “significant supply shortages as a result of the lockdowns in Vietnam last year, the challenging market environment in Greater China as well as covid-19-related lockdowns in Asia-Pacific,” the company says net income of €123 million (US$136.8 million) was down 14 percent from €143 million (US$159.1 million) a year ago.
Camping World Holdings Inc. (NYSE: CWH): +21.5%
RV dealer Camping World reported sales for the fourth quarter of $1.4 billion, a 21.5 percent increase from Q4 2020. Net income grew 46.9 percent to $59.3 million. Says Marcus Lemonis, chairman and CEO of Camping World Holdings Inc.: “Since we took the company public at the end of 2016, we have almost doubled our annual revenue to $6.9 billion and more than tripled our annual net income and Adjusted EBITDA to $642 million and $942 million, respectively. It is our management team’s plan to continue positioning the company for growth over the next five years.”
Clarus Corp. (Nasdaq: CLAR): +55.6%
Clarus Corp.—the parent of Black Diamond Equipment, Rhino-Rack, Pieps, MaxTrax and SKINourishment—reported fourth-quarter revenue of $118.2 million, another record for the company and a 55.6 percent increase from Q4 2020. Net income doubled to $14 million. Clarus’ Outdoor segment (i.e., its flagship brand Black Diamond) notched sales of $65.1 million, up 17 percent from the year-ago quarter. “Within the Outdoor segment, nearly all product categories saw double-digit growth, largely driven by strong consumer demand for high quality outdoor products and the expansion of our retail partnerships,” says Clarus President John Walbrecht. Clarus added another overlanding asset in the period with the acquisition of off-road accessory maker MaxTrax; the brand joins Rhino-Rack in the company’s Adventure segment.
Compass Diversified (NYSE: CODI): +27.3%
Compass Diversified reported fourth-quarter sales increased 27.3 percent to $536.6 million and net income nearly tripled to $22.1 million from 4Q 2020. BOA Technology, which CODI acquired in 2020, posted sales of $45.1 million in the period, up 54.6 percent from a year ago. BOA is CODI’s third-largest “branded consumer” asset by revenue, behind 5.11 (whose spinoff has been postponed) and Velocity Outdoor. Last November, Outside Business Journal chatted with BOA CEO Shawn Neville on everything from the company’s recent anniversary to growing its top line with fewer customers. “As we curated the brands we work with, our business has almost tripled in five years with fewer partners,” Neville says.
Dick’s Sporting Goods Inc. (NYSE: DKS): +7.3%
Dick’s Sporting Goods closed the books on a record-setting 2021 with yet another stellar quarter. The sporting goods retail giant posted Q4 revenue of $3.4 billion, a 7.3 percent increase from the year-ago period. Net income of $346.1 million was up 57.6 percent from last year. Says Lauren Hobart, president and CEO: “Our diverse category and brand portfolio, world-class omni-channel platform and strong execution continue to help us meet robust consumer demand. We are a growth company with a strong balance sheet and incredible momentum and confidence in our business. Our 2022 sales and earnings outlook establishes a new foundation for us to build on in the future.” Last fall, Outside Business Journal got a behind-the-scenes look at the grand opening of Public Lands, the new outdoor retail concept from Dick’s Sporting goods, in Pennsylvania.
Emerald Holding Inc. (NYSE: EEX): +236.9%
Of all the companies in the OBJ Outdoor Index, the owner and operator of Outdoor Retailer and Surf Expo has seen the wildest revenue swings due to the roller-coaster ride of live events over the last two years. Even as Covid-19 surged last fall, the company managed to score an impressive 236.9 percent revenue gain as sales soared to $41.1 million. Emerald continued to narrow its loss, to $16.6 million from $42.4 million a year ago. As the country starts to move past Covid, the big question now is where Outdoor Retailer will be held beginning in 2023. The twice-annual show has been held in Denver for the last five years, but with OR’s contract ending in the Mile High City after Outdoor Retailer Summer June 9-11, the company still hasn’t announced where it will move starting with OR Snow Show next January. Finalists are Denver, Salt Lake City, Las Vegas, Orlando, and Anaheim. In the meantime, certain companies have said they won’t exhibit or attend at OR if the shows move back to Salt Lake City. Outside Business Journal is tracking the development closely and should have details on OR’s move soon.
On Holding AG (NYSE: ONON): +53.7%
On Holding, which went public in September, reported Q4 revenue of CHF191.1 million (US$204.5 million), up an impressive 53.7 percent from the year-ago quarter, though the new entrant to the OBJ Outdoor Index also posted a loss of CHF170.2 million (US$182.1 million), significantly widening its loss from Q4 2020. Says Martin Hoffmann, co-CEO and CFO: “A year is like a marathon race. The circumstances of the fourth quarter made the last miles even more challenging. But thanks to our whole team we were able to exceed our expectations for Q4 and to successfully finish the year with many new record numbers. Our financial results in the fourth quarter are further validation of the very strong, global demand for the On brand and our commitment to managing the company with a long-term, growth- and profitability-driven mindset.”
Samsonite International SA (OTC: SMSEY): +31.5%
The parent company of Gregory Mountain Products and High Sierra continues to see an uptick in global travel, and its gross margin and EBITDA in the second half of 2021 were back to pre-Covid levels. Samsonite’s revenue for the last six months of 2021 (the company didn’t break out Q3 and Q4) was $2 billion, up 31.5 percent from the same period in 2020. Gregory’s net sales for 2H 2021 increased 15.9 percent to $59.4 million year-over-year. Meanwhile, High Sierra is now lumped into Samsonite’s “other” category, which saw sales increase 2.4 percent to $153.6 million in the six-month period.
Solo Brands Inc. (NYSE: DTC): TBA March 29
The newest entrant to the OBJ Outdoor Index—whose portfolio includes Solo Stove, Oru Kayak, Chubbies and water sports company Isle—went public last October, and the company says it will post its first earnings report on March 29. We will update this article at that time.
Vail Resorts Inc. (NYSE: MTN): +32.4%
The world’s largest ski resort operator reported sales for its fiscal 2022 second quarter ended Jan. 31 of $906.5 million, a 32.4 percent increase from the year-ago period, while the company’s profit of $223.4 million in the quarter was up 51.1 percent from last year. Despite the relatively strong quarter for Vail, the big news out of Broomfield was the company’s March 14 announcement that it would make an “incremental annual $175 million investment in our employees,” including increased wages, enhanced leadership development opportunities, deeper employee discounts, flexible remote working options, affordable housing, and more. Says Kirsten Lynch, Vail’s new CEO as of last fall, about the investment: “Does this solve every concern and piece of feedback you have shared over the past 100 days? No, but I hope they demonstrate our commitment to continued improvements and progress.”
Wolverine World Wide Inc. (NYSE: WWW): +24.7%
The parent of Merrell, Chaco, and several other footwear brands posted fourth-quarter revenue of $635.6 million, a 24.7 percent increase from a year ago. The company narrowed its loss to $15 million from $171.2 million in the year-ago quarter. Wolverine’s recently appointed president and CEO, Brendan Hoffman, noted that supply chain issues continue to stymie Wolverine’s operations. “Inventory constraints created by Vietnam factory closures and the ongoing supply chain challenges impacted our top-line growth with demand for Merrell, Saucony, and other brands left unmet,” he says. Because of that, Merrell’s sales dipped in the low-single digits in the period.
Part 1 of our outdoor industry Q4 2021 earnings recap was published a few weeks ago and includes quarterly reports from the following public companies:
- Callaway Golf Co. (NYSE: ELY)
- Canada Goose Holdings Inc. (NYSE: GOOS)
- Canadian Tire Corp. (OTC: CDNAF)
- Columbia Sportswear Co. (Nasdaq: COLM)
- Deckers Outdoor Corp. (NYSE: DECK)
- Dometic Group AB (STO: DOM.ST)
- Fenix Outdoor International AG (OTC: FNXTF)
- Garmin Ltd. (NYSE: GRMN)
- GoPro (Nasdaq: GPRO)
- Helen of Troy (Nasdaq: HELE)
- Johnson Outdoors (Nasdaq: JOUT)
- Newell Brands Inc. (Nasdaq: NWL)
- Thule Group AB (OTC: THUPY)
- VF Corp. (NYSE: VFC)
- Vista Outdoor (NYSE: VSTO)
- Yeti Holdings Inc. (NYSE: YETI)