Industry outerwear and apparel brand Helly Hansen appears to be bucking any softness in the outdoor market, according to parent company Canadian Tire Corporation, which reported earnings results earlier this month.
Helly Hansen’s revenue rose 22.9% during the first quarter, with sell-through of spring/summer sportswear styles particularly strong in wholesale channels, a Canadian Tire executive said on the earnings call.
In addition, e-commerce sales increased more than 20%, and the U.S. business was also a top performer during the quarter.
The robust results seem to be a trend with the brand. In Q4 2022, Helly Hansen reported a 20.6% revenue jump.
SportChek Posts Gains
Canadian sporting goods retailer SportChek, also owned by Canadian Tire Corp., ended the first quarter of 2023 with comparable sales up 3.7% as athletic and casualwear sales offset softer outerwear demand.
SportChek is a large Canadian retailer of sport clothing and sports equipment, including skiing, camping, and paddlesports gear, with nearly 200 stores throughout the country.
On the earnings call, executives said while outerwear and hardgoods sales were lower in some provinces due to weather, SportChek managed to boost sales thanks to discounting.
“Regionally, growth came out of Alberta and Quebec, but Ontario weather was tough for outerwear sales,” said Canadian Tire CFO Gregory Craig. “The business compensated with growth in athletics, casual and fan wear sales, and leveraged promotions to ensure they kept inventory fresh.”
A particular bright spot is SportChek’s in-house apparel label Forward with Design, known as FWD.
“We are building momentum with our Forward with Design brand,” Canadian Tire CEO Greg Hicks said on the call. “We’ve expanded the styles and colors and introduced an elevated technical apparel line within the brand, as well as growing the work-leisure range for men.”
Canadian Tire Company
Company-wide, comparable sales in the retail segment declined 2.5% on softer consumer demand and weather challenges.
“Our Q1 financial results were impacted by a number of factors. Our retail segment was impacted by the fire at our A.J. Billes distribution center, as well as unseasonably mild winter weather and a slow start to spring in several regions of Canada,” Hicks said.
Company-wide income before taxes was C$66.6 million ($49.3 million), a decrease of C$228.3 million ($168.99 million) compared to the prior year. Excluding the impact of the fire, adjusted income before taxes totaled C$134.3 million ($99.41 million).