If the outdoor industry was characterized by a reckoning with the post-pandemic slump in 2023, then 2024 was all about taking action.
For many, that meant right sizing bloated inventories with deep discounts or demanding more for less, particularly when it came to employee numbers and budgets. And for some, it was time to bring in new leadership and/or new ownership to forge a new path toward profitability.
These are some of the major themes of 2024 that emerged from our reporting this year.
Turnaround Troubles and Management Shakeups
If there’s one common theme among most of the publicly and privately held companies we cover here at Shop Eat Surf Outdoor, it’s that they’re in turnaround mode, striving to return to growth and profitability after weaker sales results post-pandemic.
Like in 2023, those efforts unfortunately included many layoffs, such as those at VF Corp., Columbia Sportswear, Revelyst, Cotopaxi, REI, and even Patagonia.
Many outdoor businesses also opted to bring in fresh faces and experienced stalwarts to lead some of the best-known brands in the industry.
This year’s management shakeups included:
- VF Corp’s new CFO Paul Vogel, North Face President Caroline Brown , and Vans President Sun Choe.
- New CEOs at Salomon, Kent Outdoors, Cotopaxi.
- REI’s new Chief Marketing Officer Abigail Jacobs.
- Susie Kuhn, the new active group president at Wolverine Worldwide.
- Chris Speyer, who left REI for MEC as chief merchandising officer. REI EVP and Chief Customer Officer Ben Steele also departed.
Others, such as Black Diamond, narrowed its focus back to climbing this year. Those efforts are beginning to pay off, according to the most recent financial results from parent company Clarus Corp.
“The core of the business is much healthier now and capable of delivering double-digit EBITDA margins even without top-line growth,” said Black Diamond Equipment President Neil Fiske on the company’s November earnings call.
Amer Sports and Dick’s Sporting Goods Rise Above
We learned a lot from the outlier businesses that grew over the past year, too.
When Amer Sports (Arc’teryx, Salomon, Wilson) went public at the beginning of 2024, it didn’t quite meet the expectations of the investor community, raising some skepticism about how successful the move would be.
But Arc’teryx in particular drove massive gains through the year, reporting a 17% year-over-year revenue increase in its latest quarterly report. Geographically, Amer CEO James Zheng has said the portfolio of companies are especially well-positioned in China and APAC, where revenue grew in the third quarter by 56% and 47%, respectively. Amer expects total revenue to grow by between 16% and 17% this year.
Retailer Dick’s Sporting Goods similarly stood out from the pack, reporting solid growth throughout the year.
But success at Dick’s may not be a positive bellwether for the outdoor industry. In October, we reported that some brands have been advised that Dick’s will close five of its eight Public Lands stores, which are outdoor-focused, and convert them into other banners.
M&A: Yeti Buys Mystery Ranch, Vista Outdoor Deal, Backcountry Sale and More
After Yeti’s acquisition of the beloved Mystery Ranch outdoor bag brand early in 2024 for $36.2 million, Yeti President and CEO Matt Reintjes said the company planned to apply its successful go-to-market approach to a new category.
Rumors are circulating that Yeti will sunset the Mystery Ranch brand in 2025 except for its military contract, but Yeti said it would continue releasing products under the Mystery Ranch brand into the new year, and unveiled a co-branded bag design late this year to mixed reviews.
“We’re incredibly excited about what’s in front of us in bags,” Reintjes said on the company’s November earnings call. “We think that is a massive global market that is right for Yeti.”
Throughout 2024, executives at Vista Outdoor were under pressure from shareholders to squeeze as much value out of its plan to sell its ammunition business, The Kinetic Group. After a lengthy strategic review, multiple negotiations, and many tensely worded press releases, shareholders voted in favor of selling The Kinetic Group to Czechoslovak Group. Revelyst, the division that includes outdoor brands Simms and CamelBak, will be sold to Strategic Value Partners in a deal that’s expected to close in January.
Some outdoor retailers also changed hands this year. Backcountry was sold to to CSC Generation, which plans to use its AI-powered technology platform to boost the retailer’s performance.
“Our mission has remained the same: to help brands evolve to ensure they survive and thrive,” said CSC CEO Justin Yoshimura.
And hundreds of jobs were salvaged after U.K.-based retailer Mountain Warehouse acquired seven profitable Eastern Mountain Sports stores, the brand name, and its website for $10 million from its previous owner GoDigital when it filed for bankruptcy in the spring. Unfortunately, all Bob’s Stores, which were also owned by GoDigital, and many EMS stores shuttered.
“We saw EMS as an opportunity too good to miss,” Mountain Warehouse’s founder, Mark Neale, told us. “We believe there’s a great brand here with tremendous pedigree and passionate people who can help us understand the market even better and create a bright future for us in the U.S.”
Sustainability, Supply Chain, and Trade Policy Tweaks
Weaker post-pandemic sales weren’t the only factor in driving bloated inventories at brands and retailers.
A growing number of brands are working to eliminate PFAS, also known as “forever chemicals”, from products such as rain gear, and are finding alternatives that still perform well in the outdoors.
And while many brands attributed slower sales this year to 2024 being an election year, now the outdoor industry is bracing for new trade policy from the incoming Trump administration, which has said it plans to implement tariffs on goods from China, Mexico, and Canada.
Most corners of the industry produce products outside of the U.S., and thus have worked to diversify the supply chain to reduce the impact tariffs could have on consumer prices once they’re implemented. Smaller brands will feel the impact of tariffs most acutely.
“If costs go up, I imagine prices will go up because we don’t have any spare margin to work with, and we certainly won’t cheapen our quality,” said Andrew Gibbs-Dabney, founder and CEO of Arkansas-based apparel brand Livsn.
Even those that do manufacture in the U.S. told us that their costs will increase if additional tariffs are implemented because they source materials abroad.
“Additional tariffs simply aren’t possible for us so we are looking at different sourcing options and possibly changing entire product lines,” said Youer Founder Mallory Ottariano.
Kate Robertson can be reached at kate.robertson@emeraldx.com.
