We got locked down but we got up again. 🏕️ There was nothing like being forced indoors for months to inspire people to seek outdoor respite, as was the case following widespread lockdowns during the global pandemic. But not all adventure stocks benefited from our desire to get into nature. 

Kathmandu's stock market strife

Not even our sunny Kiwi summer helped Kathmandu. ☀️ Rising inflation, higher interest rates, a brief June recession, and now lower consumer spending over our summer months has hit Kathmandu owners hard. Their NZX-listed parent, KMD Brands (KMD), last week released declining Kathmandu sales data, sinking their stock price 11.29% in after hours trading on 19 February 2024. Their stock is now down 14.5% since the news, which comes after their steady stock price decline since April 2022.

Fellow Kiwi-founded company Icebreaker became publicly traded on the NYSE when it was acquired by VF Corporation (VFC) in 2018, owner of active apparel and footwear brands, The North Face, Timberland and Dickies, as well as workwear and accessories. While the Icebreaker parent’s stock temporarily benefited from a resurgence of outdoor activity between April 2020 until May 2021, their stock has declined nearly 82% since their all time high on 2 January 2020. 

Meanwhile, Patagonia has one owner: Earth 🌏

Can you buy Patagonia stock? 🏞️ Founder of global outdoor apparel brand, Patagonia, Yvon Chouinard famously dedicated his company in 2022 to fighting for Earth’s rights by funding conservation efforts - ‘and politics’. And since September 2022, The New York Times found that more than US$71 million has been given to groups ‘working on everything from dam removal to voter registration’. 

While the sustainability-focussed company has been called by some ‘the most reputable brand in the US’, Patagonia is not a publicly traded company. Yet some shareholders may have gained from Patagonia’s enduring popularity. Dick's Sporting Goods (DKS) is one approved company that stocks Patagonia apparel and products and benefited from the post-pandemic resurgence in outdoor activities - their stock soaring 943.96% in the nearly four years since the Covid-19 March 2020 stock market slump. 

‘Even before the COVID-19 pandemic began, the National Park Service had been noting a steady increase in the number of camping trips Americans were taking every year. But the pandemic created a surge in interest in camping and other outdoor activities. Younger generations are accounting for much of this growth, and tens of billions of new dollars will be spent on camping equipment annually in the coming years as these young enthusiasts get outfitted for their excursions.’ - Nicholas Rossolillo, Motley Fool

According to Motley Fool, many of Dick’s Sporting Goods’ more than 700 bricks ‘n’ mortar retail stores became fulfilment click and collect centres for their newly updated e-commerce to meet the needs of consumers wanting to spread their legs during lockdowns. But they weren’t the only company that benefited from more people heading into the great outdoors.

Camping and outdoor stocks post-pandemic stock soar

In order of highest to lowest billion dollar market cap companies, 9 camping and outdoor equipment and apparel stocks that experienced significantly high growth since March 2020 includes:

While some outdoor experience companies have faced consumer spending challenges like those of Kathmandu last year, for many, their stock has continued to climb, despite the impacts of high inflation. These are:

• Dick's Sporting Goods (DKS) is a retailer of outdoor apparel and equipment as well as sporting goods, which includes brands The North Face, Patagonia, Carhartt and Yeti. They have a market cap of US$14.398 billion. More recently, their stock has climbed 20.29% year-to-date (YTD), and is up 35.35% over one year
• Thor Industries (THO) specialises in manufacturing recreational vehicles (RVs) and holds a market cap of US$6.738 billion. Their stock is up 7.51% YTD and up 37.70% since February 2023
• Academy Sports and Outdoors (ASO) is a sporting goods and outdoor recreation retailer with a market cap of US$5.262 billion. Their stock is up 5.62% YTD and has climbed 20.06% in one year
• Columbia Sportswear (COLM) outdoor, active and lifestyle product company that has a market cap of US$4.904 billion. They took a hit during the pandemic but they have seen their stock lift 2.24% YTD but fallen 7.80% since the same time last year
• YETI (YETI) outdoor product retailer that makes high quality, long-lasting camping equipment and has a market cap of US$3.343 billion. Their stock has fallen 22.95% YTD, and dropped 0.26% since February 2023
• Winnebago Industries (WGO) manufactures RVs and marine products and holds a market cap of US$2.062 billion. Their stock is down 4.05% YTD, but over one year has climbed 9.98% 
• Vista Outdoor (VSTO) is an outdoor recreation and shooting sports product retailer with a market cap of US$1.748 billion. They’ve seen stock growth of 1.89% YTD, and lifted 5.68% over one year
• Camping World (CWH) retailer of RVs and related products and services, and holds a market cap of US$1.146 billion. Their stock has dropped 3.71% YTD, but climbed 10.36% in one year
• REV Group (REVG) manufactures RVs and has a market cap of US$1.19 billion. Their stock has climbed 9.13% YTD, and 67.32% over one year

Smaller market cap camping and outdoor companies from largest to smallest include: 

• Johnson Outdoors (JOUT) is an outdoor recreation product manufacturer with a market cap of US$461.07 million. Their stock has fallen 13.20% YTD, and is down 30.59% since the same time last year
• Clarus (CLAR) is a maker of outdoor equipment and they have a market cap of US$224.318 million. They have seen their stock drop 11.59% YTD, and is down 43.58% since once year ago
• Escalade (ESCA) is an outdoor recreation equipment retailer with a market cap of US$206.656 million. The company stock has declined 24.18% YTD, but is up 18.65% over one year  
• American Outdoor Brands (AOUT) is an outdoor lifestyle products and shooting sports accessories retailer that has a market cap of US$108.159 million. Their stock has fallen 5.74% YTD, and is down 13.70% since February 2023
• Big 5 Sporting Goods Corp (BGFV) is a sporting goods retailer in the western US and holds a market cap of US$119.18 million. It was the only of the smaller market cap camping and outdoor stocks to soar during the global pandemic, climbing to an all time high share price of US$35.25 on 11 November 2021 - up 313.39% since March 2020 - since dropping back down to US$5.25. They've seen a stock drop of 13.51% YTD, and plunged 46.54% over one year

Kiwis love Yeti products 

Are yetis real? 🏔️ Ocean Alley keyboardist Lachlan Galbraith may regret his Queenstown Yeti cap theft following playing at the Rhythm and Alps New Year festival, but it seems Kiwis can’t seem to get enough of Yeti’s premium outdoor products. However, the company is battling profit margins and inconsistent consumer spending.

After their October 2018 IPO, Yeti stock dropped around 7%, which had already followed the company’s reluctance to go public earlier in March the same year, the company citing ‘market conditions’ for the pause. But despite Yeti stock climbing around 135% since their IPO, the company has struggled to keep profits high after the ‘bullwhip effects of the COVID-19 pandemic’, says Brett Schafter of Motley Fool.

Last week Yeti President and CEO Matt Reintjes announced the company’s increase of 12% Drinkware net sales, and a 44% increase in International net sales, increasing Yeti’s fourth quarter (Q4) International adjusted net sales by 39%. But the numbers were below the company’s guidance:

‘Despite strong topline performance in these areas, our fourth quarter results were below our guidance, primarily as a result of more cautious and inconsistent spending on high-priced ticket items in our Coolers & Equipment category.’ - Yeti President and CEO Matt Reintjes 

Since mid-February, Yeti’s stock price has fallen nearly 20%, is down 22.95% YTD, but is sitting around the same as one year ago, down 0.26%. 

Recreational power boats post-lockdown stock climb 

Water sports and fishing helps the marine industry. 🎣 While the barrier to entry cost of recreational boats means fewer Americans may be able to take up water sports, marine stocks also benefited from a post-lockdown outdoor resurgence. 

From highest to lowest large and small market cap, 7 marine companies that have experienced significant stock climbs since March 2020 includes:

• Polaris (PII) has a marine segment that designs and manufactures boats, and the company has a market cap of US$5.157 billion. Their stock has fallen 3.41% YTD, and is down 20.60% since February 2023 
• Winnebago Industries (WGO) manufactures RVs and marine products and holds a market cap of US$2.062 billion. Their stock is down 4.05% YTD, but over one year has climbed 9.98%
• Malibu Boats (MBUU) is a maker of recreational power boats with a market cap of US$888.127 million. Their stock is down 19.09% YTD, and has fallen 27.20% over one year
• MarineMax (HZO) is a recreational boat and yacht retailer and superyacht services company that has a market cap of US$706.34 million. They have experienced a stock decline of 17.34% YTD, and is down 5.03% in one year 
• OneWater Marine (ONEW) is a US marine retailer that holds a market cap of US$403.038 million. Their stock has slumped 23.00% YTD, and is down 8.75% over one year
• MasterCraft Boat (MCFT) recreational power boats with a market cap of US$374.403 million. Their YTD stock is is down 3.56% and has slumped 34.96% since the same time last year 
• Marine Products (MPX) is a manufacturer of recreational fibreglass power boats and holds a market cap of US$361.556 million. They’ve fallen 3.46% YTD, and dropped 17.93% since February 2023 

An electric boat marine revolution ahead?

Could electric-powered boats change an industry? 🚤 ⚡ Forza X1 (FRZA) and Vision Marine Technologies (VMAR) are electric boat makers aiming to ‘disrupt’ the marine industry:

• Forza has a mission to ‘to inspire the adoption of sustainable recreational boating by producing stylish electric sport boats’. They listed on the Nasdaq in August 2022, and has a market cap of US$8.827 million. 
• Vision Marine Technologies is a Canada-based company engaged in the manufacturing of electric boats that listed on the Nasdaq in November 2020, and holds a market cap of US$9.092 million. Their mission is ‘to be a guiding force for change and an ongoing driving factor in fighting the problems associated with waterway pollution by disrupting the traditional boating industry with electric power. In turn, this directly contributes to zero pollution, zero emission, and a noiseless environment’.

With or without lockdowns it appears people continue to gravitate to experiencing the great outdoors. Now with Gen Z and Millennials more engaged in fresh air activities, could the US summer see outdoor experience stocks continue to grow?

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