SIA and The NPD Group – Sports and Leisure Trends™ have released NPD DecisionKey® numbers for August and September 2015. Total market projections are based on data collected from the Point of Sale systems of more than 1,200 snow sports retailers.
The snow sports market brought in $425M in August and September, up 3% compared to August and September 2014. Equipment sales increased 10% while outerwear sales remained relatively flat. The gear used by skiers and snowboarders when they are on snow including equipment like skis, boards and boots, baselayer, gloves, and goggles show increases in both dollars sold and units sold.
This sales pattern points to pent up demand for new gear in places like California where drought has hampered skiing and snowboarding for several seasons. The news about El Niño conditions and how much snow normally falls in an El Niño winter seems to have convinced consumers that this will be an epic season and it’s time for new gear, especially in the West region. In fact, sales in specialty shops in the West are up more than 50% so far this season to $84M. Snowboard equipment sales in the West nearly doubled compared to August to September 2014, and alpine equipment sales are up 84% to $25M in the West.
Inventories in snow sports specialty shops are 10% leaner compared to September 30th 2014. Specifically, specialty retailers are carrying 30% less outerwear, 6% fewer snowboards, 13% fewer AT boots, and 8% fewer alpine skis. Starting the season leaner generally keeps margins healthy through the holiday buying season and often through January as well. If El Niño conditions do bring epic snow to California and across the country like it did in 2009/2010, consumers may have difficulty finding the gear they want to buy and scarcity may hinder sales as early as mid-December. Consumers who intend to buy specific products may want to start looking now for the equipment they want to start this season with to avoid the ravages of scarcity in the snow sports market.
Inventories in Western region snow sports specialty shops are 2% leaner in dollar value compared to September 30th 2014. Specialty shops in the Northeast have 31% less dollar value compared to September 30th 2014. Some of this result may be due to various items not being shipped in, or entered into retail POS by September 30th. However, general speaking, starting the season leaner generally keeps margins healthy through the holiday buying season and often through January as well. If El Niño conditions do bring epic snow to California and across the country like it did in 2009/2010, consumers may have difficulty finding the gear they want to buy and scarcity may hinder sales as early as mid-December. Consumers who intend to buy may want to start looking now for the equipment they want to start this season with to avoid the ravages of scarcity in the snow sports market.
Sales Results by Distribution Channel:
- Snow sports specialty shop sales increased 5% in dollars sold through September to $168M, about 40% of all snow sports sales. Equipment and accessories like goggles, baselayer, gloves, helmets, and technical packs are selling particularly well through this channel.
- Chain store sales decreased 3% to $133M through September. Outerwear sales were down 3% in dollars sold to $59M, but unit sales were up 3% which may indicate that back-to-school and Labor Day sales like SNIAGRAB in Denver were successful in moving closeout apparel out of chain store inventories.
- Online sales increased 8% to $124M through September. Equipment sales made over the Internet were up 1% to $27M, but outerwear sales soared 13% in dollars sold to $67M. Notably, snow boots sales were up 28% to $2.3M, another indication that consumers are preparing for lots of snow this winter.
Early Season Trends:
- – Sales of action cameras down 21% in dollars sold to $6.7M, down 22% in units sold to 18,765 units sold.
- – Sunglasses sales by month – downward trend? Keep on it
- – Baselayer up 9% in $ to $13M, units up 346K units up 8% – check regionally – check wool specialty up 20% in $ sold and up 20% to 100630 units.
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- Equipment Sales up 10% in dollars sold to $107M
- – Alpine equipment up 12% to $58M
- – Bindings up 43% to $7M, 50,600 units up 44%
- – Boots 23% to $21.5M, up 22% in units to 93K
- – Skis flat in $ to 28M, but up 22% to 97,551 units (look at flat v. systems) also age
- – Snowboard equipment 3% $25M (average price and price points)
- – Boards, down 3% to $13M and down 12% in units sold to 47,840
- – Boots up 8% to $6M, flat in units to 44K
- – Bindings up 9% to 6.1M, down 1% in units sold 46K
- – AT equipment Sales down 10% in $ sold to $1.6M hardly worth mentioning
- – Rentals up 91% to $4.5M up 54% in units sold 152.159
The snow sports market was stable during the first two months of the season. Increasing sales in the West and relatively flat inventories coupled with early snowfall in November and a promising El Niño weather pattern should drive sales up in that region that covers every state from Colorado to California. Typically, less than 10% of all dollars sold during a snow sports season (August 1 to March 31) are sold August through September. Trends are just barely beginning to develop and could change as the season matures. We will report on August to October in mid-December.
For more information about snow sports research and market intelligence products including retail, wholesale, consumer, participation and special reports, please contact Kelly Davis, SIA’s Director of Research at [email protected] or visit snowsports.org/research.
SIA releases the top line results for snow sports retail seven times each season from November to May covering results of retail sales made between August 1 and March 31 each season. Topline/category retail sales data for the snow sports market is available as a member benefit to all SIA members. In addition, you gain free access to topline data for the Running, Outdoor and Paddle Sports when you register. The topline data is accessible on a 24/7/365 basis on The NPD Group’s proprietary user interface, the DecisionKey® data portal.
The NPD Group’s Decision Key® 2015/2016 season release schedule:
- December 15, 2015: August – October
- January 15, 2016: August – November
- February 15, 2016: August – December
- March 15, 2016: August – January
- April 15, 2016: August – February
- May 15, 2016: August – March