U.S. snow sports sales for the August through January period grew at 13% and are likely to keep on that track through the end of the season, according to research released last week by Snowsports Industries America.
Whether that translates into strong pre-season orders for next year is less clear. Normally, pre-season orders get a nice bump during a good winter.
Snow sport sales reached $2.35 billion from August through January, according to the SIA Retail Audit.
“The sub prime mortgage crisis, the falling value of the dollar, increasing prices for consumer goods, and the high price of petroleum have hit the economy very hard, but when the snow is good nothing will keep people off the slopes,” said Kelly Davis, director of research for SIA.
Davis said that given continued heavy snow in February in the West and Northeast, she is confident the gains registered through January would continue through the end of the season. Of course, conditions vary across distribution channels, product categories and geographic areas. For instance, sales increases varied from 7% growth at specialty stores to 43% in the Internet channel.
In Florida, meanwhile, the weak housing market and concerns over a broader economic slump may be trumping the copious snowfall out west.
“February fell off quite a bit,” said Peter Hamilton, whose family owns and operates 19 Peter Glenn stores across the Southeast and one in Vermont. “Id say some of it has to do with the bad (economic) news coming out, because it is an epic year with great skiing in the east and the west.”
Hamilton expects the chain to still record higher sales than last year, which was one of the driest and warmest winters of the last century.
Reps in the Southeast, Northeast and Northwest said their retailers were acting “conservatively” when placing preseason orders for next winter. Reps in the West, where many resorts are reporting snow pack at 120% of average, are reporting strong pre-season order flow.
Specialty Retailers
The SIA Audit shows that specialty shop sales accounted for 62% of all dollars spent in the snow sports marketplace with $1.46 billion in sales August through January. Specialty sales were up 8% in units and 7% in dollars compared to the same period last season. That growth compared to a 3% decline in both for the 2006-07 August through January period. Equipment unit and dollar sales, which accounted for 31% of specialty shop sales, increased a mere 1.43% and 2.22% respectively. There was a lot of category growth going on behind those modest numbers, however. Unit and dollar sales of adult twin-tip skis, for instance, increased more than 30%, while Nordic equipment including skis, boots, bindings and poles increased 31%.
Apparel trends in specialty tracked trends in the other two channels. Softshell parkas sales increased 15% in units and brought in $27 million during the period. Snowshoes sales hit 70,000 units so far this season, an increase of 21%. Specialty helmet sales, meanwhile, rose by 12% to 500,000 units and by 15% in dollars.
In the Northeast, which got good snow but experienced multiple thaws, ski retailers remain cautious, said Sarah Trachey, who reps Cascade Designs, Mountainsmith, Access Outdoors, Polarmax, Garmont and Bridgedale for North Branch Traders. Trachey said she saw good in-season reorders in base layers and snow shoes. She said MSR snowshoes and Outdoor Research apparel were particularly strong. SIA research showed snowshoe sales were up 19% in units and 25% in sales, while sales rose 40% on the Internet.
“I think they went a long way toward getting caught up, or getting the inventory situation under control,” Trachey said of ski shops in her territory. “But they are still cautious and I think that has to do with the fact that two out of the last three winters were not so great and some concerns about the economy. A lot of skiers that go skiing here are not buying the high-end stuff out of ski shops.”
Internet
The Internet sales channel continued to grab market share, with unit sales rising 43% and dollar sales rising 48% to $399.5 million. Apparel sales accounted for 55% of Internet sales, while equipment made up 21% and accessories 24%. Although equipment sales represented just one fifth of the dollars sold, sales were up 76% in dollars and 60% in units so far this season.
“Buying equipment over the Internet isnt the crap shoot it used to be,” said Davis. “Many people research their equipment online before they buy through any channel, and with clear and easy return policies and very competitive prices, it isnt surprising that more and more people are clicking to buy.”
Chain Stores
Chain store sales racked up $497 million in snow sports sales through January. The channel appeared to lose market share in the equipment business, where unit sales fell 9% and dollars sales rose 1%, indicating fewer sales at higher prices. Equipment sales made up 24% of total snow sports sales. Apparel sales rose 21% in dollar terms to $201 million. Softshell parka sales, up 50%, drove much of the growth. Snow drove sales and higher margins on outerwear at Chicks Sporting Goods in the fourth quarter ended Feb. 2, said Ed Stack, chairman and CEO of Dicks Sporting Goods, which acquired the 15-store Southern California chain last year.
Accessories sold well, including goggles, which brought in $12 million. The channel sold 120,000 helmets and $27 million worth of base layers.
At accessories maker Bula, pre-season orders by specialty retailers for next winter are running 15% to 20% ahead of last year, said co-founder and VP of sales Greg Bardin in an interview Friday. He said he did not expect to get orders from big box retailers like The Sports Authority, Dicks, Big 5 and MC Sports until right before Bulas end of the month deadline. Bardin speculated that retailers might be less reluctant to load up on Bulas socks, base layers and hats than higher priced items.
“Accessories are small ticket items in market we sell to, which is the 15- to 25-year-old and somehow they always seem to have money when things slow down.”
He also said fashion and Bulas StereoHead line of hats with integrated earphones were driving sales.
“We are not just necessarily being sold to kids on the hill,” he said. “It could be kids waiting for the bus. The good winter has helped.”
The Nordic category had a growth rate of more than 30% in units and dollars across the market this season. Nordic unit sales have already surpassed last seasons sales by 11,500 skis, 6,000 boots, 6,000 bindings, and 6,000 poles. Total sales of Nordic equipment have reached $27.2 million through January surpassing last seasons total by more than $3.5 million.
Hot Categories and Trends
· Sales of womens specific equipment, apparel and accessories were up by 14.4%, or $85 million, to $675 million;
· At 55,000 pairs sold, adult twin-tip skis are the hottest selling type of ski on the market. Sales of twin tip skis were up 60% in units and 62% in dollars compared to last season in Internet and specialty shop sales;
· 500,000 people have protected their skulls with new helmets so far this season. By seasons end, sales growth in helmets could be as high as 20% in units and in dollars;
· Sales growth exceeded 15% for the very popular softshell parka. These parkas were purchased by more than 450,000 people, including many who likely will never see a ski lift
Whether the resurgence in snow sports sales will carry over to other outdoor pursuits this spring and summer remains uncertain. Boosted by epic snowfalls and high incomes, snow sports enthusiasts may be weathering the economic storm better than their counterparts in other sports, like cycling, paddling, hiking and climbing.
