The SportsOneSource Group expects to see the Sport Footwear business in the U.S. market grow in low-single-digits for 2008, according to statements made during the WSA Show in Las Vegas, NV.  James Hartford, chief market analyst for the business information and market research firm based in Charlotte, NC, made the remarks during his bi-annual presentation at the WSA Financial Conference conducted by Susquehanna International Group.


“In spite of a tough economy, consumers have responded to more seasonal weather patterns and positive moves by mall specialty retailers to focus on the evolving needs of their customers,” said Hartford.  “The first quarter was tough for many retailers and brands as winter weather persisted in many parts of the country, cutting into sales of traditional spring/summer items early in the season.  Conversely, the second quarter turned positive to net flat results for the market for the year-to-date period.”

The SportsOneSource Group builds its forecast from consumer surveys, retailer and brand surveys, and retail point-of-sale data compiled by its SportScanINFO unit, which tracks retail sales on a weekly basis, reflecting the retail fiscal calendar that runs February through January.

 

“We see the positive trend in Sport Footwear continuing into back-to-school in spite of the economic headwinds many face,” continued Hartford.  “The men’s and kid’s businesses were both flattish for the year-to-date period, but are facing easier comps against last year as we move into the third quarter.  The mall was far more promotional last year, which has given way this year to higher average selling prices in the all-important athletic specialty channel.”  He also pointed to easier comps against the former wheeled footwear craze that also hurt first quarter sales.

Hartford suggested that the efforts of retailers such as Foot Locker, Inc. and The Finish Line, Inc. to shutter under-performing stores and focus growth on the new requirements of the consumer that shop the mall today are also having a positive effect on sales.


Not all the news delivered to the analysts was good as Hartford also called out a women’s Sport Footwear business that has trended lower for the year.  That business is expected to maintain a flat to slightly negative position for the year.


Sport Apparel is also seen as an issue for the market. 


“We see more challenges for the branded Sport Apparel market this year,” said Hartford.  “The trend here ran counter to Sport Footwear as colder weather in the first quarter boosted sales of higher-priced outerwear items deeper into the spring season.  Those goods were marked down far earlier in the year-ago period.  However, the momentum shifted negative in the second quarter as spring goods backed up in the pipeline and sales of winter goods waned.”


SportsOneSource indicated in its presentation that the consumer has far more options for apparel these days.  “There is less of a stigma today for mom to purchase a fleece hoodie for her kids at Wal-Mart or Target to go with jeans they bought at Kohl’s,” continued Hartford.  “But the teens that drive much of the athletic footwear business will insist on maintaining the ‘cool’ factor when it comes to footwear.”


The one apparel area that maintains a positive position is performance apparel, which has been a driving force in growing Sport Apparel sales in the full line sporting goods stores like Dick’s Sporting Goods and Sports Authority.  This year, the product will get more exposure in the mall as Foot Locker and Finish Line both expand their assortments of Under Armour and Nike branded performance product.


“Kids will gravitate towards the hot trends,” concluded Hartford.  “It’s all about lifestyle now and addressing the needs of the consumer’s lifestyle in product selection, value and service.  The consumer today moves faster than anyone ever expected they could.  Brands and retailers have had to become more tactical in their approach to serving the needs of this new consumer.  It appears that some have made very strong inroads in addressing that new reality.”


The SportsOneSource Group has also just released the 2008 ‘How America Shops’ report, revealing Americans’ shopping habits for the sporting goods industry. For more information on the study, please contact SOS Research at 704.987.3450 or email Research@SportsOneSource.com.


The SportsOneSource Group is the leading business-to-business information delivery platform serving the Active Sports Lifestyle Market.  The company focuses on four main business groups:  Media, Research, Events and Careers.  For more information regarding these services, please visit www.SportsOneSource.com or contact The SportsOneSource Group at 704.987.3450.