Heavy snow in California, Utah and Colorado since mid-December is helping specialty retailers recover from a dreadful holiday season.
Last week, Jarden Corp. said reports of weak snow-sport sales compelled it to report that is own products were meeting expectations. Jarden Outdoor Solutions winter sports brands include K2, Marmot and Volkl. Citing “strong early snow conditions,” Jarden Chairman and CEO Martin Franklin said, “we anticipate a healthy finish to the 2007/2008 winter sports season and overall organic revenue growth in our Outdoor Solutions segment in the first quarter of 2008
In the same way that the poor 2006/2007 snow conditions created an overall reduction in 2007/2008 winter sports sales, we believe that the positive momentum in our business for the 2007/2008 season bodes well for the sell-in for the 2008/2009 season.”
The trend was somewhat reversed in New England, where the snow came early and was followed by the usual January thaw. Near Burlington, VT one ski resort opened its auxiliary mountain by Thanksgiving for the first time in recent memory and all mountains were opened by mid-December, said Gribbin Loring, general manager of The Climb High Store.
“We had a ton through November and December and December was really cold,” Loring said. “Even the ice climbers were psyched. We definitely are not experiencing the national trends.”
The Climbing Wall easily beat last years sales. Loring described inventory levels as healthy, in part because he ordered conservatively during last years warm winter and has been relying more on ASAP orders this season. He was also able to carry over product from a year ago that was redesigned.
He said this years early snow and the companys new online clearance outlet would probably cause him to order with more confidence for next season. He said the stores new website had an “incredible” impact on the business, by allowing it to move a lot of soft goods.
In Olympia, WA, by contrast, Alpine Experience expects its hard goods sales to be even with last year and soft goods sales to be up maybe 5%, said Joe Hyer, a member of the family that owns the store. Sales of Nordic, alpine and backcountry skis were weak because snow did not reach the closest ski area until the second week in December.
At online retailer backcountry.com, CMO Dustin Roberston described the fourth quarter as “grim.”
“This winter was worse from a retailers standpoint because it did not get cold until late,” he said. “Even though it was cold in Burlington, that did not influence anyone in New York where people were wearing t-shirts and not buying anything.”
Backcountrys winter inventories remained higher than planned last week, but product was selling briskly. Prices and margins had rebounded and were holding after falling in early December.
“January has been nice,” Robertson said. “Inventory is selling at full margin. Whats good is the volume.”
He said because backcountry.com is growing so rapidly, the lack of early snow did not affect its orders for next season.
“But I bet a lot of small retailers will have trouble increasing their orders or even keeping them flat from last year,” Roberston predicted.
