Early Snowfall Has Clear Impact on Both Chain and Specialty SnowSports Retail…

If there were any remaining doubts concerning the 2005-2006 SnowSports season, they are surely laid to rest after two strong early season months at retail and continued snow throughout the Sierras, Cascades, Rockies, and Northeast. Even the few resorts in the Southeast have seen relatively strong early seasons. According to SIA’s retail audit, SnowSports sales from August through November of 2005 increased 8% to $697 million. Both Chain and Specialty retailers drove the growth with overall average selling prices remaining relatively stable compared to last year.

Chain SnowSports retailers experienced a healthy growth rate for the August – November period. Overall sales of SnowSports equipment and apparel increased 7% in units and 8% in dollars. While ASP’s at Chain retailers remained stable, this is in sharp contrast to the increases we saw last year, and several key equipment categories actually saw their ASP’s decline considerably. Alpine Equipment ASP’s fell 11% for the period to $128, causing sales to inch-up only 2% in dollars with a 15% increase in units sold. Snowboard Equipment ASP’s fell 9% for the period.

Like Specialty Stores, Chain Stores saw considerable increases in the sales of Integrated Ski Systems, Adult Recreation boots, Snowboard Equipment, and Apparel.

While Specialty Retailers are seeing a healthy decline in their carryover equipment sales, chain retailers had a difficult time getting rid of their Alpine inventory last season.

Carryover sales of skis increased 38% and boots increased 10%. Snowboard was a different story for Chain retailers, and they saw some healthy declines in carryover sales in this category. Chain stores are not seeing any benefit from the early adopters of Nordic jibbing or even Nordic enthusiasts. Total Nordic equipment sales fell 40% in chain stores so far this year.

In Specialty Stores, integrated ski systems continue their rapid increase in market share with a 27% sales jump.

The twin-tip phenomenon continues this year with more manufacturers and more brands selling product than ever before. The number of twin-tips sold jumped 59%, while the revenue produced increased 54%. Nearly one-third of all twin-tips are already sold and unless manufacturers have some at-once inventory available, SIA is projecting shortages at retail by spring.

While alpine skiing is seeing a resurgence, in part due to twin-tips, the cross-country and Nordic market is seeing some of the same. With the advent of Nordic jibbing, the younger generation is beginning to take notice of skinny skis again and the sales are following.

Overall Snowboard sales increased 7% with Freestyle and Freeride boards showing strong gains, while All Mountain boards continued to decline. Boots’ sales increased 6% with higher ASP’s this year compared to last, while bindings’ sales bumped up 10%.

Apparel managed to achieve double-digit growth so far for the year-to-date with $180 million sold through specialty retailers. The increase was driven by several categories but women’s specific product seems to be the primary catalyst this year.