Though the NBA season finished with strong sales results, weakness early in the 2006/2007 season resulted in weak overall growth at retail when compared to the 05/06 season. Overall sales of NBA licensed product grew in the low-singles, according to retail point-of-sales data compiled by SportScanINFO, with strong gains in Licensed Hardgoods offsetting a low-single-digit decrease in Licensed Softgoods. SportScanINFO measures the NBA season based on retail sales results from the 2006 third and fourth quarters combined with the current year-to-date period. On a chronological basis, sales for Softgoods built throughout the season with Q4 larger than Q3 and YTD largest of all, but Hardgoods saw sales peak in Q4 and fall off during the YTD period. Most likely, the Hardgoods trend can be attributed to sales during the Holiday season, while Softgoods sell more during the postseason.
Not surprisingly, the champion San Antonio Spurs saw one of the highest growth rates in the league, ending the season with dollar sales up more than 50% from the year-ago season. This rate came on a slight average selling price decrease as units outpaced dollars sold. During the YTD period, the Spurs saw sales more than double in dollars, after a flat Q4 and a strong Q3.
Lebron James and the Cleveland Cavaliers were not far behind in the YTD period, but sales decreases in Q3 and Q4 tempered the growth to give the franchise a high-teens overall sales growth number for the season. Still, the Cavs sold more merchandise than the Spurs on an absolute dollar basis, taking a larger market share.
Categorically, the league saw success in Hardgoods with House and Home Products and Balls/Inflatables both more-than-doubling for the season. However, the Hardgoods market accounts for a minor portion of the leagues sales with Softgoods taking a far larger share. Within Softgoods, the NBA saw mixed results as several of the smaller categories saw strength, but just as many of the large categories faltered.
The leagues two largest categories, Jerseys and Headwear, both saw sales decreases for the season, down in the mid-singles and low-20s, respectively. The softness in Headwear has been widespread in the licensed market with several retailers reporting difficulties with the category. Jersey sales were actually up for the YTD period and the playoffs, but not enough to offset a steep decline in Q3 and softness in Q4. T-shirts sold well for the season, up in the mid-teens with a strong ASP increase to boot.
Though the NBA had tough spots this season, one of the most stacked draft classes in more than a decade has fans excited, which should drive sales at retail come next fall.
