The U.S. sports retailer business was a bit of a mixed bag in the first quarter as early numbers from the public companies started to come in over the last two weeks. Dicks Sporting Goods and Big 5 Sporting Goods both posted solid comp store sales gains in the mid-single-digits for the first quarter, while Hibbett Sporting Goods saw comps dip ever so slightly below the flat line for the period. Foot Locker appears to be back on track in the U.S. even as Europe puts a drag on both sales and profits for the worlds-largest-athletic-specialty-retailer, but The Finish Line continues to see enough challenges in their business in the mall to force them to offer reduced guidance for the balance of the year.
There is clearly a shift in the mall as Foot Locker gets Footaction up to speed and all units take advantage of larger allocations of Nike marquee product. The strength here may be having an impact on both Finish Line and Hibbett as consumers spread their dollars around when searching for marquee and launch product in the mall. The other impact in the mall is clearly the shift in womens consumer preference away from performance athletic footwear towards sandals and low-profile fashion athletic looks. She is finding that product more readily at the family footwear retailers and other formats that provide more casual looks.
Based on recent POS retail sales data compiled by SportScanINFO for the retail first quarter through April, total sports footwear sales rose in the mid- to high-single-digit range in the Sports Retailer sector, which includes sporting goods, athletic/urban specialty, sport specialty, and Internet/catalog retailers. Average selling prices were up in the low-singles and unit volume was up in the mid-singles. Unit sales of athletic footwear over $90 were up nearly five-fold versus the first quarter last year. By gender, the mens and womens businesses were both up at about the same rate, but womens benefited more from sales growth outside of sporting goods and the mall. The childrens business was roughly flat in the sports footwear categories.
On a category basis, it was basketball and classics that saw continued downward momentum for the quarter, while fashion athletic, running, sandals, and skate footwear all posted significant gains.
One caveat to the decline in classics and the increase in running is the impact of average unit retail on the trend. In classics, the value classics business is clearly the culprit for a mid- to high-single-digit decline for the period, with shoes selling for less than $40 posting a decrease in sales of more than 50%, while classics priced over $60 saw sales increase in the mid-teens for the quarter. The same was true for running, where the mid-teens increase in sales for the category was primarily driven by a triple-digit increase in sales for product over $90, while sales of running product under $60 declined by nearly 40% for the period.
The Sports Retailer sector appears to finally be waking up to the opportunity in skate, with sales for the category nearly tripling versus the same period last year as retailers recognize that the category offers a significant lifestyle component for their younger consumers, while more urban consumers couple the look with baggy jeans for a counter-low-profile look.
In apparel, the SportScanINFO data indicates that the Sports Retailer sector posted growth in the low-teens, again benefiting from higher average unit retail prices and increased unit sales. Performance apparel, which includes all compression and moisture-management product, was up in the high-20s for the period as the consumer opts for technical fabrications for their casual lifestyle. No where is the trend more evident than it is in t-shirts where sales of product under $15 were down more than 35%, while sales of t-shirts over $20 were up in triple-digits.
In the shorts category, the consumer is moving to more of an outdoor look. While sales of all shorts were up in the mid-teens, sales in the hiking/outdoor/adventure category were up more than 40% for the quarter. Walking/casual shorts were down in the mid-teens. The swimwear category was up in the low-teens for the quarter, while camouflage apparel rose in the mid-single-digits. Uniform sales were up in the mid-teens.
The licensed products business was up in low-single-digits for the period, which would reflect a decline on a comp store sales basis. The business was driven by headwear and Major League Baseball, as well as the return of the National Hockey League to the market this year. The SportScanINFO data indicates a high-double-digit increase in the MLB business for the quarter, while the NHL business was up in triple-digits and the NFL rose in the low-teens. The NBA business was down more than 50% in the Sports Retailer sector, according to the POS data. The college business was up in the low- to mid-singles for the period as sharp declines with old Final Four favorites like Duke and North Carolina were offset by a Florida business that nearly doubled versus last year. USC and Texas were also on the upside, reflecting their run to the BCS championship game.
Licensed headwear sales were up in high double-digits for the quarter.
In accessories, watches trended down for the period in the sector, while sunglass sales moved higher.
>>> Look for a top-line analysis of the hardgoods sector from The SportsOneSource Group in next weeks issue of SEW
