Early signs of a turnaround for Outdoor Apparel, Footwear and Hardgoods reported in July may have been premature as August looks to be another flat month for retailers who do business in the sector. The annual back-to-school boost, which usually starts in August for many outdoor retailers, was certainly slower to start this year as consumers are still in “wait and see” mode, in spite of some faint signs of a silver lining for the economy.
According to retail point-of-sale data compiled by SportScanINFO, sales of outdoor apparel, footwear and hardgoods declined 0.8% in August compared to the same month last year. Likewise, sales in July were flat compared to the same month last year. With two months of relatively flat sales there is some improvement over the mid-single-digit to double-digit sales declines the outdoor sector has seen throughout much of the first half of the year. Like many broad-market economic indicators, sales in the outdoor industry were “less bad” in July and August than in some time.
In addition, many retailers are up against difficult comps from August of last year, when Labor Day fell a week earlier, on September 1. “August was about dead even with last year, but last year’s August was VERY strong for us, then the bottom dropped out in September,” said Joe Hyer, owner of The Alpine Experience in Olympia Washington. “We are seeing modest back-to-school sales, but this calendar year puts Labor Day on 9/7, so our schools don’t start until 9/9. Much of our back-to-school happens in the two weeks before school, and that is just starting. In addition, our local colleges don’t start until late September, so that bump is also September.”
Outdoor Apparel sales benefited from back-to-school shoppers the most and increased in the high-single digits for the month of August compared to the same period last year. While the wet, cool summer dramatically slowed sales of Spring/Summer Outdoor Apparel during the first half of the year, August saw a strong sales increase in this category. The strongest Outdoor Apparel category in August was Outdoor Outerwear, which showed strong double-digit increases as parents and kids prepare for the new fall semester. Raingear led the category but Jackets/Parkas, Sweaters, Vests and Gloves all showed high-single digit increases for the period.
Outdoor Tops and Shirts were relatively flat, with the biggest increases coming for Short-Sleeve Casual Shirts. Shorts and Bottoms in general saw several strong sellers including Running, Yoga, and Boardshorts. Outdoor/Adventure Travel Shorts were up in the mid-single-digits and Outdoor Skirts/Skorts and Dresses were up in the low-double-digits.
Outdoor Footwear sales are seeing some benefit from a broad market fashion shift to outdoor and brown footwear categories. Sales in the category were up in low-single-digits for the month, but growth was held back by slow sales of outdoor sandals. Excluding sandals from the mix, outdoor footwear sales increased in the mid-single-digits. The category also saw some boost from back-to-school sales and tax-free holidays in many states.
“The North Carolina tax holiday fell right in line with back-to-school sales, which was helpful to an extent,” said Phil Hoffman, owner of Looking Glass Outfitters in Brevard, NC. “Shoes under $100 were not taxed so we saw movement.”
The two strongest Outdoor Footwear categories for the month were Outdoor Casual and Light Hiking, followed closely by Approach/Multisport shoes. Winter Boots also has some strong results for the month off of a lower base, although average selling prices were lower as retailers tried to clear out carryovers from last season to make room for the new fall merchandise. Technical Hiking footwear sales were down in double-digits.
Outdoor Sandals had a slow month in August — and a slow summer in general — thanks in part to a slowing brand that had boosted average selling prices and sales the last few years. However, Water Sandals and Flip Flops both saw strong results for the month.
Sales of Performance Trail Running Footwear were flat for the month but average selling prices were up over 12% to just over $80 per pair.
Outdoor Equipment sales were also impacted by the slow start to the back-to-school season in August, and slipped 2% for the month. Sales of Lifestyle Packs and Bags declined in the double-digits for the month while sales of Technical Packs increased. Hydration Packs also saw a particularly strong month across all sub-categories.
Climbing hardwear, smaller items and accessories were also strong, with both Plastic and Metal Water Bottles showing the strongest growth for the month. “Being a destination shop in a rural county it is very tough to track demographics and top sellers tend to be interesting at times. In August we saw a spike in climbing rope sales” said Hoffman.
“Headlamps, stove fuel, waterbottles, etc. were also strong. We usually see quick turn over in this category. August was particularly good for water purification filters, tablets and drops.”
Tent sales were slowed considerably by double-digit declines in Family Camping Tents. However, this was partially offset by strong growth in 2-person and 3-person backpacking tents. Down Mummy Sleeping Bags were also strong in August while all other sup-categories of Sleeping Bags showed declines.
Paddlesports sales were up in the low-single-digits with all three sub-categories Kayaks, Canoes and Accessories/Equipment – showing little growth in spite of clearance pricing. Hyer suggested that, “Paddlesports, after the initial March/April from core users was slow all season boats aren’t cheap, so the economy came into play but we have moved most of the inventory and we were off-price ALL during August to make this happen.”
The new thrift mentality that has replaced conspicuous consumption is playing into the high quality, value proposition that many outdoor brands consider core to their identity. With relatively flat sales, and very lean inventories at many retailers, the outdoor market is ready for the economy to rebound.
