According to the Sporting Goods Manufacturers Association (SGMA), wholesale sales of sporting goods equipment, sports apparel, and athletic footwear were slightly stronger in 2005 than they were in 2004. In ’04, sales were $52.2 billion. In ’05, they rose to $55.7 billion – a 6.8% jump. In 2006, sales are projected to reach $59.5 billion – about a 7% gain in sales.

The renewed popularity in sports brands for both fashion and performance were largely responsible for the surge in sales last year, noted SGMA President Tom Cove, who announced the results at the “State of the Industry” luncheon during The Super Show®, the sporting goods industry’s annual trade show (January 23-25; Orange County Convention Center – North/South Complex; Orlando, Florida). The sporting goods industry includes sports apparel, athletic footwear and a wide range of equipment for sports, fitness and outdoor activities. Overall sales of these items have been generally flat for several years because of the weak economy, stalled participation rates in many sports, and an increased interest in sedentary attractions. Wholesale shipments of sports apparel, defined as “apparel designed for, or that could be used in, active sports,” rose by 9% to $26.1 billion. What’s significant is that consumers purchased more units of sports apparel and paid more for them. The leading activities for sports apparel usage are walking, running, basketball, golf, and baseball/softball. While the blend of performance and fashion is driving sports apparel spending, consumers are also purchasing casual, comfortable clothes that can be worn for a variety of occasions. About one-third of all sports apparel purchases are private label.

Athletic footwear shipments were also up by nearly 9% to $10.9 billion. Fueling growth were more sales in low-performance, fashion-oriented shoes and expensive, high-performance models. The shoe category which was especially strong was the ‘sport fusion’ sneaker. Those are low-performance, high fashion-oriented shoes which command a high-performance price. The athletic footwear industry’s biggest consumers are in the 13-24 year-old age group. They continue purchasing the highest end shoes and are more likely to pay full retail prices for them. This age group accounts for one-third of all athletic footwear purchases. Fitness equipment experienced an increase of 6% to more than $4 billion. About 80% of sales were for the home market. The market for fitness-related products is expanding as baby boomers age. In 2006, this segment of the population of 77 million people will be 42 to 60 years old. Boomers are concerned about remaining healthy. They are a prime market for health club memberships and home exercise equipment. The top five fitness-related pursuits are free weights, treadmills, stretching, fitness walking, and running/jogging. A recent study indicated that the number of Americans who exercise frequently grew from 51 million to 57 million between 1998 and 2004. And, more than 50% of them are female.

Golf equipment sales rose slightly to $2.6 billion from $2.5 billion. More than half of all golfers have been playing the game for at least a decade. About 30% of all golfers say golf is their favorite sport to play. The National Golf School Program is being taught to PE teachers who can then teach their students to play golf during PE class.

Despite the decline in sales of “retro” jerseys and the NHL strike, overall sales of sports licensed merchandise were very strong last year – more than $13 million at retail, according to The Licensing Letter.

Two smaller categories within equipment, tennis and soccer, continued their upward trend in sales. Both grew by more than 10% in 2005. Tennis equipment sales were $244 million and soccer reached $252 million. Tennis equipment sales are expected to reach $256 million in ’06 and soccer gear is expected to reach $291 million this year. Tennis participation has strengthened in recent years, according to surveys sponsored by SGMA International.

Cove said that except for fitness and exercise, participation in most sports and outdoor activities has been stable or in decline for at least 10 years. Team sports have lost millions of casual players, but have retained a strong core of frequent players. Participation in many organized team sports has increased while pickup play has declined sharply. More youngsters play team sports in an organized setting than play them in casual settings. The age which attracts the most children to team sports is age 11.

Within the “State of the Industry Report” are individual editorial sections on a number of sports/activities such as baseball, basketball, billiards, bowling, football, golf, in-line skating, lacrosse, outdoors (hiking/camping/etc.), skateboarding, softball, tennis, and volleyball. There’s also a special section on sports licensed products. Cove called on industry members to continue to work cooperatively to promote physical activity and sports participation. He said that many industry segments-including tennis, golf, softball, bowling and billiards-have such marketing programs underway and they have proven to be effective.

SGMA International has published its annual report, “The State of the Industry 2006,” which discusses business and participation trends in detail. It may be obtained at www.sgma.com.