The SnowSports Industry launched into the 2004-05 season with solid pre-season sales fueled by good snowfall in the western states, particularly the Sierra. According to the SIA and The Leisure Trends Group, total industry sales increased 3.0% to $323.3 million for the August-October period of 2004, compared to $313.7 million reported last year.
In looking at the numbers, three big trends are emerging this year. First it is evident that chain store average selling prices-and hopefully margins – are benefiting from the decreased competition as a result of consolidation. Second, free-style, or “New School” skiing, is breathing new life into the sport, and finally, both specialty and chain retailers kept their inventories lean through the off-season, cutting the number of carryover sales and hopefully boosting overall margins.
Chain SnowSports retailers were able to boost the average selling price in nearly every category, with the only exception being telemark equipment. The total number of units sold through Chain retailers dropped roughly 4% but dollar sales increased 12.3%.
The second major trend evident in the Retail Sales Audit is the astronomical growth in Freestyle Ski Equipment. At Specialty retailers, Twin-Tip Ski revenues increased 72%, but unit sales increased 85%.
Finally, carry-over sales plummeted in just about all categories at Specialty and Chain retailers. At Chain stores, carry-over sales of Alpine Skis fell 28%; Bindings fell 40%; and Snowboards fell 48%. Cleaner inventories at retail at the end of last season and less carry-over inventory at the vendor level are clearly potential reasons for this shift, a new reality that points to another reason why ASPs were higher at Chain stores and could be seen as a positive for retail margins.
