Sport Footwear Reaches $20 Billion Mark in 2010

 

Fast forward 12 months and the market is experiencing a bit different view as momentum builds in lightweight and barefoot product across a growing number of categories while Toning is unfortunately, as least for a few brands that were heavily invested in the rocker bottom look, dealing with markdowns and inventory issues despite still very strong growth trends.

Based on retail point-of-sale data compiled by SportScanInfo, sales for the 2010 retail fiscal year ended January 29, 2011 improved in the high-single-digits in dollars and mid-single-digits in units, yielding a mid-single-digit increase in average selling prices for the year. Sales of Sport Footwear surpassed the $20 billion mark for the first time in fiscal 2010.

The biggest percentage increase for the year came from the Internet/Catalog channel, with sales up in the mid-teens.  Family Footwear grew in the low-teens, leveraging the Toning trend earlier.  The Athletic/Urban Specialty business improved about 10% on strong growth in Lightweight Running, Toning and some well-timed Basketball launches, while the Full-Line Sporting Goods channel grew in the high-single-digits for the year. Overall, men’s product sales grew in the high-single-digits on Lightweight Running strength, women’s grew in the low-teens on the Toning growth and the kids’ business grew in the low-singles for the year.

The category growth for the year came from Toning, Running (primarily Lightweight Running) Basketball and Sandals.  The growth in these categories more than offset weakness in the Casual categories such as Lifestyle Fashion Athletic, Classics and Skate.

The Toning business, despite its black eye in the third and fourth quarters, still grew roughly four-fold in 2010 and exceeded $1.1 billion in total sales, or 5.5% of all Sport Footwear sold. Toning was dominated by Skechers (60% share) and Reebok (33% share). 

The share gap between the two brands narrowed as the year progressed. Late-comer New Balance had a 2.5% share in Toning at year-end.

Running sales were up in the high-teens for the year, again on the strength of the Lightweight category. Total Running sales approached $6 billion in 2010. Lightweight Running grew about seven-fold and was about 11% of total Running sales — a share percentage that is expected to rise in fiscal 2011 after hitting 20% contribution in the month of January. Lightweight Running was about $650 million in 2010 and accounted for roughly 60% of the increase in the overall Running category for the year.

The core running brands all had double-digit growth, with Brooks taking the top share spot at running specialty for the first time in 2010 and Asics broadened its distribution to expand the business.  Reebok running (3% share) grew nearly 5x for the year on the strength of the Zigtech product.  Puma (3.4% share) and New Balance (8.2% share) both had solid increases while Adidas running (3.8% share) declined, although the Adidas trend improved late in the year. K-Swiss running grew more than four-fold off of a small base.

Basketball was roughly a $2.5 billion business in 2010, increasing in the low-teens, with Nike basketball (23% share) up more than 30% for the year. Jordan brand (70% share) grew in the mid-single-digits at retail.  Adidas grew in the low-singles while Reebok basketball improved in the low-teens.

The sandal business came back stronger in 2010 on decent spring weather and rising average selling prices that fueled sales growth in the low-teens.  In athletic, Nike made a big share grab in Sandals and Adidas lost share in the Sport Sandals category.  Sandal sales hit $1 billion this year. Crocs is definitely back as a viable fashion brand, as they diversify away from the original core items beyond sandals.
Training grew in the mid-singles. mostly on price-point white leather footcovering, but the business also got a lift (in sales and ASPs) later in the year with the addition of some lightweight product in the category at retail.  Training sales also hit $1 billion in 2010.  Nike had a 52% share and New Balance a 33% share – and both had double-digit growth.  Under Armour Training share fell 300 basis points to 3.4% of total sales.

The Casual Athletic business, represented by Lifestyle Fashion Athletic and Classics, accounted for $3 billion in sales in 2010, making it the second largest category after Running.  Classics styles that have never gone out of the assortments, like Air Force 1, Chuck Taylor, NB 574, Superstar and Princess, represented about $1.2 billion in sales in 2010, while Lifestyle, which is basically everything else that is low-tech or no-tech and athletically-inspired, was about $1.8 billion for the fiscal year.
Lifestyle Fashion Athletic declined in the mid-single-digits for the year, with every major brand showing declines. Nike had 30.5% share and Skechers 27% of the LFA business.

Classics sales declined in the high-singles, with Adidas posting a small increase, New Balance doubling their business and all other brands declining.  Nike had a 49.3% share of Classics; Adidas, 12.9%; and Converse, 20% of a business dominated by AF1’s, Superstars and Chuck Taylors.

Skate Footwear sales declined in the high-single-digits, with every major brand except Vans showing large pull-back in sales. In the retailers tracked by SportScanInfo, skate sales were $1.2 billion in 2010, but double that level when including skate shops and other specialty doors.