Industry News 3/10/2014

B$Z: January Snow Sports Sales Results Reflect Recent Weather Patterns

January Snow Sports Sales Results Reflect Recent Weather Patterns
"This season, we project that consumers will spend more than $3.5B this season on equipment, apparel and accessories in the snow sports market."

Press Release from SIA

Washington, DC (March 10, 2014) -- SnowSports Industries America (SIA), the snow sports industry’s member-owned trade association, and Leisure Trends, an NDP Group Company have released SIA RetailTRAK™ numbers for August 2013 through January2014, total market projections are based on data collected from the Point of Sale systems of more than 1,200 snow sports retailers.

The snow sports retail market finished January up 4 percent in units sold and up 7 percent in dollars sold to $2.8B for all equipment, apparel and accessories. Snow Sports retailers brought in $178M more dollars through January this season compared to August to January 2012/2013 despite weather conditions that disrupted snow sports retail markets.

Drought conditions in the Pacific West and record cold snaps (Polar Vortex) in the Northeast, Midwest, Mid-Atlantic and as far south as Baton Rouge, Louisiana had both positive and negative impacts on snow sports retail sales in January. In fact, compared to January 2013, sales in January 2014 were down 7 percent in equipment sales, down 12 percent in apparel sales, and up 10 percent in accessories sales.

“When the temperatures dip well below normal consumers who will never see a slope or a trail may head to snow sports retailer for gloves, hats, and apparel tops that will help them weather abnormally frigid temperatures,” said Kelly Davis, SIA director of research.

Leaner inventory levels are another key factor at work in the snow sports market this season. Equipment inventories are 10 percent lower through January and apparel inventories are down 11 percent overall.

“Scarcity is healthy for the market,” Davis said. “Scarcity results in higher margins and diminishes the need for discounting in the middle of the season putting more money into retailers pockets and increasing open-to-buy budgets.”

Average retail prices are 2 percent higher in equipment, 6 percent higher in apparel, and 6 percent higher for accessories through January. Margins are up 3 percent in equipment, up 3 percent in apparel, and up 4 percent in accessories. This bodes well for February and March specialty sales.

Overall Snow Sports Market Sales through All Channels August through January 31, 2014
•Equipment Sales- $670M, up 4 percent in dollars sold and up 5 percent in units sold
•Apparel Sales- $1.2B, up 3 percent in dollars sold and up 2 percent in units sold
•Accessories Sales- $952M, up 14 percent in dollars sold up 10 percent in units sold

Notable Trends
Alpine Touring/Randonee equipment continues to enjoy significant increases in sales, through January AT equipment sales increased 11% in dollars sold and 11% in units sold.

Sales are up again in alpine/AT hybrid boots defined as alpine DIN boots with a walk/ski mode that can be converted (but many consumers never do convert them) to an AT/Touring sole for Backcountry. These boots are categorized separately from boots sold in the AT category; AT boots that are sold with backcountry blocks and are used most often in backcountry terrain are categorized separately from alpine equipment. Sales of alpine/AT boots are up 21 percent in units sold to 68,000 units sold, and up 21 percent in dollars sold to $27M. Alpine/AT boots make up nearly 15 percent of dollars sold and 11 percent of units sold in the alpine boot market so far this season.

Overall, sales of AT/Randonee equipment are up 11 percent in units sold and up 11 percent in dollars sold to $13M. AT boot sales are up 3 percent in units sold and 12 percent in dollars sold, and AT binding sales are up 15 percent in units sold to 18,700 units, and up 12 percent in dollars sold to $7M through January.

Women are getting prepped to hit the trails. Sales of women’s specific cross country equipment increased 37 percent in units sold and 32 percent in dollars sold to $4.8M through January. Overall, sales of cross country equipment were up 13 percent in both dollars and units sold.

More girls are getting snowboard equipment this year. Junior girls snowboarding equipment sales grew 21 percent in units sold and 22 percent in dollars sold through January. Overall, snowboard equipment sales are flat in dollars sold to $202M.

Backcountry accessories sales including beacons, probes and shovels increased 17 percent in dollars sold and 12 percent in units sold through January. Beacons led the way with a 16 percent increase in units sold to 15,630 units through January.

Sales of protective gear including pads, wrist guards, and general impact gear increased 19 percent in units sold and 27 percent in dollars sold to $3.2M through January.

Sales of action cameras were up 13 percent in units sold to 91,500 cameras and up 27 percent in dollars sold to $31M through January.

Davis said, “Action cameras may be the single most popular accessory in the snow sports market right now.”

Alpine insulated parka sales were up 19 percent in dollars sold to $309M and up 13 percent in units to 1.7M parkas sold between August 1, 2013 and January 31, 2014 in snow sports channels.

Sales of selected apparel accessories including mittens and gloves, baselayer, headwear, neck gaiters, and masks increased 16 percent in units sold and 14 percent in dollars sold to $373M through January.

Snowshoe sales are up 5 percent in units sold to 75K units and 6 percent in dollars to $11M sold through January. Snowshoe inventory levels are down more than 30 percent and various popular models may become very difficult to find later this season.

Conclusion
2013 2014 snow sports sales are healthy through January despite drought conditions in the Pacific West, and record cold temperatures in the Midwest, Northeast, Mid-Atlantic and the Deep South. February brought snow to the Pacific west, although not enough to stave off many impacts of the drought, and cold weather and snow persisted for much of the lower 48 states. Overall, the snow sports market has more than 19M participants in skiing, snowboarding, cross country skiing, snow shoeing, telemark and alpine touring. This season, we project that consumers will spend more than $3.5B this season on equipment, apparel and accessories in the snow sports market.

SIA releases the top line results for snow sports retail seven times each season from November to May covering results of retail sales made between August 1 and March 31 each season. Topline/category retail sales data for the snow sports market is available as a member benefit to all SIA members. In addition, you gain free access to topline data for the Running, Outdoor and Paddle Sports when you register. The topline data is accessible on a 24/7/365 basis on Leisure Trends Cross-Industry RetailTRAK™ data portal. Non-SIA members may subscribe to the topline portal for just $375 per year.

SIA RetailTRAK™ Data 2013/2014 Season Release Schedule
•November 7, 2013 August – September
•January 7, 2013 (est.) August – October
•January 5, 2014 (est.) August – November
•January 31, 2014 August – January
•March 5, 2014 (est.) August – January
•April 5, 2014 (est.) August – February
•May 6, 2014 (est.) August – March

For more information about snow sports research and market intelligence products including retail, wholesale, consumer, participation, and special reports please contact Kelly Davis, SIA director of research, at 703-556-9020 or by email at KDavis@snowsports.org.

- SIA -
Celebrating its 60th anniversary in 2014, SnowSports Industries America (SIA) is a nonprofit member-owned trade association with a long history of working to support the snow sports industry. SIA works year-round with North American snow sports suppliers, retailers, reports, reps and service providers to develop products and programs for their individual and collective business needs. With member support and industry participation, SIA annually hosts the industry's largest core winter sports trade show, the SIA Snow Show, along with the On-Snow Demo/Ski-Ride Fest and the Sourcing Snow supplier show. SIA also helps retailers and resorts connect with snow sports participants around the country through Snowlink.com. Learn more at Snowsports.org.