April/Q1 Athletic Footwear Executive Summary

April/Q1 Athletic Footwear Executive Summary

The late Easter helped push April sales trend up into the mid-single digits, although results were dampened by the severe weather in the South and Mid-west late in the month.

Sales of Sport Footwear for April 2014 grew in the mid singles in dollars and units resulting in a flat performance in average selling price
Kids’ shoes grew in about 20%, while men’s sport footwear declined in the low singles and women’s sport footwear grew in the high singles. The women’s trend is a reversal from previous trend and was  driven by Skechers, Nike and, to a lesser extent, Under Armour
Basketball sales grew more than 20% on the continued strong Marquee business
Running sales were up high singles (an improvement from earlier in the year), as the weather became more favorable for getting outside.
Men’s Sport Footwear over $100 grew in the low teens.  Men’s Sport Footwear under $100 declined in the low singles.

April 2014 Footwear sales by channel
Sales of Sport Footwear on the internet grew in the low teens and represented 9% of all sneaker sales for April.  Sales in physical stores grew in the mid singles
Sales in Full Line Sporting Goods and Athletic Specialty grew in the low singles.
Sales in the family channel grew in the low teens, on strong results from Skechers and Nike. This result was a massive improvement from February and March
Run Specialty grew in the mid singles
Sales were best in the New England and Mid-Atlantic, where pent up demand was likely greatest and worst in the South Central and the Mid-west, likely impacted by the late severe weather.

April 2014 Brand Share
Nike had a mid-single digit gain with share at 46.7%.  Jordan improved in the high singles in sales and gained about 250 basis points in share to 11.8%; Converse had a decline with a 2.8% share. Nike Inc. had 61.3% share in sport footwear sales, the highest we’ve ever recorded for April
Adidas sales for April were down in the high teens, as share slipped to 6%.  Reebok sales declined about -25% on a 1.5% share.  Skechers has a nearly 50% gain with 4.4% share, to #5 market share position.
The core running brands gave a mixed performance.  Asics was flat with 4.2% share.  New Balance continued to struggle.  Under Armour had a 25% increase, with 3.1% share.  Brooks grew in the high single digits. Mizuno and Saucony both had declines.

April 2014 Top Selling models
1          JORDAN 11 LOW                     $128.76
2          NIKE AIR FORCE 1 LOW          $89.07
3          NIKE AIR MONARCH IV           $49.69
4          NIKE FREE 5.0+                        $90.79
5          W NIKE FREE 5.0+                   $90.69
6          NIKE FLEX RUN 2013              $66.20
7          NIKE ROSHE RUN                    $70.51
8          Jordan 2                                  $148.76
9          W SKECHERS GO WALK          $46.51
10        W NIKE REVOLUTION 2          $46.01
11        CONVERSE ALL STAR OX         $43.80
12        NIKE AIR FORCE 1 LOW          $88.31
13        W NIKE COMFORT THONG     $25.00
14        W NIKE FLEX RUN 2013          $66.80
15        K JORDAN 11 LOW                  $114.09
16        JORDAN 9                                $168.76
17        JORDAN 11 LOW                     $149.40
18        K UA LEADOFF LOW               $25.29
19        NIKE AIR MAX 2014                $170.51
20        W NIKE FLEX TRAINER 3         $51.08
21        NIKE SB ZOOM STEFAN           $77.08
22        K Converse ALL STAR OX        $42.23
23        NIKE KD 6 EASTER                   $128.61
24        K Nike AIR FORCE 1 LOW       $74.14
25        NIKE AIR FORCE 1 MID           $93.13

Of the top 250 models for April 2014:

Nike had 137
Jordan, 31
Skechers,18
Adidas, 14
Asics, 12

Q1 2014 Footwear overview
Weather played havoc with Q1 sneaker sales, cold and snowy early and then tornadoes and thunderstorms late.
Sales of Sport Footwear for Q1 2014 grew in the low singles in dollars and declined slightly units resulting in a low-single digit increase in average selling price
Kids shoes grew in the mid-teens, while men’s and women’s sport footwear declined in the low singles
Basketball sales grew in the high teens
Running sales were up low singles
Men’s Sport Footwear over $100 grew in the high singles. Men’s Sport Footwear under $100 declined in the mid singles.

Q1 2014 Footwear sales by channel
Sales of Sport Footwear on the internet grew in the low-teens and represented 11% of all sneaker sales.  Sales in physical stores grew in the low singles. The internet continues to take sales from brick-and-mortar
Sales in Full Line Sporting Goods and Athletic Specialty grew in the low singles.
Sales in the family channel declined in the mid singles, as they cannot participate in the robust Marquee basketball trend
Run Specialty grew in the high singles
Sales were best in the Southeast and Southwest and worst in the Rockies and New England

Q1 2014 Brand Share
Nike had a mid-single digit gain with share at 46.3%.  Jordan improved 20% in sales and gained about 250 basis points in share to 15.4%; Converse had a decline with a 2.5% share. Nike Inc. had 64.2% share in sport footwear sales, again the highest we’ve ever recorded for the period.
Adidas sales for Q1 were down in the low teens, on a very weak Casual trend and share slipped to 7.1%.  Reebok sales declined about -25% on a 1.7% share.  Skechers has a 25% gain with 3.3% share, moving Skechers into #5 market share position, ahead of New Balance.  Skechers is the hottest major brand in the US.
The core running brands gave a mixed performance.  Asics had a flat performance with 4.2% share.  New Balance continued to struggle.  Under Armour had a high singles digit increase, with 2.3% share.  Brooks grew in the low teens. Mizuno and Saucony both had declines.

Q1 2014 Top Selling models
1          NIKE AIR FORCE 1 LOW          $89.26
2          JORDAN RETRO 10 MID         $161.26
3          W NIKE FREE 5.0+                   $93.26
4          NIKE FREE 5.0+                        $92.84
5          NIKE ROSHE RUN                    $69.22
6          NIKE AIR FORCE 1 LOW          $88.28
7          NIKE FLEX RUN 2013               $67.63
8          JORDAN RETRO 3                   $161.95
9          JORDAN RETRO 6                   $148.22
10        NIKE AIR MONARCH IV           $51.30
11        NIKE LEBRON XI                      $198.25
12        JORDAN TRUE FLIGHT                        $138.36
13        W NIKE REVOLUTION 2          $45.27
14        NIKE KD 6                                $128.74
15        W NIKE FLEX RUN 2013          $67.43
16        NIKE AIR MAX 2014                $174.53
17        K NIKE KD 6 (GS)                     $99.24
18        JORDAN RETRO 9                   $158.50
19        CONVERSE ALL STAR OX         $43.98
20        K NIKE LEBRON XI                   $138.97
21        W SKECHERS GO WALK          $46.05
22        NIKE AIR FORCE 1 MID           $92.90
23        K JORDAN RETRO 10 MID      $118.17
24        JORDAN RETRO 11                 $128.76
25        JORDAN 6 RINGS                     $158.73

Of the top 250 models for Q1 2014:

Nike had 127
Jordan, 46
Asics, 14
Skechers, 13
Adidas, 12

Basketball
The Marquee Basketball juggernaut continued in Q1. Marquee basketball grew 25% in Q1 and represented 89% of the Basketball shoes sold.
Non-Marquee Basketball declined in the high singles
Jordan basketball grew by a 25% in Q1, and share expanded about 250 basis points to 58.4%.  Nike Brand Basketball grew about 20% with 36.6% share.  Nike Inc. had 95% share in the US retail basketball market in Q1
Adidas basketball declined in Q1.  Under Armour basketball was flat as share fell to 0.3%.  Reebok Basketball also had a decline.
Running
Running sales were up low singles for Q1. The early weather was certainly not conducive to running shoe sales.
Motion Control grew in the high singles.  Stability declined in the low singles.  Cushioning declined in the high singles. Lightweight grew in the mid-teens
Adidas had a strong Q1 in running, up high teens.
Nike Running grew in the high singles, with 63% share
New Balance continued to struggle
Under Armour running was up in the high singles for Q1.  The Speedform debut has liquidated well on limited pairs and accounted for all the growth in UA running.
Casual
Casual sales declined in the low singles for Q1.
Classics put up an impressive low teens increase.  We are starting to see signs that the all-white trend is starting to get some traction.
Skate had a mid-single digit increase for the month.  Boat shoes declined in the low teens, an improvement from earlier trend.  Lifestyle dropped in the high singles
Reebok Casual grew about 25%. Skechers Casual was up about +30%
Adidas Casual had a high teens decline.
Nike had a small increase in Casual for Q1