07 Aug Athletic Shoe Q2 & July 2014 Executive Summary
Q2 2014 Executive Summary
First we will take a quick look at July and then a more detailed review of Q2
July 2014 Footwear overview
Sales of Sport Footwear in July increased in the low single digits in dollars and declined in the low single digits in units yielding a low single digit increase in average selling price.
In July, Men’s Sport Footwear declined in the low singles while Women’s grew in the low singles and Kids improved nearly 10%
Sales were best in the Rockies and Pacific Northwest and worst in New England, the Midwest and the Southeast.
July 2014 Footwear sales by channel
Sales of Sport Footwear on the internet grew in the low teens. More than all of the increase in Sport Footwear came from eCommerce. 11% of Sport Footwear sales in July can be attributed to eCommerce.
Sales in physical stores declined in the low single digits
Sales in Athletic Specialty/Full Line Sporting Goods were down in the low singles in July
Sales in Run/Sport Specialty grew in the mid singles while the Family channel was up in the high singles, driven by a massive increase in kids sales
July 2014 Brand Share
In July, Nike sales grew in the mid singles with 44.8% share; Jordan sales declined in the low teens, with 11% share. Retro offerings from Jordan were not compelling in Q2. Converse had a mid-single digit increase
Adidas and Reebok Sport Footwear sales declined sharply
Skechers grew by more than half, while Under Armour improved about 40%
Brooks grew in the mid-teens while Asics had a small increase. Mizuno and Saucony both declined. New Balance continued to struggle.
Vans sales grew 75%, with the largest gains coming from the Family channel
July 2014 Apparel Overview
Sport Apparel grew in the high single digits in July, with half of that growth coming from Ecommerce where sale were up more than 20%
Nike Sport Apparel grew more than 20% and gained nearly 400 basis points in share. Under Armour Apparel grew in the mid-teens
Q2 2014 Footwear overview
Sales of Sport Footwear grew in the low singles in Q2 in dollars and declined in low singles in units resulting in a low single digit increase in average selling price.
Basketball improved in the mid-teens, in line with Q1 but Basketball’s share of Q2 sales in the lowest of the year, so there was not much leverage
Sandals’ greatest contribution comes in Q2. Sandal sales were down in the high singles on the unseasonably cold weather. This caused deleverage of the overall sales trend.
Walking shoes grew in the mid-teens.
Running shoes grew in the low singles, in line with Q1 trend
Men’s sales declined in the low singles; Women’s grew in the low singles and Kids improved about 10%
Q2 2014 Footwear sales by channel
Sales of Sport Footwear grew in the low teens in Q2 and were about 10% of all shoes sold. Sales in Physical stores were flat for the quarter.
Family Footwear was again the star with sales up in the high singles. In Family, Kids sales grew almost 30%
Athletic Specialty/Sporting Goods had a low single digit decline on the lack of Basketball leverage.
Run/Sport Specialty had a low single digit increase
Sales grew best in the Northwest and the Rockies and worst in the Midwest and New England.
Q2 2014 Brand Share
Nike sales of Sport Footwear in Q2 grew in the mid singles and share improves 100 basis points to 44.8%. Jordan grew in the high singles and share improved 75 basis points to 12%. Converse sales were flat with 2.8% share. This gave Nike Inc. 59.6% share in Q2, the highest ever recorded for that quarter. Nike showed particular strength in Running and Basketball, which offset weakness in Training and Sandals
Adidas and Reebok declined sharply in Q2. While Adidas Running was a bright spot (on a small base) softness in Casual and Sandals hurt the overall result
Skechers grew more than 40% for the quarter, solidifying their position as the #5 brand and #4 company in the sneaker business. Skechers showed particular strength in Walking and in Women’s Casual.
Under Armour grew more than a third, with strong Kids Running and sandals offsetting declines in Basketball and Training. Early Football cleat sales have also been good for UA, albeit on a very small business.
Brooks led the pack in Running with sales up in the low teens. Asics had a low single digit increase for the quarter. Mizuno and Saucony both had declines while New Balance continued to struggle.
Puma grew in the high singles. Vans improved more than 60%.
Q2 2014 Top Selling models
1 NIKE AIR FORCE 1 LOW $88.81
2 JORDAN 11 LOW $137.76
3 NIKE AIR MONARCH IV $50.47
4 JORDAN 6 $154.79
5 NIKE ROSHE RUN $71.97
6 NIKE FREE 5.0+ 2014 $95.58
7 W NIKE COMFORT THONG $25.05
8 NIKE AIR MAX 2014 $165.04
9 UA HIGHLIGHT MC $129.62
10 NIKE FREE 5.0 2014 $95.87
11 CONVERSE ALL STAR OX $43.95
12 JORDAN 2 $148.39
13 JORDAN 14 $168.41
14 NIKE FREE 5.0+ $87.79
15 NIKE FINGERTRAP MAX $124.06
16 NIKE FLEX RUN 2013 $65.07
17 NIKE COMFORT SLIDE 2 $36.11
18 NIKE REVOLUTION 2 $45.44
19 JORDAN 3 MID $163.39
20 NIKE FLEX RUN 2014 $74.52
21 NIKE BENASSI SWOOSH $18.63
22 SKECHERS GO WALK $45.94
23 W NIKE REVOLUTION 2 $45.08
24 JORDAN FUTURE $148.87
25 W NIKE FREE 5.0+ $86.64
Of the top 250 models for Q2 2014:
Nike had 127 (51%)
Jordan, 32 (13%)
Asics, 14
Skechers, 13
UA, 10
Brooks, 9
Adidas, 9
Basketball
Basketball is not an important category in Q2, which is its smallest quarter of the year. Weather works against Basketball in the summer
Nike Basketball grew about 30% for the quarter, while Jordan improved in the mid singles.
Adidas, UA and Reebok Basketball all declined sharply
Running
Running grew in the low singles for Q2, in line with Q1.
UA Running grew 50% with adult Running up 30% and kids’ pricepoint Running up more than double.
Adidas Running grew in the high teens, driven by pricepoint fashion shoes
Nike Running grew in the mid singles
Sandals
Q2 is the most important quarter of the year for Sandals and it was disappointing season, hurt by cool weather and lackluster product.
Total sandal sales declined in the high singles, hurt significantly by poor Sport Sandal results.
Nike eked out a small increase, while Jordan and Adidas declined sharply.
UA had a 30% gain in Sport sandals
Q2 2014 Apparel Overview
Q2 Sport Apparel grew in the high singles.
Fleece was a standout category with a low teens gain.
Active tops grew in the mid singles, driven by long sleeve fitness tops, likely helped by the cool weather
Active bottoms was flattish, as soft short sales offset the strong result from the Tights/Capris Fad
Nike Sport Apparel grew more than 20% in Q2, with share up 400 basis points to 33.3%
UA grew in the high teens, with share up 150 basis points to 15%
Jordan and The North Face Apparel grew in the low teens, while Adidas posted a decline.
I am now blogging for Forbes. Follow me here: http://www.forbes.com/sites/mattpowell/
As always, feedback, questions, and suggestions are welcomed and encouraged. My best email is matt@princetonanalysis.com
If you have a colleague who would like to receive this monthly report, have them link me on LinkedIn and I will add them to the distribution.
If you are receiving more than one copy of this report or no longer wish to receive it, let me know and I will adjust the distribution.
Follow me on Twitter: @MattSOS.
The information in this report are my opinions, based on my analysis of the SportsOneSource US sales data, and do not necessarily reflect those of any other individual, business or organization.