June 2014 Athletic Footwear Retail Executive Summary

10 Jul June 2014 Athletic Footwear Retail Executive Summary

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JUNE 2014 Footwear overview

  • June would be the smallest month of Q2, if not for the fact that it is 5 fiscal weeks.  It is a month with few releases and lots of clearance as retailers prepare for Back to School.
  • Sales for June were flat in dollars and were down low singles in units, resulting in an increase in average selling price in the low singles.
  • Basketball sales grew in the mid tens, but in Summer, Basketball contribution is lower than in Q1, so the leverage was not there.
  • Running had a low single digit decline, as the tech running did not sustain last year’s growth
  • June is historically the largest month of the year for sandals.  The sandal business really never got started.  Athletic sandals were particularly weak, down in the low teens.  Outdoor Sandals had a slight increase.
  • Walking shoes gained about 20%, on the Skechers’ GoWalk program.
  • Men’s shoes sales in June down low singles to last year. Women’s shoes sales were flat on very strong Casual and Walking sales. Women’s were up low teens in family footwear, but down in the high singles in Athletic Specialty/Sporting goods. Kids sales grew in the high singles, on strong Basketball and Running
  • Sales were best in the Northwest and Rockies and weakest in New England.

JUNE 2014 Footwear sales by channel

  • Sales of Sport Footwear on the Internet in June were 10% of all shoes sold and grew in the low teens. Sales on the Internet accounted for more than all of June’s increase in Sport Footwear. Sales in physical stores declined in the low singles.
  • The Full Line Sporting Goods/Athletic Specialty channel had a low single digit decline, as they could not leverage basketball, due to its lower contribution.
  • The Family channel grew in the high singles on very strong women’s sales (up low teens)
  • Run Specialty had a small decline.

JUNE 2014 Brand Share

  • Nike Brand had a low single digit gain, with share up slightly to 44.9%. Jordan improved in the high singles, as share grew 100 basis points to 12.7%. Converse sales were flat with 2.6% share.
  • Nike Inc. had 60.2% share in June, the highest we’ve ever recorded for the month.
  • Adidas sales were down about -25%, while Reebok declined about a third. Adidas share fell 200 basis points to 5.4%, with Reebok share at 1.3%.
  • Skechers remains the hottest major brand with sales up almost 50% and share gaining 125 basis points to 3.7%.
  • New Balance continued to struggle.  Asics sales grew in the low singles. Mizuno and Saucony both had declines. Brooks had a high single digit increase for the month.  Under Armour gained about 30%, with 2.8% share. #7 position
  • Vans sales grew nearly two thirds.

JUNE 2014 Top Selling models

1          JORDAN 11 LOW                                 $143.15

2          NIKE AIR FORCE 1 LOW                      $88.90

3          NIKE AIR MONARCH IV                       $47.78

4          JORDAN 2                                            $148.37

5          W NIKE COMFORT THONG     $25.12

6          NIKE FREE 5.0+ 2014               $96.28

7          NIKE COMFORT SLIDE 2         $35.99

8          NIKE FREE 5.0+                                    $86.97

9          NIKE ROSHE RUN                    $71.85

10        CONVERSE ALL STAR OX                     $44.43

11        NIKE FINGERTRAP MAX                      $124.77

12        NIKE AIR MAX 2014                $165.04

13        NIKE BENASSI SWOOSH                      $18.62

14        JORDAN 14                                          $168.20

15        NIKE FLEX RUN 2013               $65.27

16        JORDAN 11 LOW                                 $113.91

17        W SKECHERS GO WALK                      $46.25

18        W NIKE FREE 5.0+                   $86.69

19        NIKE AIR FORCE 1 MID                       $93.59

20        NIKE REVOLUTION 2                           $45.14

21        Jordan FUTURE                                   $148.74

22        W NIKE REVOLUTION 2                      $46.11

23        W NIKE FLEX RUN 2013                      $64.68

24        K Nike AIR FORCE 1 LOW       $74.08

25        NIKE LEBRON XI                                  $198.35

Of the top 250 models for June 2014:

  • Nike had 126 (50%)
  • Jordan, 36 (14%)
  • Asics, 17
  • Skechers, 12
  • Brooks, 9
  • Adidas, 7

Sandals

  • June is the most important and largest month for the sandal business.
  • Sales of the month declined in the high singles.
  • Sport Sandals declined in the low teens with every brand down except Nike and Under Armour.
  • Outdoor sandal sales in June declined in the mid singles.  Teva improved in the high singles, while Merrell, Reef and Chaco had declines.  Olukai grew more than a third.

Basketball

  • Basketball Sales in June grew about 15%.
  • Jordan Basketball grew in the high teens and share grew slightly to 55%
  • Nike Basketball had a +25% gain in basketball with 40.7% share.  This gave Nike Inc. a 96% share in Basketball for the month
  • Adidas (2.7% share) and Under Armour (0.2% share) both had steep declines in Basketball in June

Running

  • Running shoes in June had a low single digit decrease.
  • Men’s was down in the mid singles and Women’s running declined in the low singles, while Kids surged about a third.  Adidas and Under Armour kids running more than doubled.
  • Nike had a low single digit increase as share hit 59.5%.  Without Roshe, Nike would have had a decline in running.
  • Adidas Running grew to a 25% increase, on strong kids sales and adult clearance.
  • Under Armour Running grew by nearly half driven by kids price point styles and Speedform
  • Brooks grew in the high single digits
  • Asics sales were flat for June, while Mizuno and Saucony both had declines. New Balance continued to struggle

Casual

  • Total Casual sales were up low singles in June; Sales in Full Line Sporting Goods/Athletic specialty were down in the high singles
  • Sales in the Family channel grew more than 25%
  • Women’s Casual sales were up almost 20%, with Full Line Sporting Goods/Athletic Specialty down more than a third and Family up more than 50%.
  • The top selling Women’s Casual model in the family channel was Skechers Skech Air, Converse All Star Oxford, Skechers Gratis and Vans Atwood.
  • The largest share gainer in Women’s Casual in the family was Vans. Skechers has the largest Women’s Casual Share
  • Overall Casual performance by brand (all genders, all Channels):
    • o   Nike + mid singles
    • o   Adidas, down more than a third
    • o   Skechers, up a third
    • o   Vans, +60%
    • o   Reebok up high singles
  • Boat shoes grew 20%, driven by Sperry
  • Classics improved in the low teens, and Skate grew 20%

JUNE 2014 Apparel Overview

  • Apparel sales for June grew in the mid singles
  • Socks were up low singles.
  • Tights and Capris were up nearly double, with Nike up more than double and Under Armour almost double
  • Women’s Sport Apparel grew in the high singles, with Nike up 25% and Under Armour up about in the mid-teens
  • All genders combined, Nike and Under Armour both grew about 20%, while Adidas had a decline. Jordan sales were up low teens
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  • The information in this report are my opinions, based on my analysis of the SportsOneSource data, and do not necessarily reflect those of any other individual, business or organization.