Sneakernomics: Q2 2014 Sneaker Winners And Losers

Q2 2014 Footwear overview

• Primarily based on my analysis of the data from SportsOneSource I estimate that Sneaker sales grew in the reduced singles.


• Basketball enhanced in the mid-teenagers, in line with Q1 trend but Basketball’s share of Q2 revenue in the lowest of the year, so there was not significantly leverage


• Sandals’ biggest contribution comes in Q2. Sandal revenue were down in the high singles on the unseasonably cold weather.  This caused deleverage of the general product sales trend.


• Strolling shoes grew in the mid-teenagers.


• Running footwear grew in the minimal singles, in line with Q1 trend

Q2 2014 Footwear revenue by channel

• Sales of Sport Footwear on the Internet grew in the low teenagers in Q2 and were about ten% of all sneakers offered.  Product sales in Physical merchants had been flat for the quarter.


• Family members Footwear was once more the star with sales up in the substantial singles.  In Family, Little ones revenue grew virtually 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 enhance


• Product sales had been best in the Northwest and the Rockies and worst in the Midwest and New England.

Q2 2014 Brand Share

• Nike Nike revenue of Sport Footwear in Q2 grew in the mid singles and share enhanced one hundred basis factors to 44.eight%. Jordan grew in the substantial singles and share improved 75 basis factors to 12%. Converse product sales were flat with 2.eight% share.  This gave Nike Inc. 59.6% share in Q2, the highest ever recorded for that quarter.  Nike showed specific power in Running and Basketball, which offset weakness in Training and Sandals


• Adidas Adidas and Reebok declined sharply in Q2. Whilst Adidas Running was a bright spot (on a little base) softness in Basketball, Casual and Sandals hurt the overall outcome


• Skechers grew more than forty% for the quarter, solidifying their place as the #5 brand and #four firm in the sneaker company.  Skechers showed certain strength in Strolling and in Women’s Casual.


• Below Armour Below Armour grew far more than a third, with robust Children Running and sandals offsetting sharp declines in Basketball and Coaching.  Early Football cleat revenue have also been very good for UA, albeit on a really modest, lower revenue enterprise.


• Brooks led the pack in Running with product sales up in the low teenagers.  Asics had a reduced single digit enhance for the quarter.  Mizuno and Saucony the two had declines although New Balance continued to struggle.


• Puma grew in the high singles.


• Vans improved more than 60%.

Q2 2014 Leading Selling models

1. NIKE AIR FORCE one Low                $ 88.81


2. JORDAN 11 Low                              $ 137.76


3. NIKE AIR MONARCH IV              $ 50.47


4. JORDAN six                                           $ 154.79


5. NIKE ROSHE RUN                            $ 71.97


6. NIKE Free five.+ 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 Totally free 5. 2014                      $ 95.87

Of the prime 250 designs for Q2 2014:

• Nike had 127 (51%)


• Jordan, 32 (13%)


• Asics, 14


• Skechers, 13


• UA, 10


• Brooks, 9


• Adidas, 9

Sneakernomics: Q2 2014 Sneaker Winners And Losers

Sneakernomics: Growth Opportunities In The Sneaker Organization

We’ve talked in the past about how very good the sneaker organization is in the US:

When will the Sneaker Cycle end?

http://www.forbes.com/internet sites/mattpowell/2014/04/08/sneakernomics-when-will-the-sneaker-cycle-end/

10 Predictions for the Sneaker Company in 2014

http://www.forbes.com/websites/mattpowell/2014/04/ten/sneakernomics-10-predictions-for-the-sneaker-enterprise-in-2014/

Q1 2014 Retail Highlights

http://www.forbes.com/sites/mattpowell/2014/05/15/sneakernomics-highlights-of-sneaker-revenue-q1-2014/

I am often asked, “Where are further opportunities for development in the sneaker company?”  This post will check out individuals topics.

Walking

In accordance to my evaluation of the information from SportsOneSource, the strolling shoe company in the US at retail was about $ 300 million at retail in 2013 and grew in the reduced teens.  Sales for 2014 so far are up in the minimal teenagers.

Skechers had 50.eight% share of the US retail walking shoe marketplace in 2013, New Balance, 27.5%, Avia, four.2% and Nike, a paltry three.eight%.  Strolling is 1 of the few categories that Nike does not dominate.

Skechers walking revenue tripled in 2013, driven by the white sizzling GoWalk franchise. Income for 2014 are up by almost half. Skecher’s achievement in walking must be a lesson for other brands.

As child boomers age, a lot of will have to give up operating or other much more strenuous routines for much less impactful recreation like Walking.  Skechers has proved that there is a broad market place for this exercise.

The SFIA states that there are 117 million Americans who are walking for fitness.  That represents a third of the nation and is almost double the amount of Runners.

Walking as a physical exercise is usually linked with blue haired mall walkers.  The brand that figures out how to make walking young and enjoyable (at least in sprit) will have a field day.

Sneakernomics: Growth Opportunities In The Sneaker Organization

Sneakernomics: Highlights Of Sneaker Income Q1 2014

 

• Revenue of Sport Footwear for Q1 2014 grew in the low singles in bucks


• Men’s Sport Footwear in excess of $ one hundred grew in the large singles. Men’s Sport Footwear beneath $ 100 declined in the mid singles.

Q1 2014 Footwear revenue by channel

• Income of Sport Footwear on the net grew in the minimal-teenagers and represented eleven% of all sneaker sales.  Sales in bodily shops grew in the minimal singles. The web continues to get revenue from brick-and-mortar


• Product sales in Full Line Sporting Goods and Athletic Specialty grew in the minimal singles.

Q1 2014 Brand Share

• Nike Nike had a mid-single digit achieve with share at 46.3%.  Jordan improved twenty% in revenue and acquired about 250 basis factors in share to 15.four% Converse had a decline with a 2.5% share. Nike Inc. had 64.2% share in sport footwear income, once again the highest we’ve ever recorded for the period.


• Adidas Adidas product sales for Q1 have been down in the reduced teenagers, on a really weak Casual trend and share slipped to seven.1%.  Reebok revenue declined about -25% on a 1.seven% share.  Skechers has a 25% gain with 3.3% share, moving Skechers into #five marketplace share position, ahead of New Balance.  Skechers is the hottest main brand in the US.

Q1 2014 Best Promoting models

1             NIKE AIR FORCE one LOW                                  $ 89.26

2             JORDAN RETRO 10 MID                 $ 161.26

3             W NIKE Free of charge 5.+                            $ 93.26

4             NIKE Free of charge 5.+                                                 $ 92.84

5             NIKE ROSHE RUN                             $ 69.22

Of the top 250 models for Q1 2014:

• Nike had 127


• Jordan, 46


• Asics, 14


• Skechers, 13


• Adidas, twelve

Basketball

• Q1 Basketball product sales grew in the substantial teens


• Jordan basketball grew by a 25% in Q1, and share expanded about 250 basis points to 58.four%.  Nike Brand Basketball grew about twenty% with 36.6% share.  Nike Inc. had 95% share in the US retail basketball marketplace in Q1


• Adidas basketball declined in Q1.  Beneath Armour Underneath Armour basketball was flat as share fell to .three%.  Reebok Basketball also had a decline.

Working

• Operating revenue were up reduced singles for Q1.


• Adidas had a sturdy Q1 in running, up high teenagers.


• Nike Operating grew in the large singles, with 63% share


• New Balance continued to struggle


• Underneath Armour operating was up in the substantial singles for Q1.  The Speedform debut has liquidated nicely on limited pairs and accounted for all the development in UA running.

 

This report is based mostly on my evaluation of the information from SportsOneSource.  This report represents my viewpoint, and does not necessarily reflect that of SportsOneSource.

Comply with me on Twitter Twitter @MattSOS

Sneakernomics: Highlights Of Sneaker Income Q1 2014

Sneakernomics: The Internet Modified The Sneaker Business Permanently Get Prepared For A lot more!

The internet has had a huge role in shaping today’s sneaker business.  The game has changed forever.  And we can expect even more changes in the next next few years.  This blog will explore the history of sneaker sales on the internet and then opine on what’s coming next.

History

Only recently have the sneaker retailers become serious about eCommerce. A decade ago, many sneaker retailers opted to outsource their eCommerce business. At the time this was an expeditious decision to grab easy profits with no expenditure, but it set the industry back a decade.  Retailers lost years of sales data on some of their best customers.  Sneaker stores gave up the ability to communicate and develop relationships with their fans on the web.

With outsourced ecommerce, the prices weren’t the same; the assortments were different; Products bought online could not be returned to physical stores.  But worst of all, the retailers had no idea who was shopping on their site, where they lived and what they bought. Plus there was no way for them to communicate with these customers. It set the industry back a decade.

Online only retailers flourish

This huge strategic misstep allowed internet-only sneaker retailers to flourish.  Out of nowhere, Zappos became the largest sneaker retailer on the web and they did it without the #1 brand, Nike.  The online portion of Eastbay, Footlocker’s direct mail/online business, grew like crazy but the nameplate sites struggled.  Other pure play online sneaker retailers took significant share. Sneaker brand sites had an open playing field.

Physical stores get in the game

In the last few years, physical store retailers realized that they had given tremendous market share to their brand partners and to the pure play competitors.  Some of the physical retailers realized the missed opportunity and began to try to claw back lost share. The key brick-and-mortar players in the sneaker business have all had terrific growth in the lost three years.  As an example, Dick’s posted a gain of nearly 70% in 2013 for their ecommerce business.

Internet sales drive comps

Over the last few years, sales growth on the internet has vastly outpaced the sales growth in physical stores.  According to my analysis of the data from SportsOneSource.com, Sales of sneakers in physical stores grew in the low singles in 2011, but were up by more than half in on the internet. In 2012, sneakers sold through brick and mortar doors again grew in the low singles while sales on the web increased by a third. In 2013, sneaker sales in physical stores grew in the low singles while eCommerce grew about 20%.

One interesting side note is that 2013 sales on the web could have been higher but for the massive growth in marquee basketball. Mall retailers count on release shoes to prop up the smaller C&D level stores. Therefore, retailers limit how many pairs of limited releases are available on the web, in an effort to sustain the marginal stores.

In 2013 sales on the internet at Footlocker Inc. grew about 20% while comps grew in the mid singles. Sales on the internet were 11% of all Footlocker sales. Ecommerce sales at Dick’s grew about two thirds last year, while comps were only up in the low singles. 2013 Sales from the web at DSW DSW improved about 20% in 2013, with comps flat. ECommerce was 10% of DSW results. Finally last year at the Finish Line, Internet sales grew almost 25%, with comps up mid singles. Web sales were 12.5% of Finish Line sales.

Growth of sneaker sales on the internet will continue

Based on my research, sneaker sales on the web were 16% of total sneaker sale last year and grew about 20%. In fact, in in 2012 and 2012 sales of all sport footwear on the internet grew about 20% each year. If we assume 20% growth for internet sales and low singles growth in physical stores, in 5 years, sales of sneaker on the web will approach a third of all sneakers sold.

What’s Next?

• With so much of the growth in sport footwear coming from the web, retailers who do not have a fully developed ecommerce strategy will lag in comps behind the industry leaders.


• Marginal stores will become more marginal. The growth in internet sales has to be coming at the expense of the smaller C&D level stores in retail chains.  In these smaller stores, the assortments are the weakest and most basic.  Inventories are lean. Consumers, unable to find what they want, will head to the web, further marginalizing these stores


• On the web, the brands win over the retailers.  Brand sites over a greater content, larger assortments and more exclusive products.  These factors will drive more customers to brand sites over retail sites. Nike just announced that they had 100 million views in 7 days of their World Cup “Winner Stays” commercial.  There is no way physical retailers can compete with that kind of consumer experience.


• We’ll see more limited releases move to the internet. Limited releases have always been problematic for sneaker retailers.  Systems have to be put into place, extra personnel hired and there is always the risk of bad behavior.  As brands and retailers figure out how to handle the web traffic, we’ll see more shoes released via the web.


• Post millennials and millennials are eschewing the malls. They don’t need to congregate at the food court any longer; they can do that on their phone.  With immediate and robust access to every brand and virtually every store right in their pocket, there is no need to go to the mall any longer.


• Using feedback from social media, brands and retailers can use that feedback loop to better tailor their assortments to what kids want to buy and when.  This predictive ability will make decision making more correct and timely.

The internet has had a profound impact on the sneaker business.  We are in a much different place than we were a decade ago.  I dare say we are not prepared for the changes that will happen in the next 5 years.

Sneakernomics: The Internet Modified The Sneaker Business Permanently Get Prepared For A lot more!