1 / 18

State of the Snow Sports Market November 2012 Market Conditions

State of the Snow Sports Market November 2012 Market Conditions. MARKET OVERVIEW. Consumer’s Perspective Last season disappointed. Pent up demand? Economic Uncertainty – “fiscal cliff” Wage growth flat Continued lack of vacation time Overall lack of time “Nobody to go with”

lluvia
Download Presentation

State of the Snow Sports Market November 2012 Market Conditions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. State of the Snow Sports Market November 2012 Market Conditions

  2. MARKET OVERVIEW Consumer’s Perspective • Last season disappointed. Pent up demand? • Economic Uncertainty – “fiscal cliff” • Wage growth flat • Continued lack of vacation time • Overall lack of time • “Nobody to go with” Retailer’s Perspective • Smaller orders, smaller in-season inventories • Very slow November • Waiting for snow in November Supplier’s Perspective • Pre-season equipment orders for equipment for 2012/2013 down 10% to 50% in equipment • Retailer cash flow issues continuing into buying season • Manufacturing costs overseas increasing due to labor initiatives, tariffs, materials costs increases, and currency policy • Inventory risk – who carries the burden Resort’s Perspective • Skier visits down 5% to 40% at resorts in 2011/12 • Advance season pass sales strong • Participants age 25 to 35 have less time and discretionary income • Baby boomers leaving the slopes at 150,000 per year with smaller Gen X behind them

  3. AUGUST – NOVEMBER 2012 MARKET OVERVIEW Results with Carryover Sales Included • Equipment – down 11% in units, down 13% in $ to $283M • Apparel – down 3% in units, down 4% in $ to $517M • Accessories – down 11% in units, down 7% in $ to $297M Results with Carryover Sales Excluded • Equipment – down 16% in units, down 17% in $ to $253M • Apparel – down 7% in units, down 6% in $ to $487M • Accessories – down 15% in units, down 10% in $ to $276M

  4. AUGUST – NOVEMBER 2012MARKET OVERVIEW: INVENTORIES Comparing Inventory Units Nov 30, 2012 v. Nov 30, 2011 • Equipment inventories - 16% fatter • Alpine Equipment – 17% fatter • Snowboard Equipment – 22% fatter • Nordic Equipment – 9% leaner • Apparel – 3% fatter • Accessories – 5% leaner On Nov 30, 2012, $1.2BM in snow sports gear was sitting in snow sports specialty retail inventories, $112M more than on Nov 30, 2011.

  5. AUGUST – NOVEMBER REGIONAL SPECIALTY SALES • Western Specialty Sales: $181M, down 15% • Northeastern Specialty Sales: $159M, down 18% • Midwestern Specialty Sales: $110M, down 4% • Southern Specialty Sales: $69M, down 19% Source: SIA Snow Sports RetailTRAK™, Topline Regional Category View.

  6. MARKET DISRUPTION OCT/NOV 2012 Hurricane Sandy - Disrupted lives and retail sales in late October and November along much of the length of the Eastern Seaboard. More than one-third of skiers and riders reside in areas directly impacted by this super storm. Snow sports specialty retailers in the Northeast suffered a $35M (18%) decline in season-to-date (through November) dollar sales and the South saw snow sports sales slip $16M (19%). Equipment dollar sales were particularly depressed in these two storm-struck regions, down 23% in the Northeast and down 27% in the South.

  7. August – November 2012 (in-season) Alpine Ski EQUIPMENTExecutive Summary • In all snow sports sales channels alpine ski equipment (In-season - excludes carryover): • Chain Stores: $6M, down 15% in units and down 20% in dollars • Specialty Shops: $115M, down 17% in units and down 19% in dollars • Internet Shops: $35M, up 18% in units and up 9% in dollars • Alpine ski equipment sales (In-season - excludes carryover) in all channels: • Alpine Skis: down 17% in $ sold to $79M, down 11% in units sold to 210,794 • Alpine Boots: down 12% in $ sold to $58M, down 14% in units sold to 212,379 • Alpine Bindings: down 7% in $ sold to 15M, down 7% in units sold to 101,126 • Alpine Poles: down 12% in $ sold to $4M, down 11% in units sold to 107,930 • Alpine/AT boots with a walk mode and Vibram/rubber soles enjoyed a 121% increase in dollars sold through Nov to $5M with 11,222 units sold • The majority of casual skiers are ages 25-34 (21%), while the majority of core skiers are 45-54 (17%) • Carryover ski sales soared 25% to $6.8M. • On-Resort Backcountry trails continue to grow in popularity – 2M alpine skiers reported participating in “backcountry” in lift served areas

  8. Alpine ski market overview

  9. AUGUST – NOVEMBER 2012SNOWBOARD MARKET EXECUTIVE SUMMARY • Pre-season orders for snowboards were down 24% overall • In all snow sports sales channels snowboard equipment (In-season - excludes carryover): • Chain Stores: $6M, down 32% in units and down 36% in dollars • Specialty Shops: $46M, down 31% in units and down 31% in dollars • Internet Shops: $30M, up 9% in units and up 3% in dollars • Snowboard equipment sales (In-season - excludes carryover) in all channels: • Snowboards: down 22% in $ sold to $41M, down 22% in units sold to 140,568 • Snowboard Boots: down 23% in $ sold to $21M, down 22% in units sold to 139,711 • Snowboard Bindings: down 20% in $ sold to $20M, down 19% in units sold to 138,550 • Carryover sales in snowboard equipment reached $10M and were up 28% in units and up 17% in dollars sold compared to Aug – Nov sales in 2011. • 7.6 million Americans participated in snowboarding at least 1 time in 2011/2012, down 7.5% from last season. • Decline in participation of those who get on the mountain at least 9 times is nearly four times greater than the overall drop in snowboard participation • Snowboard equipment specialty retail inventories are up 17% in units stored compared to levels on Nov 30, 2011. On Nov 30, 2012, $135M in snowboard equipment was in specialty retail inventories • Through Nov 30, snowboard equipment margins in specialty shops for in-season snowboard equipment are down 6% to an average of 31.1% compared to margins through Nov 2011

  10. SNOWBOARD MARKET OVERVIEW

  11. SNOWBOARD MARKET OVERVIEW

  12. CROSS COUNTRY MARKET EXECUTIVE SUMMARY • The 2011/2012 snow sports season was particularly difficult for the Nordic community due to the lack of snow nationwide. • 2012 2013 Pre-season orders down 40%+ • In all snow sports sales channels cross country ski equipment (In-season - excludes carryover): • Chain Stores: $748K, down 48% in units and down 48% in dollars • Specialty Shops: $5M, down 26% in units and down 22% in dollars • Internet Shops: $1M, down 33% in units and down 22% in dollars • Cross country ski equipment sales (In-season - excludes carryover) in all channels: • Cross country Skis: down 27% in $ sold to $3M, down 30% in units sold to 18,398 • Cross country Boots: down 28% in $ sold to $2.5M, down 33% in units sold to 19,921 • Cross country Bindings: down 28% in $ sold to 860K, down 32% in units sold to 13,967 • Cross country Poles: down 21% in $ sold to $676K, down 28% in units sold to 15,660 • Cross country equipment carryover sales were down28% in $ sold and up 21% in units sold through Nov 30, 2012 compared to Nov 30, 2011 • On November 30,2012, Nordic equipment inventories were 7% leaner compared to Inventory levels on November 30, 2011. Lack of equipment orders for this season may be driving this trend. • 4.3 million Americans participated in cross country skiing during winter 2011/2012, down 5% from the 2010/2011 season.

  13. CROSS COUNTRY MARKET OVERVIEW

  14. CROSS COUNTRY MARKET OVERVIEW

  15. AUGUST – NOVEMBER 2012APPAREL EXECUTIVE SUMMARY(Includes Carryover Sales) • Alpine apparel $ sales were down 4% compared to Aug – Nov 2011 sales. Snow sports retailers sold $517M in apparel through Nov 2012 • Chain Stores: $142K, down 6% in units and down 6% in dollars • Specialty Shops: $197M, down 11% in units and down 11% in dollars • Internet Shops: $178M, up 11% in units and up 8% in dollars sold – carryover sales online grew 138% in $ sold to $16M – 9% of all online apparel sales were carryover • Apparel sales In all snow sports sales channels: • Alpine Tops: down 1% in units to 3.3M, down 1% in dollars to $379M • Alpine Bottoms: down 9% in units to 533K, down 8% in dollars to $48M • Snowboard Tops: down 13% in units to 335K, down 21% in dollars to $37M • Snowboard Bottoms: down 12% in units to 205K, down 19% in dollars to $20M • Soaring alpine top carryover sales indicate that consumers found the bargains they were looking for through November • Carryover alpine tops up 118% in units to 307K units that sold for $19M, an 101% increase in $ sold. In fact, non-carryover alpine tops sales were down 6% in $ sold

  16. AUG – OCT 2012ACCESSORIES EXECUTIVE SUMMARY Accessories sales finished the 2011/2012 season down 15% in units and down 8% in dollars sold to $1.1B. Early in the 2012/2013 season, accessories sales are down 11% in units sold and down 7% in dollars sold to $297M • Helmets - down 15% in units to 280K, down 16% in dollars sold to $21M • Goggles – down 22% in units to 249K, down 16% in $ sold to $17M • Gloves –down 13% in units to 712K, down 13% in $ sold to $26M • Headwear – down 13% in units to 1.1B, down 8% in $ sold to $24M • Base Layer – down 15% in units to 1B, down 7% in $ sold to $43M • Carryover accessories – up 53% in units, up 51% in $ to $20M Accessories inventories in specialty shops were down 5% in units compared to Nov 30, 2011 Snowfall and weather overall have enormous impacts on accessories sales because many are bought on the way to, or at the resort. A good snow year could clean out inventories this season.

  17. WEATHER OUTLOOK FOR 2012/2013 Dec 29, 2011 Dec 29, 2012

  18. LOOKING AHEAD: THREATS AND OPPORTUNITIES • Fallout from a terrible season: • Smaller orders • Conservative product mix • Bankruptcy – retail and supply • Consolidation • Lack of momentum early season 2012/2013 • Opportunity to leverage a better snow season in 2012/2013? Snow Outlook Improving • Will retailers sell through inflated inventories? • How can we work together to keep snow sports healthy?

More Related