The athletic industry reported a solid week. Underlying trends improved across the board with apparel coming in hot last week. Here are our key takeaways:
- Both footwear and apparel sales improved sharply on a sequential weekly basis sparking a rebound in underlying trends. Importantly, the quality of sales acceleration is notable in the absence of promotional activity with ASPs remaining firm up low-to-mid single-digit.
- Apparel is the key callout with Athletic Specialty sales up +31.5% on the week building on reaccelerated trends from last week. Despite facing its second easiest compare of the year (this week is the easiest), the underlying trailing 3-week on a 2yr basis rebounded sharply.
- Footwear posted a solid week +5.9% suggesting the deceleration reported last week up +1.2% compared to +10.9% in the prior week was more likely an anomaly than trend.
- Broad-based strength across regions with each posting double-digit gains suggesting improved underlying demand.
- Skechers officially broke its positive sales momentum posting the first decline in year-over-year sales since June 2009 with toning trends (sales and ASPs) continuing to deteriorate.
- Nike remains strong though the clear standouts are Under Armour with sales rebounding sharply following tough apparel compares in mid-October with sales up 45% and significant outperformance at outdoor outerwear brands Columbia up +31% and VFC (The North Face) up 59% - positive for DKS/HIBB.
Casey Flavin
Director