The two horse race between Skechers’ Shape Ups and Reebok’s Easy Tones continues (albeit it’s still early in the race), with a bit of a post holiday pause in momentum. The latest data for the month of February suggests that sales recently peaked in December for both brands, although we’re beginning to see a slight ramp as the Spring season begins. Anecdotally, retailers have suggested that inventories have been low, especially for Reebok, coming out of 4Q. As result, sales have likely been constrained by out of stocks and broken assortments. New shipments are expected to hit retail shelves in over the next few weeks.
With less than a year into the wellness/toning trend, it is still too early too tell how long this newly defined footwear category will continue to grow. Importantly, even with early signs of lower-priced competition entering the marketplace (Payless, GH Bass, Avia, LA Gear) we are seeing ASP’s hold steady for the two leaders in this 8 month old category. Pricing stability continues to be something we’re watching closely as a key sign of any change in demand. For now, there are no marterial signs of discounting impacting either of the two brands.
- Eric Levine