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Nike Crushed It

Consumer Discretionary is clinging on for dear life. But athletic apparel sales for last week turned up sequentially. Nike crushed it. UA put in a nice dent as well. No one else came close.

Key observations from sports apparel sales for the first full week of July:

  1. Noticeable uptick after 3 disappointing weeks. As always, we look at the 3-week trend, which accelerated by 200bp.
  2. All channels improved sequentially, which in itself is rare based on the year-to-date trends. There does not appear to be a calendar shift issue or any major weather anomalies. In fact, the Northeast heat wave could have easily stunted sales last week, but it did not.
  3. New England, South Atlantic, Pacific/Mountain regions all showed the biggest uplift. If this is a sign of broader shopping patterns, it’ll be interesting to see how this triangulates with retailers like Payless who called the South/West as negative contributors last quarter (we’re meeting w PSS tomorrow).
  4. Nike had a HUGE week. I mean HUGE. Sales +28% with market share +626bps? That’s tremendous for a company that has 30% of the market.
  5. The next best share leader is UA, with 46bp. Might not sound as impressive, but given such a smaller sales base, it still translates to 10% sell-through growth. The recent trend of sales growth 2-3x the industry is holding for UA.
  6. Every other brand was a yawn/sleeper from a market share perspective. Adidas was particularly notable with sales -5.3% given its World Cup exposure. I guess not many Spain and Germany jerseys flew off the shelves last week in the U.S. despite selling nearly one-million Spanish jerseys following World Cup victory   per our news run this morning.

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