Sneakerologist and SportsONESource Analyst Matt Powell gives us the inside scoop in his monthly footwear industry sales report. Covering the prior month of June 2010, we see continued acceleration in the Toning category, momentum in Performance Running, Training sales for Nike boosting by more than a third on Ken Griffey Jr. product reissues, and a slowdown in Jordan Brand basketball sales but overall dominance for Nike, Inc. Continue reading for Matt Powell’s complete Footwear Industry Sales Report: June 2010.
May June and October are the least important months of the year for athletic footwear. And June 2010 continued that tradition, serving up 3 of the smallest volume weeks of the year so far.
That said, the trend in June remained solid. Sales improved about 10% in dollars and in the mid singles in units yielding a mid single digit increase in average selling price to $51.32. No sign of deflation here. More than half the growth in June came from Toning.
Men’s sales grew about 10% while Women’s grew in the high teens. Kids’ sales declined slightly. Nike’s Women’s share lost 700 basis points as declined nearly -10%. By contrast Skechers and Reebok Women’s sales nearly tripled.
Trend was best in the Family Channel, which remains the epicenter of the Toning phenomenon. The Mall had an OK June, as weak Jordan releases offset strong gains in Toning and Running. Full line Sporting Goods had another solid month in Sport Footwear.
Last year, there were 8 Jordan styles in the top ten dollar sellers. This year there were 3: the 9, the 6 and a Hydro sandal. Replacing those styles were 4 shape ups, one Easy tone and a Nike Free Running shoe. Rounding out the top ten were AF1 White low and mid, perennially strong summer styles.
Toning represented 5.4% of the total sales for June. I believe the category remains on track to hit $1.5 billion this year. I expect to see a major acceleration in July with Skechers planned promotional period. This momentum should carry the category well through back-to-school. The category will also expand as others enter the game. For the month of June, Skechers had a 60% share of Toning, Reebok 33% and Avia 3%.
Running continued to gain momentum with sales growing in the mid teens. Performance Running grew 30% and represented about 45% of sales. We are clearly back in a performance-as-fashion cycle. Sales of Lightweight Running tripled for June. Fashion Running grew in the mid singles for the month. Nike Running grew in the low teens as share slipped 200 basis points to 56%. Asics also lost share (14%) as sale grew in the high singles. New Balance sales were up sharply again and share nearly hit 10%. Adidas Running remained soft, down in the mid teens. Saucony, Mizuno and Brooks all had very solid gains and all grabbed more share. Puma Running soared on strong fashion styles. Reebok now has 1.6% share in Running as sales tripled on the successful ZigTech launch. Under Armour Running declined in the mid teens and share fell to 1%.
Basketball continues to have a tough time after a strong first quarter. Sales of Basketball shoes in June declined in the low single digits. The catalyst for the slowdown was all Jordan. Jordan sales for June declined in the mid singles. Jordan share declined almost 400 basis points to 68%. Brand Nike basketball grew in the high teens and grabbed the entire share Jordan lost to 24%. And 1 Basketball sales doubled in June.
Lifestyle Fashion Athletic (LFA) continued its decline with sales down in the high teens. Nike LFA declined nearly -30% while Skechers declined in the mid teens. Converse sales declined in the low teens and K-Swiss dropped about -20%.
Classics remained a mixed bag. New Balance sales tripled on the resurgent 574. Adidas Superstars have made a comeback after the repricing. Sales of Adidas Classics grew in the low teens. All other posted declines: Nike, down high singles; Converse, down low teens; Reebok down mid teens; K-Swiss, down about a third.
Training had a good month, as sales improved in the high singles. Nike grew more than third on strong Griffey re-issues. New Balance grew in the mid teens on price point styles. Under Armour Training declined more than two thirds.
Cleated footwear had a good month, up in the high singles on strong Soccer boot sales, which improved about 30% (no doubt due some halo effect from the World Cup). However, Soccer boots were about 1% of all Sport Footwear for June.
Skate shoes declined again in the high teens. Every major brand except Vans posted declined.
Sandals had a strong month, with sales improving 20%. June is the largest month of the year for sandals, representing about 20% of the year’s total sales. Brand Nike grabbed number 1 share as sales improved more than 25%. Crocs also grew about 25%. Teva improved in the mid teens. Brand Jordan and Adidas both had decline.
Overall Brand Nike had a mid single gain as strong basketball and Running were offset by the cratering Women’s business. Brand Jordan had a high singles decline as the releases this year were much weaker than last. Converse decline in the mid teens as the Chuck Taylor trend clearly has crested in the US. Nike share (33.3%) declined 165 basis points, Jordan (8.3%) declined 150 basis points and Converse (2.2%) lost 60 basis points.
Skechers gained 240 basis points to 6.3% as sales nearly doubled. New Balance grew sharply and moved up to #3 share (6.4%).
Reebok sales nearly doubled and share leapt 150 basis points to 4.0%, right behind Asics (4.1%). Asics sales grew in the high singles. Adidas (5.8%) sales declined slightly as strong Classics and Soccer offset weak Running and Basketball.
Under Armour sales declined about -30% and K-Swiss declined about -20%.