McLean, VA – Ski and snowboard industry trade group SnowSports Industries America (SIA) has released its first retail sales data that shows a hint of some pent-up demand in the market.
According to SIA, the U.S. snow sports retail market brought in $425 million in August and September, up 3% compared to August and September 2014. Equipment sales increased 10% while outerwear sales remained relatively flat. Equipment sales, which includes skis, boards and boots, baselayer, gloves, and goggles, show increases in both dollars sold and units sold.
This sales pattern points to pent up demand for new gear in places like California, where drought has hampered skiing and riding for several seasons. The news about El Niño conditions and how much snow normally falls upon the region in an El Niño winter seems to have convinced California consumers that this will be an epic season and it’s time for new gear. In fact, sales in specialty ski and snowboard shops in the West are up more than 50% so far this season to $84 million. Snowboard equipment sales in the West nearly doubled compared to August to September 2014, and alpine equipment sales are up 84% to $25 million in the West.
Inventories in snow sports specialty shops are 10% leaner compared to September 30, 2014. Specifically, specialty retailers are carrying 30% less outerwear, 6% fewer snowboards, 13% fewer alpine touring (AT) boots, and 8% fewer alpine skis. Starting the season leaner generally keeps margins healthy through the holiday buying season and often through January as well. If El Niño conditions do bring epic snow to California and across the country like they did in 2009-10, consumers may have difficulty finding the gear they want to buy and scarcity may hinder sales as early as mid-December.