National Ski Council Federation 2013 Annual Summit Meeting

National Ski Council Federation 2013 Annual Summit Meeting

THE SNOW SPORTS MARKET 60K FT VIEW

Sales reached $3.4B, up 3% in $ and up 2% in units sold for the 2012/2013 season. 19.3M participants 7M who didn’t participate but consider themselves skiers/riders Channels:   

Specialty, $1.9B – up 3% in units and up 1% in dollars Internet, $746M - up 8% in units and up 11% in dollars Chain Stores, $840M – down 5% in units and flat in dollars

Categories   

Apparel, $1.5B – up 3% in units and up 3% in dollars Accessories, $1.1B - up 1% in units and up 6% in dollars Equipment, $841M - up 1% in units and flat in dollars

Source: *SIA RetailTRAK™ produced by Leisure Trends Group, August to March 2013 – Carryover Included

MARKET OVERVIEW

TOTAL SNOW SPORTS MARKET – EQUIPMENT, APPAREL AND ACCESSORIES IN ALL CHANNELS Inventories: end

Finished the 2012/2013 season with $584M in inventory, just 2% higher than 2011/2012 but 29% higher than 2010/2011. Equipment inventories, at $258 were 15% higher than season’s 2011/2012.

Carryover:

All carryover sales up 63%, specialty equipment margins down 2% avg. 43.8% (38% for equipment)

Weather:

On Dec 25, 2012 (51% coverage), snow continued through April

Consumers:

Slow economic recovery continues, problems remaining include high unemployment and underemployment, stagnant wages, and lack of opportunity for younger workers (unemployment under 25 over 20%).

STATE OF THE SNOW SPORTS MARKET

Dollars Sold by Category in all Snow Sports Channels 2009/2010 - 2012/2013

$1,400,000,000 $1,200,000,000

Dollars Sold

$1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0

Alpine Ski Equipment

Nordic Ski Equipment

Telemark Randonee/ Snowboard Adjustable Ski AT Ski Equipment Poles Equipment Equipment 2009/2010 $442,146,89 $42,528,501 $5,558,470 $11,400,974 $292,879,33 $1,190,163

$1,033,152, $209,708,95 $467,924,05 $605,866,30

2010/2011 $524,615,59 $44,930,246 $4,793,642 $15,373,446 $296,795,47 $1,737,107

$1,141,835, $210,896,26 $521,288,34 $673,855,53

2011/2012 $515,270,47 $32,881,630 $4,031,245 $14,569,595 $274,171,68 $1,811,110

$1,161,431, $186,557,28 $486,739,76 $588,440,16

2012/2013 $528,431,07 $34,779,190 $3,661,072 $17,796,778 $254,527,88 $1,916,614

$1,201,377, $179,037,85 $517,312,45 $617,749,64

Source: SIA RetailTRAK™ data produced by Leisure Trends May 2013. carryover included

Alpine Apparel

Snowboard Apparel

Equipment Accessories

Apparel Accessories

STATE OF THE SNOW SPORTS MARKET $ Sales by Channel 2009/2010 - 2012/2013 $800,000,000

$700,000,000

$600,000,000

Diollars Sold

$500,000,000

$400,000,000

$300,000,000

$200,000,000

$100,000,000

$0

Equipment

2009/2010

$94,528,855

Apparel Chain $387,309,536

Accessories

Equipment

$284,790,146

$133,856,832

Apparel Internet $302,354,025

Accessories

Equipment

$161,610,998

$567,318,652

Apparel Specialty $603,844,352

2010/2011

$95,298,565

$440,452,619

$311,286,911

$141,741,147

$330,653,109

$179,857,697

$651,205,798

$646,481,692

$703,999,269

2011/2012

$68,604,823

$408,115,201

$268,747,735

$160,794,934

$367,949,566

$204,178,683

$613,335,973

$638,991,886

$602,253,511

2012/2013

$60,520,467

$410,136,746

$274,875,254

$174,398,852

$414,421,817

$221,271,116

$606,193,302

$636,570,276

$638,915,728


Accessories $627,389,210

STATE OF THE SNOW SPORTS MARKET Unit Sales by Channel 2009/2010 - 2012/2013 25,000,000

20,000,000

Units Sold

15,000,000

10,000,000

5,000,000

0

Equipment

2009/2010

742,945

Apparel Chain 4,944,888

Accessories

Equipment

11,065,899

699,648

Apparel Internet 2,796,695

Accessories

Equipment

3,762,267

2,824,868

Apparel Specialty 4,893,902

2010/2011

655,974

5,430,038

11,608,134

656,382

2,929,323

4,094,802

2,980,029

5,133,561

20,043,566

2011/2012

459,804

4,743,705

9,198,800

722,449

3,269,146

4,528,417

2,718,418

5,091,540

16,090,325

2012/2013

424,438

4,813,019

8,448,579

787,762

3,716,753

4,726,866

2,720,928

4,994,442

16,951,168


Accessories 18,914,361

MARKET OVERVIEW

SPECIALTY REGIONAL SALES

Units Sold

Dollars Sold

Regional Specialty Measures 2009/2010

2010/2011

2011/2012

2012/2013

2009/2010

2010/2011

2011/2012

2012/2013

Midwest

5,307,200

4,799,583

4,123,211

4,248,198

$359,477,814

$328,307,772

$309,058,152

$319,151,056

West

9,398,447

10,543,971

9,092,957

9,716,276

$641,831,501

$760,667,206

$721,493,096

$756,946,891

Northeast

6,505,761

7,498,781

6,142,759

6,131,590

$478,751,613

$577,433,113

$516,762,898

$504,512,183

South

5,421,723

5,314,822

4,541,356

4,570,473

$318,491,269

$335,278,668

$307,267,235

$301,069,157

All Regions

26,633,131

28,157,156

23,900,283

24,666,537

$1,798,552,196

$2,001,686,759

$1,854,581,381

$1,881,679,287


STATE OF THE SNOW SPORTS MARKET Dollar Sales by Month 2009/2010 - 2012/2013 $1,200,000,000

$1,000,000,000

Dollars Sold

$800,000,000

$600,000,000

$400,000,000

$200,000,000

$0

October

November

December

January

February

March

2009/2010

August September $257,678,088

$320,213,338

$382,661,687

$1,007,502,776

$475,826,909

$439,885,729

$279,234,080

2010/2011

$279,281,501

$283,860,655

$517,407,254

$1,155,916,422

$543,137,884

$424,161,778

$297,211,314

2011/2012

$306,755,692

$325,734,002

$546,974,947

$983,779,785

$459,750,647

$422,230,289

$287,746,950

2012/2013

$304,435,479

$311,108,045

$476,809,545

$999,159,277

$548,302,642

$456,449,470

$341,039,101


MARKET OVERVIEW INVENTORY $ TRENDS

Inventory Dollars on March 31, 2009 - March 31, 2013 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0

Alpine Ski Equipment

Nordic Ski Equipment

Telemark Ski Equipment

Randonee/AT Ski Equipment

2009/2010

2010/2011

Snowboard Equipment

2011/2012

Alpine Apparel

2012/2013


Snowboard Apparel

Equipment Accessories

Apparel Accessories

SNOW SPORTS PARTICIPANTS

RESORT VISITS 1996 - 2013 Skier/Rider Visits from NSAA Kottke End of Season Report 1997 - 2013 62 60 58

Millions of Visits

56 54 52 50 48 46 44

Source: NSAA Kottke End of Season Survey 1997 - 2013

SNOW SPORTS PARTICIPATION TRENDS BY DISCIPLINE 14,000

Number of Participants (000's)

12,000

10,000

8,000

6,000

4,000

2,000

0 2008/2009 Season 2009/2010 Season 2010/2011 Season 2011/2012 Season 2012/2013 Season

Alpine Ski

Snowboard

10,346 10,919 11,504 10,201 8,243

7,159 7,421 8,196 7,579 7,351

Cross Country Ski 3,848 4,157 4,530 4,318 3,307

Freeski

Snowshoe

Telemark Ski

2,711 2,950 3,647 3,641 5,357

4,922 3,431 3,823 4,111 4,029

1,435 1,482 1,821 2,099 2,766

SIA/Physical Activity Council 2013 Participation Study. ALL RIGHTS RESERVED.

12

ALPINE SKI PARTICIPANT PROFILE Total Alpine Ski Participation

8,243,000 (▼19.2%) 2% are ages 6-17, 57% are between 18-44, 16% are 45-64 and 2% are 65+

Age Total Alpine and Freeski Ski Participation Difference between alpine and free? Alpine Gender

.

11,355,000 (▼ 4%) Self-identification with the discipline 60% Male, 40% Female

% alpine skiers with Household Income >$75k

63%

% of Core Alpine Skiers with Household Incomes >$100K

45%

Bachelor’s Degree or Higher

56%

States with the Most Alpine Ski Participants % of Alpine Skiers that also Ride a Snowboard

CA, NY, CO, TX, MN 17%

Avg. Price paid for Flat Skis (bindings sold separately) at a Specialty Shop

$420.24

Avg. Price paid for Ski Systems at a Specialty Shop

$426.31

Avg. Price paid for Alpine Boots at a Specialty Shop

$320.98

Avg. Number of Days Alpine Skiing in 2012/2013

7.6


13

FREESKI PARTICIPANT PROFILE Total Freeski Participation Age

5,357,000 (▲47%) 23% under 17, 50% between 18 and 34, 27% over age 35

Total Alpine and Freeski Ski Participation Difference between alpine and free? Freeski Gender

.

11,355,000 (▼ 4%) Self-identification with the discipline 64% Male, 36% Female

% freeskier with Household Income >$75k

60%

Freeskiers w/ Bachelor’s Degree or Higher

49%

Percentage of Freeskiers of Asian/Pacific Island Decent

15%

Percentage of Freeskiers of Hispanic Decent

15%

Percentage of Freeskiers of African American/Black Decent

18%

Regions with the Most Freeskiers Percent of freeskier who also Alpine Ski

Mid-Atlantic (25%) and Pacific (21%) 42%

Avg. Price paid at Specialty for Twin-Tip Skis

$420.74

Avg. Number of Days Freeskiing in 2012/2013

9.8


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SNOWBOARD PARTICIPANT PROFILE Total Snowboard Participation Age Gender Bachelor’s Degree or Higher

7,351,000 (▼3%) 29% are under 17, 51% ages 18-34, 19% between 35 and 54 and only 1% over age 55

67% Male, 33% Female 42%

Avg. Price paid at Specialty for a Snowboard

$307.96

Avg. Price paid at Specialty for Snowboard Boots

$160.29

Avg. Price paid at Specialty for a Snowboard Bindings

$148.22

States with the Most Snowboarders

CA, NY, WA, CO, PA

Average Number of Days Riding

11.3

Percentage of Riders who also Alpine Ski

19%

Percentage of Snowboarders of Asian/Pacific Island Decent

10%

Percentage of Snowboarders of Hispanic Decent

9%

Percentage of Snowboarders of African American/Black Decent

10%

Household Income Above $75K per Year

48%


15

CROSS COUNTRY PARTICIPANT PROFILE Total Cross Country Ski Participation Age Gender

3,307,000 (▼23%) 33% are under age 24, 42% are between 25 and 44, 20% ages 45-64 and 5% ages 65+ 60% Male, 40% Female

% with Household Income >$75k

49%

Bachelor’s Degree or Higher

59%

% of XC Skiers that also Alpine Ski

41%

Where XC Skiers Participate

Public Nordic Centers

Avg. Price paid for XC Skis at a Specialty Shop

$170.43

Avg. Price paid for XC Boots at a Specialty Shop

$119.37

Avg. Number of Days XC Skiing in 2012/2013 % of XC Skiers who are very interested in the Winter Olympics

9.4 54%


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THE GENERATIONS OF SNOW SPORTS GEN Y (1986 – 2000) • • • •

•

40% of all snow sports participants are part of Gen Y (Baby Boomers down to