US footwear sector's unit sales, revenue declined YoY in Q1 2022: NPD

In addition to the missing additional income from stimulus money, which is forcing some consumers to make tough choices, inflation fears may drive some of the softness in the footwear industry this year, according to market research and data analytics firm The NPD Group.

However, there is also a larger trend at play: sales for some of the top footwear brands have softened, versus last year, and underperforming compared to the rest of the market.

There is a lot of movement taking place in the footwear industry, particularly in the athletic space, as up-and-coming brands and new styles and technologies join the market. We could be seeing the beginnings of a seismic shift in the industry, NPD said in a press release.

Revenue from women’s footwear in Q1 increased by 4 per cent, men’s declined 6 per cent and children’s fell by 12 per cent.

The average selling price (ASP) for women’s footwear increased more than other categories, which fueled its revenue increase. The women’s market also benefited from improved fashion footwear sales, while the men’s and children’s markets were more reliant on sport leisure footwear, which experienced softer sales.

Overall, sport leisure is the largest category in the footwear industry. Revenue in this category declined in the mid-teens in Q1, with units down in the high teens and average selling prices higher by mid-single digits.

Within this category, retro-style footwear revenue fell due to weakness from Nike, Jordan and Adidas. Sport slides were down by 20 per cent and skate shoe revenue decreased by low single digits.

Nike’s sport leisure sales declined by about 25 per cent, while Jordan and Adidas dropped in the mid-teens. New Balance grew by about 25 per cent, while Puma, Skechers, Converse and Vans all declined in this category.

Sales revenue from fashion footwear, including dress, casual and slippers, grew by 11 per cent, as unit sales fell by 11 per cent. The only fashion segment to post unit sales growth was slippers, with sales rising across all wearers.

Dress shoes accounted for over two-thirds of the fashion category’s growth, but the segment remained soft compared to 2019.

Within the fashion category, revenue from private label brands collectively declined slightly. Sales of Crocs grew 9 per cent and Steve Madden grew 57 per cent, due to rising sales for sandals.

Sale of Skechers declined by 14 per cent. Clarks, Birkenstock and UGG each declined in the mid-single digits.   

Performance footwear outperformed the overall footwear market in Q1. While revenue was up slightly, average price also declined slightly, a major slowdown from the 2021 rate. Unit sales increased in the low single-digits.

Running shoes captured the largest portion of performance footwear sales and experienced a slight revenue decline compared to Q1 2021. Walking, soccer/football, and training shoes all had solid growth for the quarter. Basketball continued its freefall, with weakness from Nike, the market share leader.

Nike performance footwear declined about 25 per cent, with weakness in virtually every category. Adidas performance sales gained in the mid-teens. Skechers improved by more than a third. Brooks had a slight decline, while Under Armour grew in the high single digits.

New Balance declined about 20 per cent and ASICS fell by mid-single digits. Hoka One One, On, Puma, and Saucony all had good growth for the quarter.

Outdoor footwear revenue declined by mid-single digits and unit sales declined by high single digits, while average selling price grew by mid-single digits.

Revenue from hiking, trekking, and mountaineering shoes declined by low single digits, while boots including hunting and fishing boots, dropped by mid-single digits.

UGG outdoor footwear revenue declined by mid-single digits, while Columbia was down slightly, and Merrell declined by mid-teen digits. On the other hand, Timberland, Keen, Skechers, and private label brands had nice growth.

Work, occupational, and safety footwear revenue grew by 10 per cent. Sneaker silhouettes accounted for almost 90 per cent of the growth, followed by shoes. Boots declined in the low single-digits, but remained up in the teens, versus 2019.

Private-label sales collectively grew in the mid-single-digits, and Skechers and Wolverine both increased slightly. Reebok sales more than doubled, and Timberland Pro grew in the low teens.

Fibre2Fashion News Desk (DS)