Mother Nature was no friend of the 2011-2012 winter sports season in the U.S. Total retail dollar sales, as collected from point-of-sales systems of more than 1,200 snowsports retailers by Lesisure Trends Group, declined 3.8% tp $3.4 billion for the Aug. to Mar. 31 period. After rising by nearly 8% in the Aug-Oct preseason window and 1.8% in Nov, unit sales declined by double-digits in three of the season’s final four month, capped by a 15% declined in March.  Total seasonal units dipped by 7.2 million, or 12.3% as snows never materialized across much of the U.S. Additionally, the National Ski Areas Association (NSAA) reported that Skier/rider visits fell 17% to 51 million across all U.S. snowsports during the season.

Meanwhile, the SIA reports that end of season inventory levels are having a significant impact on the sell-in for the 2012-13 season.  At MAr. 31, were 30% more units in specialty inventories overall.  All categories had bloated inventory levels in specialty doors at season end from equipment (+41%) and apparel (+46%) to accessories (+27% versus the end of the 2010-11 season.

May 17, 2012

Net income at the 444-door action specialty retailer rose 140% to $4,527,000 from $1,886,000 for the period ended Apr. 28. Revenues increased 23% to $129,899,000 from $105,851,00 as comparable stores sales jump 12.9%.

ZUMZ, which is opening 50 stores this year is currently forcasting EPS of $0.04-.06 in the second quarter ended Jul. 28. Q2 revenues are expected in the $128-130 million range with comps in the mid-single digits. Zumiez shares fell 4.7% or $1.75, to close at $25.16.

SIA Releases March RetailTRAK™ Data

SnowSports Industries America (SIA) and The Leisure Trends Group have released the 2011/2012 end of season numbers. The snow sports market brought in $3.4B this season, $135M less than last season.

SIA Members can access the end of season data here.

This season started strong with plenty of momentum leftover from the record-breaking 2010/2011 season and the promise of another epic winter of La Niña snow, but the repeat never materialized. In fact, the 2011/2012 season may go down as one of the worst on record. December brought sparse snow across the country and the conditions didn’t improve until the third week of January. The lack of snow put a significant dent in sales and in snow sports participation; the National Ski Areas Association (NSAA) announced that skier/riders visits were down 17% across U.S. snow sports resorts this season to 51M skiers and riders on the slopes. Resorts brought in fewer visitors and less revenue and visitors bought less equipment, apparel and accessories in the snow sports market.

End of season inventory levels are having a significant impact on sell-in for next season. Retailers were not able to sell through the gear they purchased from suppliers this season, which drove up costs and reduced cash flow used to purchase product for the 2012/2013 season. At season’s end there were 30% more units in specialty inventories overall. In fact, snow sports specialty retailers ended this season with 41% more equipment units, 46% more apparel units and 27% more accessories units sitting in inventory than at the end of the 2010/2011 season. Suppliers are reporting significant declines in sell-in for next season as retailers struggled to move this season’s gear and manage the costs of carrying unexpected inventory that will surely result in lower margins and fewer profits until the snow begins falling in the 2012/2013 season.

For more information about snow sports retail sales and other SIA Research products, please contact Kelly Davis, SIA’s Director of Research at KDavis@snowsports.org.

CamelBak Delivers Boost to Parent’s Q1 Results…

Compass Diversified Holdings Inc. (CODI) re- ported sales at its three sporting goods compa- nies grew nearly 12 percent in the first quarter due largely to continued double-digit growth at

CamelBak, which it acquired last August. Sporting goods brands repre- sented 46 percent of Q1 sales for the company but delivered more than 100 percent of operating profit for the period.

Compass management said that while they remain cautious, they have seen no evidence thus far of weaker demand in Europe at CamelBak, Fox Factory or Liberty Safe.

Sales at CamelBak increased 23.2 percent to $40.2 million in the first quar- ter as sales of its Antidote reservoir and its new Eddy bottles offset a decline in lower margin gloves and other products to the military. Sales of Hydration Systems and Bottles represented approximately 84 percent of gross sales fin the first quarter compared to 74 percent for the same period in 2011. Mili- tary sales represented approximately 35 percent of gross sales for the quar- ter compared to 39 percent for the comparable period in 2011. CamelBak gross margin increased 250 basis points to 45.2 percent of sales due to a more favorable sales mix, including the decline in lower-margin glove sales. SG&A declined 120 basis points to 21.2 percent of sales. Operating income was approximately $7.1 million, a pro forma increase of 73.7 percent. Cam- elBak represented 17.3 percent of CODI sales in the first quarter but deliv- ered 61.5 percent of operating profit for the period.

Compass management said that the CamelBak increase was “was pretty broad-based,” with pack performance and bottle performance both ahead of expectations. Company CEO Alan Offenberg offered that pack performance probably exceeded expectations more so than the bottles. He also said that demand for CamelBak products, their product positioning and the their dis- tribution positions the brand to continue to have a strong year. “I think that the strength in the packs and the bottles are representative of the business we see as moving forward,” said Offenberg. “I think the gloves is a smaller component of the business and will always have probably a bit more lumpier profile in terms of its business being up or being down. But I think that that — we would expect the mix of business as you think about bottles, packs and gloves to — I think the first quarter is fairly representative of how we see the balance of the year.”

The SportsOneSource Group is reporting that overall outdoor product retailsales for the fiscal month of March rose 1.1 percent to $786.7 million in the channels tracked by SportScanInfo for OIA VantagePoint. Outdoor Footwear posted a low- to mid -single-digit decline for the month, while Outdoor Apparel and Outdoor Hardgoods both posted low- to mid -single-digit increases for the period ended March 31, 2012.

“February stole some thunder from March this year as an early spring in most parts of the country pulled sales of warm weather gear and softgoods into February,” explained James Hartford, chief market analyst for The SportsOneSource Group, which manages the OIA VantagePoint platform. Outdoor Footwear sales declined 3.2 percent to $159.9 million in March. OutdoorFootwear sales grew 1.9 percent in the outdoor specialty channels, representedby the combination of the outdoor chain retailer and independent outdoor specialty channels. The trend for the overall business saw a sequential improvement from the February 2012 trends. Trends in the specialty channel stayed positive but slipped versus the February trend for the channel.

Outdoor Apparel sales increased 3.2 percent to $245.4 million in fiscal March. Sales growth in Outdoor Apparel was strongest in the Internet channel, where sales increased more than 38 percent for the month, and the independent outdoor specialty channel increased nearly 10 percent for the five-week period.

As with Outdoor Footwear, the March trend for the overall Outdoor Apparel market accelerated versus the February and year-to-date trend, but the specialty channel trend moderated from a more robust February trend. Outdoor Hardgoods sales were up 1.6 percent to $381.1 million in the channels tracked by SportScanInfo for OIA VantagePoint in March, matching the February growth trend. The Outdoor Hardgoods business was up against a strong performance in March 2011 and also saw some of its usual March Paddlesports momentum move into February this year as warmer weather encouraged earlier boat sales.

Outdoor Industry Association will release the full March report on Friday, April 13, 2012, including category, trade channel and other trend analysis. For more information on OIA VantagePoint, contact The SportsOneSource Group at 303.997.7302 or visit www.OIAVantagePoint.com.