SGMA President Cove Says Industry Continues Upward Growth

Footwear Sales Flat, But Average Price Up

Sporting Goods Manufacturers Association (SGMA) President Tom Cove during his state of the industry address this week said that the U.S. sporting goods industry is a $66B business at wholesale and its growth rate is greater than the national average. Cove said the industry, which includes equipment, apparel and footwear, grew 5.8% in ’06 while the U.S. GDP grew just 3.6%. SGMA expects the sporting goods industry to grow 5-6% in ’07. The sports apparel category grew 8% last year to $28.8B, while wholesale footwear shipments were up 3% to $12.3B. Footwear sales were flat in ’06, but average prices increased around 3%. Exercise equipment sales to consumers were up 5% and institution sales jumped 6%. Tennis sales rose 4% to $245M, marking the third straight year with an increase. The chart below shows a three-year trend, with a projection for ’07, on sales of sports equipment, apparel and footwear.

TREND OF MANUFACTURERS' SALES OF SPORTING GOODS
	MILLIONS OF WHOLESALE DOLLARS, U.S. ONLY
CATEGORY	'04	'05	'06	'07 (proj.)
Total Sports Equipment	$14,712	$18,718	$20,624	$21,739
Total Exercise Equipment	$4,176	$4,428	$4,662	$4,877
Sports Apparel	$23,943	$26,648	$28,822	$30,695
Athletic Footwear	$10,027	$11,957	$12,327	$13,067
Total Equipment, Apparel and Footwear	$52,858	$61,751	$66,435	$70,378

HOT SPOTS: The SGMA ‘07 State of the Industry Survey, which polled 60,000 households, found that lacrosse will be the hottest sport for sales growth in ’07, due primarily to its rapid participation growth, despite the market remaining relatively small (SGMA).

HOTTEST SPORTS FOR SALES GROWTH IN 'O7
(Respondents limited to three answers)
SPORT	%
Lacrosse	31%
Fitness Walking	22%
Aerobic Training	20%
Soccer	20%
Yoga/Pilates	20%
Running	18%
Fitness Cycling	18%
Football	15%
Basketball	15%
Golf	11%
Strength Training	11%
Skateboarding	11%